Inventory, net of provisions for potentially excess, obsolete, or impaired goods, consists of the following (in thousands):

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

Depreciation expense was $25,000, of which $5,000 was included in cost of goods sold, and $19,000, of which $5,000 was included in cost of goods sold, for the three months ended March 31, 2026 and 2025, respectively.

Intangible assets consist of the following (in thousands):

Amortization expense for the three months ended March 31, 2026 and 2025, was $22,000, of which $16,000 was included in cost of goods sold for each period.

As of March 31, 2026, developed technology and trade name had remaining lives of 7.5 and 0.5 years, respectively. The estimated future amortization expense for the next five years and thereafter is as follows (in thousands):

Other accrued liabilities consist of the following (in thousands):

Accrued compensation includes sales commissions, payroll, employee paid time off, and employee and executive officer bonuses. Accrued clinical and manufacturing expenses represent royalties payable under a ten-year worldwide licensing agreement related to intellectual property covering the design and production of valves used in the SynCardia TAH and service costs on drivers returned, mostly from customers outside the U.S. The sums due to the vendor are secured by the license agreement, which is expired. Accrued professional and consulting services represent payables related to legal, accounting, and valuation services provided in preparation of the Company’s period end reporting. At the end of 2023, the Company’s management made the decision to terminate its sales and distribution agreement with State of the Art Medical Products, Inc. In connection with the termination of the agreement, the Company agreed to pay a termination penalty of $505,085, payable at $21,045 per month over a period of 24 months and a refund of $415,000 for returned inventory payable on May 1, 2025. Any payments not paid on the due dates are subject to a monthly interest of 1%. On September 30, 2025, $500,000 of the termination penalty was paid. As of March 31, 2026 and December 31, 2025, a termination penalty of $5,000 is included in other accrued liabilities. As of March 31, 2026 and December 31, 2025, $98,000 and $90,000, respectively, of interest for the termination penalty is included in accounts payable. As of March 31, 2026 and December 31, 2025, the balance due for returned inventory of $320,000 is included in accounts payable.

Inventories, net of provisions for potentially excess, obsolete or impaired goods, consists of the following (in thousands):

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

Depreciation expense was $76,000, of which $27,000 was included in cost of goods sold, and $138,000, of which $28,000 was included in cost of goods sold, for the years ended December 31, 2025, and 2024, respectively. For the years ended December 31, 2025 and 2024, the Company disposed of no equipment and $74,000 of equipment, respectively.

Intangible assets consist of the following (in thousands):

Amortization expense was $87,000 for both years ended December 31, 2025 and 2024.

As of December 31, 2025, developed technology and trade name had remaining lives of 7.75 and 0.75 years, respectively. The estimated future amortization expense for the next five years and thereafter is as follows (in thousands):

Other accrued liabilities consist of the following (in thousands):

Accrued compensation includes sales commissions, payroll, employee PTO, and employee NEO bonuses. Accrued clinical and manufacturing expenses represent royalties payable under a ten-year worldwide licensing agreement related to intellectual property covering the design and production of valves used in the SynCardia TAH and service costs on drivers returned, mostly from customers outside the U.S. The sums due to the vendor are secured by the license agreement, which has expired. Accrued professional and consulting services represent payables related to legal, accounting, and valuation services provided in preparation of the Company’s potential acquisition or its initial public offering. At the end of 2023, the Company’s management made the decision to terminate its sales and distribution agreement with State of the Art Medical Products, Inc. (SOTA). In connection with the termination of the agreement, the Company agreed to pay a termination penalty of $505,085, payable at $21,045 per month over a period of 24 months and a refund of $415,000 for returned inventory payable on May 1, 2025. Any payments not received on the due dates are subject to a monthly interest of 1%. As of December 31, 2025, $500,000 plus $94,915 in interest on the termination penalty was paid. As of December 31, 2025, outstanding balances related to the termination penalty and the refund for returned inventory amounted to $0 and $415,000, respectively. As of December 31, 2024, outstanding balances related to the termination penalty and the refund for returned inventory amounted to $505,085 and $415,000, respectively.