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Balance Sheet Components
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Cash, Cash Equivalents and Short-Term Investments
The Company’s cash and cash equivalents consist of the following (in thousands):
 March 31,
2023		December 31,
2022
Cash$98,429 $1,832 
Cash equivalents:
Money market funds(1)
17,398 121,100 
Total cash and cash equivalents$115,827 $122,932 
(1)The Company maintains a cash sweep account, which is included in money market funds as of March 31, 2023 and December 31, 2022. Cash is invested in short-term money market funds that earn interest.
The Company acquired short-term investments consisting of commercial paper, corporate debt and U.S. government agency securities as a result of the merger with Velodyne that closed on February 10, 2023 (see Note 3). Short-term investments were $140.9 million as of March 31, 2023. Unrealized gains and losses on the Company’s short-term investments were not significant as of March 31, 2023 and therefore, the amortized cost of the Company’s short-term investments approximated their fair value.
Restricted Cash
Restricted cash consists of collateral to merchant credit card and certificates of deposit held by a bank as security for outstanding letters of credit. The Company had a restricted cash balance of $1.7 million and $1.3 million as of March 31, 2023 and December 31, 2022, respectively, which has been excluded from the Company’s cash and cash equivalents balances. The Company presented $0.6 million and $0.3 million of the total amount of restricted cash within current assets on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. The remaining restricted cash balance of $1.1 million and $1.1 million is included in non-current assets on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets to the amounts reported in the condensed consolidated statements of cash flows (in thousands):
March 31,
2023		March 31,
2022
Cash and cash equivalents$115,827 $160,783 
Restricted cash, current566 977 
Restricted cash, non-current1,089 1,035 
Total cash, cash equivalents and restricted cash$117,482 $162,795 
Inventory
Inventory, consisting of material, direct and indirect labor, and manufacturing overhead, consists of the following (in thousands):
 March 31,
2023		December 31,
2022
Raw materials$9,517 $6,971 
Work in process3,362 3,857 
Finished goods15,847 8,705 
Total inventory$28,726 $19,533 
Total inventory balance as of March 31, 2023 includes remaining inventory balance acquired as part of Velodyne Merger at its fair value as of February 10, 2023.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
March 31,
2023		December 31,
2022
Prepaid expenses$5,577 $3,944 
Receivable from contract manufacturer3,267 2,526 
Other current assets1,802 2,073 
Total prepaid and other current assets$10,646 $8,543 
Property and Equipment, Net
Property and equipment consists of the following (in thousands):
Estimated Useful Life
(in years)		March 31,
2023		December 31,
2022
Machinery and equipment3$14,881 $8,716 
Computer equipment31,015 340 
Automotive and vehicle hardware522 93 
Software3573 85 
Furniture and fixtures7954 848 
Construction in progress3,992 3,448 
Leasehold improvementsShorter of useful life or lease term10,845 9,319 
32,282 22,849 
Less: Accumulated depreciation(17,639)(13,154)
Property and equipment, net$14,643 $9,695 
Depreciation expense associated with property and equipment was $4.6 million and $1.3 million during the three months ended March 31, 2023 and 2022, respectively.
Goodwill
Goodwill represents the excess of the aggregate purchase price over the fair value of net identifiable assets acquired in a business combinations. The following table displays the changes in the carrying amount of goodwill (in thousands):
Goodwill
Balance - December 31, 2022$51,152 
Goodwill addition related to Velodyne Merger115,523 
Goodwill impairment charges(99,409)
Balance - March 31, 2023$67,266 
Goodwill is not amortized and is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Since February 10, 2023, the date of the Velodyne Merger, the Company experienced a significant decline in its stock price. This decline resulted in the total market value of its shares of stock outstanding (“market capitalization”) being less than the carrying value of its reporting unit as of March 31, 2023. The Company also considered the impact of current macroeconomic conditions in the lidar sensor industry that potentially impact the fair value of the Company’s reporting unit. The macroeconomic conditions considered include deterioration in the equity markets evidenced by sustained declines in the Company’s stock price, those of its peers, along with an increase in the weighted-average cost of capital primarily driven by an increase in interest rates. After considering all available evidence in the evaluation of goodwill impairment indicators, the Company determined it was appropriate to perform an interim quantitative assessment of its goodwill as of March 31, 2023. In connection with the Company’s interim goodwill impairment assessment as of March 31, 2023, the Company recorded goodwill impairment charges of approximately $99.4 million. The Company’s goodwill impairment analysis included a comparison of the aggregate estimated fair value of our reporting unit to our total market capitalization.
As of March 31, 2023, remaining goodwill balance was $67.3 million. No goodwill impairment charges were recognized during the year ended December 31, 2022.
Intangible Assets, Net
The following tables present acquired intangible assets, net as of March 31, 2023 and December 31, 2022 (in thousands):
March 31, 2023
Estimated Useful Life
(in years)		Gross Carrying amountAccumulated AmortizationNet Book Value
Developed technology
3 - 8
$23,500 $(3,113)$20,387 
Vendor relationship36,600 (3,117)3,483 
Customer relationships
3 - 8
6,300 (516)5,784 
Intangible assets, net$36,400 $(6,746)$29,654 
December 31, 2022
Estimated Useful Life
(in years)		Gross Carrying amountAccumulated AmortizationNet Book Value
Developed technology8$15,900 $(2,318)$13,582 
Vendor relationship36,600 (2,567)4,033 
Customer relationships3900 (350)550 
Intangible assets, net$23,400 $(5,235)$18,165 
Amortization expense was $1.5 million and $1.1 million during the three months ended March 31, 2023 and 2022, respectively.

The following table summarizes estimated future amortization expense of finite-lived intangible assets-net (in thousands):

Years:Amount
2023 (the remainder of 2023)$5,270 
20246,604 
20254,515 
20263,776 
20273,682 
Thereafter5,807 
Total$29,654 
Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
March 31,
2023		December 31,
2022
Accrued compensation$7,290 $3,758 
Uninvoiced receipts25,509 10,727 
Other8,884 2,586 
Total accrued and other current liabilities$41,683 $17,071