NLIGHT, INC., 10-K filed on 2/27/2023
Annual Report
v3.22.4
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Feb. 21, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2022    
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 Yes    
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    
Entity Shell Company false    
Entity Public Float     $ 460.7
Entity Common Stock, Shares Outstanding   45,695,130  
Documents Incorporated by Reference Portions of the registrant's definitive Proxy Statement for the 2023 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, 2022.    
Entity Central Index Key 0001124796    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Firm ID 185
Auditor Name KPMG LLP
Auditor Location Portland, Oregon
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 57,826 $ 146,534
Marketable securities 50,391 0
Accounts receivable, net of allowances of $290 and $303 37,913 41,574
Inventory 67,600 73,746
Prepaid expenses and other current assets 17,026 15,350
Total current assets 230,756 277,204
Restricted cash 252 250
Lease right-of-use assets 13,893 17,048
Property, plant and equipment, net 60,693 56,101
Intangible assets, net 4,041 6,698
Goodwill 12,376 12,420
Other assets, net 7,222 3,897
Total assets 329,233 373,618
Current liabilities:    
Accounts payable 17,507 26,347
Accrued liabilities 12,820 14,730
Deferred revenues 1,407 1,629
Current portion of lease liabilities 2,758 3,066
Total current liabilities 34,492 45,772
Non-current income taxes payable 6,699 7,149
Long-term lease liabilities 12,852 14,612
Other long-term liabilities 4,345 3,952
Total liabilities 58,388 71,485
Stockholders' equity:    
Common stock - $0.0001 par value; 190,000 shares authorized, 45,629 and 44,248 shares issued and outstanding at December 31, 2022 and 2021 respectively 16 15
Additional paid-in capital 496,211 470,760
Accumulated other comprehensive loss (2,748) (587)
Accumulated deficit (222,634) (168,055)
Total stockholders’ equity 270,845 302,133
Total liabilities and stockholders’ equity $ 329,233 $ 373,618
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Accounts receivable, allowances $ 290 $ 303
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 190,000 190,000
Common stock, shares issued (in shares) 45,629 44,248
Common stock, shares outstanding (in shares) 45,629 44,248
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total revenue $ 242,058 $ 270,146 $ 222,789
Total cost of revenue 191,237 192,839 163,425
Gross profit 50,821 77,307 59,364
Operating expenses:      
Research and development 53,773 54,814 41,164
Sales, general, and administrative 48,258 52,710 39,248
Restructuring 3,892 0 0
Total operating expenses 105,923 107,524 80,412
Loss from operations (55,102) (30,217) (21,048)
Interest income (expense), net      
Interest income (expense), net 529 (163) 78
Other income, net 338 336 378
Loss before income taxes (54,235) (30,044) (20,592)
Income tax expense (benefit) 344 (375) 340
Net loss $ (54,579) $ (29,669) $ (20,932)
Net loss per share, basic (in dollars per share) $ (1.23) $ (0.70) $ (0.55)
Net loss per share, diluted (in dollars per share) $ (1.23) $ (0.70) $ (0.55)
Shares used in per share calculations, basic (in shares) 44,436 42,142 38,367
Shares used in per share calculations, diluted (in shares) 44,436 42,142 38,367
Products      
Total revenue $ 192,658 $ 206,195 $ 184,841
Total cost of revenue 145,272 132,867 128,255
Development      
Total revenue 49,400 63,951 37,948
Total cost of revenue $ 45,965 $ 59,972 $ 35,170
v3.22.4
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net loss $ (54,579) $ (29,669) $ (20,932)
Other comprehensive loss, net of tax:      
Foreign currency translation adjustments (2,555) (328) 2,426
Unrealized gains on available-for-sale securities 394 0 0
Comprehensive loss $ (56,740) $ (29,997) $ (18,506)
v3.22.4
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, 2019   38,084      
Beginning balance at Dec. 31, 2019 $ 216,608 $ 15 $ 336,732 $ (2,685) $ (117,454)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (20,932)       (20,932)
Issuance of common stock pursuant to exercise of stock options (in shares)   862      
Issuance of common stock pursuant to exercise of stock options 1,375   1,375    
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)   769      
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (6,420)   (6,420)    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   78      
Issuance of common stock under the Employee Stock Purchase Plan 1,393   1,393    
Stock-based compensation 25,464   25,464    
Cumulative translation adjustment, net of tax 2,426     2,426  
Ending balance (in shares) at Dec. 31, 2020   39,793      
Ending 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)
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    
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 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 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) 585 585      
Issuance of common stock pursuant to exercise of stock options $ 1,198 $ 1 1,197    
Proceeds from follow-on offering, net of offering costs (in shares) 2,100        
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)      
Issuance of common stock under the Employee Stock Purchase Plan (in shares) 241 241      
Issuance of common stock under the Employee Stock Purchase Plan $ 2,358   2,358    
Restricted stock awards modified in connection with performance achievement (in shares)   (10)      
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)
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net loss $ (54,579) $ (29,669) $ (20,932)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
Depreciation 11,085 9,179 7,710
Amortization 4,614 5,880 5,975
Reduction in carrying amount of right-of-use assets 3,000 3,253 2,916
Provision for (recoveries of) losses on accounts receivable 4 (70) 88
Stock-based compensation 26,757 37,720 25,464
Deferred income taxes 4 37 (11)
Loss on disposal of assets 51 16 0
Non-cash restructuring charges 2,758 0 0
Changes in operating assets and liabilities:      
Accounts receivable, net 2,757 (9,509) (4,009)
Inventory 4,623 (18,994) (6,937)
Prepaid expenses and other current assets (1,753) (3,630) (3,442)
Other assets, net (5,219) (570) (3,463)
Accounts payable (5,904) 3,463 7,306
Accrued and other long-term liabilities (577) (199) 2,269
Deferred revenues (208) (909) 1,800
Lease liabilities (1,942) (2,934) (2,820)
Non-current income taxes payable (13) (507) 1,127
Net cash (used in) provided by operating activities (14,542) (7,443) 13,041
Cash flows from investing activities:      
Acquisition of business, net of cash acquired (664) (291) (190)
Purchases of property, plant and equipment (21,388) (19,317) (23,416)
Acquisition of intangible assets and capitalization of patents (332) (2,245) (933)
Purchase of marketable securities (99,985) 0 0
Proceeds from maturities and sales of marketable securities 49,988 0 0
Net cash used in investing activities (72,381) (21,853) (24,539)
Cash flows from financing activities:      
Proceeds from public offerings, net of offering costs 0 82,354 0
Proceeds from term loan 0 0 15,000
Principal payments on term loan, debt and financing leases 0 (428) (15,115)
Payment of contingent consideration related to acquisition 0 (326) 0
Proceeds from employee stock plan purchases 2,358 1,603 1,393
Proceeds from stock option exercises 1,197 1,145 1,375
Tax payments related to stock award issuances (4,861) (10,606) (6,420)
Net cash (used in) provided by financing activities (1,306) 73,742 (3,767)
Effect of exchange rate changes on cash (477) (235) 545
Net increase (decrease) in cash, cash equivalents, and restricted cash (88,706) 44,211 (14,720)
Cash, cash equivalents, and restricted cash, beginning of period 146,784 102,573 117,293
Cash, cash equivalents, and restricted cash, end of period 58,078 146,784 102,573
Supplemental disclosures:      
Cash paid for interest, net 0 117 (311)
Cash paid for income taxes 442 526 647
Operating cash outflows from operating leases 3,925 3,513 2,919
Right-of-use assets obtained in exchange for lease liabilities 1,349 8,012 15,127
Accrued purchases of property, equipment and patents $ 207 $ 2,522 $ 788
v3.22.4
Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
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, Nutronics, Inc., and OPI Photonics 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 3 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 $32.3 million and $127.1 million of highly liquid investments at December 31, 2022 and 2021, respectively. Cash equivalents are carried at cost, which approximates fair value.

