Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Smaller Reporting Company | false | ||
Emerging Growth | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 696.6 | ||
Entity Common Stock, Shares Outstanding | 47,289,419 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001124796 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Portland, Oregon |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 53,210 | $ 57,826 |
Marketable securities | 59,672 | 50,391 |
Accounts receivable, net of allowances of $315 and $290 | 39,585 | 37,913 |
Inventory | 52,160 | 67,600 |
Prepaid expenses and other current assets | 15,927 | 17,026 |
Total current assets | 220,554 | 230,756 |
Restricted cash | 256 | 252 |
Lease right-of-use assets | 12,616 | 13,893 |
Property, plant and equipment, net | 52,300 | 60,693 |
Intangible assets, net | 1,652 | 4,041 |
Goodwill | 12,399 | 12,376 |
Other assets, net | 7,026 | 7,222 |
Total assets | 306,803 | 329,233 |
Current liabilities: | ||
Accounts payable | 12,166 | 17,507 |
Accrued liabilities | 12,556 | 12,820 |
Deferred revenues | 4,849 | 1,407 |
Current portion of lease liabilities | 3,181 | 2,758 |
Total current liabilities | 32,752 | 34,492 |
Non-current income taxes payable | 5,391 | 6,699 |
Long-term lease liabilities | 10,978 | 12,852 |
Other long-term liabilities | 3,263 | 4,345 |
Total liabilities | 52,384 | 58,388 |
Stockholders' equity: | ||
Common stock - $0.0001 par value; 190,000 shares authorized, 47,266 and 45,629 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 16 | 16 |
Additional paid-in capital | 521,184 | 496,211 |
Accumulated other comprehensive loss | (2,477) | (2,748) |
Accumulated deficit | (264,304) | (222,634) |
Total stockholders’ equity | 254,419 | 270,845 |
Total liabilities and stockholders’ equity | $ 306,803 | $ 329,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances | $ 315 | $ 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) | 47,266 | 45,629 |
Common stock, shares outstanding (in shares) | 47,266 | 45,629 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total revenue | $ 209,921 | $ 242,058 | $ 270,146 |
Total cost of revenue | 163,808 | 191,237 | 192,839 |
Gross profit | 46,113 | 50,821 | 77,307 |
Operating expenses: | |||
Research and development | 46,163 | 53,773 | 54,814 |
Sales, general, and administrative | 45,899 | 48,258 | 52,710 |
Restructuring | 817 | 3,892 | 0 |
Total operating expenses | 92,879 | 105,923 | 107,524 |
Loss from operations | (46,766) | (55,102) | (30,217) |
Other income (expense): | |||
Interest income (expense), net | 1,342 | 529 | (163) |
Other income, net | 2,776 | 338 | 336 |
Loss before income taxes | (42,648) | (54,235) | (30,044) |
Income tax expense (benefit) | (978) | 344 | (375) |
Net loss | $ (41,670) | $ (54,579) | $ (29,669) |
Net loss per share, basic (in dollars per share) | $ (0.90) | $ (1.23) | $ (0.70) |
Net loss per share, diluted (in dollars per share) | $ (0.90) | $ (1.23) | $ (0.70) |
Shares used in per share calculations, basic (in shares) | 46,078 | 44,436 | 42,142 |
Shares used in per share calculations, diluted (in shares) | 46,078 | 44,436 | 42,142 |
Products | |||
Total revenue | $ 156,666 | $ 192,658 | $ 206,195 |
Total cost of revenue | 114,181 | 145,272 | 132,867 |
Development | |||
Total revenue | 53,255 | 49,400 | 63,951 |
Total cost of revenue | $ 49,627 | $ 45,965 | $ 59,972 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (41,670) | $ (54,579) | $ (29,669) |
Other comprehensive loss, net of tax: | |||
Foreign currency translation adjustments | (249) | (2,555) | (328) |
Unrealized gains on available-for-sale securities | 520 | 394 | 0 |
Comprehensive loss | $ (41,399) | $ (56,740) | $ (29,997) |
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, 2020 | 39,793 | ||||
Beginning balance at Dec. 31, 2020 | $ 219,914 | $ 15 | $ 358,544 | $ (259) | $ (138,386) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (29,669) | (29,669) | |||
Proceeds from follow-on offering, net of offering costs (in shares) | 2,537 | ||||
Proceeds from follow-on offering, net of offering costs | 82,354 | 82,354 | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 896 | ||||
Issuance of common stock pursuant to exercise of stock options | 1,145 | 1,145 | |||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares) | 952 | ||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | (10,606) | (10,606) | |||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 70 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 1,603 | 1,603 | |||
Stock-based compensation | 37,720 | 37,720 | |||
Cumulative translation adjustment, net of tax | (328) | (328) | |||
Ending balance (in shares) at Dec. 31, 2021 | 44,248 | ||||
Ending balance at Dec. 31, 2021 | 302,133 | $ 15 | 470,760 | (587) | (168,055) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (54,579) | (54,579) | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 585 | ||||
Issuance of common stock pursuant to exercise of stock options | 1,198 | $ 1 | 1,197 | ||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares) | 705 | ||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | (4,861) | (4,861) | |||
Restricted stock awards forfeited in connection with transition agreement (in shares) | (140) | ||||
Restricted stock awards modified in connection with performance achievement (in shares) | (10) | ||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 241 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 2,358 | 2,358 | |||
Stock-based compensation | 26,757 | 26,757 | |||
Unrealized gains on available-for-sale securities | 394 | 394 | |||
Cumulative translation adjustment, net of tax | $ (2,555) | (2,555) | |||
Ending balance (in shares) at Dec. 31, 2022 | 45,629 | 45,629 | |||
Ending balance at Dec. 31, 2022 | $ 270,845 | $ 16 | 496,211 | (2,748) | (222,634) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (41,670) | (41,670) | |||
Proceeds from follow-on offering, net of offering costs (in shares) | 1,700 | ||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 428 | 428 | |||
Issuance of common stock pursuant to exercise of stock options | $ 640 | 640 | |||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares) | 946 | ||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | $ (3,968) | (3,968) | |||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 263 | 263 | |||
Issuance of common stock under the Employee Stock Purchase Plan | $ 2,469 | 2,469 | |||
Stock-based compensation | 25,832 | 25,832 | |||
Unrealized gains on available-for-sale securities | 520 | 520 | |||
Cumulative translation adjustment, net of tax | $ (249) | (249) | |||
Ending balance (in shares) at Dec. 31, 2023 | 47,266 | 47,266 | |||
Ending balance at Dec. 31, 2023 | $ 254,419 | $ 16 | $ 521,184 | $ (2,477) | $ (264,304) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (41,670) | $ (54,579) | $ (29,669) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 12,401 | 11,085 | 9,179 |
Amortization | 3,629 | 4,614 | 5,880 |
Reduction in carrying amount of right-of-use assets | 1,269 | 3,000 | 3,253 |
Provision for losses on accounts receivable | 27 | 4 | (70) |
Stock-based compensation | 25,832 | 26,757 | 37,720 |
Deferred income taxes | 7 | 4 | 37 |
Loss on disposal of property, plant and equipment | 542 | 51 | 16 |
Non-cash restructuring charges | 0 | 2,758 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (1,677) | 2,757 | (9,509) |
Inventory | 14,890 | 4,623 | (18,994) |
Prepaid expenses and other current assets | 1,109 | (1,753) | (3,630) |
Other assets, net | (1,156) | (5,219) | (570) |
Accounts payable | (4,503) | (5,904) | 3,463 |
Accrued and other long-term liabilities | (1,336) | (577) | (199) |
Deferred revenues | 3,432 | (208) | (909) |
Lease liabilities | (1,449) | (1,942) | (2,934) |
Non-current income taxes payable | (1,256) | (13) | (507) |
Net cash provided by (used in) operating activities | 10,091 | (14,542) | (7,443) |
Cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | 0 | (664) | (291) |
Purchases of property, plant and equipment | (5,339) | (21,388) | (19,317) |
Acquisition of intangible assets and capitalization of patents | 0 | (332) | (2,245) |
Purchase of marketable securities | (127,907) | (99,985) | 0 |
Proceeds from maturities and sales of marketable securities | 119,146 | 49,988 | 0 |
Net cash used in investing activities | (14,100) | (72,381) | (21,853) |
Cash flows from financing activities: | |||
Principal payments on term loan, debt and financing leases | 0 | 0 | (428) |
Payment of contingent consideration related to acquisition | 0 | 0 | (326) |
Proceeds from public offering, net of offering costs | 0 | 0 | 82,354 |
Proceeds from employee stock plan purchases | 2,469 | 2,358 | 1,603 |
Proceeds from stock option exercises | 640 | 1,197 | 1,145 |
Tax payments related to stock award issuances | (3,968) | (4,861) | (10,606) |
Net cash provided by (used in) financing activities | (859) | (1,306) | 73,742 |
Effect of exchange rate changes on cash | 256 | (477) | (235) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (4,612) | (88,706) | 44,211 |
Cash, cash equivalents, and restricted cash, beginning of period | 58,078 | 146,784 | 102,573 |
Cash, cash equivalents, and restricted cash, end of period | 53,466 | 58,078 | 146,784 |
Supplemental disclosures: | |||
Cash paid for interest | 40 | 0 | 117 |
Cash paid for income taxes | 256 | 442 | 526 |
Operating cash outflows from operating leases | 3,850 | 3,925 | 3,513 |
Right-of-use assets obtained in exchange for lease liabilities | 1,716 | 1,349 | 8,012 |
