Financial Statement Components

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Cash	$	22,956	$	303,373
Money market funds	23,118		25,654


Commercial paper	9,995		950

Total cash and cash equivalents	$	56,069	$	329,977

Inventories, net

Inventories consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Raw materials	$	3,066	$	5,866
Work-in-process	4,081		1,171
Finished goods	2,006		3,305
Total inventories, net	$	9,153	$	10,342

The Company’s inventory write-down (primarily due to obsolescence, lower of cost or market assessment, and other adjustments) was $4.0 million and $8.8 million for the three and nine months ended September 30, 2022, respectively and $0.1 million and $1.6 million for the three and nine months ended September 30, 2021, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Prepaid expenses	$	11,223	$	14,651
Contract assets	18,402		9,907
Advance payments to vendors	6,343		1,810

Other receivables	4,128		2,827
Total prepaid expenses and other current assets	$	40,096	$	29,195

Property and Equipment

Property and equipment consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Machinery and equipment	$	11,315	$	7,694
Computer hardware and software	5,317		2,854

Leasehold improvements	885		869
Vehicles, including demonstration fleet	2,618		2,421

Furniture and fixtures	850		272

Construction in progress	9,699		3,677
Total property and equipment	30,684		17,787
Accumulated depreciation and amortization	(9,038)		(6,778)
Total property and equipment, net	$	21,646	$	11,009

Property and equipment capitalized under finance lease (capital lease prior to adoption of ASC 842) were not material. Construction in progress increased due to increased capital expenditure related to tooling and other capital projects to enable us to achieve series production readiness.

Depreciation and amortization expense associated with property and equipment was $1.1 million and $2.8 million for the three and nine months ended September 30, 2022, respectively, and $0.7 million and $2.1 million for the three and nine months ended September 30, 2021, respectively.

Intangible Assets

The following table summarizes the activity in the Company’s intangible assets (in thousands):


	September 30, 2022		December 31, 2021
Beginning of the period	$	2,424	$	—
Additions	21,890		2,650
Amortization	(1,546)		(226)
End of the period	$	22,768	$	2,424

The components of intangible assets were as follows (in thousands):


	September 30, 2022							December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Period (Years)
Customer relationships	$	3,730	$	(460)	$	3,270	4.6	$	780	$	(33)	$	747	9.6
Customer backlog	650		(195)		455		1.2	—		—		—		—
Tradename	620		(182)		438		3.5	120		(120)		—		—
Assembled workforce	130		(130)		—		—	—		—		—		—
Developed technology	11,910		(805)		11,105		7.8	1,750		(73)		1,677		9.6
IPR&D	7,500		—		7,500		—	—		—		—		—
Total intangible assets	$	24,540	$	(1,772)	$	22,768	6.8	$	2,650	$	(226)	$	2,424	9.6

Amortization expense related to intangible assets was $0.7 million and $1.5 million for the three and nine months ended September 30, 2022, respectively. Amortization expense related to intangible assets was $0.2 million and $0.2 million for the three and nine months ended September 30, 2021, respectively.

As of September 30, 2022, the expected future amortization expense for intangible assets was as follows (in thousands):


Period	Expected Future Amortization Expense
2022 (remaining three months)	$	691
2023	2,730
2024	2,373
2025	2,373
2026	1,726
Thereafter	5,375
IPR&D	7,500
Total	$	22,768

Goodwill

The following table outlines changes to the carrying amount of goodwill by the Company’s reportable segments (in thousands):


	Autonomy Solutions		ATS		Total
Balance as of December 31, 2021	$	687	$	2,423	$	3,110
Adjustment to goodwill related to Optogration acquisition in 2021	—		(165)		(165)
Acquired goodwill related to Freedom Photonics in 2022	—		15,885		15,885
Balance as of September 30, 2022	$	687	$	18,143	$	18,830

Other Non-Current Assets

Other non-current assets consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Security deposits	$	1,136	$	1,187
Non-marketable equity investment	10,002		10,002
Advance payment for capital projects	27,526		—

Contract assets	1,427		—
Other non-current assets	2,890		1,266
Total other non-current assets	$	42,981	$	12,455

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):



	September 30, 2022		December 31, 2021
Accrued compensation and benefits	$	14,876	$	9,899
Accrued expenses	6,040		6,727
Warranty reserves	316		1,798
Contract liabilities	3,463		898
Accrued interest payable	2,297		316
Contract losses	4,250		115


Other	590		91
Total accrued and other current liabilities	$	31,832	$	19,844