Inventory
See Note 8 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 2022, 2021 and 2020, the fair values of the Laser Products and Advanced Development reporting units exceeded their carrying values, and no impairment charges were recorded. See Note 11 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 11 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,
 202220212020
Amortization expense$1,544 $1,979 $2,166 

Restructuring Charges
Restructuring charges in 2022 were comprised primarily 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 16 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, 2022, 2021 and 2020.

Leases
See Note 15 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,
 202220212020
Realized foreign currency (gain) loss$(967)$(294)$98 
Unrealized foreign currency (gain) loss1,052 102 (171)

New Accounting Pronouncements

ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2020-03
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in June 2016. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For assets measured at amortized cost, the new standard requires that the income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 was amended in November 2018, April 2019 and March 2020. We adopted ASU 2016-13, as amended, on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows.

ASU 2019-12
The FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, in December 2019. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We adopted ASU 2019-12 on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows
v3.22.4
Acquisition
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
On July 30, 2020, we acquired the outstanding shares of OPI Photonics S.r.l. (OPI), an Italian limited liability company, for cash consideration of $1.6 million. Approximately $0.2 million was paid at closing, $0.7 million was paid in 2021, and the final payment of $0.7 million was made during the third quarter of 2022.

The acquisition price was allocated $0.7 million to current assets, primarily inventory and prepaid and other assets, $1.2 million to intangible assets (developed technology) and $1.0 million to liabilities assumed as of the acquisition date based upon their respective fair values. The developed technology acquired is being amortized over the weighted-average useful life of 5 years. The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed of $0.8 million represents goodwill resulting from the acquisition.

The goodwill and operating results of OPI are allocated to our Laser Products segment. Revenue and earnings since the date of acquisition are not material. Transaction costs of $0.1 million were expensed as incurred as a component of Sales, general, and administrative expenses in the year ended December 31, 2020.
Pro forma financial information has not been provided for the purchase as it was not material to our overall financial position.
v3.22.4
Revenue
 12 Months Ended
Dec. 31, 2022
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 the point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, the Company recognizes over time revenue as per ASC 606-10-55-18 (invoice practical expedient) for its cost plus contracts and, accordingly, elects not to disclose information related to those performance obligations under ASC 606-10-50-14b.

Rights of return generally are not included in customer contracts. Accordingly, product revenue is recognized upon transfer of control at shipment or delivery, as applicable. Rights of return are evaluated as they occur.

Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. Because control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer. Billing under these arrangements generally occurs within one month after the work is completed.

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):
    
Sales by End Market
Year Ended December 31,
 202220212020
Industrial$91,098 $94,795 $84,478 
Microfabrication62,769 70,412 51,649 
Aerospace and Defense88,191 104,939 86,662 
$242,058 $270,146 $222,789 

Sales by Geography

Year Ended December 31,
 202220212020
North America$137,454 $143,232 $107,624 
China21,287 55,446 70,882 
Rest of World83,317 71,468 44,283 
$242,058 $270,146 $222,789 

Sales by Timing of Revenue

Year Ended December 31,
 202220212020
Point in time$183,005 $198,838 $185,215 
Over time59,053 71,308 37,574 
$242,058 $270,146 $222,789 

Our contract assets and liabilities are as follows (in thousands):
Balance Sheet ClassificationAs of December 31,
 20222021
Contract assetsPrepaid expenses and
other current assets		$10,377 $9,657 
Contract liabilitiesDeferred revenues and other long-term liabilities2,455 2,358 

Contract assets generally consist of revenue recognized on an over time basis where revenue recognition has been met, but the amounts are subsequently billed and collected in the following period. During the years ended December 31, 2022 and 2021, we recognized revenue of $1.6 million and $2.4 million, respectively, that was included in the deferred revenue balances at the beginning of the period as the performance obligations under the associated agreements were satisfied.
v3.22.4
Concentrations of Credit and Other Risks
 12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
Concentrations of Credit and Other Risks Concentrations of Credit and Other Risks
The following customers accounted for 10% or more of our revenues for the periods presented:
Year Ended December 31,
202220212020
Quick Laser Technology Co., Ltd.
(1)
(1)
12%
Raytheon Technologies
(1)
(1)
12%
U.S. Government17%22%15%
(1)Represents less than 10% of total revenues.

Financial instruments that potentially expose us to concentrations of credit risk consist principally of receivables
from customers. As of December 31, 2022, and 2021, two customers accounted for a total of 29% and 33%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date.
v3.22.4
Accounts Receivable
 12 Months Ended
Dec. 31, 2022
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,
20222021
Allowance for doubtful accounts, beginning$303 $367 
Provision (benefit) for losses on accounts receivable27 (4)
Write-offs, net(40)(60)
Allowance for doubtful accounts, ending$290 $303 
v3.22.4
Marketable Securities
 12 Months Ended
Dec. 31, 2022
Investments, All Other Investments [Abstract]  
Marketable Securities Marketable Securities
Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations.

Realized gains were $0.2 million for year ended December 31, 2022. Unrealized gains were $0.4 million for the year ended December 31, 2022. These unrealized gains are considered temporary and are reflected in the Statements of Comprehensive Loss.

See Note 7 for additional information.
v3.22.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2022
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, 2022
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities $31,658 $— $— $31,658 
  Commercial paper656 — — 656 
32,314 — — 32,314 
Marketable Securities:
  U.S. treasuries50,391 — — 50,391 
Total$82,705 $— $— $82,705 
December 31, 2021
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities$126,900 $— $— $126,900 
  Commercial paper236 — — 236 
Total$127,136 $— $— $127,136 

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.
v3.22.4
Inventory
 12 Months Ended
Dec. 31, 2022
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,
20222021
Raw materials$32,515 $32,185 
Work in process and semi-finished goods19,056 24,642 
Finished goods16,029 16,919 
$67,600 $73,746 
v3.22.4
Prepaid Expenses and Other Current Assets
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets
The components of prepaid expenses and other current assets are as follows (in thousands):
As of December 31,
 20222021
Contract assets$10,377 $9,657 
Prepaid expenses4,175 3,483 
Vendor prepayments2,423 2,107 
Other51 103 
$17,026 $15,350 
v3.22.4
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
Property, plant and equipment consist of the following (in thousands):
Useful lifeAs of December 31,
 (years)20222021
Automobiles3$110 $114 
Computer hardware and software
3 - 5
8,712 6,594 
Manufacturing and lab equipment
2 - 7
89,230 81,130 
Office equipment and furniture
5 - 7
2,410 2,361 
Leasehold and building improvements
2 - 12
30,675 28,125 
Buildings309,392 9,392 
LandN/A3,399 3,399 
143,928 131,115 
Accumulated depreciation (83,235)(75,014)
$60,693 $56,101 
v3.22.4
Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2022
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
(in years) 		As of December 31,
 20222021
Patents
3 - 5
$6,322 $5,986 
Development programs
2 - 4
7,200 7,200 
Developed technology52,930 3,038 
16,452 16,224 
Accumulated amortization (12,411)(9,526)
$4,041 $6,698 