Accrued purchases of property, equipment and patents | $ 745 | $ 207 | $ 2,522 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of nLIGHT, Inc. and our wholly owned subsidiaries Arbor Photonics, LLC, nLIGHT Cayman Ltd., nLIGHT Laser Technology (Shanghai) Co. Ltd, nLIGHT Oy (Finland), nLIGHT Korea Inc., nLIGHT GmbH, nLIGHT DEFENSE Systems Inc. (fka Nutronics, Inc.), and nLIGHT Europe S.r.l. All intercompany balances have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to inventory valuation, allowances for doubtful accounts, warranty, sales return reserves and the recoverability of long-lived assets. Management bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates. Revenue Recognition See Note 2 for a detailed description of our revenue recognition policies. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when acquired to be cash equivalents. Cash and cash equivalents included $24.4 million and $32.3 million of highly liquid investments at December 31, 2023 and 2022, respectively. Cash equivalents are carried at cost, which approximates fair value. Inventory See Note 7 for a detailed description of our inventory accounting policies. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized. Repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight‑line method over the estimated useful life of each asset, generally 2 to 12 years for property and equipment, and 30 years for buildings. Land is not depreciated. Goodwill Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually and more frequently if material changes in events or circumstances arise. We perform an annual impairment review of goodwill in the fourth quarter of each year using either a qualitative assessment or a quantitative goodwill impairment test. If the qualitative assessment is selected and determines that the fair value of each reporting unit more likely than not exceeds its carrying value, no further assessment is necessary. If a quantitative test is determined necessary and an impairment is indicated, the impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. Based on qualitative assessments performed in fiscal years 2023, 2022 and 2021, the fair values of the Laser Products and Advanced Development reporting units exceeded their carrying values, and no impairment charges were recorded. See Note 9 for additional information. Intangible Assets Definite-lived intangible assets consist of acquisition-related development programs, developed technology, and intellectual property. The intangible assets are being amortized using the straight-line method over periods of 2 to 5 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. See Note 9 for additional information. Other Assets Other assets, net primarily consist of long-term accounts receivable, demonstration ("demo") assets and deposits. Demo assets are equipment that is used for demonstration and other purposes with existing and prospective customers. Demo assets are recorded at cost and amortized over an estimated useful life of approximately two years. Amortization expense related to demo assets was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Amortization expense $ 1,150 $ 1,544 $ 1,979 Restructuring Charges Restructuring charges in 2023 were comprised primarily of employee severance and in 2022 were comprised of employee severance and abandoned in-process capital equipment projects related to production capacity that were never placed into service. The determination of when we accrue for employee termination benefits depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement. For restructuring charges recorded as an on-going benefit arrangement, a liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. For restructuring charges recorded as a one-time benefit arrangement, we recognize a liability for employee termination benefits when a plan of termination, approved by management and establishing the terms of the benefit arrangement, has been communicated to employees. The timing of the recognition of one-time employee termination benefits is dependent upon the period of time the employees are required to render service after communication. If employees are not required to render service in order to receive the termination benefits or if employees will not be retained to render service beyond the minimum legal notification period, a liability for the termination benefits is recognized at the communication date. In instances where employees will be retained to render service beyond the minimum legal notification period, the liability for employee termination benefits is measured initially at the communication date based on the fair value of the liability as of the termination date and is recognized ratably over the future service period. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. We record charges related to long-lived assets to be abandoned when the assets cease to be used, and any inventory charges related to restructuring are classified as a cost of revenue. Although we believe that these estimates accurately reflect the costs of our restructuring plans, actual results may differ, thereby requiring us to record additional provisions or reverse a portion of such provisions. See Note 14 for additional information. Impairment of Long‑Lived Assets Long‑lived assets, such as property, plant and equipment, and intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. There was no impairment of long‑lived assets recorded for the years ended December 31, 2023, 2022 and 2021. Leases See Note 13 for a detailed description of our lease accounting policies. Research and Development Costs Research and development is defined as activities aimed at developing or significantly improving a product or a process or technique whether the product or process is intended for sale or use. A process also may be used internally as a part of a manufacturing activity. Research and development costs are expensed as incurred. Stock-Based Compensation We recognize compensation expense for stock-based awards on a straight-line basis based on the grant-date estimated fair values and requisite service period. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value of restricted stock units (RSU) and restricted stock awards (RSA) are measured based on the closing market price of our common stock on the date of grant. For RSUs and RSAs with performance conditions, compensation costs are also based on the probable outcome of achieving the specified performance conditions. The fair value of restricted stock awards based on certain market performance criteria is measured using the Monte Carlo simulation pricing model. Income Taxes We account for income taxes using the asset and liability approach under which deferred income taxes are provided based upon enacted tax laws and rates applicable to the periods in which taxes become payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Translation of Foreign Currencies Our international subsidiaries use their local currency as their functional currency. The financial statements of the international subsidiaries are translated to their U.S. dollar equivalents at end‑of‑period currency exchange rates for assets and liabilities and at average currency exchange rates for revenues and expenses. Translation adjustments are recorded as a component of Accumulated other comprehensive loss within stockholders’ equity. Realized and unrealized foreign currency gains or losses, net are recorded in Other income, net within the Consolidated Statements of Operations. Realized and unrealized foreign currency gains and losses were as follows for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Realized foreign currency gain $ 1,169 $ (967) $ (294) Unrealized foreign currency loss (1,140) 1,052 102 New Accounting Pronouncements ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows. |
Revenue
Revenue | 12 Months Ended |
Dec. 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, we recognize, over time, revenue as per ASC 606-10-55-18 (invoice practical expedient) for our cost plus contracts and, accordingly, elect not to disclose information related to those performance obligations under ASC 606-10-50-14b. As of December 31, 2023, we had approximately $30 million of performance obligations relating to firm fixed price contracts that did not qualify for the aforementioned disclosure exemptions. We expect to recognize more than 80% of these performance obligations by the end of 2024 and the remainder in 2025. 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. For long-term contracts, we estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached. The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Year Ended December 31, 2023 2022 2021 Industrial $ 71,044 $ 91,098 $ 94,795 Microfabrication 47,483 62,769 70,412 Aerospace and Defense 91,394 88,191 104,939 $ 209,921 $ 242,058 $ 270,146 Sales by Geography Year Ended December 31, 2023 2022 2021 North America $ 129,311 $ 137,454 $ 143,232 China 11,890 21,287 55,446 Rest of World 68,720 83,317 71,468 $ 209,921 $ 242,058 $ 270,146 Sales by Timing of Revenue Year Ended December 31, 2023 2022 2021 Point in time $ 155,258 $ 183,005 $ 198,838 Over time 54,663 59,053 71,308 $ 209,921 $ 242,058 $ 270,146 Our contract assets and liabilities were as follows (in thousands): Balance Sheet Classification As of December 31, 2023 2022 $ Change % Change Contract assets Prepaid expenses and $ 7,298 $ 10,377 $ (3,079) (30) % Contract liabilities Deferred revenues and other long-term liabilities 6,368 2,455 3,913 159 % 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 a subsequent period. In our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities recorded in deferred revenue on the Consolidated Balance Sheets. