nLIGHT (LASR) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38462
Entity Registrant Name	NLIGHT, INC.
Entity Incorporation, Date of Incorporation	DE
Entity Tax Identification Number	91-2066376
Entity Address, Address Line One	4637 NW 18th Avenue
Entity Address, City or Town	Camas
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98607
City Area Code	360
Local Phone Number	566-4460
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	LASR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,850,661
Entity Central Index Key	0001124796
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 48,402	$ 57,826
Marketable securities	59,966	50,391
Accounts receivable, net of allowances of $290 and $290	36,140	37,913
Inventory	67,157	67,600
Prepaid expenses and other current assets	21,586	17,026
Total current assets	233,251	230,756
Restricted cash	253	252
Lease right-of-use assets	13,900	13,893
Property, plant and equipment, net	58,978	60,693
Intangible assets, net	3,408	4,041
Goodwill	12,388	12,376
Other assets, net	7,586	7,222
Total assets	329,764	329,233
Current liabilities:
Accounts payable	17,759	17,507
Accrued liabilities	14,708	12,820
Deferred revenues	1,271	1,407
Current portion of lease liabilities	3,001	2,758
Total current liabilities	36,739	34,492
Non-current income taxes payable	6,920	6,699
Long-term lease liabilities	12,576	12,852
Other long-term liabilities	4,367	4,345
Total liabilities	60,602	58,388
Stockholders' equity:
Common stock - $0.0001 par value; 190,000 shares authorized, 45,785 and 45,629 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	16	16
Additional paid-in capital	501,675	496,211
Accumulated other comprehensive loss	(2,165)	(2,748)
Accumulated deficit	(230,364)	(222,634)
Total stockholders’ equity	269,162	270,845
Total liabilities and stockholders’ equity	$ 329,764	$ 329,233

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 290	$ 290
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	190,000	190,000
Common stock, shares issued (in shares)	45,785	45,629
Common stock, shares outstanding (in shares)	45,785	45,629

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total revenue	$ 54,091	$ 64,459
Total cost of revenue	39,828	48,282
Gross profit	14,263	16,177
Operating expenses:
Research and development	11,301	13,711
Sales, general, and administrative	11,169	10,775
Total operating expenses	22,470	24,486
Loss from operations	(8,207)	(8,309)
Other income:
Interest income (expense), net	337	0
Other income, net	404	29
Loss before income taxes	(7,466)	(8,280)
Income tax expense (benefit)	264	343
Net loss	$ (7,730)	$ (8,623)
Net loss per share, basic (in dollars per share)	$ (0.17)	$ (0.20)
Net loss per share, diluted (in dollars per share)	$ (0.17)	$ (0.20)
Shares used in per share calculations, basic (in shares)	45,706	43,655
Shares used in per share calculations, diluted (in shares)	45,706	43,655
Products
Total revenue	$ 41,107	$ 51,061
Total cost of revenue	27,526	35,768
Development
Total revenue	12,984	13,398
Total cost of revenue	$ 12,302	$ 12,514

