Balance Sheet Components

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

5. Balance Sheet Components

Cash and Cash Equivalents

The Company considers all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds in the amount of $71.1 million and $82.9 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company’s cash equivalents were held at institutions in the United States and include deposits in a money market fund which was unrestricted as to withdrawal or use. The Company also held cash in foreign banks of approximately $8.5 million at March 31, 2024 and $9.4 million at December 31, 2023 that was not insured. The Company has not experienced any losses on its deposits of cash and cash equivalents.

Investments

The Company measures its cash equivalents and short-term investments at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income within stockholders’ equity. The Company regularly reviews its investments and evaluates the current expected credit loss by considering factors such as historical experience, market data, and the near-term prospects of the investee. The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities, excluding investments in money market funds (in thousands):


	March 31, 2024
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Aggregate Fair Value
Investment Securities
Agency bonds	$	25,969	$	14	$	(11	)	$	25,972
Commercial paper		7,497		—		—			7,497
Treasury bonds		157,984		47		(319	)		157,712
Total securities	$	191,450	$	61	$	(330	)	$	191,181


	December 31, 2023
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Aggregate Fair Value
Investment Securities
Agency bonds	$	99,076	$	68	$	(90	)	$	99,054
Commercial paper		22,369		5		—			22,374
Corporate notes		3,491		—		(1	)		3,490
Treasury bonds		93,312		317		(41	)		93,588
Total securities	$	218,248	$	390	$	(132	)	$	218,506

Realized gains or losses and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred. The cost of securities sold is determined based on the specific identification method. The amount of realized gains and realized losses on investments recorded for the periods presented has not been material.

The contractual maturities of the Company’s investment securities as of March 31, 2024 were as follows (in thousands):


	Amortized Cost		Fair Value
Amounts maturing within one year	$	117,853	$	117,851
Amounts maturing after one year through five years		73,597		73,330
Total investment securities	$	191,450	$	191,181

Inventories (in thousands)


	March 31,		December 31,
	2024		2023
Raw materials	$	52,994	$	64,974
Work in process		7,205		2,149
Finished goods		60,590		51,553
Total inventories	$	120,789	$	118,676

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. Inventory write-downs are recorded for excess and obsolete inventory. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations.

The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or net realizable value approach as that has been used to value the inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. As a result of these evaluations, the Company recognized total write-downs of $0.7 million and $1.3 million, for its inventories for the three months ended March 31, 2024 and 2023, respectively.

Property and Equipment, Net (in thousands)


	March 31,			December 31,
	2024			2023
Laboratory and manufacturing equipment	$	15,979		$	15,414
Computer equipment and software		16,302			15,451
Internally developed software		9,082			8,831
Furniture and fixtures		4,745			4,745
Leasehold improvements		10,924			10,924
Construction in process		5,391			4,865
Total		62,423			60,230
Less: Accumulated depreciation and amortization		(37,715	)		(35,662	)
Property and equipment, net	$	24,708		$	24,568

The Company recognized depreciation and amortization expense on property and equipment as follows (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Depreciation and amortization expense	$	2,053	$	1,541

Accrued Liabilities (in thousands)


	March 31,		December 31,
	2024		2023
Accrued payroll and related expenses	$	27,705	$	31,715
Accrued professional fees		953		2,909
Accrued taxes		2,081		1,482
Accrued clinical and research expenses		685		752
Accrued interest		1,363		1,123
Accrued warranty		2,003		1,531
Accrued other		4,696		5,785
Total accrued liabilities	$	39,486	$	45,297