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. The changes in contract assets and liabilities primarily results from timing differences between revenue recognition and customer billings and/or payments. During the years ended December 31, 2023 and 2022, we recognized revenue of $1.5 million and $1.6 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 | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit and Other Risks | Concentrations of Credit and Other Risks The following customer accounted for 10% or more of our revenues for the periods presented: Year Ended December 31, 2023 2022 2021 U.S. Government* 18% 17% 22% *Excludes sales to customers who sell our products and services exclusively to the U.S. Government |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience and knowledge of any applicable circumstances. Activity related to the allowance for doubtful accounts was as follows for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Allowance for doubtful accounts, beginning $ 290 $ 303 $ 367 Provision (benefit) for losses on accounts receivable 27 27 (4) Write-offs, net (2) (40) (60) Allowance for doubtful accounts, ending $ 315 $ 290 $ 303 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 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 $2.4 million and unrealized gains were $0.5 million for the year ended December 31, 2023. Realized gains were $0.2 million and unrealized gains were $0.4 million for the year ended December 31, 2022. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. See Note 6 for additional information. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 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): December 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 22,441 $ — $ — $ 22,441 Commercial paper 1,995 — — 1,995 24,436 — — 24,436 Marketable Securities: U.S. treasuries 59,672 — — 59,672 Total $ 84,108 $ — $ — $ 84,108 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 | 12 Months Ended |
Dec. 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 December 31, 2023 2022 Raw materials $ 23,426 $ 32,515 Work in process and semi-finished goods 19,640 19,056 Finished goods 9,094 16,029 $ 52,160 $ 67,600 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): Useful life As of December 31, (years) 2023 2022 Automobiles 3 $ 109 $ 110 Computer hardware and software 3 - 5 9,145 8,712 Manufacturing and lab equipment 2 - 7 91,050 89,230 Office equipment and furniture 5 - 7 2,634 2,410 Leasehold and building improvements 2 - 12 31,988 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 147,717 143,928 Accumulated depreciation (95,417) (83,235) $ 52,300 $ 60,693 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 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 December 31, 2023 2022 Patents 3 - 5 $ 6,345 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,959 2,930 16,504 16,452 Accumulated amortization (14,852) (12,411) $ 1,652 $ 4,041 Amortization related to intangible assets was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Amortization expense $ 2,410 $ 2,879 $ 3,891 Estimated amortization expense for future years is as follows (in thousands): 2024 $ 819 2025 484 2026 349 Thereafter — $ 1,652 Goodwill The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2021 $ 2,172 $ 10,248 $ 12,420 Currency exchange rate adjustment (44) — (44) Balance, December 31, 2022 2,128 10,248 12,376 Currency exchange rate adjustment 23 — 23 Balance, December 31, 2023 $ 2,151 $ 10,248 $ 12,399 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Accrued payroll and benefits $ 7,898 $ 8,233 Product warranty, current 3,339 2,601 Other accrued expenses 1,319 1,986 $ 12,556 $ 12,820 |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 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): Year Ended December 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (3,788) (1,490) Provision for warranty charges, net of adjustments 2,816 1,560 Product warranty liability, ending 4,469 5,441 Less: current portion of product warranty liability (3,339) (2,601) Non-current portion of product warranty liability $ 1,130 $ 2,840 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 13. Credit Facilities We have a $40.0 million revolving line of credit (LOC) with Pacific Western Bank which is secured by our assets and expires in September 2024. The LOC agreement contains restrictive and financial covenants and bears an unused credit fee of 0.20% on an annualized basis. The interest rate on the LOC is based on the Prime Rate, minus a margin based on our liquidity levels. No amounts were outstanding under the LOC at December 31, 2023 and 2022 and we were in compliance with all covenants. Legal Matters On March 25, 2022, Lumentum Operations LLC (Lumentum) 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 nor 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 December 31, 2023, we believe these matters will not have a material adverse effect on our consolidated financial statements. |
Leases
Leases | 12 Months Ended |
Dec. 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 0.3 to 11.4 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 4.8 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 7 years as of December 31, 2023, and the weighted-average discount rate was 3.8%. The components of lease expense related to operating leases were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Lease expense: Operating lease expense $ 3,671 $ 3,865 $ 3,924 Short-term lease expense 472 573 525 Variable and other lease expense 1,020 872 741 $ 5,163 $ 5,310 $ 5,190 Future minimum payments under our non-cancelable lease obligations were as follows as of December 31, 2023 (in thousands): 2024 $ 3,687 2025 2,408 2026 1,741 2027 1,688 2028 1,413 Thereafter 5,410 Total minimum lease payments 16,347 Less: interest (2,188) Present value of net minimum lease payments 14,159 Less: current portion of lease liabilities (3,181) Total long-term lease liabilities $ 10,978 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2023, we implemented a restructuring plan which included headcount reduction in China. During the fourth quarter of 2022, we implemented a restructuring plan which included headcount reductions in both the U.S. and China, and the write-down of in-process capital equipment projects related to production capacity that was never placed into service. Restructuring charges in 2023 and 2022 were as follows (in thousands): Year Ended December 31, 2023 2022 Employee termination costs $ 737 $ 1,271 Write-down of long-lived assets — 2,566 Other 79 55 Total restructuring charges $ 817 $ 3,892 Restructuring accruals and payments in 2023 and 2022 were as follows (in thousands): Accrued restructuring charges at December 31, 2021 $ — Restructuring charges 3,892 Cash payments (1,134) Non-cash settlements (2,566) Accrual at December 31, 2022 192 Restructuring charges 817 Cash payments (1,009) Accrual at December 31, 2023 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (46,602) $ (50,611) $ (33,940) Foreign 3,954 (3,624) 3,896 Loss before income taxes $ (42,648) $ (54,235) $ (30,044) The income tax provision (benefit) was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current tax expense (benefit): State $ 53 $ 73 $ 70 Foreign (985) 264 (458) Current tax expense (benefit) (932) 337 (388) Deferred tax expense (benefit): Foreign (46) 7 13 Deferred tax expense (benefit) (46) 7 13 Income tax expense (benefit) $ (978) $ 344 $ (375) The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate of 21% to the loss before income taxes as a result of the following differences (in thousands): Year Ended December 31, 2023 2022 2021 Tax computed at federal statutory rate $ (8,956) $ (11,436) $ (6,309) State tax, net of federal tax benefit (800) (842) (407) Permanent items (364) (522) (333) Stock-based compensation 1,923 4,005 (3,307) Foreign dividends and unremitted earnings 104 (231) 78 Foreign rate differential 146 (360) 29 Rate change due to tax reform — — 918 Federal credits (988) (445) (993) Tax contingencies, net of reversals (1,177) 256 838 Return to provision (429) (523) (1,123) Expiration of net operating loss carryforwards 1,810 — — Other 49 (324) (305) Valuation allowance 7,704 10,766 10,539 Income tax expense (benefit) $ (978) $ 344 $ (375) The income tax expense (benefit) recorded primarily relates to operations in China and Finland, which have income tax rates of 25% and 20%, respectively. