v3.26.1
Financial Statement Components
 12 Months Ended
Dec. 31, 2025
Financial Statement Components [Abstract]  
Financial Statement Components
Note 8. Financial Statement Components
 
Cash and Cash Equivalents
 

Cash and cash equivalents consisted of the following (in thousands):
   
December 31,
  
   
2025
    
2024
  
Cash
  
$
12,123
    
$
48,825
  
Money market funds
    
8,136
      
17,730
  
U.S. treasury securities
    
—
      
5,519
  
Commercial paper
    
—
      
9,967
  
Corporate bonds
    
—
      
799
  
Total cash and cash equivalents
  
$
20,259
    
$
82,840
  
 
Inventory
 

Inventory consisted of the following (in thousands):
 
   
December 31,
  
   
2025
    
2024
  
Raw materials
  
$
4,278
    
$
6,932
  
Work-in-process
    
532
      
3,917
  
Finished goods
    
1,846
      
4,059
  
Total inventory
  
$
6,656
    
$
14,908
  
 

The Company’s inventory write-downs were $12.8 million, $20.1 million and $19.5 million during the years ended December 31, 2025, 2024 and 2023, respectively. The write-downs were primarily due to obsolescence charges as a result of changes in product design, lower of cost or market assessment, yield losses, and other adjustments.
 
Prepaid Expenses and Other Current Assets
 

Prepaid expenses and other current assets consisted of the following (in thousands):
 
   
December 31,
  
   
2025
    
2024
  
Prepaid expenses
  
$
11,387
    
$
8,321
  
Contract assets
    
3,535
      
16,199
  
Advance payments to vendors
    
255
      
274
  
Other receivables
    
4,886
      
6,704
  
Total prepaid expenses and other current assets
  
$
20,063
    
$
31,498
  
 
Property and Equipment
 

Property and equipment consisted of the following (in thousands):
 
   
December 31,
  
   
2025
    
2024
  
Machinery and equipment
  
$
63,684
    
$
62,982
  
Computer hardware and software
    
8,497
      
8,404
  
Land
    
1,001
      
1,001
  
Leasehold improvements
    
22,592
      
22,620
  
Vehicles, including demonstration fleet
    
2,177
      
2,139
  
Furniture and fixtures
    
377
      
398
  
Construction in progress
    
1,027
      
887
  
Total property and equipment
    
99,355
      
98,431
  
Impairment
    
(5,976
)
    
—
  
Accumulated depreciation and amortization
    
(58,429
)
    
(46,150
)
Total property and equipment, net
  
$
34,950
    
$
52,281
  
 

Property and equipment capitalized under finance leases were not material.
 

Depreciation and amortization associated with property and equipment was $12.9 million, $21.1 million and $22.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
 

Due to significant financial and commercial hurdles and decline in sensor shipment because of slower automotive production ramps and the end of legacy contracts, and a sustained decrease in share price of the Company, the earnings forecast for the next several years was revised. The Company recorded an impairment charge during the third quarter of 2025 in the amount of $6.0 million.
 

In 2023, the Company commenced a change in sourcing of certain sub-assemblies and components from one supplier to another, which required the Company to abandon certain equipment located at the legacy supplier. As a result, the Company reduced the useful lives of the long-lived assets within the impacted asset group and these assets were fully depreciated as of the second quarter of 2025. The reduction in the estimated useful lives of the impacted assets resulted in the Company recording $0.3 million and $4.4 million of incremental accelerated depreciation charges in the years ended December 31, 2025 and 2024, respectively.
 
Intangible Assets
 

The following table summarizes the activity in the Company’s intangible assets (in thousands):
 
   
December 31,
  
   
2025
    
2024
  
Beginning of the period
  
$
15,556
    
$
22,994
  
Additions
    
—
      
—
  
Amortization
    
(4,064
)
    
(4,188
)
Impairment (1)
    
(1,475
)
    
(3,250
)
End of the period
  
$
10,017
    
$
15,556
  
 

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

   
December 31, 2025
    
December 31, 2024
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Impairment
(1)
    
Net
Carrying
Amount
    
Weighted
Average
Remaining
Period
(Years)
    
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Impairment
    
Net
Carrying
Amount
    
Weighted
Average
Remaining
Period
(Years)
  