Amortization related to intangible assets was as follows (in thousands):
Year Ended December 31,
 202220212020
Amortization expense$2,879 $3,891 $3,808 

Estimated amortization expense for future years is as follows (in thousands):
2023$2,230 
2024922 
2025586 
2026303 
Thereafter— 
$4,041 
Goodwill
The carrying amount of goodwill by segment was as follows (in thousands):
Laser ProductsAdvanced DevelopmentTotals
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 
v3.22.4
Accrued Liabilities
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
As of December 31,
20222021
Accrued payroll and benefits$8,233 $10,915 
Product warranty, current2,601 2,286 
Other accrued expenses1,986 1,529 
$12,820 $14,730 
v3.22.4
Product Warranties
 12 Months Ended
Dec. 31, 2022
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,
 20222021
Product warranty liability, beginning$5,371 $4,711 
Warranty charges incurred, net(1,490)(2,467)
Provision for warranty charges, net of adjustments1,560 3,127 
Product warranty liability, ending5,441 5,371 
Less: current portion of product warranty liability(2,601)(2,286)
Non-current portion of product warranty liability$2,840 $3,085 
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
See Note 15.

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, 2022 and 2021 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 and 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, 2022, we believe these matters will not have a material adverse effect on our consolidated financial statements.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of one month to 12.4 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 0.1 to 4.5 years. These leases are primarily operating leases; financing leases are not material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 8 years as of  December 31, 2022, and the weighted-average discount rate was 3.6%. The weighted-average remaining lease term for the lease obligations was 9 years as of December 31, 2021, and the weighted-average discount rate was 3.5%.

The components of lease expense related to operating leases were as follows (in thousands):
Year Ended December 31,
202220212020
Lease expense:
Operating lease expense$3,865 $3,924 $3,052 
Short-term lease expense573 525 242 
Variable and other lease expense872 741 503 
$5,310 $5,190 $3,797 

Future minimum payments under our non-cancelable lease obligations were as follows as of December 31, 2022 (in thousands):
2023$3,235 
20242,848 
20252,037 
20261,654 
20271,655 
Thereafter6,806 
Total minimum lease payments18,235 
Less: interest(2,625)
Present value of net minimum lease payments15,610 
Less: current portion of lease liabilities(2,758)
Total long-term lease liabilities$12,852 
v3.22.4
Restructuring
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
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 activity in 2022 was as follows (in thousands):
Employee Termination CostsWrite-Down of Long-Lived AssetsOtherTotal
Restructuring charges$1,271 $2,566 $55 $3,892 
Cash payments(1,134)— — (1,134)
Non-cash settlements— (2,566)— (2,566)
Accrual at December 31, 2022$137 $— $55 $192 
The restructuring accrual is included as a component of Accrued liabilities on our Consolidated Balance Sheets. Approximately $3.8 million of the charges recorded in 2022 were attributable to the Laser Products segment, with the remaining $0.1 million attributable to the Advanced Development segment.
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes was as follows (in thousands):
 Year Ended December 31,
202220212020
Domestic$(50,611)$(33,940)$(28,963)
Foreign(3,624)3,896 8,371 
Loss before income taxes$(54,235)$(30,044)$(20,592)

The income tax provision (benefit) was as follows (in thousands):
Year Ended December 31,
 202220212020
Current tax expense (benefit):
State$73 $70 $21 
Foreign264 (458)2,209 
Current tax expense (benefit)337 (388)2,230 
Deferred tax expense (benefit):
Federal— — (1,603)
State— — (60)
Foreign7 13 (227)
Deferred tax expense (benefit)7 13 (1,890)
Income tax expense (benefit)$344 $(375)$340 

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,
 202220212020
Tax computed at federal statutory rate$(11,436)$(6,309)$(4,324)
State tax, net of federal tax benefit(842)(407)(209)
Permanent items(522)(333)477 
Stock compensation4,005 (3,307)(2,669)
Foreign dividends and unremitted earnings(231)78 726 
Foreign rate differential(360)29 501 
Rate change due to tax reform— 918 1,563 
Federal credits(445)(993)(639)
Tax contingencies, net of reversals256 838 (677)
Return to provision(523)(1,123)(2,242)
Other(324)(305)(112)
Valuation allowance10,766 10,539 7,945 
Income tax expense (benefit)$344 $(375)$340 

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,
 202220212020
Deferred tax assets:
Net operating loss carryforwards$39,998 $35,585 $28,718 
Research and alternative minimum tax credits6,658 6,535 5,583 
Accrued expenses and other4,999 7,020 5,648 
Lease liabilities3,270 3,525 2,547 
Inventory3,305 5,852 5,181 
Property and equipment293 — — 
Intangible assets9,184 — — 
Total gross deferred tax assets67,707 58,517 47,677 
Less: valuation allowance(64,796)(54,239)(43,647)
Total deferred tax assets2,911 4,278 4,030 
Deferred tax liabilities:
Property and equipment— (87)(3)
Intangible assets— (767)(1,490)
Right-of-use assets(2,869)(3,378)(2,468)
Total deferred tax liabilities(2,869)(4,232)(3,961)
Net deferred tax assets$42 $46 $69 
    
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, 2022, 2021 and 2020 were increases of $10.6 million, $10.6 million and $8.1 million, respectively.
At December 31, 2022, we had U.S., China and state net operating loss (NOL) carryforwards of $162.2 million, $15.4 million and $38.4 million, respectively. These carryforwards will expire from 2023 to 2042 if not used by us to reduce taxable income in future periods. We have U.S. research and development credit carryforwards of $7.8 million. These carryforwards will expire between 2023 and 2042 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, 2019$8,740 
Additions based on tax positions related to the current year132 
Additions for tax positions of prior years4 
Reductions for tax positions of prior years(1,285)
Reductions as a result of a lapse of applicable statute of limitations(53)
Other321 
Balance at December 31, 20207,859 
Additions based on tax positions related to the current year661 
Additions for tax positions of prior years53 
Reductions as a result of a lapse of applicable statute of limitations(250)
Other112 
Balance at December 31, 20218,435 
Additions based on tax positions related to the current year822 
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 
    
At December 31, 2022, we had $8.6 million of unrecognized tax benefits (excluding interest and penalties). Of this amount, $3.1 million is recorded in non-current income taxes payable and $5.5 million is recorded as an offset to non-current deferred tax assets on the accompanying Consolidated Balance Sheets. The $5.5 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, $3.1 million, if recognized, would impact the effective tax rate. At December 31, 2021, we had recorded $3.5 million of unrecognized tax benefits in non-current income taxes payable and $4.9 million of unrecognized tax benefits recognized 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 penalties and interest during the years ended December 31, 2022, 2021 and 2020, of $0.3 million, $(0.3) million, and $0.5 million, respectively. At December 31, 2022 and 2021, interest and penalties associated with unrecognized tax benefits were $2.0 million and $1.8 million, respectively.
At December 31, 2022, our tax years 2019 through 2022, 2018 through 2022, and 2012 through 2022, remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and to make adjustments up to the net operating loss and credit carryforward amounts. We are not currently under federal, state, or foreign tax examination.
v3.22.4
Stockholders' Equity and Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
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, 2022.

