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Financial Statement Components
 9 Months Ended
Sep. 30, 2025
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, 2025December 31, 2024
Cash$33,205 $48,825 
Money market funds21,277 17,730 
U.S. treasury securities— 5,519 
Commercial paper— 9,967 
Corporate bonds— 799 
Total cash and cash equivalents$54,482 $82,840 
Inventory
Inventory comprised of the following (in thousands):
 September 30, 2025December 31, 2024
Raw materials$12,137 $6,932 
Work-in-process821 3,917 
Finished goods3,145 4,059 
Total inventory
$16,103 $14,908 
The Company’s inventory write-downs were $1.2 million and $4.6 million for the three and nine months ended September 30, 2025 and $2.9 million and $20.7 million for the three and nine months ended September 30, 2024, 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):
 September 30, 2025December 31, 2024
Prepaid expenses$7,410 $8,321 
Contract assets2,542 16,199 
Advance payments to vendors38 274 
Other receivables5,163 6,704 
Total prepaid expenses and other current assets$15,153 $31,498 
Property and Equipment
Property and equipment consisted of the following (in thousands):
 September 30, 2025December 31, 2024
Machinery and equipment$63,519 $62,982 
Computer hardware and software8,475 8,404 
Land1,001 1,001 
Leasehold improvements22,620 22,620 
Vehicles, including demonstration fleet2,231 2,139 
Furniture and fixtures398 398 
Construction in progress1,540 887 
Total property and equipment99,784 98,431 
Impairment
(5,976)— 
Accumulated depreciation(56,010)(46,150)
Total property and equipment, net$37,798 $52,281 
Property and equipment capitalized under finance lease were not material.
Depreciation expense associated with property and equipment was $3.2 million and $9.9 million for the three and nine months ended September 30, 2025, and $4.7 million and $17.1 million for the three and nine months ended September 30, 2024, respectively.
Due to significant financial and commercial hurdles and decline in sensor shipment because of slower automotive production ramps and the end of legacy contracts, and a sustained decrease in share price of the Company, the earnings forecast for the next several years was revised. The Company tested impairment for its long-lived assets and goodwill for the quarter ended September 30, 2025 (see discussion below).
Property and equipment impairment for the quarter ending September 30, 2025 is $6.0 million.
The Company continually evaluates opportunities for optimizing its manufacturing processes and product design, including evaluating its sourcing strategies to reduce per unit sensor manufacturing costs. In 2023, the Company finalized and committed to 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 and it was fully depreciated in the second quarter of 2025. The reduction in the estimated useful lives of the impacted assets resulted in the Company recording $0.3 million of incremental accelerated depreciation charges in the nine months ended September 30, 2025.
Intangible Assets
The following table summarizes the activity in the Company’s intangible assets (in thousands):
September 30, 2025December 31, 2024
Beginning of the period$15,556 $22,994 
Additions— — 
Amortization
(3,095)(4,188)
Impairment
(1,475)(3,250)
End of the period$10,986 $15,556 
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. The components of intangible assets were as follows (in thousands):
September 30, 2025December 31, 2024
Gross
Carrying
 Amount		Accumulated
Amortization		Impairment
(1)		Net
Carrying
Amount		Weighted Average
Remaining Period
(Years)		Gross
Carrying
 Amount		Accumulated
Amortization		Impairment
(1)		Net
Carrying
Amount		Weighted
Average
Remaining
Period
(Years)
Customer relationships$3,730 $(2,907)$(454)$369 0.5$3,730 $(2,295)$— $1,435 3.2
Customer backlog650 (650)— — —650 (650)— — —
Tradename620 (558)— 62 0.5620 (464)— 156 1.3
Assembled workforce130 (130)— — —130 (130)— — —
Developed technology21,400 (9,824)(1,021)10,555 4.121,400 (7,435)— 13,965 4.9
IPR&D6,250 — (6,250)— —6,250 — (6,250)— —
Total intangible assets$32,780 $(14,069)$(7,725)$10,986 3.9$32,780 $(10,974)$(6,250)$15,556 4.7
(1) See below for discussions related to impairment charges.
The Company tested impairment for the quarter ending September 30, 2025. Long-lived intangible asset impairment for the quarter ending September 30, 2025 is $1.5 million.
Amortization expense related to intangible assets was $1.0 million and $3.1 million for the three and nine months ended September 30, 2025 and $1.0 million and $3.0 million for the three and nine months ended September 30, 2024, respectively.
The expected future amortization expense for intangible assets was as follows (in thousands):
Year Ending December 31,
Expected Future
Amortization Expense
2025 (remaining three months)
$970 
20263,226 
20273,010 
20281,518 
20291,382 
Thereafter880 
Total$10,986 
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, 2024$1,750 $2,244 $3,994 
Impairment of goodwill related to Optogration
— (2,244)(2,244)
Balance as of September 30, 2025
$1,750 $— $1,750 
Total life-to-date goodwill impairment charge recorded by the ATS reportable segment was $18.1 million. No impairment charge has been recorded by the Autonomy Solutions reportable segment.
The Luminar and Optogration reporting units were tested for impairment in the quarter ending September 30, 2025. In September 2025, a goodwill impairment loss of $2.2 million was recognized in the Optogration reporting unit. The goodwill in the Luminar reporting unit was not impaired. The fair value of the two reporting units was estimated using the expected present value of future cash flows. The Luminar reporting unit and Optogration reporting unit are part of the Autonomy Solutions reportable segment and the ATS reportable segment, respectively.
Other Non-Current Assets
Other non-current assets consisted of the following (in thousands):
 September 30, 2025December 31, 2024
Security deposits$1,357 $2,285 
Non-marketable equity investment (see Note 6 for additional information)10,000 10,000 
Prepaid expenses non-current1,999 3,587 
Other non-current assets345 804 
Total other non-current assets$13,701 $16,676 
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands): 
 September 30, 2025December 31, 2024
Accrued compensation and benefits$6,628 $10,284 
Accrued expenses8,429 10,334 
Warranty reserves5,050 850 
Contract liabilities3,739 1,918 
Accrued interest payable and other liabilities10,069 8,181 
Total accrued and other current liabilities$33,915 $31,567 
For the three and nine months ended September 30, 2025, the Company recorded $1.0 million and $1.1 million, respectively, and $3.2 million and $15.7 million for the three and nine months ended September 30, 2024, 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 for the three and nine months ended September 30, 2025 were primarily driven by changes in scope of project deliverables agreed upon with a customer.