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 39,714 $ 39,998 $ 35,585 Research and alternative minimum tax credits 7,822 6,658 6,535 Accrued expenses and other 4,365 4,999 7,020 Lease liabilities 2,854 3,270 3,525 Inventory 3,283 3,305 5,852 Property and equipment 387 293 — Intangible assets 16,612 9,184 — Total gross deferred tax assets 75,037 67,707 58,517 Less: valuation allowance (72,461) (64,796) (54,239) Total deferred tax assets 2,576 2,911 4,278 Deferred tax liabilities: Property and equipment — — (87) Intangible assets — — (767) Right-of-use assets (2,487) (2,869) (3,378) Total deferred tax liabilities (2,487) (2,869) (4,232) Net deferred tax assets $ 89 $ 42 $ 46 Net deferred tax assets are included in Other assets, net in our Consolidated Balance Sheets. In evaluating our valuation allowance, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Due to uncertainty with respect to ultimate realizability of deferred tax assets, we have provided a full valuation allowance against the U.S. and China deferred tax assets. The net change in the total valuation allowance for the years ended December 31, 2023, 2022 and 2021 were increases of $7.7 million, $10.6 million and $10.6 million, respectively. At December 31, 2023, we had U.S., China, and state net operating loss (NOL) carryforwards of $161.0 million, $14.5 million, and $43.2 million, respectively. These carryforwards will expire from 2024 to 2043 if not used by us to reduce taxable income in future periods. We have U.S. research and development credit carryforwards of $9.3 million. These carryforwards will begin to expire between 2024 and 2043 if not used by us to reduce income taxes payable in future periods. Utilization of NOL carryforwards, credit carryforwards and certain deductions have been subject to annual limitations due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended. We have had three "change in ownership" events that limit the utilization of NOL carryforwards, which occurred twice in August of 2000 and once in January of 2001, and resulted in NOL carryforward limitations totaling $528 thousand. Additional limitations on the use of these tax attributes could occur in the event of possible disputes arising in examination from various taxing authorities. The following table presents a reconciliation of the changes in the unrecognized tax benefit (in thousands): Balance at December 31, 2020 $ 7,859 Additions based on tax positions related to the current year 661 Additions for tax positions of prior years 53 Reductions as a result of a lapse of applicable statute of limitations (250) Other 112 Balance at December 31, 2021 8,435 Additions based on tax positions related to the current year 822 Reductions for tax positions of prior years (53) Reductions as a result of a lapse of applicable statute of limitations (183) Other (437) Balance at December 31, 2022 8,584 Additions based on tax positions related to the current year 416 Reductions for tax positions of prior years (70) Reductions as a result of a lapse of applicable statute of limitations (371) Other (84) Balance at December 31, 2023 $ 8,475 At December 31, 2023, we had $8.5 million of unrecognized tax benefits (excluding interest and penalties). Of this amount, $2.8 million is recorded in non-current deferred tax liabilities and $5.7 million is recorded as an offset to non-current deferred tax assets on the accompanying Consolidated Balance Sheets. The $5.7 million of unrecognized tax benefits in non-current deferred tax assets is entirely offset by a valuation allowance in both the U.S. and China. Of our unrecognized tax benefits, $2.8 million, if recognized, would impact the effective tax rate. At December 31, 2022, we had $8.6 million of unrecognized tax benefits (excluding interest and penalties). Of this amount, $3.1 million was recorded in non-current income taxes payable and $5.5 million as an offset to non-current deferred tax assets on the accompanying Consolidated Balance Sheets. We do not expect a significant decrease to the total amount of unrecognized tax benefits within the next twelve months. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. We recognized a net increase (decrease) in penalties and interest during the years ended December 31, 2023, 2022 and 2021, of $(1.0) million, $0.3 million, and $(0.3) million, respectively. At December 31, 2023 and 2022, interest and penalties associated with unrecognized tax benefits were $0.9 million and $2.0 million, respectively. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Stockholders' Equity and Stock-Based Compensation Preferred Stock We have authorized 5.0 million shares of preferred stock, par value $0.0001, none of which is issued and outstanding. Common Stock Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of December 31, 2023. Public Offering In March 2021, we closed a follow-on public offering in which we issued and sold approximately 2.5 million shares of common stock (including approximately 0.3 million shares sold pursuant to the full exercise of the underwriters' option to purchase additional shares) at an offering price of $34.00 per share, resulting in aggregate net proceeds to us of approximately $82.4 million after deducting underwriting discounts, commissions and offering costs. Common Stock Repurchase Plan On November 14, 2019, our Board of Directors authorized the repurchase of up to $10.0 million of our outstanding shares of common stock. As of December 31, 2023, no repurchases had been executed under the program. Equity Incentive Plan As of December 31, 2023, there were approximately 1.7 million shares available for issuance under our equity incentive plan. Common stock issued for awards will come from newly issued shares. Restricted Stock Awards and Units Restricted stock award (RSA) and 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 Awards Weighted-Average Grant Date Fair Value RSAs at December 31, 2022 332 $ 28.24 Awards granted (32) 33.66 Awards vested (167) 25.46 RSAs at December 31, 2023 133 30.44 Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 1,639 10.79 Awards vested (1,268) 17.96 Awards forfeited (338) 19.52 RSUs at December 31, 2023 2,817 13.27 The total fair value of RSAs and RSUs vested during the year ended December 31, 2023 was $4.3 million and $22.8 million, respectively. Awards outstanding as of December 31, 2023 include 0.8 million performance-based awards that will vest upon meeting certain performance criteria. Approximately 0.5 million total performance-based awards were granted in 2023. The awards vest based on a market metric called Total Shareholder Return ("TSR") for the performance period of three years relative to the TSR of companies in the Russell 2000 Index had a weighted average grant-date fair value of $14.21 per share using a Monte Carlo simulation pricing model. Stock Options The following table summarizes our stock option activity during the year ended December 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 (428) $1.50 Options canceled (1) $1.26 Outstanding, December 31, 2023 1,398 $1.24 2.5 $17,142 Options exercisable at December 31, 2023 1,398 $1.24 2.5 $17,142 Options vested as of December 31, 2023, and expected to vest after December 31, 2023 1,398 $1.24 2.5 $17,142 Total intrinsic value of options exercised for the years ended December 31, 2023, 2022 and 2021 was $4.2 million, $7.7 million and $27.1 million, respectively. We received proceeds of $0.6 million, $1.2 million and $1.1 million from the exercise of options for each of the years ended December 31, 2023, 2022 and 2021, respectively. Employee Stock Purchase Plan Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows: Year Ended Shares issued (in thousands) 263 Weighted-average per share purchase price $ 9.40 Weighted-average per share discount from the fair value of our common stock on date of issuance $ 1.66 As of December 31, 2023, there were 4.1 million shares available for grant under the ESPP. Stock-Based Compensation Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 2,406 $ 2,677 $ 2,505 Research and development 9,866 11,675 13,433 Sales, general and administrative 13,560 12,405 21,782 $ 25,832 $ 26,757 $ 37,720 Unrecognized Compensation Costs As of December 31, 2023, total unrecognized stock-based compensation was $30.9 million, which will be recognized over an average expected recognition period of 1.8 years. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan We have a 401(k) Profit Sharing Plan and Trust (the Plan). Participation in the Plan is voluntary and is available to all employees. We may make discretionary matching or qualified non-elective contributions to the Plan. The match is recorded within the Cost of revenue and Operating expenses in the Consolidated Statements of Operations and was as follows (in thousands): Year Ended December 31, 2023 2022 2021 401(k) match $ 1,268 $ 1,323 $ 1,064 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 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 for the periods presented (dollars in thousands): Year Ended December 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 156,666 $ 53,255 $ — $ 209,921 Gross profit $ 44,891 $ 3,628 $ (2,406) $ 46,113 Gross margin 28.7 % 6.8 % NM* 22.0 % Year Ended December 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 192,658 $ 49,400 $ — $ 242,058 Gross profit $ 50,063 $ 3,435 $ (2,677) $ 50,821 Gross margin 26.0 % 7.0 % NM* 21.0 % Year Ended December 31, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 206,195 $ 63,951 $ — $ 270,146 Gross profit $ 75,833 $ 3,979 $ (2,505) $ 77,307 Gross margin 36.8 % 6.2 % NM* 28.6 % *NM = not meaningful Corporate and Other is unallocated expenses related to stock-based compensation. The geographic location of our long-lived assets, net, based on location of the assets, was as follows (in thousands): As of December 31, 2023 2022 North America $ 73,070 $ 82,293 China 8,916 10,177 Rest of World 4,263 6,007 $ 86,249 $ 98,477 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 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): Year Ended December 31, 2023 2022 2021 Restricted stock units and awards 933 970 2,459 Common stock options 1,448 1,788 2,635 2,381 2,758 5,094 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (41,670) | $ (54,579) | $ (29,669) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Joseph Corso [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 15, 2023, Joseph Corso, our chief financial officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 76,199 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until March 18, 2025, or earlier if all transactions under the trading arrangement are completed. | |