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, 2022, no repurchases had been executed under the program.

Equity Incentive Plan
As of December 31, 2022, there were approximately 2.1 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 AwardsWeighted-Average Grant Date Fair Value
RSAs at December 31, 2021753 $25.63 
Awards granted— — 
Awards vested(271)22.77 
Awards forfeited and adjusted(150)25.03 
RSAs at December 31, 2022332 $28.24 

Number of Restricted Stock UnitsWeighted-Average Grant Date Fair Value
RSUs at December 31, 20212,799 $24.41 
Awards granted1,409 11.46 
Awards vested(1,098)24.91 
Awards forfeited(326)24.81 
RSUs at December 31, 20222,784 $17.63 

The total fair value of RSAs and RSUs vested during the year ended December 31, 2022 was $6.2 million and $27.3 million, respectively. Awards outstanding as of December 31, 2022 include 0.7 million performance-based awards that will vest upon meeting certain performance criteria.

The performance-based awards granted in 2022 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 Russel 2000 Index as of July 1, 2022, and had a grant-date fair value of $14.89 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, 2022 (in thousands, except weighted-average exercise prices):
 Number of OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value
Outstanding, December 31, 20212,454 $1.614.4$54,815
Options exercised(585)$2.05
Options canceled(42)$9.27
Outstanding, December 31, 20221,827 $1.293.4$16,156
Options exercisable at December 31, 20221,825 $1.293.4$16,155
Options vested as of December 31, 2022, and expected to vest after December 31, 20221,827 $1.293.4$16,156

Total intrinsic value of options exercised for the years ended December 31, 2022, 2021 and 2020 was $7.7 million, $27.1 million and $17.0 million, respectively. We received proceeds of $1.2 million, $1.1 million and $1.4 million from the exercise of options for each of the years ended December 31, 2022, 2021 and 2020, respectively.

Employee Stock Purchase Plan
Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows (in thousands, except weighted-average per share prices):
 Year Ended
December 31, 2022
Shares issued241 
Weighted-average per share purchase price$9.78 
Weighted-average per share discount from the fair value of our common stock on date of issuance$1.72 

As of December 31, 2022, there were 2.7 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,
202220212020
Cost of revenues$2,677 $2,505 $1,621 
Research and development11,675 13,433 9,703 
Sales, general and administrative12,405 21,782 14,140 
$26,757 $37,720 $25,464 

Unrecognized Compensation Costs
As of December 31, 2022, total unrecognized stock-based compensation was $42.9 million, which will be recognized over an average expected recognition period of 2.1 years.
v3.22.4
401(k) Plan
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
401(k) Plan 401(k) PlanWe 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 revenues and operating expenses in the Consolidated Statements of Operations and was as follows (in thousands):
Year Ended December 31,
202220212020
401(k) match$1,323 $1,064 $715 
v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands):
Year Ended December 31, 2022
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$192,658 $49,400 $— $242,058 
Gross profit$50,063 $3,435 $(2,677)$50,821 
Gross margin26.0 %7.0 %NM*21.0 %
Year Ended December 31, 2021
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$206,195 $63,951 $— $270,146 
Gross profit$75,833 $3,979 $(2,505)$77,307 
Gross margin36.8 %6.2 %NM*28.6 %

Year Ended December 31, 2020
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$184,841 $37,948 $— $222,789 
Gross profit$58,207 $2,778 $(1,621)$59,364 
Gross margin31.5 %7.3 %NM*26.6 %

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,
20222021
North America$82,293 $78,937 
China10,177 10,531 
Rest of World6,007 6,946 
$98,477 $96,414 
v3.22.4
Net Loss per Share
 12 Months Ended
Dec. 31, 2022
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,
 202220212020
Restricted stock units and awards970 2,459 2,903 
Employee stock purchase plan— — 34 
Common stock options1,788 2,635 3,358 
 2,758 5,094 6,295 
v3.22.4
Basis of Presentation and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation Basis of PresentationThe 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, Nutronics, Inc., and OPI Photonics S.r.l. All intercompany balances have been eliminated.
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 EquivalentsWe consider all highly liquid investments with an original maturity of three months or less when acquired to be cash equivalents.Cash equivalents are carried at cost, which approximates fair value.
Inventory InventoryInventory 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.
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 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.
Intangible Assets Intangible AssetsDefinite-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.
Restructuring Charges
Restructuring Charges
Restructuring charges in 2022 were comprised primarily 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 AssetsLong‑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.
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 CurrenciesOur 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.
New Accounting Pronouncements
New Accounting Pronouncements

ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2020-03
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in June 2016. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For assets measured at amortized cost, the new standard requires that the income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 was amended in November 2018, April 2019 and March 2020. We adopted ASU 2016-13, as amended, on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows.

ASU 2019-12
The FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, in December 2019. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We adopted ASU 2019-12 on January 1, 2021 on a prospective basis. The adoption did not have a material impact 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.
v3.22.4
Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Amortization Expense Related To Demo Assets
Amortization expense related to demo assets was as follows (in thousands):

Year Ended December 31,
 202220212020
Amortization expense$1,544 $1,979 $2,166 
Realized and Unrealized Foreign Currency Gains and Losses Realized and unrealized foreign currency gains and losses were as follows for the periods presented (in thousands):
Year Ended December 31,
 202220212020
Realized foreign currency (gain) loss$(967)$(294)$98 
Unrealized foreign currency (gain) loss1,052 102 (171)
v3.22.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2022
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,
 202220212020
Industrial$91,098 $94,795 $84,478 
Microfabrication62,769 70,412 51,649 
Aerospace and Defense88,191 104,939 86,662 
$242,058 $270,146 $222,789 
Schedule of Sales by Geography
Sales by Geography

Year Ended December 31,
 202220212020
North America$137,454 $143,232 $107,624 
China21,287 55,446 70,882 
Rest of World83,317 71,468 44,283 
$242,058 $270,146 $222,789 
Schedule of Sales by Timing of Revenue
Sales by Timing of Revenue

