v3.26.1
FINANCIAL STATEMENT COMPONENTS
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
FINANCIAL STATEMENT COMPONENTS

9. FINANCIAL STATEMENT COMPONENTS

 

Inventory

 

Inventory consists of the following (in thousands):

  

   March 31,   December 31, 
   2026   2025 
Raw materials  $2,098   $- 
Finished goods   1,930    745 
Total inventory   $4,028   $745 

 

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 (in thousands):

  

   March 31,   December 31, 
   2026   2025 
Production equipment  $6,140   $6,140 
Leasehold improvements   5,863    4,067 
Computer hardware and software/lab equipment   22,009    10,364 
Office furniture and equipment   6,223    5,575 
Property and equipment, gross    40,235    26,146 
Less: Accumulated depreciation   (22,935)   (21,866)
Property and equipment, net   $17,300   $4,280 

 

Depreciation expense was $1.2 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively.

 

Intangible Assets

 

The components of intangible assets were as follows (in thousands):

  

   Gross           Net   Weighted
Average		 
   Carrying   Accumulated   Impairment   Carrying   Remaining 
As of March 31, 2026  Amount   Amortization   Expense   Amount   Period (Years) 
Acquired technology  $16,028    2,366    -    13,662    4 
Total  $16,028   $2,366   $-   $13,662      

 

   Gross           Net   Weighted
Average		 
   Carrying   Accumulated   Impairment   Carrying   Remaining 
As of December 31, 2025  Amount   Amortization   Expense   Amount   Period (Years) 
Acquired technology  $16,027   $5,938   $10,057   $32    1 
Total  $16,027   $5,938   $10,057   $32      

 

 

Amortization expense was $0.2 million and $0.2 million during the three months ended March 31, 2026 and 2025, respectively.

 

The following table outlines our estimated future amortization expense related to intangible assets held as of March 31, 2026 by line item on the condensed consolidated statement of operations (in thousands):

 

   Research and 
   Development 
Years Ended December 31,  Expense 
2026 (remainder of the year)  $929 
2027   1,459 
2028   1,458 
2029   1,457 
2030   1,457 
Thereafter   6,902 
Total  $13,662 

 

Accounts Payable

 

Accounts payable consists of the following (in thousands):

   

   March 31,   December 31, 
   2026   2025 
Software licenses  $1,091   $58 
Legal fees   1,000    74 
Purchased accounting services   923    - 
Inventory   490    543 
Audit fees   143    13 
Other   890    940 
Total accounts payable   $4,537   $1,628 

 

Accrued Liabilities

 

Accrued liabilities consists of the following (in thousands):

   

   March 31,   December 31, 
   2026   2025 
Bonuses  $494   $445 
Payroll and payroll taxes   2,426    1,124 

Restructuring charges

   1,139    - 
Income taxes payable   -    21 
Accrued professional fees   223    366 
Liabilities to suppliers   48    117 
Adverse purchase commitment   2,862    3,158 
Other   350    195
Total accrued liabilities   $7,542   $5,426