Name | Joseph Corso | |
Title | chief financial officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Arrangement Duration | 459 days | |
Aggregate Available | 76,199 | 76,199 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to inventory valuation, allowances for doubtful accounts, warranty, sales return reserves and the recoverability of long-lived assets. Management bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Inventory | Inventory |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Improvements and replacements are capitalized. Repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight‑line method over the estimated useful life of each asset, generally 2 to 12 years for property and equipment, and 30 years for buildings. Land is not depreciated. |
Goodwill | Goodwill |
Intangible Assets | Intangible Assets |
Restructuring Charges | Restructuring Charges Restructuring charges in 2023 were comprised primarily of employee severance and in 2022 were comprised of employee severance and abandoned in-process capital equipment projects related to production capacity that were never placed into service. The determination of when we accrue for employee termination benefits depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement. For restructuring charges recorded as an on-going benefit arrangement, a liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. For restructuring charges recorded as a one-time benefit arrangement, we recognize a liability for employee termination benefits when a plan of termination, approved by management and establishing the terms of the benefit arrangement, has been communicated to employees. The timing of the recognition of one-time employee termination benefits is dependent upon the period of time the employees are required to render service after communication. If employees are not required to render service in order to receive the termination benefits or if employees will not be retained to render service beyond the minimum legal notification period, a liability for the termination benefits is recognized at the communication date. In instances where employees will be retained to render service beyond the minimum legal notification period, the liability for employee termination benefits is measured initially at the communication date based on the fair value of the liability as of the termination date and is recognized ratably over the future service period. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. We record charges related to long-lived assets to be abandoned when the assets cease to be used, and any inventory charges related to restructuring are classified as a cost of revenue. Although we believe that these estimates accurately reflect the costs of our restructuring plans, actual results may differ, thereby requiring us to record additional provisions or reverse a portion of such provisions. |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets |
Research and Development Costs | Research and Development Costs Research and development is defined as activities aimed at developing or significantly improving a product or a process or technique whether the product or process is intended for sale or use. A process also may be used internally as a part of a manufacturing activity. Research and development costs are expensed as incurred. |
Stock‑Based Compensation | Stock-Based Compensation We recognize compensation expense for stock-based awards on a straight-line basis based on the grant-date estimated fair values and requisite service period. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value of restricted stock units (RSU) and restricted stock awards (RSA) are measured based on the closing market price of our common stock on the date of grant. For RSUs and RSAs with performance conditions, compensation costs are also based on the probable outcome of achieving the specified performance conditions. The fair value of restricted stock awards based on certain market performance criteria is measured using the Monte Carlo simulation pricing model. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability approach under which deferred income taxes are provided based upon enacted tax laws and rates applicable to the periods in which taxes become payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
Translation of Foreign Currencies | Translation of Foreign Currencies |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows. |
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. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Amortization Expense Related To Demo Assets | Amortization expense related to demo assets was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Amortization expense $ 1,150 $ 1,544 $ 1,979 |
Schedule of Realized and Unrealized Foreign Currency Gains and Losses | Realized and unrealized foreign currency gains and losses were as follows for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Realized foreign currency gain $ 1,169 $ (967) $ (294) Unrealized foreign currency loss (1,140) 1,052 102 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 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 Year Ended December 31, 2023 2022 2021 Industrial $ 71,044 $ 91,098 $ 94,795 Microfabrication 47,483 62,769 70,412 Aerospace and Defense 91,394 88,191 104,939 $ 209,921 $ 242,058 $ 270,146 |
Schedule of Sales by Geography | Sales by Geography Year Ended December 31, 2023 2022 2021 North America $ 129,311 $ 137,454 $ 143,232 China 11,890 21,287 55,446 Rest of World 68,720 83,317 71,468 $ 209,921 $ 242,058 $ 270,146 |
Schedule of Sales by Timing of Revenue | Sales by Timing of Revenue Year Ended December 31, 2023 2022 2021 Point in time $ 155,258 $ 183,005 $ 198,838 Over time 54,663 59,053 71,308 $ 209,921 $ 242,058 $ 270,146 |
Schedule of Contract Assets and Liabilities | Our contract assets and liabilities were as follows (in thousands): Balance Sheet Classification As of December 31, 2023 2022 $ Change % Change Contract assets Prepaid expenses and $ 7,298 $ 10,377 $ (3,079) (30) % Contract liabilities Deferred revenues and other long-term liabilities 6,368 2,455 3,913 159 % |
Concentrations of Credit and _2
Concentrations of Credit and Other Risks (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Credit | The following customer accounted for 10% or more of our revenues for the periods presented: Year Ended December 31, 2023 2022 2021 U.S. Government* 18% 17% 22% *Excludes sales to customers who sell our products and services exclusively to the U.S. Government |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity related to the allowance for doubtful accounts was as follows for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Allowance for doubtful accounts, beginning $ 290 $ 303 $ 367 Provision (benefit) for losses on accounts receivable 27 27 (4) Write-offs, net (2) (40) (60) Allowance for doubtful accounts, ending $ 315 $ 290 $ 303 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 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): December 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 22,441 $ — $ — $ 22,441 Commercial paper 1,995 — — 1,995 24,436 — — 24,436 Marketable Securities: U.S. treasuries 59,672 — — 59,672 Total $ 84,108 $ — $ — $ 84,108 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) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | Inventory consisted of the following (in thousands): As of December 31, 2023 2022 Raw materials $ 23,426 $ 32,515 Work in process and semi-finished goods 19,640 19,056 Finished goods 9,094 16,029 $ 52,160 $ 67,600 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property, plant and equipment consisted of the following (in thousands): Useful life As of December 31, (years) 2023 2022 Automobiles 3 $ 109 $ 110 Computer hardware and software 3 - 5 9,145 8,712 Manufacturing and lab equipment 2 - 7 91,050 89,230 Office equipment and furniture 5 - 7 2,634 2,410 Leasehold and building improvements 2 - 12 31,988 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 147,717 143,928 Accumulated depreciation (95,417) (83,235) $ 52,300 $ 60,693 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 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 December 31, 2023 2022 Patents 3 - 5 $ 6,345 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,959 2,930 16,504 16,452 Accumulated amortization (14,852) (12,411) $ 1,652 $ 4,041 |
Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization related to intangible assets was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Amortization expense $ 2,410 $ 2,879 $ 3,891 |
Schedule of Estimated Future Amortization Expense | Estimated amortization expense for future years is as follows (in thousands): 2024 $ 819 2025 484 2026 349 Thereafter — $ 1,652 |
