The Company determines the cost basis for inventory using the lower of cost or net realizable value. Cost is determined by using the weighted average method. The following table summarizes the Company’s inventory:


	September 30,		December 31,
	2026		2025
	(in thousands)
Raw materials	$	22,870	$	7,644
Work in progress		8,975		1,974
Finished goods		815		1,044
Inventory	$	32,660	$	10,662

Accounts receivable are comprised of unsecured amounts due from customers and presented net of any allowance for credit losses. The Company recognizes its estimate of expected losses on accounts receivable within the scope of the current expected credit losses (“CECL”) model. The Company assesses the collectability of its outstanding receivables and estimates the need for an allowance by considering historical losses, the age of the receivable balance, the credit quality of the Company’s customers, current economic conditions, and other factors that may affect the customers’ ability to pay.

The following tables summarize the accounts receivable as of September 30, 2026 and December 31, 2025, and the change in allowance for credit losses for the nine months ended September 30, 2026 and 2025:


	September 30,			December 31,
	2026			2025
	(in thousands)
Accounts receivable, gross	$	124,151		$	79,599
Allowance for credit losses		(1,538	)		(883	)
Accounts receivable, net of allowance for credit losses	$	122,613		$	78,716


	September 30,			September 30,
	2026			2025
	(in thousands)
Allowance for credit losses, beginning balance	$	(883	)	$	(712	)
Credit loss expenses		(748	)		(233	)
Write-offs		93			46
Allowance for credit losses, ending balance	$	(1,538	)	$	(899	)

For the nine months ended September 30, 2026, the Company had two customers with greater than 10% of the Company’s revenue and these customers accounted for approximately 30% of accounts receivable as of September 30, 2026. For the nine months ended September 30, 2025, the Company had three customers with greater than 10% of the Company’s revenues. These customers comprised 26.1%, 11.9% and 10.3% of the Company’s total revenues. These three customers accounted for approximately 48% of accounts receivable as of December 31, 2025.

Property and equipment consisted of the following as of September 30, 2026 and December 31, 2025:


	September 30, 2026			December 31, 2025
	(in thousands)
Land and buildings (30-year buildings)	$	6,611		$	6,611
Machinery and equipment (7-10 year assets)		111,731			85,729
Vehicles (5-year assets)		381			265
Office furniture and equipment (5-7 year assets)		3,624			1,435
Computer systems (3-year assets)		4,389			2,941
Leasehold improvements (shorter of useful life or remaining lease term)		25,099			18,840
Construction in process		47,670			18,972
Total property and equipment		199,505			134,793
Less accumulated depreciation		(51,146	)		(39,384	)
Property and equipment, net	$	148,359		$	95,409

Depreciation expense for the three months ended September 30, 2026 and 2025 was $4.4 million and $3.2 million, respectively, of which, $3.6 million and $2.8 million was recorded in cost of goods sold, respectively, and the remainder in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

Depreciation expense for the nine months ended September 30, 2026 and 2025 was $11.8 million and $9.0 million, respectively, of which, $9.6 million and $8.3 million was recorded in cost of goods sold, respectively, and the remainder in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive income.