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Financial Statement Components
 12 Months Ended
Dec. 31, 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):
 December 31,
 20232022
Cash$35,659 $27,496 
Money market funds101,842 42,056 
Commercial paper497 — 
Corporate bonds1,097 — 
Total cash and cash equivalents$139,095 $69,552 
Inventory
Inventory consisted of the following (in thousands):
 December 31,
 20232022
Raw materials$5,614 $3,614 
Work-in-process2,521 2,329 
Finished goods4,061 2,849 
Total inventory$12,196 $8,792 
The Company’s inventory write-downs were $19.5 million, $12.2 million and $2.9 million during the years ended December 31, 2023, 2022 and 2021, respectively. The write-downs were primarily due to obsolescence charges as a result of change in product design, lower of cost or market assessment, yield losses, and other adjustments.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 December 31,
 20232022
Prepaid expenses$12,434 $15,653 
Contract assets14,132 15,395 
Advance payments to vendors3,038 7,919 
Other receivables3,346 5,236 
Total prepaid expenses and other current assets$32,950 $44,203 
Property and Equipment
Property and equipment consisted of the following (in thousands):
 December 31,
 20232022
Machinery and equipment$58,815 $14,047 
Computer hardware and software7,025 6,797 
Land1,001 1,001 
Leasehold improvements22,531 885 
Vehicles, including demonstration fleet2,207 3,222 
Furniture and fixtures900 818 
Construction in progress2,256 13,642 
Total property and equipment94,735 40,412 
Accumulated depreciation and amortization(28,435)(10,152)
Total property and equipment, net$66,300 $30,260 
Property and equipment capitalized under finance lease were not material.
Depreciation and amortization associated with property and equipment was $22.3 million, $4.3 million and $3.9 million for the years ended December 31, 2023, 2022 and 2021, 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 its sourcing strategy with the objective to reduce future per unit sensor manufacturing costs. In the third quarter of 2023, the Company finalized and committed to a plan to change its sourcing of certain sub-assemblies and components from one supplier to another which will require the Company to abandon certain equipment located at the legacy supplier. 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 $9.2 million of incremental accelerated depreciation charges in the year ended December 31, 2023.
Intangible Assets
The following table summarizes the activity in the Company’s intangible assets (in thousands):
December 31,
20232022
Beginning of the period$22,077 $2,424 
Additions8,240 21,890 
Amortization(4,323)(2,237)
Impairment(1)
(3,000)— 
End of the period$22,994 $22,077 
Intangible assets were acquired in connection with the Company’s acquisition of Optogration in August 2021, Freedom Photonics in April 2022 and Solfice in June 2022. See Note 3 for further details of these acquisitions. The components of intangible assets were as follows (in thousands):
December 31, 2023December 31, 2022
Gross
Carrying
 Amount		Accumulated
Amortization
Impairment(1)
Net
Carrying
Amount		Weighted Average
Remaining Period
(Years)		Gross
Carrying
 Amount		Accumulated
Amortization		ImpairmentNet
Carrying
Amount		Weighted Average
Remaining Period
(Years)
Customer relationships$3,730 $(1,479)$— $2,251 3.7$3,730 $(664)$— $3,066 4.4
Customer backlog650 (650)— — — 650 (292)— 358 0.9
Tradename620 (339)— 281 2.3620 (214)— 406 3.3
Assembled workforce130 (130)— — — 130 (130)— — — 
Developed technology20,150 (4,188)— 15,962 5.511,910 (1,163)— 10,747 7.5
IPR&D7,500 — (3,000)4,500 — 7,500 — — 7,500 — 
Total intangible assets$32,780 $(6,786)$(3,000)$22,994 5.2$24,540 $(2,463)$— $22,077 6.6
(1)    See below for discussions related to impairment charges.
Amortization expense related to intangible assets was $4.3 million, $2.2 million and $0.2 million for the year ended December 31, 2023, 2022 and 2021, respectively.
As of December 31, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):
PeriodExpected Future
Amortization Expense
2024$4,001 
20254,001 
20263,354 
20273,138 
20281,646 
Thereafter2,354 
IPR&D4,500 
Total$22,994 
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 
Impairment of goodwill related to Freedom Photonics
— (12,489)(12,489)
Balance as of December 31, 2023
$1,750 $5,640 $7,390 
During the year ended December 31, 2023, the Company recognized impairment charges of $12.5 million and $3.0 million related to goodwill and IPR&D related to Freedom Photonics. These impairment charges were due to events which occurred during the fourth quarter of 2023, including a decision to delay development activities on certain new products resulting from an increase in focus on supporting the product roadmap of the Autonomy Solutions segment, and a lowering of the growth outlook for the business due to less than anticipated traction in sales of new products. Total life-to-date goodwill impairment charge recorded by the ATS reportable segment was $12.5 million and no impairment charge has been recorded by the Autonomy Solutions reportable segment.
In relation to the goodwill, the Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. The Company assessed the fair value of the Freedom Photonics reporting during the fourth quarter of 2023, using the discounted cash flow method under the income approach, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows. The significant assumptions used in the assessment of the reporting unit included revenue growth rates, profit margins, operating expenses, capital expenditures, terminal value and a discount rate. As a result of this assessment, the Company concluded that the carrying value of the Freedom Photonics reporting unit exceeded the estimated fair value by $12.5 million, which was recorded as a noncash impairment charge to goodwill.
In relation to the intangibles, the significant assumptions used in the assessment of the IPR&D intangible asset included revenue growth rates, a discount rate and a royalty rate. Based on this assessment, the Company recorded a $3.0 million noncash impairment charge related to the IPR&D intangible asset.
Other Non-Current Assets
Other non-current assets consisted of the following (in thousands):
 December 31,
 20232022
Security deposits$2,410 $5,495 
Non-marketable equity investment (see Note 5 for additional information)
14,000 4,000 
Advance payment for capital projects— 27,683 
Contract assets2,471 2,575 
Other non-current assets3,475 591 
Total other non-current assets$22,356 $40,344 
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands): 
 December 31,
 20232022
Accrued compensation and benefits$20,658 $16,682 
Accrued expenses14,723 22,358 
Contract losses
8,790 7,526 
Warranty reserves4,154 3,584 
Contract liabilities3,127 1,993 
Accrued interest payable and other liabilities
1,153 819 
Total accrued and other current liabilities$52,605 $52,962 
During the years ended December 31, 2023 and 2022, the Company recorded $16.4 million and $19.2 million, respectively, in cost of sales (services) estimated losses expected to be incurred on NRE projects with certain customers. Estimated contract losses in the year ended December 31, 2021 were not material. The estimated contract losses recorded in 2023 were primarily driven by changes in scope of project deliverables agreed upon with a customer during the year, and in 2022 primarily driven by (a) changes in estimates related to costs expected to be incurred for contractual milestones of certain projects based on actual experience on similar projects and (b) changes in technical specifications by a customer during the year.