Balance Sheet Components

3 Months Ended

Mar. 31, 2021

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2021		2020
Raw materials	$	391	$	329
Work-in-process		4,779		4,910
Finished goods		188		482
Total inventory	$	5,358	$	5,721

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	March 31,		December 31,
	2021		2020
Payroll-related expenses	$	1,691	$	1,274
Inventory		236		416
Other		221		542
Total accrued liabilities	$	2,148	$	2,232

Deferred Revenue

In the three months ended March 31, 2021, the Company executed contractual arrangements with a customer for the development of a RAD-Hard product, consisting of a technology license, design license agreement and development subcontract. The Company does not share in the rights to future revenues or royalties. The total arrangements are for $6.5 million in consideration.

The Company concluded these contractual arrangements represent one arrangement and evaluated its promises to the customer and whether the performance obligations granted under the arrangement were distinct.  The licenses provided to the customer are not transferable, are of limited value without the promised development services, and the customer cannot benefit from the license agreements without the specific obligated services in the development subcontract, as there is strong interdependency between the licenses and the development subcontract. Accordingly, the Company determined the licenses were not distinct within the context of the contract and combined the license with other performance obligations.

As a result, the Company expects to recognize revenue related to the performance obligations over time and expects to begin recognizing revenue in the second quarter of 2021 over the performance obligation time period. No revenue was recorded during the three months ended March 31, 2021.

Under the agreements, we received a non-refundable, upfront payment of $3.0 million, which was recorded as deferred revenue, current, as of March 31, 2021, as the Company expects to recognize this to revenue within the next twelve months.