Balance Sheet Components | 5. Balance Sheet Components Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds in the amount of $ 54.1 million and $ 82.9 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024 and December 31, 2023, the Company’s cash equivalents were held at institutions in the United States and include deposits in a money market fund which was unrestricted as to withdrawal or use. The Company also held cash in foreign banks of approximately $ 13.2 million at June 30, 2024 and $ 9.4 million at December 31, 2023 that was not insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. Investments The Company measures its cash equivalents and short-term investments at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income within stockholders’ equity. The Company regularly reviews its investments and evaluates the current expected credit loss by considering factors such as historical experience, market data, and the near-term prospects of the investee. The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities, excluding investments in money market funds (in thousands): June 30, 2024 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 20,976 $ 1 $ ( 11 ) $ 20,966 Treasury bonds 178,433 19 ( 427 ) 178,025 Total securities $ 199,409 $ 20 $ ( 438 ) $ 198,991 December 31, 2023 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 99,076 $ 68 $ ( 90 ) $ 99,054 Commercial paper 22,369 5 — 22,374 Corporate notes 3,491 — ( 1 ) 3,490 Treasury bonds 93,312 317 ( 41 ) 93,588 Total securities $ 218,248 $ 390 $ ( 132 ) $ 218,506 Realized gains or losses and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred. The cost of securities sold is determined based on the specific identification method. The amount of realized gains and realized losses on investments recorded for the periods presented has not been material. The contractual maturities of the Company’s investment securities as of June 30, 2024 were as follows (in thousands): Amortized Cost Fair Value Amounts maturing within one year $ 125,126 $ 124,995 Amounts maturing after one year through five years 74,283 73,996 Total investment securities $ 199,409 $ 198,991 Inventories (in thousands) June 30, December 31, 2024 2023 Raw materials $ 55,762 $ 64,974 Work in process 12,490 2,149 Finished goods 57,844 51,553 Total inventories $ 126,096 $ 118,676 Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. Inventory write-downs are recorded for excess and obsolete inventory. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or net realizable value approach as that has been used to value the inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. As a result of these evaluations, there was an immaterial change to the carrying value of inventory recognized for the three months ended June 30, 2024 and for the three months ended June 30, 2023, the Company recognized a write-down of $ 1.6 million. For the six months ended June 30, 2024 and 2023, the Company had write-downs of $ 0.7 million and $ 2.8 million, respectively. Property and Equipment, Net (in thousands) June 30, December 31, 2024 2023 Laboratory and manufacturing equipment $ 16,084 $ 15,414 Computer equipment and software 15,710 15,451 Internally developed software 10,855 8,831 Furniture and fixtures 4,781 4,745 Leasehold improvements 10,933 10,924 Construction in process 5,930 4,865 Total 64,293 60,230 Less: Accumulated depreciation and amortization ( 39,734 ) ( 35,662 ) Property and equipment, net $ 24,559 $ 24,568 The Company recognized depreciation and amortization expense on property and equipment as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Depreciation and amortization expense $ 2,014 $ 1,671 $ 4,066 $ 3,212 Accrued Liabilities (in thousands) June 30, December 31, 2024 2023 Accrued payroll and related expenses $ 20,452 $ 31,715 Accrued professional fees 1,009 2,909 Accrued taxes 1,552 1,482 Accrued clinical and research expenses 797 752 Accrued interest 1,171 1,123 Accrued warranty 2,200 1,531 Accrued other 11,741 5,785 Total accrued liabilities $ 38,922 $ 45,297 |