Note 18 - Restructuring

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

18. RESTRUCTURING

In 2023, the Company implemented a revised strategic plan, which focused on key products and critical customer engagements in the Automotive market, and aligned the Company's operations with evolving business needs by focusing on a transition from research and development to the commercialization of the Company's automotive products, while winding down the legacy Non-Automotive product, and reducing fixed operating costs. In August 2024, the Company further reduced fixed operating costs and terminated its headquarters lease. See discussion in Note 6, Leases.

The winding down of the Company's legacy non-Automotive product in 2023, in combination with an accumulation of other triggering events, indicated that the carrying amount of the Company's long-lived assets may not be recoverable. An impairment review was performed on the Company's long-lived assets as of December 31, 2023, resulting in a write-down of its property and equipment and ROU asset to fair value.

As a result of the implementation of the revised strategic plan and the impairment review of long-lived assets, the Company recorded restructuring charges of $19,153 for the year ended  December 31, 2023 primarily relating to one-time employee termination benefits, inventory and other current asset write-downs, losses on purchase commitments, and impairment and disposal charges on its long-lived assets.  The Company recorded a net gain of $368, primarily relating to the net gain on termination of lease, losses on purchase commitments and one-time termination benefits.  Restructuring-related liabilities are included in accrued expenses and other current liabilities in the consolidated balance sheets.

Restructuring charges were included in the consolidated statements of operations and comprehensive loss during the years ended December 31, 2024 and 2023 as follows (in thousands):

	Year ended December 31,
	2024			2023
Cost of revenue	$	105		$	5,721
Research and development		—			941
Sales and marketing		18			2,079
General and administrative		(491	)		472
Impairment of long-lived assets		—			9,940
Total restructuring charges	$	(368	)	$	19,153

A reconciliation of the beginning and ending balance of cash restructuring charges, including one-time employee termination benefits, losses on purchase commitments, and other restructuring charges, which are included in accounts payable and accrued expenses and other current liabilities in the consolidated balance sheets, is as follows (in thousands):

	One-time
	employee			Losses on			Lease
	termination			purchase			Termination
	benefits			commitments			Liability			Other			Total
Balance as of December 31, 2023	$	402		$	233		$	—		$	56		$	691
Charges		18			105			5,463			—		$	5,586
Cash payments		(420	)		(41	)		(2,150	)		(51	)	$	(2,662	)
Balance as of December 31, 2024	$	—		$	297		$	3,313		$	5		$	3,615