Schedule of Goodwill | The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2021 $ 2,172 $ 10,248 $ 12,420 Currency exchange rate adjustment (44) — (44) Balance, December 31, 2022 2,128 10,248 12,376 Currency exchange rate adjustment 23 — 23 Balance, December 31, 2023 $ 2,151 $ 10,248 $ 12,399 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Accrued payroll and benefits $ 7,898 $ 8,233 Product warranty, current 3,339 2,601 Other accrued expenses 1,319 1,986 $ 12,556 $ 12,820 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 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): Year Ended December 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (3,788) (1,490) Provision for warranty charges, net of adjustments 2,816 1,560 Product warranty liability, ending 4,469 5,441 Less: current portion of product warranty liability (3,339) (2,601) Non-current portion of product warranty liability $ 1,130 $ 2,840 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense related to operating leases were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Lease expense: Operating lease expense $ 3,671 $ 3,865 $ 3,924 Short-term lease expense 472 573 525 Variable and other lease expense 1,020 872 741 $ 5,163 $ 5,310 $ 5,190 |
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations | Future minimum payments under our non-cancelable lease obligations were as follows as of December 31, 2023 (in thousands): 2024 $ 3,687 2025 2,408 2026 1,741 2027 1,688 2028 1,413 Thereafter 5,410 Total minimum lease payments 16,347 Less: interest (2,188) Present value of net minimum lease payments 14,159 Less: current portion of lease liabilities (3,181) Total long-term lease liabilities $ 10,978 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activity | Restructuring charges in 2023 and 2022 were as follows (in thousands): Year Ended December 31, 2023 2022 Employee termination costs $ 737 $ 1,271 Write-down of long-lived assets — 2,566 Other 79 55 Total restructuring charges $ 817 $ 3,892 Restructuring accruals and payments in 2023 and 2022 were as follows (in thousands): Accrued restructuring charges at December 31, 2021 $ — Restructuring charges 3,892 Cash payments (1,134) Non-cash settlements (2,566) Accrual at December 31, 2022 192 Restructuring charges 817 Cash payments (1,009) Accrual at December 31, 2023 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Income (Loss) Before Income Tax Expense | Loss before income taxes was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (46,602) $ (50,611) $ (33,940) Foreign 3,954 (3,624) 3,896 Loss before income taxes $ (42,648) $ (54,235) $ (30,044) |
Schedule of Income Tax Provision | The income tax provision (benefit) was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current tax expense (benefit): State $ 53 $ 73 $ 70 Foreign (985) 264 (458) Current tax expense (benefit) (932) 337 (388) Deferred tax expense (benefit): Foreign (46) 7 13 Deferred tax expense (benefit) (46) 7 13 Income tax expense (benefit) $ (978) $ 344 $ (375) |
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate of 21% to the loss before income taxes as a result of the following differences (in thousands): Year Ended December 31, 2023 2022 2021 Tax computed at federal statutory rate $ (8,956) $ (11,436) $ (6,309) State tax, net of federal tax benefit (800) (842) (407) Permanent items (364) (522) (333) Stock-based compensation 1,923 4,005 (3,307) Foreign dividends and unremitted earnings 104 (231) 78 Foreign rate differential 146 (360) 29 Rate change due to tax reform — — 918 Federal credits (988) (445) (993) Tax contingencies, net of reversals (1,177) 256 838 Return to provision (429) (523) (1,123) Expiration of net operating loss carryforwards 1,810 — — Other 49 (324) (305) Valuation allowance 7,704 10,766 10,539 Income tax expense (benefit) $ (978) $ 344 $ (375) |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 39,714 $ 39,998 $ 35,585 Research and alternative minimum tax credits 7,822 6,658 6,535 Accrued expenses and other 4,365 4,999 7,020 Lease liabilities 2,854 3,270 3,525 Inventory 3,283 3,305 5,852 Property and equipment 387 293 — Intangible assets 16,612 9,184 — Total gross deferred tax assets 75,037 67,707 58,517 Less: valuation allowance (72,461) (64,796) (54,239) Total deferred tax assets 2,576 2,911 4,278 Deferred tax liabilities: Property and equipment — — (87) Intangible assets — — (767) Right-of-use assets (2,487) (2,869) (3,378) Total deferred tax liabilities (2,487) (2,869) (4,232) Net deferred tax assets $ 89 $ 42 $ 46 |
Schedule of Reconciliation of Changes In Unrecognized Tax Benefit | The following table presents a reconciliation of the changes in the unrecognized tax benefit (in thousands): Balance at December 31, 2020 $ 7,859 Additions based on tax positions related to the current year 661 Additions for tax positions of prior years 53 Reductions as a result of a lapse of applicable statute of limitations (250) Other 112 Balance at December 31, 2021 8,435 Additions based on tax positions related to the current year 822 Reductions for tax positions of prior years (53) Reductions as a result of a lapse of applicable statute of limitations (183) Other (437) Balance at December 31, 2022 8,584 Additions based on tax positions related to the current year 416 Reductions for tax positions of prior years (70) Reductions as a result of a lapse of applicable statute of limitations (371) Other (84) Balance at December 31, 2023 $ 8,475 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Restricted Stock Awards and Units | Restricted stock award (RSA) and 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 Awards Weighted-Average Grant Date Fair Value RSAs at December 31, 2022 332 $ 28.24 Awards granted (32) 33.66 Awards vested (167) 25.46 RSAs at December 31, 2023 133 30.44 Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 1,639 10.79 Awards vested (1,268) 17.96 Awards forfeited (338) 19.52 RSUs at December 31, 2023 2,817 13.27 |
Schedule of Stock Option Activity | The following table summarizes our stock option activity during the year ended December 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 (428) $1.50 Options canceled (1) $1.26 Outstanding, December 31, 2023 1,398 $1.24 2.5 $17,142 Options exercisable at December 31, 2023 1,398 $1.24 2.5 $17,142 Options vested as of December 31, 2023, and expected to vest after December 31, 2023 1,398 $1.24 2.5 $17,142 |
Schedule of Employee Stock Purchase Plan | Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows: Year Ended Shares issued (in thousands) 263 Weighted-average per share purchase price $ 9.40 Weighted-average per share discount from the fair value of our common stock on date of issuance $ 1.66 |
Schedule of Stock-based Compensation Expense | Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 2,406 $ 2,677 $ 2,505 Research and development 9,866 11,675 13,433 Sales, general and administrative 13,560 12,405 21,782 $ 25,832 $ 26,757 $ 37,720 |
401(k) Plan (Tables)
401(k) Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of 401(k) Match | The match is recorded within the Cost of revenue and Operating expenses in the Consolidated Statements of Operations and was as follows (in thousands): Year Ended December 31, 2023 2022 2021 401(k) match $ 1,268 $ 1,323 $ 1,064 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Reportable Segment | The following table summarizes the operating results by reportable segment for the periods presented (dollars in thousands): Year Ended December 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 156,666 $ 53,255 $ — $ 209,921 Gross profit $ 44,891 $ 3,628 $ (2,406) $ 46,113 Gross margin 28.7 % 6.8 % NM* 22.0 % Year Ended December 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 192,658 $ 49,400 $ — $ 242,058 Gross profit $ 50,063 $ 3,435 $ (2,677) $ 50,821 Gross margin 26.0 % 7.0 % NM* 21.0 % Year Ended December 31, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 206,195 $ 63,951 $ — $ 270,146 Gross profit $ 75,833 $ 3,979 $ (2,505) $ 77,307 Gross margin 36.8 % 6.2 % NM* 28.6 % *NM = not meaningful |
Schedule of Revenue and Long-lived Assets by Geographical Areas | The geographic location of our long-lived assets, net, based on location of the assets, was as follows (in thousands): As of December 31, 2023 2022 North America $ 73,070 $ 82,293 China 8,916 10,177 Rest of World 4,263 6,007 $ 86,249 $ 98,477 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 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): Year Ended December 31, 2023 2022 2021 Restricted stock units and awards 933 970 2,459 Common stock options 1,448 1,788 2,635 2,381 2,758 5,094 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash and cash equivalents, fair value disclosure | $ 24,436,000 | $ 32,314,000 | |
Goodwill impairment | $ 0 | 0 | $ 0 |
Useful life of demonstration assets | 2 years | ||
Long-lived assets impairment | $ 0 | $ 0 | $ 0 |
Buildings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 30 years | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Minimum | Property And Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 2 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Maximum | Property And Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 12 years |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Amortization expense | $ 1,150 | $ 1,544 | $ 1,979 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Realized and Unrealized Foreign Currency Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Realized foreign currency gain | $ 1,169 | $ (967) | $ (294) |
Unrealized foreign currency loss | $ (1,140) | $ 1,052 | $ 102 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized, previously included in customer advances and deferred revenue | $ 1.5 | $ 1.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation | $ 30 | |
Performance obligation, scheduled delivery, period | 1 year | |
Performance obligation, percentage | 80% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, scheduled delivery, period | 2 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 209,921 | $ 242,058 | $ 270,146 |
Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 155,258 | 183,005 | 198,838 |