Year Ended December 31,
 202220212020
Point in time$183,005 $198,838 $185,215 
Over time59,053 71,308 37,574 
$242,058 $270,146 $222,789 
Schedule of Contract Assets and Liabilities
Our contract assets and liabilities are as follows (in thousands):
Balance Sheet ClassificationAs of December 31,
 20222021
Contract assetsPrepaid expenses and
other current assets		$10,377 $9,657 
Contract liabilitiesDeferred revenues and other long-term liabilities2,455 2,358 
v3.22.4
Concentrations of Credit and Other Risks (Tables)
 12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
Schedule of Concentration of Credit
The following customers accounted for 10% or more of our revenues for the periods presented:
Year Ended December 31,
202220212020
Quick Laser Technology Co., Ltd.
(1)
(1)
12%
Raytheon Technologies
(1)
(1)
12%
U.S. Government17%22%15%
(1)Represents less than 10% of total revenues.
v3.22.4
Accounts Receivable (Tables)
 12 Months Ended
Dec. 31, 2022
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,
20222021
Allowance for doubtful accounts, beginning$303 $367 
Provision (benefit) for losses on accounts receivable27 (4)
Write-offs, net(40)(60)
Allowance for doubtful accounts, ending$290 $303 
v3.22.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities $31,658 $— $— $31,658 
  Commercial paper656 — — 656 
32,314 — — 32,314 
Marketable Securities:
  U.S. treasuries50,391 — — 50,391 
Total$82,705 $— $— $82,705 
December 31, 2021
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities$126,900 $— $— $126,900 
  Commercial paper236 — — 236 
Total$127,136 $— $— $127,136 
v3.22.4
Inventory (Tables)
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands):
As of December 31,
20222021
Raw materials$32,515 $32,185 
Work in process and semi-finished goods19,056 24,642 
Finished goods16,029 16,919 
$67,600 $73,746 
v3.22.4
Prepaid Expenses and Other Current Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Components of Prepaid Expenses and Other Current Assets
The components of prepaid expenses and other current assets are as follows (in thousands):
As of December 31,
 20222021
Contract assets$10,377 $9,657 
Prepaid expenses4,175 3,483 
Vendor prepayments2,423 2,107 
Other51 103 
$17,026 $15,350 
v3.22.4
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property, plant and equipment consist of the following (in thousands):
Useful lifeAs of December 31,
 (years)20222021
Automobiles3$110 $114 
Computer hardware and software
3 - 5
8,712 6,594 
Manufacturing and lab equipment
2 - 7
89,230 81,130 
Office equipment and furniture
5 - 7
2,410 2,361 
Leasehold and building improvements
2 - 12
30,675 28,125 
Buildings309,392 9,392 
LandN/A3,399 3,399 
143,928 131,115 
Accumulated depreciation (83,235)(75,014)
$60,693 $56,101 
v3.22.4
Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2022
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
(in years) 		As of December 31,
 20222021
Patents
3 - 5
$6,322 $5,986 
Development programs
2 - 4
7,200 7,200 
Developed technology52,930 3,038 
16,452 16,224 
Accumulated amortization (12,411)(9,526)
$4,041 $6,698 
Schedule of Finite-lived Intangible Assets Amortization Expense
Amortization related to intangible assets was as follows (in thousands):
Year Ended December 31,
 202220212020
Amortization expense$2,879 $3,891 $3,808 
Schedule of Estimated Future Amortization Expense Estimated amortization expense for future years is as follows (in thousands):
2023$2,230 
2024922 
2025586 
2026303 
Thereafter— 
$4,041 
Schedule of Goodwill
The carrying amount of goodwill by segment was as follows (in thousands):
Laser ProductsAdvanced DevelopmentTotals
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 
v3.22.4
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
As of December 31,
20222021
Accrued payroll and benefits$8,233 $10,915 
Product warranty, current2,601 2,286 
Other accrued expenses1,986 1,529 
$12,820 $14,730 
v3.22.4
Product Warranties (Tables)
 12 Months Ended
Dec. 31, 2022
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,
 20222021
Product warranty liability, beginning$5,371 $4,711 
Warranty charges incurred, net(1,490)(2,467)
Provision for warranty charges, net of adjustments1,560 3,127 
Product warranty liability, ending5,441 5,371 
Less: current portion of product warranty liability(2,601)(2,286)
Non-current portion of product warranty liability$2,840 $3,085 
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
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,
202220212020
Lease expense:
Operating lease expense$3,865 $3,924 $3,052 
Short-term lease expense573 525 242 
Variable and other lease expense872 741 503 
$5,310 $5,190 $3,797 
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, 2022 (in thousands):
2023$3,235 
20242,848 
20252,037 
20261,654 
20271,655 
Thereafter6,806 
Total minimum lease payments18,235 
Less: interest(2,625)
Present value of net minimum lease payments15,610 
Less: current portion of lease liabilities(2,758)
Total long-term lease liabilities$12,852 
v3.22.4
Restructuring (Tables)
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Activity Restructuring activity in 2022 was as follows (in thousands):
Employee Termination CostsWrite-Down of Long-Lived AssetsOtherTotal
Restructuring charges$1,271 $2,566 $55 $3,892 
Cash payments(1,134)— — (1,134)
Non-cash settlements— (2,566)— (2,566)
Accrual at December 31, 2022$137 $— $55 $192 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Net Income (Loss) Before Income Tax Expense
Loss before income taxes was as follows (in thousands):
 Year Ended December 31,
202220212020
Domestic$(50,611)$(33,940)$(28,963)
Foreign(3,624)3,896 8,371 
Loss before income taxes$(54,235)$(30,044)$(20,592)
Income Tax Provision
The income tax provision (benefit) was as follows (in thousands):
Year Ended December 31,
 202220212020
Current tax expense (benefit):
State$73 $70 $21 
Foreign264 (458)2,209 
Current tax expense (benefit)337 (388)2,230 
Deferred tax expense (benefit):
Federal— — (1,603)
State— — (60)
Foreign7 13 (227)
Deferred tax expense (benefit)7 13 (1,890)
Income tax expense (benefit)$344 $(375)$340 
Schedule of Effective Income Tax Rate Reconciliation The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate of 21% to the loss before income taxes as a result of the following differences (in thousands):
Year Ended December 31,
 202220212020
Tax computed at federal statutory rate$(11,436)$(6,309)$(4,324)
State tax, net of federal tax benefit(842)(407)(209)
Permanent items(522)(333)477 
Stock compensation4,005 (3,307)(2,669)
Foreign dividends and unremitted earnings(231)78 726 
Foreign rate differential(360)29 501 
Rate change due to tax reform— 918 1,563 
Federal credits(445)(993)(639)
Tax contingencies, net of reversals256 838 (677)
Return to provision(523)(1,123)(2,242)
Other(324)(305)(112)
Valuation allowance10,766 10,539 7,945 
Income tax expense (benefit)$344 $(375)$340 
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,
 202220212020
Deferred tax assets:
Net operating loss carryforwards$39,998 $35,585 $28,718 
Research and alternative minimum tax credits6,658 6,535 5,583 
Accrued expenses and other4,999 7,020 5,648 
Lease liabilities3,270 3,525 2,547 
Inventory3,305 5,852 5,181 
Property and equipment293 — — 
Intangible assets9,184 — — 
Total gross deferred tax assets67,707 58,517 47,677 
Less: valuation allowance(64,796)(54,239)(43,647)
Total deferred tax assets2,911 4,278 4,030 
Deferred tax liabilities:
Property and equipment— (87)(3)
Intangible assets— (767)(1,490)
Right-of-use assets(2,869)(3,378)(2,468)
Total deferred tax liabilities(2,869)(4,232)(3,961)
Net deferred tax assets$42 $46 $69 
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, 2019$8,740 
Additions based on tax positions related to the current year132 
Additions for tax positions of prior years4 
Reductions for tax positions of prior years(1,285)
Reductions as a result of a lapse of applicable statute of limitations(53)
Other321 
Balance at December 31, 20207,859 
Additions based on tax positions related to the current year661 
Additions for tax positions of prior years53 
Reductions as a result of a lapse of applicable statute of limitations(250)
Other112 
Balance at December 31, 20218,435 
Additions based on tax positions related to the current year822 
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 
v3.22.4
Stockholders' Equity and Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
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 AwardsWeighted-Average Grant Date Fair Value
RSAs at December 31, 2021753 $25.63 
Awards granted— — 
Awards vested(271)22.77 
Awards forfeited and adjusted(150)25.03 
RSAs at December 31, 2022332 $28.24 

