Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Details

v3.24.3
Balance Sheet Details
 9 Months Ended
Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details Balance Sheet Details
Cash, cash equivalents and restricted cash consist of the following:
September 30, 2024 December 31, 2023
(in thousands)
Cash and cash equivalents $ 148,476  $ 187,288 
Short-term restricted cash 993  1,051 
Long-term restricted cash 23  17 
Total cash, cash equivalents and restricted cash $ 149,492  $ 188,356 
As of September 30, 2024 and December 31, 2023, cash and cash equivalents included money market funds of approximately $103.3 million and $78.1 million, respectively. As of September 30, 2024 and December 31, 2023, the Company had restricted cash of approximately $1.0 million and $1.1 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.
Inventory consists of the following:
September 30, 2024 December 31, 2023
(in thousands)
Work-in-process $ 54,909  $ 60,368 
Finished goods 41,154  39,540 
$ 96,063  $ 99,908 
Property and equipment, net consists of the following:
Useful Life
(in Years)		 September 30, 2024 December 31, 2023
(in thousands)
Furniture and fixtures 5 $ 3,944  $ 3,995 
Machinery and equipment
3-5
 80,641  76,732 
Masks and production equipment 5 62,676  54,240 
Software 3 11,194  11,427 
Leasehold improvements
1-5
 35,401  35,867 
Construction in progress N/A 686  348 
194,542  182,609 
Less: accumulated depreciation and amortization (131,049) (116,178)
$ 63,493  $ 66,431 
Depreciation expense for the three months ended September 30, 2024 and 2023 was $5.8 million and $5.6 million, respectively. Depreciation expense for the nine months ended September 30, 2024 and 2023 was $17.0 million and $18.5 million, respectively.
In March 2022, the Company entered into a note receivable with a supplier for $10.0 million. In September 2023, the terms of this note receivable were renegotiated, and the first initial repayment of $1.5 million is due by March 31, 2025, and annual repayments of $1.7 million per year are due annually thereafter by March 31, from 2026 through 2030, provided that certain production utilization targets for the prior year are met. During the three months ended September 30, 2024, a portion of the note receivable, or $0.5 million, was written off to other expense in the consolidated statement of operations. The amount written off represents the portion of the payment associated with production utilization that is anticipated to be less than target. The balance of the note receivable has been classified as a long-term asset based on expected timing of receipt of repayment. The long-term portion of the note receivable is included in other long-term assets as of September 30, 2024 and December 31, 2023, respectively. Previously, repayments of $2.0 million per year were due annually by March 31, in years 2024 through 2027.
Accrued price protection liability consists of the following activity:
Nine Months Ended September 30,
2024 2023
(in thousands)
Beginning balance $ 71,684  $ 113,274 
Charged as a reduction of revenue 42,042  50,092 
Reversal of unclaimed rebates (15,272) — 
Payments (53,982) (91,723)
Ending balance $ 44,472  $ 71,643 
The decrease in price protection liability from approximately $71.7 million as of December 31, 2023 to approximately $44.5 million as of September 30, 2024 was driven by payments of rebates as well as reversal of unclaimed rebates due to expiration of rebate pricing.
Accrued expenses and other current liabilities consist of the following:
September 30, 2024 December 31, 2023
(in thousands)
Accrued technology license payments $ 3,627  $ 3,843 
Accrued professional fees 4,196  3,736 
Accrued engineering and production costs 5,461  2,861 
Accrued restructuring 15,610  8,301 
Accrued royalty 403  603 
Short-term lease liabilities 9,799  9,132 
Accrued customer credits 3,705  3,984 
Income tax liability 421  521 
Customer contract liabilities 164  1,597 
Accrued obligations to customers for price adjustments 20,558  54,837 
Accrued obligations to customers for stock rotation rights 167  349 
Contingent consideration - current portion 2,600  2,462 
Other 4,486  6,242 
$ 71,197  $ 98,468 
The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:
Cumulative Translation Adjustments Pension and Other Defined Benefit Plan Obligation Total
(in thousands)
Balance at December 31, 2023 $ (5,059) $ 1,268  $ (3,791)
Other comprehensive loss before reclassifications, net of tax (61) —  (61)
Balance at September 30, 2024 $ (5,120) $ 1,268  $ (3,852)