Balance Sheet Components

3 Months Ended

Mar. 31, 2026

Note 5. Balance Sheet Components

The Company’s inventories are stated at the lower of cost or net realizable value. Inventories consist of (in thousands):

Property and equipment, net consists of (in thousands):


	March 31, 2026			December 31, 2025
Building and leasehold improvements	$	1,174		$	1,305
Furniture, fixtures and office equipment		148			152
Plant and machinery		9,573			8,903
Purchased software		1,000			780
Total		11,895			11,140
Accumulated depreciation		(4,219	)		(3,824	)
Property and equipment, net	$	7,676		$	7,316

The Company recorded depreciation expense of $541,000 and $491,000 during the three months ended March 31, 2026 and 2025, respectively.

Other accrued expenses and liabilities consist of (in thousands):