Number of Restricted Stock UnitsWeighted-Average Grant Date Fair Value
RSUs at December 31, 20212,799 $24.41 
Awards granted1,409 11.46 
Awards vested(1,098)24.91 
Awards forfeited(326)24.81 
RSUs at December 31, 20222,784 $17.63 
Schedule of Stock Option Activity
The following table summarizes our stock option activity during the year ended December 31, 2022 (in thousands, except weighted-average exercise prices):
 Number of OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value
Outstanding, December 31, 20212,454 $1.614.4$54,815
Options exercised(585)$2.05
Options canceled(42)$9.27
Outstanding, December 31, 20221,827 $1.293.4$16,156
Options exercisable at December 31, 20221,825 $1.293.4$16,155
Options vested as of December 31, 2022, and expected to vest after December 31, 20221,827 $1.293.4$16,156
Schedule of Employee Stock Purchase Plan
Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows (in thousands, except weighted-average per share prices):
 Year Ended
December 31, 2022
Shares issued241 
Weighted-average per share purchase price$9.78 
Weighted-average per share discount from the fair value of our common stock on date of issuance$1.72 
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,
202220212020
Cost of revenues$2,677 $2,505 $1,621 
Research and development11,675 13,433 9,703 
Sales, general and administrative12,405 21,782 14,140 
$26,757 $37,720 $25,464 
v3.22.4
401(k) Plan (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of 401(k) Match The match is recorded within the cost of revenues and operating expenses in the Consolidated Statements of Operations and was as follows (in thousands):
Year Ended December 31,
202220212020
401(k) match$1,323 $1,064 $715 
v3.22.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Operating Results by Reportable Segment The following table summarizes the operating results by reportable segment (dollars in thousands):
Year Ended December 31, 2022
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$192,658 $49,400 $— $242,058 
Gross profit$50,063 $3,435 $(2,677)$50,821 
Gross margin26.0 %7.0 %NM*21.0 %
Year Ended December 31, 2021
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$206,195 $63,951 $— $270,146 
Gross profit$75,833 $3,979 $(2,505)$77,307 
Gross margin36.8 %6.2 %NM*28.6 %

