Allowance for Credit Losses |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses |
Note 9. Allowance for Credit Losses
In June 2025, the Company issued a $2.2
million promissory note receivable to Next Semiconductor Technologies, Inc, which was accounted for as a financial asset measured at amortized cost and evaluated for expected credit losses under CECL.
In the third quarter of 2025, Next Semiconductor Technologies defaulted on its repayment obligations. As a result, the Company evaluated
the promissory note for expected credit losses and determined that the full carrying amount of the promissory note was no longer expected to be collected. The Company recorded a provision for credit losses of $2.2 million for the year ended December 31, 2025.
The following table sets forth the activity in allowance for credit losses (in thousands):
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