Over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 54,663 | 59,053 | 71,308 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 129,311 | 137,454 | 143,232 |
China | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 11,890 | 21,287 | 55,446 |
Rest of World | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 68,720 | 83,317 | 71,468 |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 71,044 | 91,098 | 94,795 |
Microfabrication | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 47,483 | 62,769 | 70,412 |
Aerospace and Defense | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 91,394 | $ 88,191 | $ 104,939 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 7,298 | $ 10,377 |
Contract liabilities | 6,368 | $ 2,455 |
Contract assets, $ Change | $ (3,079) | |
Contract Assets, % Change | (30.00%) | |
Contract liabilities, $ Change | $ 3,913 | |
Contract liabilities, % Change | 159% |
Concentrations of Credit and _3
Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales Revenue | U.S. Government | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 18% | 17% | 22% |
Accounts Receivable | Two customers | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 24% | 29% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning | $ 290 | $ 303 | $ 367 |
Provision (benefit) for losses on accounts receivable | 27 | 27 | (4) |
Write-offs, net | (2) | (40) | (60) |
Allowance for doubtful accounts, ending | $ 315 | $ 290 | $ 303 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |||
Realized gains on available-for-sale securities | $ 2,400 | $ 200 | |
Unrealized gains on available-for-sale securities | $ 520 | $ 394 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | $ 24,436 | $ 32,314 |
Total | 84,108 | 82,705 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 24,436 | 32,314 |
Total | 84,108 | 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: | 22,441 | 31,658 |
Money market securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 22,441 | 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: | 1,995 | 656 |
Commercial paper | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 1,995 | 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: | 59,672 | 50,391 |
U.S. treasuries | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable Securities: | 59,672 | 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 | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 23,426 | $ 32,515 |
Work in process and semi-finished goods | 19,640 | 19,056 |
Finished goods | 9,094 | 16,029 |
Inventory | $ 52,160 | $ 67,600 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 147,717 | $ 143,928 |
Accumulated depreciation | (95,417) | (83,235) |
Property and equipment, net | $ 52,300 | 60,693 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 109 | 110 |
Computer hardware and software | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 9,145 | 8,712 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Manufacturing and lab equipment | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 91,050 | 89,230 |
Manufacturing and lab equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 2 years | |
Manufacturing and lab equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | |
Office equipment and furniture | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 2,634 | 2,410 |
Office equipment and furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Office equipment and furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | |
Leasehold and building improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 31,988 | 30,675 |
Leasehold and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 2 years | |
Leasehold and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 12 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 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 & Finite-lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 16,504 | $ 16,452 | |
Accumulated amortization | (14,852) | (12,411) | |
Net value | 1,652 | 4,041 | |
Amortization expense | 2,410 | 2,879 | $ 3,891 |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 6,345 | 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 | $ 2,959 | $ 2,930 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
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 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 5 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 | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 819 | |
2025 | 484 | |
2026 | 349 | |
Thereafter | 0 | |
Net value | $ 1,652 | $ 4,041 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 12,376 | $ 12,420 |
Currency exchange rate adjustment | 23 | (44) |
Ending balance | 12,399 | 12,376 |
Laser Products | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,128 | 2,172 |
Currency exchange rate adjustment | 23 | (44) |
Ending balance | 2,151 | 2,128 |
Advanced Development | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,248 | 10,248 |
Currency exchange rate adjustment | 0 | 0 |
Ending balance | $ 10,248 | $ 10,248 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 7,898 | $ 8,233 |
Product warranty, current | 3,339 | 2,601 |
Other accrued expenses | 1,319 | 1,986 |
Total accrued liabilities | $ 12,556 | $ 12,820 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product warranty liability, beginning | $ 5,441 | $ 5,371 |
Warranty charges incurred, net | (3,788) | (1,490) |
Provision for warranty charges, net of adjustments | 2,816 | 1,560 |
Product warranty liability, ending | 4,469 | 5,441 |
Less: current portion of product warranty liability | (3,339) | (2,601) |
Non-current portion of product warranty liability | $ 1,130 | $ 2,840 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Revolving Credit Facility - Line of Credit - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Revolving line of credit, borrowing capacity | $ 40,000,000 | |
Unused credit fee (percent) | 0.20% | |
Amounts outstanding under line of credit | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term for operating leases (in years) | 7 years |
Weighted-average discount rate for operating leases (as a percent) | 3.80% |
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) | 3 months 18 days |
Operating Leases, Facilities | Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 11 years 4 months 24 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 9 months 18 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 3,671 | $ 3,865 | $ 3,924 |
Short-term lease expense | 472 | 573 | 525 |
Variable and other lease expense | 1,020 | 872 | 741 |
Lease expense | $ 5,163 | $ 5,310 | $ 5,190 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 3,687 | |
2025 | 2,408 | |
2026 | 1,741 | |
2027 | 1,688 | |
2028 | 1,413 | |
Thereafter | 5,410 | |
Total minimum lease payments | 16,347 | |
Less: interest | (2,188) | |
Present value of net minimum lease payments | 14,159 | |
Less: current portion of lease liabilities | (3,181) | $ (2,758) |
Total long-term lease liabilities | $ 10,978 | $ 12,852 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 817 | $ 3,892 | $ 0 |
Employee termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 737 | 1,271 | |
Write-down of long-lived assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 2,566 | |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 79 | $ 55 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Accruals and Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Accrual, Beginning Balance | $ 192 | $ 0 | |
Restructuring charges | 817 | 3,892 | $ 0 |
Cash payments | (1,009) | (1,134) | |
Non-cash settlements | (2,566) | ||
Accrual, Ending Balance | $ 0 | $ 192 | $ 0 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 817 | $ 3,892 | $ 0 |
Laser Products | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 3,800 | ||
Advanced Development | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 100 |
Income Taxes - Net Income (Loss
Income Taxes - Net Income (Loss) Before Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (46,602) | $ (50,611) | $ (33,940) |
Foreign | 3,954 | (3,624) | 3,896 |
Loss before income taxes | $ (42,648) | $ (54,235) | $ (30,044) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense (benefit): | |||
State | $ 53 | $ 73 | $ 70 |
Foreign | (985) | 264 | (458) |
Current tax expense (benefit) | (932) | 337 | (388) |
Deferred tax expense (benefit): | |||
Foreign | (46) | 7 | 13 |
Deferred tax expense (benefit) | (46) | 7 | 13 |
Income tax expense (benefit) | $ (978) | $ 344 | $ (375) |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax computed at federal statutory rate | $ (8,956) | $ (11,436) | $ (6,309) |
State tax, net of federal tax benefit | (800) | (842) | (407) |
Permanent items | (364) | (522) | (333) |
Stock-based compensation | 1,923 | 4,005 | (3,307) |
Foreign dividends and unremitted earnings | 104 | (231) | 78 |
Foreign rate differential | 146 | (360) | 29 |
Rate change due to tax reform | 0 | 0 | 918 |
Federal credits | (988) | (445) | (993) |
Tax contingencies, net of reversals | (1,177) | 256 | 838 |
Return to provision | (429) | (523) | (1,123) |
Expiration of net operating loss carryforwards | 1,810 | 0 | 0 |
Other | 49 | (324) | (305) |
Valuation allowance | 7,704 | 10,766 | 10,539 |
Income tax expense (benefit) | $ (978) | $ 344 | $ (375) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) event | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Tax [Line Items] | ||||
Statutory tax rate | 21% | |||
