FINANCIAL STATEMENT COMPONENTS

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

FINANCIAL STATEMENT COMPONENTS

8. FINANCIAL STATEMENT COMPONENTS

The following financial statement components have significant balances as of June 30, 2025.

Inventory

Inventory consists of the following as of June 30, 2025 and December 31, 2024:

	June 30,		December 31,
(in thousands)	2025		2024
Raw materials	$	2,361	$	1,616
Work in process		-		-
Finished goods		3,767		678
	$	6,128	$	2,294

Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required.

Property and Equipment

Property and equipment consists of the following as of June 30, 2025 and December 31, 2024:

	June 30,			December 31,
(in thousands)	2025			2024
Production equipment	$	6,140		$	6,140
Leasehold improvements		3,966			3,957
Computer hardware and software/lab equipment		12,371			12,211
Office furniture and equipment		5,556			4,973
		28,033			27,281
Less: Accumulated depreciation		(21,294	)		(20,220	)
	$	6,739		$	7,061

Depreciation expense was $0.3 million and $0.6 million for the three months ended June 30, 2025 and 2024, respectively, and $0.7 million and $1.1 million for the six months ended June 30, 2025 and 2024, respectively.

Intangible Assets

The components of intangible assets were as follows as of June 30, 2025 and December 31, 2024:

As of June 30, 2025	Gross				Accumulated		Net		Weighted Average
	Carrying		Accumulated		Impairment		Carrying		Remaining
(in thousands)	Amount		Amortization		Expense		Amount		Period (Years)
Acquired technology	$	20,172	$	5,481	$	4,181	$	10,510		12
	$	20,172	$	5,481	$	4,181	$	10,510

As of December 31, 2024	Gross				Accumulated		Net		Weighted Average
	Carrying		Accumulated		Impairment		Carrying		Remaining
(in thousands)	Amount		Amortization		Expense		Amount		Period (Years)
Acquired technology	$	20,172	$	5,019	$	4,181	$	10,972		13
	$	20,172	$	5,019	$	4,181	$	10,972

Amortization expense was $0.3 million and $0.6 million for the three months ended June 30, 2025 and 2024, and $0.5 million and $1.1 million for the six months ended June 30, 2025 and 2024, respectively.

During the quarter ended June 30, 2024, management identified various factors related to the 2024 restructuring events (see Note 14. Restructuring Charges) that collectively indicated that it is more-likely-than-not that the fair value of the Company’s Reference software intangible asset was less than its carrying amount as of June 30, 2024. As of June 30, 2024, prior to impairment, the fair value was $4.5 million. As a result, the Company performed an impairment assessment for intangibles in accordance with ASC 360, Property, Plant and Equipment. The June 30, 2024 impairment test indicated a decline in the carrying amount of the Reference software intangible asset and a reduction in the asset’s useful life, resulting in a non-cash impairment charge of $3.0 million, which is included in impairment loss on intangible assets on the condensed consolidated statement of operations. The fair value of the Reference software subsequent to impairment was $1.4 million and is included within intangible assets, net on the condensed consolidated balance sheets. There was no impairment of intangible assets during the six months ended June 30, 2025.

The following table outlines estimated future amortization expense related to intangible assets held as of June 30, 2025 by line item on the condensed consolidated statement of operations (in thousands):

			Research and
	Cost of		Development
Years Ended December 31,	Revenue		Expense		Total
2025 (remainder of the year)	$	434	$	23	$	457
2026		869		30		899
2027		829		2		831
2028		825		-		825
2029		825		-		825
Thereafter		6,673		-		6,673
	$	10,455	$	55	$	10,510