Year Ended December 31, 2020
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$184,841 $37,948 $— $222,789 
Gross profit$58,207 $2,778 $(1,621)$59,364 
Gross margin31.5 %7.3 %NM*26.6 %
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,
20222021
North America$82,293 $78,937 
China10,177 10,531 
Rest of World6,007 6,946 
$98,477 $96,414 
v3.22.4
Net Loss per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):
Year Ended December 31,
 202220212020
Restricted stock units and awards970 2,459 2,903 
Employee stock purchase plan— — 34 
Common stock options1,788 2,635 3,358 
 2,758 5,094 6,295 
v3.22.4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cash and cash equivalents, fair value disclosure $ 32,314,000 $ 127,136,000  
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    
v3.22.4
Basis of Presentation and Significant Accounting Policies - Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Amortization expense $ 1,544 $ 1,979 $ 2,166
v3.22.4
Basis of Presentation and Significant Accounting Policies - Realized and Unrealized Foreign Currency Gains and Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Realized foreign currency (gain) loss $ (967) $ (294) $ 98
Unrealized foreign currency (gain) loss $ 1,052 $ 102 $ (171)
v3.22.4
Basis of Presentation and Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Lease right-of-use assets $ 13,893 $ 17,048
Present value of net minimum lease payments $ 15,610  
v3.22.4
Acquisition (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jul. 30, 2020
Sep. 30, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2020
Business Acquisition [Line Items]          
Goodwill     $ 12,420 $ 12,376  
OPI Photonics          
Business Acquisition [Line Items]          
Cash paid $ 1,600        
Acquisition paid 200        
Remaining amount to be paid     $ 700    
Payment of contingent consideration related to acquisition   $ 700      
Acquisition price allocated to assets 700        
Acquisition price allocated to intangible assets 1,200        
Liabilities assumed 1,000        
Goodwill $ 800        
Transaction costs         $ 100
OPI Photonics | Developed technology          
Business Acquisition [Line Items]          
Weighted average useful life (in years) 5 years        
v3.22.4
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Total revenue $ 242,058 $ 270,146 $ 222,789
Point in time      
Disaggregation of Revenue [Line Items]      
Total revenue 183,005 198,838 185,215
Over time      
Disaggregation of Revenue [Line Items]      
Total revenue 59,053 71,308 37,574
North America      
Disaggregation of Revenue [Line Items]      
Total revenue 137,454 143,232 107,624
China      
Disaggregation of Revenue [Line Items]      
Total revenue 21,287 55,446 70,882
Rest of World      
Disaggregation of Revenue [Line Items]      
Total revenue 83,317 71,468 44,283
Industrial      
Disaggregation of Revenue [Line Items]      
Total revenue 91,098 94,795 84,478
Microfabrication      
Disaggregation of Revenue [Line Items]      
Total revenue 62,769 70,412 51,649
Aerospace and Defense      
Disaggregation of Revenue [Line Items]      
Total revenue $ 88,191 $ 104,939 $ 86,662
v3.22.4
Revenue - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Contract assets $ 10,377 $ 9,657
Contract liabilities $ 2,455 $ 2,358
v3.22.4
Revenue - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Revenue recognized, previously included in customer advances and deferred revenue $ 1.6 $ 2.4
v3.22.4
Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Sales Revenue | Quick Laser Technology Co., Ltd.      
Concentration Risk [Line Items]      
Concentration risk (as a percent)     12.00%
Sales Revenue | Raytheon Technologies      
Concentration Risk [Line Items]      
Concentration risk (as a percent)     12.00%
Sales Revenue | U.S. Government      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 17.00% 22.00% 15.00%
Accounts Receivable | Two customers      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 29.00% 33.00%  
v3.22.4
Accounts Receivable (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for doubtful accounts, beginning $ 303 $ 367
Provision (benefit) for losses on accounts receivable 27 (4)
Write-offs, net (40) (60)
Allowance for doubtful accounts, ending $ 290 $ 303
v3.22.4
Marketable Securities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Investments, All Other Investments [Abstract]  
Realized gains $ 0.2
Unrealized gains $ 0.4
v3.22.4
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: $ 32,314 $ 127,136
Total 82,705  
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 32,314 127,136
Total 82,705  
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 0 0
Total 0  
Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 0 0
Total 0  
Money market securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 31,658 126,900
Money market securities | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 31,658 126,900
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: 656 236
Commercial paper | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash Equivalents: 656 236
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: 50,391  
U.S. treasuries | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable Securities: 50,391  
U.S. treasuries | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable Securities: 0  
U.S. treasuries | Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable Securities: $ 0  
v3.22.4
Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 32,515 $ 32,185
Work in process and semi-finished goods 19,056 24,642
Finished goods 16,029 16,919
Inventory $ 67,600 $ 73,746
v3.22.4
Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Contract assets $ 10,377 $ 9,657
Prepaid expenses 4,175 3,483
Vendor prepayments 2,423 2,107
Other 51 103
Prepaid expenses and other current assets $ 17,026 $ 15,350
v3.22.4
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 143,928 $ 131,115
Accumulated depreciation (83,235) (75,014)
Property and equipment, net $ 60,693 56,101
Automobiles    
Property, Plant and Equipment [Line Items]    
(years) 3 years  
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 110 114
Computer hardware and software    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 8,712 6,594
Computer hardware and software | Minimum    
Property, Plant and Equipment [Line Items]    
(years) 3 years  
Computer hardware and software | Maximum    
Property, Plant and Equipment [Line Items]    
(years) 5 years  
Manufacturing and lab equipment    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 89,230 81,130
Manufacturing and lab equipment | Minimum    
Property, Plant and Equipment [Line Items]    
(years) 2 years  
Manufacturing and lab equipment | Maximum    
Property, Plant and Equipment [Line Items]    
(years) 7 years  
Office equipment and furniture    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 2,410 2,361
Office equipment and furniture | Minimum    
Property, Plant and Equipment [Line Items]    
(years) 5 years  
Office equipment and furniture | Maximum    
Property, Plant and Equipment [Line Items]    
(years) 7 years  
Leasehold and building improvements    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 30,675 28,125
Leasehold and building improvements | Minimum    
Property, Plant and Equipment [Line Items]    
(years) 2 years  
Leasehold and building improvements | Maximum    
Property, Plant and Equipment [Line Items]    
(years) 12 years  
Buildings    
Property, Plant and Equipment [Line Items]    
(years) 30 years  
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 9,392 9,392
Land    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 3,399 $ 3,399
v3.22.4
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount $ 16,452 $ 16,224  
Accumulated amortization (12,411) (9,526)  
Net value 4,041 6,698  
Amortization expense 2,879 3,891 $ 3,808
Patents      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 6,322 5,986  
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 $ 2,930 $ 3,038  
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    
v3.22.4
Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 2,230  
2024 922  
2025 586  
2026 303  
Thereafter 0  
Net value $ 4,041 $ 6,698
v3.22.4
Intangible Assets and Goodwill - Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 12,420
Currency exchange rate adjustment (44)
Ending balance 12,376
Laser Products  
Goodwill [Roll Forward]  
Beginning balance 2,172
Currency exchange rate adjustment (44)
Ending balance 2,128
Advanced Development  
Goodwill [Roll Forward]  
Beginning balance 10,248
Currency exchange rate adjustment 0
Ending balance $ 10,248
v3.22.4
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]    
Accrued payroll and benefits $ 8,233 $ 10,915
Product warranty, current 2,601 2,286
Other accrued expenses 1,986 1,529
Total accrued liabilities $ 12,820 $ 14,730
v3.22.4
Product Warranties (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]    
Product warranty liability, beginning $ 5,371 $ 4,711
Warranty charges incurred, net (1,490) (2,467)
Provision for warranty charges, net of adjustments 1,560 3,127
Product warranty liability, ending 5,441 5,371
Less: current portion of product warranty liability (2,601) (2,286)
Non-current portion of product warranty liability $ 2,840 $ 3,085
v3.22.4
Commitments and Contingencies (Details) - Revolving Credit Facility - Line of Credit - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Line of Credit Facility [Line Items]    
Revolving line of credit, borrowing capacity $ 40,000,000  
Unused credit fee (percent) 0.20%  
Outstanding $ 0 $ 0
v3.22.4
Leases - Narrative (Details)
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description [Line Items]    
Weighted-average remaining lease term for operating leases (in years) 8 years 9 years
Weighted-average discount rate for operating leases (as a percent) 3.60% 3.50%
Operating Leases, Facilities    
Lessee, Lease, Description [Line Items]    
Renewal lease term (in years) 15 years  
Operating Leases, Facilities | Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term (in years) 1 month  
Operating Leases, Facilities | Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term (in years) 12 years 4 months 24 days  
Operating Leases, Automobiles and Equipment | Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term (in years) 1 month 6 days  
Operating Leases, Automobiles and Equipment | Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term (in years) 4 years 6 months  
v3.22.4
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease expense $ 3,865 $ 3,924 $ 3,052
Short-term lease expense 573 525 242
Variable and other lease expense 872 741 503
Lease expense $ 5,310 $ 5,190 $ 3,797
v3.22.4
Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 3,235  
2024 2,848  
2025 2,037  
2026 1,654  
2027 1,655  
Thereafter 6,806  
Total minimum lease payments 18,235  
Less: interest (2,625)  
Present value of net minimum lease payments 15,610  
Less: current portion of lease liabilities (2,758) $ (3,066)
Total long-term lease liabilities $ 12,852 $ 14,612
v3.22.4
Restructuring - Schedule of Restructuring Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 3,892 $ 0 $ 0
Cash payments (1,134)    