Valuation allowance, deferred tax assets, increase (decrease) | $ 7,700 | $ 10,600 | $ 10,600 | |
Number of change in ownership events | event | 3 | |||
Unrecognized tax benefits | $ 8,475 | 8,584 | 8,435 | $ 7,859 |
Unrecognized tax benefits, recognized penalties and interest increase (decrease) | (1,000) | 300 | $ (300) | |
Unrecognized tax benefits, income tax penalties and interest accrued | 900 | 2,000 | ||
Deferred Tax Liabilities, Noncurrent | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits | 2,800 | |||
Non-current Deferred Tax Assets | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits | 5,700 | 5,500 | ||
Non-current Income Taxes Payable | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits | 2,800 | $ 3,100 | ||
Change in Ownership Event One | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward, limitation | 528 | |||
Research and Development Credit | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | 9,300 | |||
Foreign Tax Authority | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | $ 14,500 | |||
Foreign Tax Authority | China | ||||
Income Tax [Line Items] | ||||
Statutory tax rate | 25% | |||
Foreign Tax Authority | Finland | ||||
Income Tax [Line Items] | ||||
Statutory tax rate | 20% | |||
U.S. | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | $ 161,000 | |||
State | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | $ 43,200 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 39,714 | $ 39,998 | $ 35,585 |
Research and alternative minimum tax credits | 7,822 | 6,658 | 6,535 |
Accrued expenses and other | 4,365 | 4,999 | 7,020 |
Lease liabilities | 2,854 | 3,270 | 3,525 |
Inventory | 3,283 | 3,305 | 5,852 |
Property and equipment | 387 | 293 | 0 |
Intangible assets | 16,612 | 9,184 | 0 |
Total gross deferred tax assets | 75,037 | 67,707 | 58,517 |
Less: valuation allowance | (72,461) | (64,796) | (54,239) |
Total deferred tax assets | 2,576 | 2,911 | 4,278 |
Deferred tax liabilities: | |||
Property and equipment | 0 | 0 | (87) |
Intangible assets | 0 | 0 | (767) |
Right-of-use assets | (2,487) | (2,869) | (3,378) |
Total deferred tax liabilities | (2,487) | (2,869) | (4,232) |
Net deferred tax assets | $ 89 | $ 42 | $ 46 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 8,584 | $ 8,435 | $ 7,859 |
Additions based on tax positions related to the current year | 416 | 822 | 661 |
Additions for tax positions of prior years | 53 | ||
Reductions for tax positions of prior years | (70) | (53) | |
Reductions as a result of a lapse of applicable statute of limitations | (371) | (183) | (250) |
Other | (84) | (437) | 112 |
Ending balance | $ 8,475 | $ 8,584 | $ 8,435 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) vote $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Nov. 14, 2019 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 5,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Preferred stock, shares outstanding (in shares) | 0 | ||||
Preferred stock, shares issued (in shares) | 0 | ||||
Number of votes each share of common stock has rights to (vote) | vote | 1 | ||||
Dividends | $ | $ 0 | ||||
Common stock repurchase plan, authorized | $ | $ 10,000,000 | ||||
Number of shares repurchased (in shares) | 0 | ||||
Issuance of common stock (in shares) | 1,700,000 | ||||
Intrinsic value of options exercised | $ | $ 4,200,000 | $ 7,700,000 | $ 27,100,000 | ||
Proceeds from the exercise of options | $ | 640,000 | $ 1,197,000 | $ 1,145,000 | ||
Unrecognized expense | $ | $ 30,900,000 | ||||
Period for recognition (in years) | 1 year 9 months 18 days | ||||
Restricted Stock Awards (RSAs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested, fair value | $ | $ 4,300,000 | ||||
Awards outstanding (in shares) | 133,000 | 332,000 | |||
Granted (in shares) | 32,000 | ||||
Awards granted (in dollars per share) | $ / shares | $ 33.66 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested, fair value | $ | $ 22,800,000 | ||||
Awards outstanding (in shares) | 2,817,000 | 2,784,000 | |||
Granted (in shares) | 1,639,000 | ||||
Awards granted (in dollars per share) | $ / shares | $ 10.79 | ||||
Performance-based Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards outstanding (in shares) | 800,000 | ||||
Granted (in shares) | 500,000 | ||||
Vesting period | 3 years | ||||
Awards granted (in dollars per share) | $ / shares | $ 14.21 | ||||
Employee stock purchase plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 4,100,000 | ||||
Follow-on Public Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares issued (in shares) | 2,500,000 | ||||
Initial price per share in IPO (in USD per share) | $ / shares | $ 34 | ||||
Net proceeds received from IPO | $ | $ 82,400,000 | ||||
Underwriters Option to Purchase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares issued (in shares) | 300,000 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock Awards (RSAs) | |
Number of Restricted Stock Awards and Units (Thousands) | |
Balance, beginning (in shares) | shares | 332 |
Awards granted (in shares) | shares | (32) |
Awards vested (in shares) | shares | (167) |
Balance, ending (in shares) | shares | 133 |
Weighted-Average Grant Date Fair Value | |
Balance, beginning (in dollars per share) | $ / shares | $ 28.24 |
Awards granted (in dollars per share) | $ / shares | 33.66 |
Awards vested (in dollars per share) | $ / shares | 25.46 |
Balance, ending (in dollars per share) | $ / shares | $ 30.44 |
Restricted Stock Units | |
Number of Restricted Stock Awards and Units (Thousands) | |
Balance, beginning (in shares) | shares | 2,784 |
Awards granted (in shares) | shares | (1,639) |
Awards vested (in shares) | shares | (1,268) |
Awards forfeited (in shares) | shares | (338) |
Balance, ending (in shares) | shares | 2,817 |
Weighted-Average Grant Date Fair Value | |
Balance, beginning (in dollars per share) | $ / shares | $ 17.63 |
Awards granted (in dollars per share) | $ / shares | 10.79 |
Awards vested (in dollars per share) | $ / shares | 17.96 |
Awards forfeited (in dollars per share) | $ / shares | 19.52 |
Balance, ending (in dollars per share) | $ / shares | $ 13.27 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Outstanding, beginning of period (in shares) | 1,827 | |
Options exercised (in shares) | (428) | |
Options canceled (in shares) | (1) | |
Outstanding, end of period (in shares) | 1,398 | 1,827 |
Weighted-Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 1.29 | |
Options exercised (in dollars per share) | 1.50 | |
Options canceled (in dollars per share) | 1.26 | |
Outstanding, end of period (in dollars per share) | $ 1.24 | $ 1.29 |
Outstanding, Weighted average remaining contractual term (in years) | 2 years 6 months | 3 years 4 months 24 days |
Outstanding, Aggregate intrinsic value | $ 17,142 | $ 16,156 |
Options exercisable at end of period | ||
Options exercisable (in shares) | 1,398 | |
Weighted average exercise price (in dollars per share) | $ 1.24 | |
Weighted-Average Remaining Contractual Term | 2 years 6 months | |
Aggregate Intrinsic Value | $ 17,142 | |
Options vested as of end of period and expected to vest after end of period | ||
Options vested and expected to vest (in shares) | 1,398 | |
Weighted average exercise price (in dollars per share) | $ 1.24 | |
Weighted-Average Remaining Contractual Term | 2 years 6 months | |
Aggregate Intrinsic Value | $ 17,142 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation - Employee Stock Purchase Program (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Equity [Abstract] | |
Shares issued (in shares) | shares | 263 |
Weighted average per share purchase price (in dollars per share) | $ 9.40 |
Weighted average per share discount from the fair value of our common stock on date of issuance (in dollars per share) | $ 1.66 |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 25,832 | $ 26,757 | $ 37,720 |
Cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 2,406 | 2,677 | 2,505 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 9,866 | 11,675 | 13,433 |
Sales, general and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 13,560 | $ 12,405 | $ 21,782 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
401(k) match | $ 1,268 | $ 1,323 | $ 1,064 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Operating
Segment Information - Operating Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 209,921 | $ 242,058 | $ 270,146 |
Gross profit | $ 46,113 | $ 50,821 | $ 77,307 |
Gross margin | 22% | 21% | 28.60% |
Operating Segments | Laser Products | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 156,666 | $ 192,658 | $ 206,195 |
Gross profit | $ 44,891 | $ 50,063 | $ 75,833 |
Gross margin | 28.70% | 26% | 36.80% |
Operating Segments | Advanced Development | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 53,255 | $ 49,400 | $ 63,951 |
Gross profit | $ 3,628 | $ 3,435 | $ 3,979 |
Gross margin | 6.80% | 7% | 6.20% |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Gross profit | $ (2,406) | $ (2,677) | $ (2,505) |
Segment Information - Geographi
Segment Information - Geographic Locations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 86,249 | $ 98,477 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 73,070 | 82,293 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 8,916 | 10,177 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 4,263 | $ 6,007 |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 2,381 | 2,758 | 5,094 |
Restricted stock units and awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 933 | 970 | 2,459 |
Common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,448 | 1,788 | 2,635 |