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,730)	$ (8,623)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	369	(96)
Unrealized gains on available-for-sale securities	214	0
Comprehensive loss	$ (7,147)	$ (8,719)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2021		44,248
Beginning balance at Dec. 31, 2021	$ 302,133	$ 15	$ 470,760	$ (587)	$ (168,055)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,623)				(8,623)
Issuance of common stock pursuant to exercise of stock options (in shares)		423
Issuance of common stock pursuant to exercise of stock options	689		689
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		7
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(78)		(78)
Restricted stock awards forfeited in connection with transition agreement (in shares)		(140)
Stock-based compensation	6,553		6,553
Cumulative translation adjustment, net of tax	(96)			(96)
Ending balance (in shares) at Mar. 31, 2022		44,538
Ending balance at Mar. 31, 2022	$ 300,578	$ 15	477,924	(683)	(176,678)
Beginning balance (in shares) at Dec. 31, 2022	45,629	45,629
Beginning balance at Dec. 31, 2022	$ 270,845	$ 16	496,211	(2,748)	(222,634)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (7,730)				(7,730)
Issuance of common stock pursuant to exercise of stock options (in shares)	117	117
Issuance of common stock pursuant to exercise of stock options	$ 143		143
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		39
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(182)		(182)
Stock-based compensation	5,503		5,503
Unrealized gains on available-for-sale securities	214			214
Cumulative translation adjustment, net of tax	$ 369			369
Ending balance (in shares) at Mar. 31, 2023	45,785	45,785
Ending balance at Mar. 31, 2023	$ 269,162	$ 16	$ 501,675	$ (2,165)	$ (230,364)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (7,730)	$ (8,623)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	3,105	2,556
Amortization	872	1,182
Reduction in carrying amount of right-of-use assets	6	867
Recoveries of losses on accounts receivable	(2)	0
Stock-based compensation	5,503	6,553
Deferred income taxes	0	(4)
Changes in operating assets and liabilities:
Accounts receivable, net	1,905	4,690
Inventory	662	(3,433)
Prepaid expenses and other current assets	(4,549)	(5,061)
Other assets, net	(540)	(317)
Accounts payable	(411)	(3,019)
Accrued and other long-term liabilities	1,855	(1,088)
Deferred revenues	(142)	(647)
Lease liabilities	(45)	(813)
Non-current income taxes payable	155	153
Net cash provided by (used in) operating activities	644	(7,004)
Cash flows from investing activities:
Purchases of property, plant and equipment	(684)	(5,019)
Acquisition of intangible assets and capitalization of patents	0	(114)
Purchase of marketable securities	(34,359)	0
Proceeds from maturities and sales of marketable securities	24,998	0
Net cash used in investing activities	(10,045)	(5,133)
Cash flows from financing activities:
Proceeds from stock option exercises	143	689
Tax payments related to stock award issuances	(182)	(78)
Net cash (used in) provided by financing activities	(39)	611
Effect of exchange rate changes on cash	17	(59)
Net decrease in cash, cash equivalents, and restricted cash	(9,423)	(11,585)
Cash, cash equivalents, and restricted cash, beginning of period	58,078	146,784
Cash, cash equivalents, and restricted cash, end of period	48,655	135,199
Supplemental disclosures:
Cash paid for interest, net	0	0
Cash paid for income taxes	144	79
Operating cash outflows from operating leases	923	1,097
Right-of-use assets obtained in exchange for lease liabilities	731	1,470
Accrued purchases of property, equipment and patents	$ 697	$ 2,268

Basis of Presentation and New A

Basis of Presentation and New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and New Accounting Pronouncements	Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Critical Accounting Policies Our critical accounting policies have not materially changed during the three months ended March 31, 2023, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. New Accounting Pronouncements None.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations. We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, the Company recognizes over time revenue as per ASC 606-10-55-18 (invoice practical expedient) for its cost plus contracts and, accordingly, elects not to disclose information related to those performance obligations under ASC 606-10-50-14b. Rights of return generally are not included in customer contracts. Accordingly, product revenue is recognized upon transfer of control at shipment or delivery, as applicable. Rights of return are evaluated as they occur. Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. Because control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer. Billing under these arrangements generally occurs within one month after the work is completed. The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended March 31, 2023 2022 Industrial $ 19,902 $ 23,996 Microfabrication 13,058 17,319 Aerospace and Defense 21,131 23,144 $ 54,091 $ 64,459 Sales by Geography Three Months Ended March 31, 2023 2022 North America $ 29,103 $ 35,144 China 3,646 7,139 Rest of World 21,342 22,176 $ 54,091 $ 64,459 Sales by Timing of Revenue Three Months Ended March 31, 2023 2022 Point in time $ 40,272 $ 48,215 Over time 13,819 16,244 $ 54,091 $ 64,459 Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of March 31, 2023 December 31, 2022 Contract assets Prepaid expenses and $ 16,547 $ 10,377 Contract liabilities Deferred revenues and other long-term liabilities 2,511 2,455 Contract assets generally consist of revenue recognized on an over time basis where revenue recognition has been met, but the amounts are subsequently billed and collected in the following period. During the three months ended March 31, 2023 and 2022, we recognized revenue of $0.8 million and $1.4 million, respectively, that was included in the deferred revenue balances at the beginning of the period as the performance obligations under the associated agreements were satisfied.

