5. Condensed Consolidated Balance Sheet Components

Inventory

Inventory is carried at the lower of cost or net realizable value. The following tables show the components of inventory:

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The Company reserved $1,218 and $1,718 in inventory allowance as of June 30, 2025 and December 31, 2024, respectively.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated lease term or useful life.

Property and equipment include capitalized costs to develop internal-use software. Applicable costs are capitalized during the development stage of the project and include direct internal costs, third-party costs and allocated interest expense as appropriate.

Property and equipment consisted of the following:

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During the six months ended June 30, 2025 and 2024, the Company transferred $62 and $100, respectively, of instruments previously classified as inventory to property and equipment leased to customers.

For the three months ended June 30, 2025 and 2024, the Company incurred depreciation and amortization expense of property and equipment of $1,089 and $1,081, respectively.  For the six months ended June 30, 2025 and 2024, the Company incurred depreciation and amortization expense of property and equipment of $2,175 and $2,192, respectively.

Intangible Assets and Goodwill

The Company recognizes acquired intangible assets at fair value on the date of acquisition.  Intangible assets with finite lives are amortized over their useful lives using the straight-line method.  Intangible assets with indefinite lives, including goodwill, are not amortized but subject to annual impairment testing.  The Company recorded no impairment for the three and six months ended June 30, 2025.  The Company did not have acquired intangible assets during the three and six months ended June 30, 2024.  

Intangible assets with finite lives as of June 30, 2025, consist of the following, which have been estimated on a preliminary basis and result from the acquisition of SeQure discussed in Note 8:

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For the three and six months ended June 30, 2025, the Company incurred amortization expense of intangible assets of $12 and $21, respectively.