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Financial Statement Components
 12 Months Ended
Dec. 31, 2024
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,
 20242023
Cash$48,825 $35,659 
Money market funds17,730 101,842 
U.S. treasury securities5,519 — 
Commercial paper9,967 497 
Corporate bonds799 1,097 
Total cash and cash equivalents$82,840 $139,095 
Inventory
Inventory consisted of the following (in thousands):
 December 31,
 20242023
Raw materials$6,932 $5,614 
Work-in-process3,917 2,521 
Finished goods4,059 4,061 
Total inventory$14,908 $12,196 
The Company’s inventory write-downs were $20.1 million, $19.5 million and $12.2 million during the years ended December 31, 2024, 2023 and 2022, respectively. The write-downs were primarily due to obsolescence charges as a result of changes 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,
 20242023
Prepaid expenses$8,321 $12,434 
Contract assets16,199 14,132 
Advance payments to vendors274 3,038 
Other receivables6,704 3,346 
Total prepaid expenses and other current assets$31,498 $32,950 
Property and Equipment
Property and equipment consisted of the following (in thousands):
 December 31,
 20242023
Machinery and equipment$62,982 $58,815 
Computer hardware and software8,404 7,025 
Land1,001 1,001 
Leasehold improvements22,620 22,531 
Vehicles, including demonstration fleet2,139 2,207 
Furniture and fixtures398 900 
Construction in progress887 2,256 
Total property and equipment98,431 94,735 
Accumulated depreciation and amortization(46,150)(28,435)
Total property and equipment, net$52,281 $66,300 
Property and equipment capitalized under finance leases were not material.
Depreciation and amortization associated with property and equipment was $21.1 million, $22.3 million and $4.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The Company continually evaluates opportunities for optimizing its manufacturing and product design processes, including evaluating its sourcing strategies to reduce per unit sensor manufacturing costs. In 2023, the Company commenced a change in sourcing of certain sub-assemblies and components from one supplier to another, which required the Company to abandon certain equipment located at the legacy supplier. As a result, the Company 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 reduction in the estimated useful lives of the impacted assets resulted in the Company recording $4.4 million and $9.2 million of incremental accelerated depreciation charges in the year ended December 31, 2024 and 2023, respectively.
Intangible Assets
The following table summarizes the activity in the Company’s intangible assets (in thousands):
December 31,
20242023
Beginning of the period$22,994 $22,077 
Additions— 8,240 
Amortization(4,188)(4,323)
Impairment(1)
(3,250)(3,000)
End of the period$15,556 $22,994 
Intangible assets were acquired in connection with the Company’s acquisition of Optogration in August 2021, Freedom Photonics in April 2022, and acquisition of certain assets from Solfice in June 2022 and Seagate in January 2023. See Note 3 for further details of these acquisitions. The components of intangible assets were as follows (in thousands):
December 31, 2024December 31, 2023
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 $(2,295)$— $1,435 3.2$3,730 $(1,479)$— $2,251 3.7
Customer backlog650 (650)— — — 650 (650)— — $— 
Tradename620 (464)— 156 1.3620 (339)— 281 2.3
Assembled workforce130 (130)— — — 130 (130)— — — 
Developed technology21,400 (7,435)— 13,965 4.920,150 (4,188)— 15,962 5.5
IPR&D6,250 — (6,250)— — 7,500 — (3,000)4,500 — 
Total intangible assets$32,780 $(10,974)$(6,250)$15,556 4.7$32,780 $(6,786)$(3,000)$22,994 5.2
(1)    See below for discussions related to impairment charges.
Amortization expense related to intangible assets was $4.2 million, $4.3 million and $2.2 million for the year ended December 31, 2024, 2023 and 2022, respectively.
As of December 31, 2024, the expected future amortization expense for intangible assets was as follows (in thousands):
PeriodExpected Future
Amortization Expense
2025$4,127 
20263,479 
20273,263 
20281,771 
20291,635 
Thereafter1,281 
Total$15,556 
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 
Impairment of goodwill related to Freedom Photonics
— (3,396)(3,396)
Balance as of December 31, 2024
$1,750 $2,244 $3,994 
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 that 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. During the third quarter of 2024, the Company recognized additional impairment charges of $3.4 million and $3.3 million related to goodwill and IPR&D, related to Freedom Photonics driven by a slower industry LiDAR adoption rate in the near-term, as well as a reduction in the Freedom Photonics workforce assigned to perform development work for external customers.
Total life-to-date goodwill impairment charge recorded by the ATS reportable segment was $15.9 million. No impairment charge has been recorded by the Autonomy Solutions reportable segment.
In relation to 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 unit during the third quarter of 2024, due to certain triggering events, and in fourth quarter of 2023, as part of the Company’s annual review of goodwill for impairment, 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 determined in the fourth quarter of 2023 that the carrying value of the Freedom Photonics reporting unit exceeded the estimated fair value by $12.5 million. This resulted in an impairment charge to goodwill, with the remaining goodwill associated with Freedom Photonics being fully impaired in the third quarter of 2024. The Company did not identify any additional goodwill impairment based on its annual review of goodwill for impairment in the fourth quarter of 2024.
Other Non-Current Assets
Other non-current assets consisted of the following (in thousands):
 December 31,
 20242023
Security deposits$2,285 $2,410 
Non-marketable equity investment (see Note 6 for additional information)
10,000 14,000 
Prepaid expenses non-current
3,587 3,471 
Contract assets— 2,471 
Other non-current assets804 4 
Total other non-current assets$16,676 $22,356 
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands): 
 December 31,
 20242023
Accrued compensation and benefits$10,284 $20,658 
Accrued expenses10,334 14,723 
Contract losses
— 8,790 
Warranty reserves850 4,154 
Contract liabilities1,918 3,127 
Accrued interest payable and other liabilities
8,181 1,153 
Total accrued and other current liabilities$31,567 $52,605 
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) for estimated losses expected to be incurred on NRE service projects with certain customers. The estimated contract losses recorded in 2023 were primarily driven by delays in achievement of certain milestones and changes in scope of project deliverables agreed upon with a customer during the year, and in 2022 were primarily driven by changes in estimates related to costs expected to be incurred for contractual milestones of certain projects based on actual experience on similar projects and changes in technical specifications by a customer during the year. During the year ended December 31, 2024, estimated losses were immaterial.
In the fourth quarter of 2024, one of the NRE service contracts was modified and substantially terminated. The Company reversed the outstanding loss provision of $11.3 million in the fourth quarter as substantially all future costs were eliminated. The reversal of the loss provision was recorded within accrued and other current liabilities, and cost of sales. As of December 31, 2024, the Company management expects to receive payment for services rendered.