Concentrations of Credit and Ot

Concentrations of Credit and Other Risks	3 Months Ended
	Mar. 31, 2023
Risks and Uncertainties [Abstract]
Concentrations of Credit and Other Risks	Concentrations of Credit and Other Risks The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended March 31, 2023 2022 U.S. Government 16% 17% Raytheon Technologies (1) 10% (1) Represents less than 10% of total revenues.

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
Marketable Securities	Marketable Securities Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations. Realized gains were $0.4 million for three months ended March 31, 2023. Unrealized gains were $0.2 million for the three months ended March 31, 2023. These unrealized gains are considered temporary and are reflected in the Statements of Comprehensive Loss. There were no realized or unrealized gains or losses for the three months ended March 31, 2022. See Note 5 for additional information.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities are shown at cost which approximates fair value due to the short-term nature of these instruments. The fair value of our term and revolving loans approximates the carrying value due to the variable market rate used to calculate interest payments. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: • Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2 Inputs: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents and marketable securities. Our fair value hierarchy for our financial instruments was as follows (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 26,000 $ — $ — $ 26,000 Commercial paper 557 — — 557 26,557 — — 26,557 Marketable Securities: U.S. treasuries 59,966 — — 59,966 Total $ 86,523 $ — $ — $ 86,523 December 31, 2022 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 31,658 $ — $ — $ 31,658 Commercial paper 656 — — 656 $ 32,314 $ — $ — $ 32,314 Marketable Securities: U.S. treasuries 50,391 — — 50,391 Total $ 82,705 $ — $ — $ 82,705 Cash Equivalents The fair value of cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach that uses observable inputs without applying significant judgment.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory consisted of the following (in thousands): As of March 31, 2023 December 31, 2022 Raw materials $ 32,665 $ 32,515 Work in process and semi-finished goods 20,137 19,056 Finished goods 14,355 16,029 $ 67,157 $ 67,600

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): Useful life As of (years) March 31, 2023 December 31, 2022 Automobiles 3 $ 114 $ 110 Computer hardware and software 3 - 5 8,673 8,712 Manufacturing and lab equipment 2 - 7 90,153 89,230 Office equipment and furniture 5 - 7 2,482 2,410 Leasehold and building improvements 2 - 12 31,217 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 145,430 143,928 Accumulated depreciation (86,452) (83,235) $ 58,978 $ 60,693

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangible Assets The details of definite lived intangible assets were as follows (in thousands): Estimated useful life As of March 31, 2023 December 31, 2022 Patents 3 - 5 $ 6,334 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,960 2,930 16,494 16,452 Accumulated amortization (13,086) (12,411) $ 3,408 $ 4,041 Amortization related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2023 2022 Amortization expense $ 654 $ 776 Estimated amortization expense for future years is as follows (in thousands): 2023 $ 1,581 2024 929 2025 593 2026 305 Thereafter — $ 3,408 Goodwill The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2022 $ 2,128 $ 10,248 $ 12,376 Currency exchange rate adjustment 12 — 12 Balance, March 31, 2023 $ 2,140 $ 10,248 $ 12,388

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following (in thousands): As of March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 9,888 $ 8,233 Product warranty, current 2,540 2,601 Other accrued expenses 2,280 1,986 $ 14,708 $ 12,820

Product Warranties

Product Warranties	3 Months Ended
	Mar. 31, 2023
Guarantees and Product Warranties [Abstract]
Product Warranties	Product Warranties We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in other long-term liabilities in our Consolidated Balance Sheets. Product warranty liability activity was as follows for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (782) (1,490) Provision for warranty charges, net of adjustments 572 1,560 Product warranty liability, ending 5,231 5,441 Less: current portion of product warranty liability (2,540) (2,601) Non-current portion of product warranty liability $ 2,691 $ 2,840

