Depreciation expense during years ended December 31, 2024 and 2023 was $1.6 million and $1.2 million, respectively.

The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated (in thousands):

Amortization expense for intangible assets was $0.1 million and zero for the years ended December 31, 2024 and 2023, respectively.

The table below presents estimated future amortization expense for finite-lived intangible assets (in thousands):


As of December 31, 2024	Amount
2025	$	1,771
2026		1,622
2027		8
2028		8
Thereafter		7
Total	$	3,416

In the year ended December 31, 2024, the Company executed a contractual arrangement with a customer for the development of a strategic radiation hardened field programmable gate array product. The total consideration in the arrangement is $1.8 million. The Company is recognizing revenue related to the performance obligation 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 third quarter of 2024. As of and for the year ended December 31, 2024, the Company has billed $1.6 million for the performance under the agreement and has recognized $1.5 million in revenue for the year ended December 31, 2024, with the difference of $0.1 million recorded in deferred revenue. The Company expects to recognize the remaining $0.1 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ended December 31, 2025.

In the year ended December 31, 2024, the Company executed a contractual arrangement with a customer for the development of a strategic radiation hardened high-reliability eMRAM macro. The total consideration in the arrangement is $1.2 million. The Company is recognizing revenue related to the performance obligation 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 third quarter of 2024. As of and for the year ended December 31, 2024, the Company has billed $1.2 million for the performance under the agreement and has recognized $1.1 million in revenue, with the difference of $0.1 million in recorded in deferred revenue. The Company expects to recognize the remaining $0.1 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ended December 31, 2025.

In 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 interdependence 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 $0.7 million in revenue for the each of years ended December 31, 2024 and 2023, and $6.4 million in revenue since inception of the contractual agreements. Deferred revenue related to these agreements was $0.1 million and $0.3 million as of December 31, 2024 and 2023, respectively. The Company expects to recognize the remaining $0.1 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, 2025.