Balance Sheet Components

6 Months Ended

Jun. 30, 2024

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

2. Balance Sheet Components

Inventory

Inventory consists of the following (in thousands):

	June 30,		December 31,
	2024		2023
Work in process	$	7,984	$	4,795
Finished goods		4,275		4,723
Total inventory	$	12,259	$	9,518

Property and Equipment, net

Property and equipment, net consists of the following (in thousands):

	June 30,			December 31,
	2024			2023
Machinery, computer equipment and software	$	2,633		$	2,759
Leasehold improvements		94			94
Furniture		38			36
Total property and equipment		2,765			2,889
Less: accumulated depreciation		(2,361	)		(2,367	)
Total property and equipment, net	$	404		$	522

The Company recorded $0.1 million of depreciation expense for each of the three months ended June 30, 2024 and 2023, and $0.1 million and $0.2 for the six months ended June 30, 2024 and 2023, respectively.

Goodwill and Intangible assets, net

Goodwill is tested for impairment annually as of December 31 or more frequently on a reporting unit basis when events or changes in circumstances indicate that impairment may have occurred. The Company is not aware of any events or circumstances indicating impairment of goodwill for the six months ended June 30, 2024.

Changes in the carrying amount of goodwill for the six months ended June 30, 2024 are as follows (in thousands):

	Total
Goodwill at December 31, 2023	$	891
Adjustments		—
Goodwill at June 30, 2024	$	891

Intangible assets, except goodwill consist of the following (in thousands):

	June 30,
	2024
Acquired intellectual property	$	1,090
Less: accumulated amortization		(109	)
Total finite-lived intangible assets, net	$	981

The amortization expenses of intangible assets were $54,000 and nil for the six months ended June 30, 2024 and 2023, respectively.

Acquired intellectual property is amortized over 10 years of its useful life. As of June 30, 2024, expected amortization expense for the unamortized finite-lived intangible assets by years is as follows (in thousands):

Year Ending December 31,	Amount
Remainder of 2024	$	55
2025		109
2026		109
2027		109
2028		109
Thereafter		490
Total	$	981

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	June 30,		December 31,
	2024		2023
Payroll-related expenses	$	2,191	$	983
Engineering service		397		199
Security for the indemnification obligations (1)		300		—
Accrued warranty		158		180
Accrued inventory		116		401
Taxes payable		89		468
Professional fees		20		23
Other		45		68
Total accrued liabilities	$	3,316	$	2,322

(1) In July 2023, the Company acquired certain assets of Broadvis Corporation, including intellectual property and $0.3 million that was retained by the Company at closing as security for the indemnification obligations of Broadvis Corporation is expected to be released in January 2025, barring unforeseen circumstances.

Customer Deposits

Customer deposits represent payments received in advance of shipments and fluctuate depending on timing of customer pre-payments and product shipment. Customer deposits were $0.8 million and $1.4 million as of June 30, 2024 and December 31, 2023, respectively. The Company generally expects to recognize revenue from customer deposits during the three month period immediately following the balance sheet date. The Company recognized $0.8 million of revenue from the March 31, 2024 customer deposit balance during the three months ended June 30, 2024, and $1.4 million of revenue from the December 31, 2023 customer deposits balance during the three months ended March 31, 2024.