Stockholders' Equity and Stock-

Stockholders' Equity and Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity and Stock-Based Compensation	Stockholders' Equity and Stock-Based Compensation Restricted Stock Awards and Units There was no restricted stock award activity in the first quarter of 2023. Restricted stock unit ("RSU") activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 152 11.55 Awards vested (57) 18.09 Awards forfeited (223) 21.49 RSUs at March 31, 2023 2,656 16.95 The total fair value of RSUs vested during the three months ended March 31, 2023, was $1.0 million. Awards outstanding as of March 31, 2023 include 0.6 million performance-based awards that will vest upon meeting certain performance criteria. Stock Options The following table summarizes our stock option activity during the three months ended March 31, 2023 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2022 1,827 $1.29 3.4 $16,156 Options exercised (117) 1.22 Outstanding, March 31, 2023 1,710 1.30 3.2 15,181 Options exercisable at March 31, 2023 1,710 1.30 3.2 15,181 Options vested as of March 31, 2023, and expected to vest after March 31, 2023 1,710 1.30 3.2 15,181 Total intrinsic value of options exercised for the three months ended March 31, 2023 and 2022, was $1.1 million and $6.4 million, respectively. We received proceeds of $0.1 million and $0.7 million from the exercise of options for the three months ended March 31, 2023 and 2022, respectively. Stock-Based Compensation Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenues $ 700 $ 709 Research and development 2,098 3,122 Sales, general and administrative 2,705 2,722 $ 5,503 $ 6,553 Unrecognized Compensation Costs As of March 31, 2023, total unrecognized stock-based compensation was $34.8 million, which will be recognized over an average expected recognition period of 2.0 years.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases See Note 13. Legal Matters On March 25, 2022, Lumentum Operations LLC filed a complaint against nLIGHT, Inc. and certain of its employees in the U.S. District Court for the Western District of Washington. The complaint alleges that Lumentum is the partial or full owner of certain of our patents and requests corresponding relief from the court. We are vigorously defending against Lumentum’s allegations. Loss in this matter is not probable or reasonably estimable and, as such, no loss contingency has been recorded. From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of March 31, 2023, we believe these matters will not have a material adverse effect on our consolidated financial statements.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of one month to 12.2 years, and some leases include options to extend up to 15 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.2 to 4.3 years. These leases are primarily operating leases; financing leases are not material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 8 years as of March 31, 2023, and the weighted-average discount rate was 3.6%. The weighted-average remaining lease term for the lease obligations was 8 years as of December 31, 2022, and the weighted-average discount rate was 3.6%. The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended March 31, 2023 2022 Lease expense: Operating lease expense $ 921 $ 1,031 Short-term lease expense 93 121 Variable and other lease expense 225 194 $ 1,239 $ 1,346 Future minimum payments under our non-cancelable lease obligations were as follows as of March 31, 2023 (in thousands): 2023 $ 2,658 2024 3,232 2025 2,067 2026 1,654 2027 1,655 Thereafter 6,806 Total minimum lease payments 18,072 Less: interest (2,495) Present value of net minimum lease payments 15,577 Less: current portion of lease liabilities (3,001) Total long-term lease liabilities $ 12,576

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended March 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 41,107 $ 12,984 $ — $ 54,091 Gross profit $ 14,281 $ 682 $ (700) $ 14,263 Gross margin 34.7 % 5.3 % NM* 26.4 % Three Months Ended March 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 51,061 $ 13,398 $ — $ 64,459 Gross profit $ 16,002 $ 884 $ (709) $ 16,177 Gross margin 31.3 % 6.6 % NM* 25.1 % Corporate and Other is unallocated expenses related to stock-based compensation. There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position. The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended March 31, 2023 2022 Restricted stock units and awards 845 1,313 Common stock options 1,574 2,090 2,419 3,403

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn May 4, 2023, we announced that we had been awarded an $86 million contract to produce a High Energy Laser (HEL) prototype for the next phase of development in support of the U.S. Department of Defense’s (DoD) High Energy Laser Scaling Initiative (HELSI).

