v3.26.1
PROPERTY AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following (in thousands):
June 30, 2026December 31, 2025
Machinery and equipment$24,441 $24,413 
Leasehold improvements6,624 6,511 
Furniture and fixtures231 231 
Software764 764 
Construction in process6,004 4,303 
Total property and equipment38,064 36,222 
Less accumulated depreciation(26,271)(18,998)
Total property and equipment, net$11,793 $17,224 
Depreciation expense related to property and equipment, net was $5.0 million and $1.5 million for the three months ended June 30, 2026 and 2025, respectively and $7.3 million and $3.0 million for the six months ended June 30, 2026 and 2025, respectively.
During the first half of 2026, management concluded it was necessary to reevaluate the usefulness of fixed assets based on the Company’s current manufacturing activities to respond to market and customer focus on the Bridge™ sodium-ion battery energy storage system (“BESS”) and Energy Base product offerings and related technologies. The assessment resulted in abandonment charges of $4.3 million, of which $4.1 million was recognized within cost of revenue and $0.2 million within general and administrative operating expense in the consolidated statement of operations and comprehensive loss, based on the nature of the underlying assets. When an asset has been abandoned, the estimated useful life of the asset is updated to reflect the cease use date, and the remaining carrying value of the asset is amortized ratably between the commitment date and the cease use date. The abandonment charges were determined based on specific review of the underlying assets.