Restricted cash consists of certificates of deposit held by a bank as security for outstanding letters of credit. In September 2022, the Company received $0.7 million of restricted cash balance that was related to a deposit in connection with the execution of a respective lease contract at 2741 16th Street. The Company had a restricted cash balance of $1.3 million and $2.0 million as of September 30, 2022 and December 31, 2021, respectively, which has been excluded from the Company’s cash and cash equivalents balances. The Company presented $0.3 million and $1.0 million of the total amount of restricted cash within current assets on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. The remaining restricted cash balance of $1.1 million and $1.0 million is included in non-current assets on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively.

Reconciliation of cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows to the respective accounts within the condensed consolidated balance sheet is as follows (in thousands):


	September 30, 2022		September 30, 2021
Cash and cash equivalents	$	133,189	$	221,576
Restricted cash, current	250		1,008
Restricted cash, non-current	1,088		1,004
Total cash, cash equivalents and restricted cash	$	134,527	$	223,588

Total inventory balance as of September 30, 2022 and December 31, 2021 includes a write down of $2.2 million and $1.7 million, respectively, for obsolete, scrap, or returned inventory. During the three months ended September 30, 2022 and 2021, $0.5 million and $0.7 million of inventory write offs were charged to cost of revenue. During the nine months ended September 30, 2022 and 2021, respectively, $0.9 million and $0.9 million of inventory write offs were charged to cost of revenue. During the three and nine months ended September 30, 2022, $0.3 million of inventory write offs were charged to research and development.


	September 30, 2022		December 31, 2021
Prepaid expenses	$	1,875	$	1,970
Prepaid insurance	1,520		1,355
Receivable from contract manufacturer	2,068		1,344
Other current assets	1,460		897
Total prepaid and other current assets	$	6,923	$	5,566


	Estimated Useful Life (in years)	September 30, 2022		December 31, 2021
Machinery and equipment	3	$	9,292	$	8,404
Computer equipment	3	504		498
Automotive and vehicle hardware	5	93		93
Software	3	104		104
Furniture and fixtures	7	772		730
Construction in progress		3,187		1,700
Leasehold improvements	Shorter of useful life or lease term	9,358		9,265
		23,310		20,794
Less: Accumulated depreciation		(14,716)		(10,740)
Property and equipment, net		$	8,594	$	10,054

In the fourth quarter of 2021, the Company completed the acquisition of Sense Photonics Inc. (“Sense”), a privately held lidar technology company for autonomous vehicles. The transaction has been accounted for as a business combination. The Company purchased all of the outstanding shares of the capital stock of Sense and settled all Sense debt for total consideration of $72.8 million. Goodwill represents the excess of the purchase price over the preliminary estimated fair values of the identifiable assets and assumed liabilities acquired and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is not deductible for tax purposes.

The Company assesses goodwill for impairment during the fourth quarter of each year or more often if deemed necessary. As of September 30, 2022, the Company with the assistance of third-party valuation specialist performed an interim impairment test of its goodwill as a result of the decline in market conditions and updated outlook as a result of the impact of market uncertainties that prolonged sales cycle. The Company’s reporting unit fair value was determined based on a discounted future cash flow model (income approach). The estimated fair value of the reporting unit exceeded its carrying value by approximately 4% as of September 30, 2022. Accordingly, the Company determined that goodwill was not impaired as of September 30, 2022.

Given this level of fair value, in the event the financial performance of the Company does not meet management’s current expectations in the future or the Company experiences prolonged market downturns or persistent declines in the Company’s stock price, worsening trends from the COVID-19 pandemic, or there are other negative revisions to key assumptions, the Company may be required to perform additional impairment analyses and could be required to recognize a non-cash goodwill impairment charge. As of September 30, 2022, goodwill was $51.2 million.

Measurement period adjustments recognized during 2022 related primarily to updated estimated fair values for assumed employer withholding tax liabilities, royalty liability and a net working capital adjustment. A reconciliation of preliminary total consideration as of December 31, 2021, and total consideration as of September 30, 2022, are presented below (in thousands):


	As Reported		Measurement Period Adjustment		As Adjusted Value
Fair value of common stock issued at closing	$	60,024	$	(358)	$	59,666
Fully vested replacement equity awards	1,081		—		1,081
Cash paid at closing to settle Sense pre-existing debt and transaction costs incurred by Sense	11,703		—		11,703
Total consideration	$	72,808	$	(358)	$	72,450


	As Reported		Measurement Period Adjustment		As Adjusted Value
Assets acquired:
Cash	689		—		689
Restricted cash	69		—		69
Accounts receivable, net	768		—		768
Prepaid expenses and other current assets	463		—		463
Property and equipment, net	626		—		626
Developed technology	15,900		—		15,900
Vendor relationship	6,600		—		6,600
Customer relationships	900		—		900
Goodwill	51,076		76		51,152
Total assets acquired	$	77,091	$	76	$	77,167
Liabilities assumed:
Accounts payable	$	(266)	$	—	$	(266)
Accrued and other current liabilities	$	(1,540)	$	(234)	$	(1,774)
Other non-current liabilities	$	—	$	(200)	$	(200)
Deferred tax liability	$	(2,477)	$	—	$	(2,477)
Total liabilities assumed	$	(4,283)	$	(434)	$	(4,717)
Net Assets acquired	$	72,808	$	(358)	$	72,450


		September 30, 2022
	Estimated Useful Life (in years)	Gross Carrying amount		Accumulated Amortization		Net Book Value
Developed technology	8	$	15,900	$	(1,822)	$	14,078
Vendor relationship	3	6,600		(2,017)		4,583
Customer relationships	3	900		(275)		625
Intangible assets, net		$	23,400	$	(4,114)	$	19,286


		December 31, 2021
	Estimated Useful Life (in years)	Gross Carrying amount		Accumulated Amortization		Net Book Value
Developed technology	8	$	15,900	$	(331)	$	15,569
Vendor relationship	3	6,600		(367)		6,233
Customer relationships	3	900		(50)		850
Intangible assets, net		$	23,400	$	(748)	$	22,652


	September 30, 2022		December 31, 2021
Accrued compensation	$	4,017	$	3,229
Uninvoiced receipts	7,973		9,835
Accrued interest	290		—
ESPP contributions	159		—
Other	1,956		1,109
Total accrued and other current liabilities	$	14,395	$	14,173