Basis of Presentation and New_2

Basis of Presentation and New Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.
New Accounting Pronouncements	New Accounting Pronouncements None.
Inventory	Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.
Product Warranties	We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in other long-term liabilities in our Consolidated Balance Sheets.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Sales by End Market	The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended March 31, 2023 2022 Industrial $ 19,902 $ 23,996 Microfabrication 13,058 17,319 Aerospace and Defense 21,131 23,144 $ 54,091 $ 64,459
Schedule of Sales by Geography	Sales by Geography Three Months Ended March 31, 2023 2022 North America $ 29,103 $ 35,144 China 3,646 7,139 Rest of World 21,342 22,176 $ 54,091 $ 64,459
Schedule of Sales by Timing of Revenue	Sales by Timing of Revenue Three Months Ended March 31, 2023 2022 Point in time $ 40,272 $ 48,215 Over time 13,819 16,244 $ 54,091 $ 64,459
Schedule of Contract Assets and Liabilities	Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of March 31, 2023 December 31, 2022 Contract assets Prepaid expenses and $ 16,547 $ 10,377 Contract liabilities Deferred revenues and other long-term liabilities 2,511 2,455

Concentrations of Credit and _2

Concentrations of Credit and Other Risks (Tables)	3 Months Ended
	Mar. 31, 2023
Risks and Uncertainties [Abstract]
Schedule of Concentration of Credit	The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended March 31, 2023 2022 U.S. Government 16% 17% Raytheon Technologies (1) 10% (1) Represents less than 10% of total revenues.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value Hierarchy for Its Cash Equivalents	Our fair value hierarchy for our financial instruments was as follows (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 26,000 $ — $ — $ 26,000 Commercial paper 557 — — 557 26,557 — — 26,557 Marketable Securities: U.S. treasuries 59,966 — — 59,966 Total $ 86,523 $ — $ — $ 86,523 December 31, 2022 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 31,658 $ — $ — $ 31,658 Commercial paper 656 — — 656 $ 32,314 $ — $ — $ 32,314 Marketable Securities: U.S. treasuries 50,391 — — 50,391 Total $ 82,705 $ — $ — $ 82,705

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	Inventory consisted of the following (in thousands): As of March 31, 2023 December 31, 2022 Raw materials $ 32,665 $ 32,515 Work in process and semi-finished goods 20,137 19,056 Finished goods 14,355 16,029 $ 67,157 $ 67,600

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property, plant and equipment consist of the following (in thousands): Useful life As of (years) March 31, 2023 December 31, 2022 Automobiles 3 $ 114 $ 110 Computer hardware and software 3 - 5 8,673 8,712 Manufacturing and lab equipment 2 - 7 90,153 89,230 Office equipment and furniture 5 - 7 2,482 2,410 Leasehold and building improvements 2 - 12 31,217 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 145,430 143,928 Accumulated depreciation (86,452) (83,235) $ 58,978 $ 60,693

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The details of definite lived intangible assets were as follows (in thousands): Estimated useful life As of March 31, 2023 December 31, 2022 Patents 3 - 5 $ 6,334 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,960 2,930 16,494 16,452 Accumulated amortization (13,086) (12,411) $ 3,408 $ 4,041
Schedule of Finite-lived Intangible Assets Amortization Expense	Amortization related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2023 2022 Amortization expense $ 654 $ 776
Schedule of Estimated Future Amortization Expense	Estimated amortization expense for future years is as follows (in thousands): 2023 $ 1,581 2024 929 2025 593 2026 305 Thereafter — $ 3,408
Schedule of Goodwill	The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2022 $ 2,128 $ 10,248 $ 12,376 Currency exchange rate adjustment 12 — 12 Balance, March 31, 2023 $ 2,140 $ 10,248 $ 12,388

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): As of March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 9,888 $ 8,233 Product warranty, current 2,540 2,601 Other accrued expenses 2,280 1,986 $ 14,708 $ 12,820

Product Warranties (Tables)

Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2023
Guarantees and Product Warranties [Abstract]
Schedule of Reconciliation of the Changes in the Aggregate Product Warranty Liability	Product warranty liability activity was as follows for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (782) (1,490) Provision for warranty charges, net of adjustments 572 1,560 Product warranty liability, ending 5,231 5,441 Less: current portion of product warranty liability (2,540) (2,601) Non-current portion of product warranty liability $ 2,691 $ 2,840

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Restricted Stock Awards and Units	There was no restricted stock award activity in the first quarter of 2023. Restricted stock unit ("RSU") activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 152 11.55 Awards vested (57) 18.09 Awards forfeited (223) 21.49 RSUs at March 31, 2023 2,656 16.95
Schedule of Stock Option Activity	The following table summarizes our stock option activity during the three months ended March 31, 2023 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2022 1,827 $1.29 3.4 $16,156 Options exercised (117) 1.22 Outstanding, March 31, 2023 1,710 1.30 3.2 15,181 Options exercisable at March 31, 2023 1,710 1.30 3.2 15,181 Options vested as of March 31, 2023, and expected to vest after March 31, 2023 1,710 1.30 3.2 15,181
Schedule of Stock-based Compensation Expense	Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenues $ 700 $ 709 Research and development 2,098 3,122 Sales, general and administrative 2,705 2,722 $ 5,503 $ 6,553

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Components of Lease Expense	The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended March 31, 2023 2022 Lease expense: Operating lease expense $ 921 $ 1,031 Short-term lease expense 93 121 Variable and other lease expense 225 194 $ 1,239 $ 1,346
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations	Future minimum payments under our non-cancelable lease obligations were as follows as of March 31, 2023 (in thousands): 2023 $ 2,658 2024 3,232 2025 2,067 2026 1,654 2027 1,655 Thereafter 6,806 Total minimum lease payments 18,072 Less: interest (2,495) Present value of net minimum lease payments 15,577 Less: current portion of lease liabilities (3,001) Total long-term lease liabilities $ 12,576

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Operating Results by Reportable Segment	The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended March 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 41,107 $ 12,984 $ — $ 54,091 Gross profit $ 14,281 $ 682 $ (700) $ 14,263 Gross margin 34.7 % 5.3 % NM* 26.4 % Three Months Ended March 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 51,061 $ 13,398 $ — $ 64,459 Gross profit $ 16,002 $ 884 $ (709) $ 16,177 Gross margin 31.3 % 6.6 % NM* 25.1 %

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares	The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended March 31, 2023 2022 Restricted stock units and awards 845 1,313 Common stock options 1,574 2,090 2,419 3,403

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 54,091	$ 64,459
Point in time
Disaggregation of Revenue [Line Items]
Total revenue	40,272	48,215
Over time
Disaggregation of Revenue [Line Items]
Total revenue	13,819	16,244
North America
Disaggregation of Revenue [Line Items]
Total revenue	29,103	35,144
China
Disaggregation of Revenue [Line Items]
Total revenue	3,646	7,139
Rest of World
Disaggregation of Revenue [Line Items]
Total revenue	21,342	22,176
Industrial
Disaggregation of Revenue [Line Items]
Total revenue	19,902	23,996
Microfabrication
Disaggregation of Revenue [Line Items]
Total revenue	13,058	17,319
Aerospace and Defense
Disaggregation of Revenue [Line Items]
Total revenue	$ 21,131	$ 23,144

Revenue - Contract Assets and L

Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 16,547	$ 10,377
Contract liabilities	$ 2,511	$ 2,455

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized, previously included in customer advances and deferred revenue	$ 0.8	$ 1.4

Concentrations of Credit and _3

Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Sales Revenue | U.S. Government
Concentration Risk [Line Items]
Concentration risk (as a percent)	16%	17%
Sales Revenue | Raytheon Technologies
Concentration Risk [Line Items]
Concentration risk (as a percent)		10%
Accounts Receivable | Two customers
Concentration Risk [Line Items]
Concentration risk (as a percent)	33%	29%

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investments, All Other Investments [Abstract]
Realized gains	$ 0.4	$ 0
Unrealized gains	$ 0.2	$ 0