Non-cash settlements (2,566)    
Accrual at December 31, 2022 192    
Employee Termination Costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 1,271    
Cash payments (1,134)    
Non-cash settlements 0    
Accrual at December 31, 2022 137    
Write-Down of Long-Lived Assets      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 2,566    
Cash payments 0    
Non-cash settlements (2,566)    
Accrual at December 31, 2022 0    
Other      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 55    
Cash payments 0    
Non-cash settlements 0    
Accrual at December 31, 2022 $ 55    
v3.22.4
Restructuring - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]      
Restructuring $ 3,892 $ 0 $ 0
Laser Products      
Restructuring Cost and Reserve [Line Items]      
Restructuring 3,800    
Advanced Development      
Restructuring Cost and Reserve [Line Items]      
Restructuring $ 100    
v3.22.4
Income Taxes - Net Income (Loss) Before Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Domestic $ (50,611) $ (33,940) $ (28,963)
Foreign (3,624) 3,896 8,371
Loss before income taxes $ (54,235) $ (30,044) $ (20,592)
v3.22.4
Income Taxes - Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current tax expense (benefit):      
State $ 73 $ 70 $ 21
Foreign 264 (458) 2,209
Current tax expense (benefit) 337 (388) 2,230
Deferred tax expense (benefit):      
Federal 0 0 (1,603)
State 0 0 (60)
Foreign 7 13 (227)
Deferred tax expense (benefit) 7 13 (1,890)
Income tax expense (benefit) $ 344 $ (375) $ 340
v3.22.4
Income Taxes - Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Tax computed at federal statutory rate $ (11,436) $ (6,309) $ (4,324)
State tax, net of federal tax benefit (842) (407) (209)
Permanent items (522) (333) 477
Stock compensation 4,005 (3,307) (2,669)
Foreign dividends and unremitted earnings (231) 78 726
Foreign rate differential (360) 29 501
Rate change due to tax reform 0 918 1,563
Federal credits (445) (993) (639)
Tax contingencies, net of reversals 256 838 (677)
Return to provision (523) (1,123) (2,242)
Other (324) (305) (112)
Valuation allowance 10,766 10,539 7,945
Income tax expense (benefit) $ 344 $ (375) $ 340
v3.22.4
Income Taxes - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
event
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Income Tax [Line Items]        
Statutory tax rate 21.00%      
Valuation allowance, deferred tax assets, increase (decrease) $ 10,600 $ 10,600 $ 8,100  
Number of change in ownership events | event 3      
Unrecognized tax benefits $ 8,584 8,435 7,859 $ 8,740
Unrecognized tax benefits, recognized penalties and interest 300 (300) $ 500  
Unrecognized tax benefits, income tax penalties and interest accrued 2,000 1,800    
Non-current Income Taxes Payable        
Income Tax [Line Items]        
Unrecognized tax benefits 3,100 3,500    
Non-current Deferred Tax Assets        
Income Tax [Line Items]        
Unrecognized tax benefits 5,500 $ 4,900    
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 7,800      
U.S.        
Income Tax [Line Items]        
Operating loss carryforwards 162,200      
Foreign Tax Authority        
Income Tax [Line Items]        
Operating loss carryforwards 15,400      
State        
Income Tax [Line Items]        
Operating loss carryforwards $ 38,400      
China | Foreign Tax Authority        
Income Tax [Line Items]        
Statutory tax rate 25.00%      
Finland | Foreign Tax Authority        
Income Tax [Line Items]        
Statutory tax rate 20.00%      
v3.22.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:      
Net operating loss carryforwards $ 39,998 $ 35,585 $ 28,718
Research and alternative minimum tax credits 6,658 6,535 5,583
Accrued expenses and other 4,999 7,020 5,648
Lease liabilities 3,270 3,525 2,547
Inventory 3,305 5,852 5,181
Property and equipment 293 0 0
Intangible assets 9,184 0 0
Total gross deferred tax assets 67,707 58,517 47,677
Less: valuation allowance (64,796) (54,239) (43,647)
Total deferred tax assets 2,911 4,278 4,030
Deferred tax liabilities:      
Property and equipment 0 (87) (3)
Intangible assets 0 (767) (1,490)
Right-of-use assets (2,869) (3,378) (2,468)
Total deferred tax liabilities (2,869) (4,232) (3,961)
Net deferred tax assets $ 42 $ 46 $ 69
v3.22.4
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 8,435 $ 7,859 $ 8,740
Additions based on tax positions related to the current year 822 661 132
Additions for tax positions of prior years   53 4
Reductions for tax positions of prior years (53)   (1,285)
Reductions as a result of a lapse of applicable statute of limitations (183) (250) (53)
Other (437) 112 321
Ending balance $ 8,584 $ 8,435 $ 7,859
v3.22.4
Stockholders' Equity and Stock-Based Compensation - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Restricted Stock Awards  
Number of Restricted Stock Awards  
Balance, beginning (in shares) | shares 753
Awards granted (in shares) | shares 0
Awards vested (in shares) | shares (271)
Awards forfeited (in shares) | shares (150)
Balance, ending (in shares) | shares 332
Weighted-Average Grant Date Fair Value  
Balance, beginning (in dollars per share) | $ / shares $ 25.63
Awards granted (in dollars per share) | $ / shares 0
Awards vested (in dollars per share) | $ / shares 22.77
Awards forfeited (in dollars per share) | $ / shares 25.03
Balance, ending (in dollars per share) | $ / shares $ 28.24
Restricted Stock Units  
Number of Restricted Stock Awards  
Balance, beginning (in shares) | shares 2,799
Awards granted (in shares) | shares 1,409
Awards vested (in shares) | shares (1,098)
Awards forfeited (in shares) | shares (326)
Balance, ending (in shares) | shares 2,784
Weighted-Average Grant Date Fair Value  
Balance, beginning (in dollars per share) | $ / shares $ 24.41
Awards granted (in dollars per share) | $ / shares 11.46
Awards vested (in dollars per share) | $ / shares 24.91
Awards forfeited (in dollars per share) | $ / shares 24.81
Balance, ending (in dollars per share) | $ / shares $ 17.63
v3.22.4
Stockholders' Equity and Stock-Based Compensation - Narrative (Details)
 1 Months Ended 12 Months Ended
Mar. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
vote
$ / shares
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
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)   2,100,000      
Intrinsic value of options exercised | $   $ 7,700,000 $ 27,100,000 $ 17,000,000  
Proceeds from the exercise of options | $   1,197,000 $ 1,145,000 $ 1,375,000  
Unrecognized expense | $   $ 42,900,000      
Period for recognition (in years)   2 years 1 month 6 days      
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 $ 34.00        
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        
Restricted Stock Awards (RSAs)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vested, fair value | $   $ 6,200,000      
Awards outstanding (in shares)   332,000 753,000    
Awards granted (in dollars per share) | $ / shares   $ 0      
Restricted Stock Units (RSUs)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vested, fair value | $   $ 27,300,000      
Awards outstanding (in shares)   2,784,000 2,799,000    
Awards granted (in dollars per share) | $ / shares   $ 11.46      
Performance-based Awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Awards outstanding (in shares)   700,000      
Vesting period   3 years      
Awards granted (in dollars per share) | $ / shares   $ 14.89      
Employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares available for grant (in shares)   2,700,000      
v3.22.4
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Number of Options      
Outstanding, beginning of period (in shares) 2,454 2,454  
Options exercised (in shares)   (585)  
Options canceled (in shares)   (42)  
Outstanding, end of period (in shares)   1,827 2,454
Weighted-Average Exercise Price      
Outstanding, beginning of period (in dollars per share) $ 1.61 $ 1.61  
Options exercised (in dollars per share)   2.05  
Options canceled (in dollars per share)   9.27  
Outstanding, end of period (in dollars per share)   $ 1.29 $ 1.61
Outstanding, Weighted average remaining contractual term (in years) 4 years 4 months 24 days 3 years 4 months 24 days  
Outstanding, Aggregate intrinsic value   $ 16,156 $ 54,815
Options exercisable at end of period      
Options exercisable (in shares)   1,825  
Weighted average exercise price (in dollars per share)   $ 1.29  
Weighted-Average Remaining Contractual Term (Years)   3 years 4 months 24 days  
Aggregate Intrinsic Value   $ 16,155  
Options vested as of end of period and expected to vest after end of period      
Options vested and expected to vest (in shares)   1,827  
Weighted average exercise price (in dollars per share)   $ 1.29  
Weighted-Average Remaining Contractual Term (Years)   3 years 4 months 24 days  
Aggregate Intrinsic Value   $ 16,156  
v3.22.4
Stockholders' Equity and Stock-Based Compensation - Employee Stock Purchase Program (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Equity [Abstract]  
Shares issued (in shares) | shares 241
Weighted average per share purchase price (in dollars per share) $ 9.78
Weighted average per share discount from the fair value of our common stock on date of issuance (in dollars per share) $ 1.72
v3.22.4
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 26,757 $ 37,720 $ 25,464
Cost of revenues      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 2,677 2,505 1,621
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 11,675 13,433 9,703
Sales, general and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 12,405 $ 21,782 $ 14,140
v3.22.4
401(k) Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
401(k) match $ 1,323 $ 1,064 $ 715
v3.22.4
Segment Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2022
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.22.4
Segment Information - Operating Results (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Revenue $ 242,058 $ 270,146 $ 222,789
Gross profit $ 50,821 $ 77,307 $ 59,364
Gross margin 21.00% 28.60% 26.60%
Operating Segments | Laser Products      
Segment Reporting Information [Line Items]      
Revenue $ 192,658 $ 206,195 $ 184,841
Gross profit $ 50,063 $ 75,833 $ 58,207
Gross margin 26.00% 36.80% 31.50%
Operating Segments | Advanced Development      
Segment Reporting Information [Line Items]      
Revenue $ 49,400 $ 63,951 $ 37,948
Gross profit $ 3,435 $ 3,979 $ 2,778
Gross margin 7.00% 6.20% 7.30%
Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue $ 0 $ 0 $ 0
Gross profit $ (2,677) $ (2,505) $ (1,621)
v3.22.4
Segment Information - Geographic Locations (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 98,477 $ 96,414
North America    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 82,293 78,937
China    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 10,177 10,531
Rest of World    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 6,007 $ 6,946
v3.22.4
Net Loss per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 2,758 5,094 6,295
Restricted stock units and awards      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 970 2,459 2,903
Employee stock purchase plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0 0 34
Common stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 1,788 2,635 3,358