Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components

v3.24.3
Balance Sheet Components
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Prepaid and Other Current Assets
Prepaid and other current assets consisted of the following (in thousands):
September 30,
2024		 December 31,
2023
License fees $ 16  $ 158 
Prepaid rent
 11  277 
Other 355  293 
Total $ 382  $ 728 
Note Receivable
On May 10, 2024, the Company and RamPro Construction and HDD, LLC (the "Borrower") executed a Senior Secured Promissory Note (the “May Note”). The Company promised to lend $0.2 million to the Borrower. The May Note bears interest at a rate of 5% per annum, calculated on a 360-day year basis, with interest payable upon maturity. The principal and accrued interest are due on May 25, 2025. The balance of the May Note as of September 30, 2024 was $0.2 million.
The May Note is secured by all personal property and assets of the Borrower granting the Company a first priority security interest in these assets. In the event of default, the Company has the right to declare the unpaid balance immediately due and payable and pursue remedies available to a secured party under the Uniform Commercial Code. Events of default include non-payment of principal or interest, and the bankruptcy or insolvency of the Borrower. The Company evaluates the collectibility of the note receivable regularly and maintains a provision for credit losses based on historical experience, current conditions, and reasonable forecasts. As of September 30, 2024, no provision for credit losses had been deemed necessary for the May Note.
Property and Equipment, net
Property and equipment, net, consisted of the following (in thousands):
September 30,
2024		 December 31,
2023
Equipment $ 4,914  $ 3,155 
Leasehold improvements 362  362 
Vehicles 700  395 
Computers 54  56 
Furniture and fixtures 3  3 
Construction-in-progress 727  77 
Total 6,760  4,048 
Less: accumulated depreciation (1,444) (919)
Property and equipment, net $ 5,316  $ 3,129 
Depreciation expense for the three months ended September 30, 2024 and 2023 was $0.2 million and $0.1 million, respectively. Depreciation expense for the nine months ended September 30, 2024 and 2023 was $0.5 million and $0.3 million, respectively.
Intangible Assets, net
Intangible assets, net, consists of the following (in thousands):
September 30,
2024		 December 31,
2023
Patents $ 1,800  $ 1,800 
Research license 375  375 
Customer relationships 4  4 
Total 2,179  2,179 
Less: accumulated amortization (966) (797)
Intangible assets, net $ 1,213  $ 1,382 
The following table represents the total estimated amortization of intangible assets for the five succeeding years and thereafter as of September 30, 2024 (in thousands):
Estimated
 Amortization
 Expense
2024 (remaining) $ 55 
2025 220 
2026 183 
2027 180 
2028 180 
Thereafter 395 
Total $ 1,213 

For the three months ended September 30, 2024 and 2023, amortization expense was approximately $0.1 million and $0.1 million, respectively. For the nine months ended September 30, 2024 and 2023, amortization expense was approximately $0.2 million and $0.2 million, respectively. As of September 30, 2024, the remaining weighted-average amortization period for acquired intangible assets was 5.79 years.

Deferred Debt Issuance Costs
Deferred debt issuance costs consist of the following (in thousands):
September 30,
2024		 December 31,
2023
Standing letter of credit $ 150  $ 150 
Equity letter of credit 554  554 
Line of credit 9,943  9,943 
Total 10,647  10,647 
Accumulated amortization (10,424) (9,341)
Deferred debt issuance costs $ 223  $ 1,306 
During the three and nine months ended September 30, 2024, the Company recorded amortization expense of $0.1 million and $0.2 million, respectively.
During the three and nine months ended September 30, 2023, the Company recorded amortization expense of $0.1 million and $0.1 million, respectively.
As of September 30, 2024, the deferred debt issuance costs related to the standing letter of credit and the line of credit has been fully amortized.

Accrued Expenses
Accrued expenses consisted of the following (in thousands):
September 30,
2024		 December 31,
2023
Payroll and related expenses $ 109  $ 112 
Bonus —  1,000 
Other expenses 808  82 
Total $ 917  $ 1,194