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	$ 26,557	$ 82,705
Total	86,523	32,314
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	26,557	32,314
Total	86,523	82,705
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
Total	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
Total	0	0
Money market securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	26,000	31,658
Money market securities | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	26,000	31,658
Money market securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
Money market securities | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	557	656
Commercial paper | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	557	656
Commercial paper | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
Commercial paper | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash Equivalents:	0	0
U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities:	59,966	50,391
U.S. treasuries | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities:	59,966	50,391
U.S. treasuries | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities:	0	0
U.S. treasuries | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities:	$ 0	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 32,665	$ 32,515
Work in process and semi-finished goods	20,137	19,056
Finished goods	14,355	16,029
Inventory	$ 67,157	$ 67,600

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 145,430	$ 143,928
Accumulated depreciation	(86,452)	(83,235)
Property and equipment, net	$ 58,978	60,693
Automobiles
Property, Plant and Equipment [Line Items]
(years)	3 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 114	110
Computer hardware and software
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 8,673	8,712
Computer hardware and software | Minimum
Property, Plant and Equipment [Line Items]
(years)	3 years
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
(years)	5 years
Manufacturing and lab equipment
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 90,153	89,230
Manufacturing and lab equipment | Minimum
Property, Plant and Equipment [Line Items]
(years)	2 years
Manufacturing and lab equipment | Maximum
Property, Plant and Equipment [Line Items]
(years)	7 years
Office equipment and furniture
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 2,482	2,410
Office equipment and furniture | Minimum
Property, Plant and Equipment [Line Items]
(years)	5 years
Office equipment and furniture | Maximum
Property, Plant and Equipment [Line Items]
(years)	7 years
Leasehold and building improvements
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 31,217	30,675
Leasehold and building improvements | Minimum
Property, Plant and Equipment [Line Items]
(years)	2 years
Leasehold and building improvements | Maximum
Property, Plant and Equipment [Line Items]
(years)	12 years
Buildings
Property, Plant and Equipment [Line Items]
(years)	30 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 9,392	9,392
Land
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 3,399	$ 3,399

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 16,494		$ 16,452
Accumulated amortization	(13,086)		(12,411)
Net value	3,408		4,041
Amortization expense	654	$ 776
Patents
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	6,334		6,322
Development programs
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 7,200		7,200
Developed technology
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years
Gross carrying amount	$ 2,960		$ 2,930
Minimum | Patents
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	3 years
Minimum | Development programs
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	2 years
Maximum | Patents
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years
Maximum | Development programs
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	4 years

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 1,581
2024	929
2025	593
2026	305
Thereafter	0
Net value	$ 3,408	$ 4,041

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 12,376
Currency exchange rate adjustment	12
Ending balance	12,388
Laser Products
Goodwill [Roll Forward]
Beginning balance	2,128
Currency exchange rate adjustment	12
Ending balance	2,140
Advanced Development
Goodwill [Roll Forward]
Beginning balance	10,248
Currency exchange rate adjustment	0
Ending balance	$ 10,248

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued payroll and benefits	$ 9,888	$ 8,233
Product warranty, current	2,540	2,601
Other accrued expenses	2,280	1,986
Total accrued liabilities	$ 14,708	$ 12,820

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Product warranty liability, beginning	$ 5,441	$ 5,371
Warranty charges incurred, net	(782)	(1,490)
Provision for warranty charges, net of adjustments	572	1,560
Product warranty liability, ending	5,231	5,441
Less: current portion of product warranty liability	(2,540)	(2,601)
Non-current portion of product warranty liability	$ 2,691	$ 2,840

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Restricted Stock Units
Balance, beginning (in shares) | shares	2,784
Awards granted (in shares) | shares	152
Awards vested (in shares) | shares	(57)
Awards forfeited (in shares) | shares	(223)
Balance, ending (in shares) | shares	2,656
Weighted-Average Grant Date Fair Value
Balance, beginning (in dollars per share) | $ / shares	$ 17.63
Awards granted (in dollars per share) | $ / shares	11.55
Awards vested (in dollars per share) | $ / shares	18.09
Awards forfeited (in dollars per share) | $ / shares	21.49
Balance, ending (in dollars per share) | $ / shares	$ 16.95

