
	March 31,		December 31,
	2025		2024
Manufacturing equipment	$	14,814	$	14,199
Computer and network equipment		608		602
Furniture and fixtures		113		113
Construction in Progress		144		—
Leasehold improvements		1,476		1,476
Total property and equipment, gross		17,155		16,390
Less: accumulated depreciation		(13,484)		(13,170)
Total property and equipment, net	$	3,671	$	3,220

Depreciation and amortization expense during the three months ended March 31, 2025 and 2024 was $0.4 million and $0.4 million, respectively.

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

Amortization expense for the intangible assets was $0.4 million and zero for the three months ended March 31, 2025 and 2024, respectively.

In March 2025, the Company renewed a contractual arrangement with a customer for the development of a strategic radiation hardened (“RAD-Hard”) field programmable gate array product. 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 first quarter of 2025. As of March 31, 2025, the Company has billed $0.2 million for the performance under the agreement and has recognized $0.1 million in revenue for the three months ended March 31, 2025, with the $0.1 million difference 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.

The Company concluded this contractual arrangement represents 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.

In January 2025, the Company executed a contractual arrangement with a customer to provide engineering services supporting the customer’s development that uses capabilities of MRAM for in-memory computing. The total consideration in the arrangement is $4.1 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 first quarter of 2025. As of March 31, 2025, the Company has billed $2.2 million for the performance under the agreement and has recognized $1.2 million in revenue for the three months ended March 31, 2025, with the $1.0 difference in deferred revenue. The Company expects to recognize the remaining $1.0 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.

The Company concluded that this contractual arrangement represents one arrangement and assessed the nature of the promises made to the customer to determine whether the performance obligations were distinct. The Company determined that the engineering services are not separately identifiable from the promised development services, as the engineering services are highly interrelated with, and dependent upon, the overall development services over the life of the contract. Accordingly, the Company concluded that the engineering services are not distinct within the context of the contract and, therefore, should be combined with the other promised services into a single performance obligation.