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Financial Statement Components
 9 Months Ended
Sep. 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):
 September 30, 2023December 31, 2022
Cash$40,791 $27,496 
Money market funds28,916 42,056 
U.S. treasury securities4,021 — 
U.S. agency and government sponsored securities
995 — 
Total cash and cash equivalents$74,723 $69,552 
Inventory
Inventory comprised of the following (in thousands):
 September 30, 2023December 31, 2022
Raw materials$8,846 $3,614 
Work-in-process3,656 2,329 
Finished goods4,196 2,849 
Total inventories, net$16,698 $8,792 
The Company’s inventory write-offs and write-downs primarily due to obsolescence due to change in product design, lower of cost or market assessment, and other adjustments were $3.9 million and $17.3 million for the three and nine months ended September 30, 2023 and $4.0 million and $8.8 million for the three and nine months ended September 30, 2022, respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 September 30, 2023December 31, 2022
Prepaid expenses$9,031 $15,653 
Contract assets15,302 15,395 
Advance payments to vendors2,109 7,919 
Other receivables2,947 5,236 
Total prepaid expenses and other current assets$29,389 $44,203 
Property and Equipment
Property and equipment consisted of the following (in thousands):
 September 30, 2023December 31, 2022
Machinery and equipment$59,495 $14,047 
Computer hardware and software8,777 6,797 
Land1,001 1,001 
Leasehold improvements20,539 885 
Vehicles, including demonstration fleet3,331 3,222 
Furniture and fixtures858 818 
Construction in progress4,891 13,642 
Total property and equipment98,892 40,412 
Accumulated depreciation and amortization(26,245)(10,152)
Total property and equipment, net$72,647 $30,260 
Property and equipment capitalized under finance lease were not material.
Depreciation and amortization expense associated with property and equipment was $10.8 million and $16.2 million for the three and nine months ended September 30, 2023 and $1.1 million and $2.8 million for the three and nine months ended September 30, 2022, respectively.
The Company continually evaluates opportunities for optimizing its manufacturing processes and product design. In the second quarter of 2023, the Company’s management began evaluating options for changing sourcing of certain sub-assemblies and components which is expected to reduce future per unit sensor manufacturing costs. In the third quarter of 2023, the Company finalized and committed to a plan to proceed with a change in its sourcing strategy. As a result, the Company has reduced the useful lives of the long-lived assets within the impacted asset group in line with when these assets are expected to be abandoned. The Company expects the transition to new suppliers to be completed in 2024. The reduction in the estimated useful lives of the impacted assets resulted in the Company recording $6.6 million of accelerated depreciation charges in the third quarter of 2023.
Intangible Assets
The following table summarizes the activity in the Company’s intangible assets (in thousands):
September 30, 2023December 31, 2022
Beginning of the period$22,077 $2,424 
Additions8,240 21,890 
Amortization expense(3,258)(2,237)
End of the period$27,059 $22,077 
The components of intangible assets were as follows (in thousands):
September 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 $(1,275)$2,455 3.8$3,730 $(664)$3,066 4.4
Customer backlog650 (586)64 0.2650 (292)358 0.9
Tradename620 (307)313 2.5620 (214)406 3.3
Assembled workforce130 (130)— —130 (130)— —
Developed technology20,150 (3,423)16,727 5.711,910 (1,163)10,747 7.5
IPR&D7,500 — 7,500 —7,500 — 7,500 —
Total intangible assets$32,780 $(5,721)$27,059 5.4$24,540 $(2,463)$22,077 6.6
Amortization expense related to intangible assets was $1.1 million and $3.3 million for the three and nine months ended September 30, 2023 and $0.7 million and $1.5 million for the three and nine months ended September 30, 2022, respectively.
As of September 30, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):
PeriodExpected Future
Amortization Expense
2023 (remaining three months)$1,065 
20244,001 
20254,001 
20263,354 
20273,138 
Thereafter4,000 
IPR&D7,500 
Total$27,059 
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 September 30, 2023
$1,750 $18,129 $19,879 
Other Non-Current Assets
Other non-current assets consisted of the following (in thousands):
 September 30, 2023December 31, 2022
Security deposits$2,359 $5,495 
Non-marketable equity investment (see Note 5 for additional information)
14,000 4,000 
Advance payment for capital projects— 27,683 
Deferred tax assets3,780 — 
Contract assets2,081 2,575 
Other non-current assets1,993 591 
Total other non-current assets$24,213 $40,344 
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands): 
 September 30, 2023December 31, 2022
Accrued compensation and benefits$19,463 $16,682 
Accrued expenses20,875 22,358 
Contract losses7,558 7,526 
Warranty reserves4,700 3,584 
Contract liabilities3,019 1,993 
Accrued interest payable and other liabilities2,874 819 
Total accrued and other current liabilities$58,489 $52,962 
During the three and nine months ended September 30, 2023, the Company recorded $3.9 million and $11.0 million, respectively, and $6.1 million and $10.6 million for the three and nine months ended September 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.