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 1,100	$ 6,400
Proceeds from stock option exercises	143	$ 689
Unrecognized expense	$ 34,800
Period for recognition (in years)	2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, fair value	$ (1,000)
Awards outstanding (in shares)	2,656		2,784
Performance-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)	600

Stockholders' Equity and Stoc_5

Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Outstanding, beginning of period (in shares)	1,827
Options exercised (in shares)	(117)
Outstanding, end of period (in shares)	1,710	1,827
Weighted-Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 1.29
Options exercised (in dollars per share)	1.22
Outstanding, end of period (in dollars per share)	$ 1.30	$ 1.29
Outstanding, Weighted average remaining contractual term (in years)	3 years 2 months 12 days	3 years 4 months 24 days
Outstanding, Aggregate intrinsic value	$ 15,181	$ 16,156
Options exercisable at end of period
Options exercisable (in shares)	1,710
Weighted average exercise price (in dollars per share)	$ 1.30
Weighted-Average Remaining Contractual Term (Years)	3 years 2 months 12 days
Aggregate Intrinsic Value	$ 15,181
Options vested as of end of period and expected to vest after end of period
Options vested and expected to vest (in shares)	1,710
Weighted average exercise price (in dollars per share)	$ 1.30
Weighted-Average Remaining Contractual Term (Years)	3 years 2 months 12 days
Aggregate Intrinsic Value	$ 15,181

Stockholders' Equity and Stoc_6

Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 5,503	$ 6,553
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	700	709
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,098	3,122
Sales, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,705	$ 2,722

Leases - Narrative (Details)

Leases - Narrative (Details)	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Weighted-average remaining lease term for operating leases (in years)	8 years	8 years
Weighted-average discount rate for operating leases (as a percent)	3.60%	3.60%
Operating Leases, Facilities
Lessee, Lease, Description [Line Items]
Renewal lease term (in years)	15 years
Operating Leases, Facilities | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 month
Operating Leases, Facilities | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	12 years 2 months 12 days
Operating Leases, Automobiles and Equipment | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	2 months 12 days
Operating Leases, Automobiles and Equipment | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	4 years 3 months 18 days

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease expense	$ 921	$ 1,031
Short-term lease expense	93	121
Variable and other lease expense	225	194
Lease expense	$ 1,239	$ 1,346

Leases - Future Minimum Payment

Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 2,658
2024	3,232
2025	2,067
2026	1,654
2027	1,655
Thereafter	6,806
Total minimum lease payments	18,072
Less: interest	(2,495)
Present value of net minimum lease payments	15,577
Less: current portion of lease liabilities	(3,001)	$ (2,758)
Total long-term lease liabilities	$ 12,576	$ 12,852

Segment Information - Narrative

Segment Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Operating

Segment Information - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenue	$ 54,091	$ 64,459
Gross profit	$ 14,263	$ 16,177
Gross margin	26.40%	25.10%
Operating Segments | Laser Products
Segment Reporting Information [Line Items]
Revenue	$ 41,107	$ 51,061
Gross profit	$ 14,281	$ 16,002
Gross margin	34.70%	31.30%
Operating Segments | Advanced Development
Segment Reporting Information [Line Items]
Revenue	$ 12,984	$ 13,398
Gross profit	$ 682	$ 884
Gross margin	5.30%	6.60%
Corporate and Other
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 0
Gross profit	$ (700)	$ (709)

Net Loss per Share (Details)

Net Loss per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,419	3,403
Restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	845	1,313
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,574	2,090

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Thousands	May 04, 2023	Mar. 31, 2023	Dec. 31, 2022
SubsequentEventTable [Line Items]
Contract with customer, liability		$ 2,511	$ 2,455
High Energy Laser Prototype | Subsequent Event
SubsequentEventTable [Line Items]
Contract with customer, liability	$ 86,000