Customer relationships
  
$
3,730
    
$
(3,091
)
  
$
(455
)
  
$
184
      
0.3
    
$
3,730
    
$
(2,295
)
  
$
—
    
$
1,435
      
3.2
  
Customer backlog
    
650
      
(650
)
    
—
      
—
      
—
      
650
      
(650
)
    
—
      
—
      
—
  
Tradename
    
620
      
(589
)
    
—
      
31
      
0.3
      
620
      
(464
)
    
—
      
156
      
1.3
  
Assembled workforce
    
130
      
(130
)
    
—
      
—
      
—
      
130
      
(130
)
    
—
      
—
      
—
  
Developed technology
    
21,400
      
(10,577
)
    
(1,021
)
    
9,802
      
3.9
      
21,400
      
(7,435
)
    
—
      
13,965
      
4.9
  
IPR&D
    
6,250
      
—
      
(6,250
)
    
—
      
—
      
6,250
      
—
      
(6,250
)
    
—
      
—
  
Total intangible assets
  
$
32,780
    
$
(15,037
)
  
$
(7,726
)
  
$
10,017
      
3.8
    
$
32,780
    
$
(10,974
)
  
$
(6,250
)
  
$
15,556
      
4.7
  

(1)
See below for discussions related to impairment charges.
 

Amortization expense related to intangible assets was $4.1 million, $4.2 million and $4.3 million for the year ended December 31, 2025, 2024 and 2023, respectively.
 

As of December 31, 2025, the expected future amortization expense for intangible assets was as follows (in thousands):
Period
  
Expected Future
Amortization Expense
  
2026
  
$
3,226
  
2027
    
3,010
  
2028
    
1,518
  
2029
    
1,382
  
2030
    
568
  
Thereafter
    
313
  
Total
  
$
10,017
  
 

Goodwill
 

The carrying amount of goodwill allocated to the Company’s reportable segments was as follows (in thousands):
   
Autonomy
Solutions
    
ATS
    
Total
  
Balance as of December 31, 2023
  
$
1,750
    
$
5,640
    
$
7,390
  
Impairment of goodwill related to Freedom Photonics
    
—
      
(3,396
)
    
(3,396
)
Balance as of December 31, 2024
  
$
1,750
    
$
2,244
    
$
3,994
  
Impairment of goodwill related to Optogration
    
—
      
(2,244
)
    
(2,244
)
Balance as of December 31, 2025
  
$
1,750
    
$
—
    
$
1,750
  
 

During the year ended December 31, 2024, the Company recognized goodwill impairment charges of $3.4 million related to Freedom Photonics driven by a slower industry LiDAR adoption rate in the near-term, as well as a reduction in the Freedom Photonics workforce assigned to perform development work for external customers.
 

During the year ended December 31, 2025, the Company recorded goodwill impairment charges of $2.2 million related to Optogration. These impairment charges were due to events that occurred during the third quarter of 2025, including significant financial and commercial hurdles and decline in sensor shipment because of slower automotive production ramps and the end of legacy contracts, and a sustained decrease in share price of the Company.
 

Total life-to-date goodwill impairment charge recorded by the ATS reportable segment was $18.1 million. No impairment charge has been recorded by the Autonomy Solutions reportable segment.
 

Other Non-Current Assets
 

Other non-current assets consisted of the following (in thousands):
 
   
December 31,
  
   
2025
    
2024
  
Security deposits
  
$
1,334
    
$
2,285
  
Non-marketable equity investment (see Note 7 for additional information)
    
10,000
      
10,000
  
Prepaid expenses non-current
    
1,904
      
3,587
  
Other non-current assets
    
337
      
804
  
Total other non-current assets
  
$
13,575
    
$
16,676
  
 

Accrued and Other Current Liabilities
 

Accrued and other current liabilities consisted of the following (in thousands):
   
December 31,
  
   
2025
    
2024
  
Accrued compensation and benefits
  
$
3,656
    
$
10,284
  
Accrued expenses
    
1,336
      
10,334
  
Warranty reserves
    
4,919
      
850
  
Contract liabilities
    
1,817
      
1,918
  
Accrued interest payable and other liabilities
    
7,702
      
8,181
  
Total accrued and other current liabilities
  
$
19,430
    
$
31,567