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Financial Statement Components
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Components Financial Statement Components
Cash and Cash Equivalents
Cash and cash equivalents consisted of the following (in thousands):
 June 30, 2023December 31, 2022
Cash$33,598 $27,496 
Money market funds55,517 42,056 
Total cash and cash equivalents$89,115 $69,552 
Inventory
Inventory comprised of the following (in thousands):
 June 30, 2023December 31, 2022
Raw materials$11,461 $3,614 
Work-in-process3,190 2,329 
Finished goods5,666 2,849 
Total inventories, net$20,317 $8,792 
The Company’s inventory write-offs and write-downs (primarily due to obsolescence, lower of cost or market assessment, and other adjustments) were $8.0 million and $13.4 million for the three and six months ended June 30, 2023 and $3.4 million and $4.8 million for the three and six months ended June 30, 2022, respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 June 30, 2023December 31, 2022
Prepaid expenses$10,942 $15,653 
Contract assets8,038 15,395 
Advance payments to vendors7,031 7,919 
Other receivables3,938 5,236 
Total prepaid expenses and other current assets$29,949 $44,203 
Property and Equipment
Property and equipment consisted of the following (in thousands):
 June 30, 2023December 31, 2022
Machinery and equipment$55,423 $14,047 
Computer hardware and software8,431 6,797 
Land1,001 1,001 
Leasehold improvements19,139 885 
Vehicles, including demonstration fleet3,353 3,222 
Furniture and fixtures818 818 
Construction in progress6,508 13,642 
Total property and equipment94,673 40,412 
Accumulated depreciation and amortization(15,529)(10,152)
Total property and equipment, net$79,144 $30,260 
Property and equipment capitalized under finance lease (capital lease prior to adoption of ASC 842) were not material.
Depreciation and amortization expense associated with property and equipment was $3.5 million and $5.4 million for the three and six months ended June 30, 2023 and $0.9 million and $1.7 million for the three and six months ended June 30, 2022, respectively.
The Company continually evaluates opportunities for optimizing its manufacturing processes and product design. During the second quarter of 2023, the Company’s management began evaluating certain options for changing sourcing of certain sub-assemblies and components which may help reduce future per unit sensor manufacturing costs. If these options are executed, certain property, plant & equipment items presently owned by the Company may no longer be needed for their original intended use. The impacted asset group was determined to be recoverable as of June 30, 2023. Given uncertainty with these strategic options as of June 30, 2023, the estimated useful lives of said assets were not revised during the second quarter of 2023. Subsequent to June 30, 2023, the Company’s management finalized and committed to a plan to proceed with change in its sourcing strategy. The Company is in the process of re-evaluating the useful lives of certain long-lived assets within the impacted asset group. Finalization of this analysis may result in the Company needing to record depreciation for the impacted assets over an accelerated period.
Intangible Assets
The following table summarizes the activity in the Company’s intangible assets (in thousands):
June 30, 2023December 31, 2022
Beginning of the period$22,077 $2,424 
Additions8,240 21,890 
Amortization expense(2,160)(2,237)
End of the period$28,157 $22,077 
The components of intangible assets were as follows (in thousands):
June 30, 2023December 31, 2022
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 $(1,071)$2,659 4.0$3,730 $(664)$3,066 4.4
Customer backlog650 (488)162 0.4650 (292)358 0.9
Tradename620 (276)344 2.8620 (214)406 3.3
Assembled workforce130 (130)— —130 (130)— —
Developed technology20,150 (2,658)17,492 6.111,910 (1,163)10,747 7.5
IPR&D7,500 — 7,500 —7,500 — 7,500 —
Total intangible assets$32,780 $(4,623)$28,157 5.7$24,540 $(2,463)$22,077 6.6
Amortization expense related to intangible assets was $1.1 million and $2.2 million for the three and six months ended June 30, 2023 and $0.8 million and $0.9 million for the three and six months ended June 30, 2022, respectively.
As of June 30, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):
PeriodExpected Future
Amortization Expense
2023 (remaining six months)$2,163 
20244,001 
20254,001 
20263,354 
20273,138 
Thereafter4,000 
IPR&D7,500 
Total$28,157 
Goodwill
The carrying amount of goodwill allocated to the Company’s reportable segments was as follows (in thousands):
 Autonomy SolutionsATSTotal
Balance as of December 31, 2022
$687 $18,129 $18,816 
Goodwill related to acquisition of Seagate’s lidar business (see Note 3)1,063 — 1,063 
Balance as of June 30, 2023
$1,750 $18,129 $19,879 
Other Non-Current Assets
Other non-current assets consisted of the following (in thousands):
 June 30, 2023December 31, 2022
Security deposits$2,386 $5,495 
Non-marketable equity investment4,000 4,000 
Advance payment for capital projects— 27,683 
Contract assets7,513 2,575 
Other non-current assets2,403 591 
Total other non-current assets$16,302 $40,344 
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands): 
 June 30, 2023December 31, 2022
Accrued compensation and benefits$26,847 $16,682 
Accrued expenses21,853 22,358 
Contract losses7,580 7,526 
Warranty reserves4,734 3,584 
Contract liabilities4,143 1,993 
Accrued interest payable and other liabilities882 819 
Total accrued and other current liabilities$66,039 $52,962 
During the three and six months ended June 30, 2023, the Company recorded $4.8 million and $7.6 million, respectively, and $5.1 million and $5.3 million for the three and six months ended June 30, 2022, respectively, in cost of sales (services) estimated losses expected to be incurred on NRE projects with certain customers. The estimated contract losses recorded were primarily a result of (a) changes in estimates related to costs expected to be incurred for contractual milestones based on actual experience on similar projects and (b) changes in scope of project deliverables agreed upon with the respective customers during the year.