Balance Sheet Components

6 Months Ended

Jun. 30, 2024

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):

	June 30,		December 31,
	2024		2023
Raw materials	$	105	$	189
Work-in-process		6,754		6,724
Finished goods		1,128		1,478
Total inventory	$	7,987	$	8,391

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	June 30,		December 31,
	2024		2023
Payroll-related expenses	$	1,093	$	3,347
Inventory		259		317
Other		408		672
Total accrued liabilities	$	1,760	$	4,336

Deferred Revenue

During the year ended December 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 (RAD-Hard 1). 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. The total transaction price of $6.5 million was allocated to the single performance obligation.

The Company recognizes revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the second quarter of 2021 over the contract period. This method depicts performance under the contract and requires the Company to make estimates about the future costs expected to be incurred to perform under the contact, including labor and material costs.

The Company has recognized $0.3 million and $0.5 million in revenue for the three and six months ended June 30, 2024, respectively, and $6.2 million in revenue since inception of the contractual agreements. The Company expects to recognize the remaining $0.3 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ending December 31, 2024.