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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________________
FORM 10-Q
________________________________________________________
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
 
Commission File Number 001-38462
________________________________________________________
NLIGHT, INC.
(Exact name of Registrant as specified in its charter)
________________________________________________________
Delaware91-2066376
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification Number)
4637 NW 18th Avenue
Camas, Washington 98607
(Address of principal executive office, including zip code)
(360) 566-4460
(Registrant's telephone number, including area code)
__________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Exchange on which Registered
Common Stock, par value
$0.0001 per share		LASRThe Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                     Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.    
Large Accelerated Filer☐Accelerated Filer☒Non-Accelerated Filer☐Smaller Reporting Company☐
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.         ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes ☐    No ☒

As of November 5, 2024, the Registrant had 48,429,356 shares of common stock outstanding.


TABLE OF CONTENTS
Page
Part II. Other Information
































PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

nLIGHT, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

As of
September 30, 2024December 31, 2023
Assets
Current assets:
    Cash and cash equivalents$41,456 $53,210 
    Marketable securities65,241 59,672 
Accounts receivable, net of allowances of $1,810 and $315
40,282 39,585 
    Inventory48,828 52,160 
    Prepaid expenses and other current assets14,975 15,927 
          Total current assets210,782 220,554 
Restricted cash258 256 
Lease right-of-use assets11,270 12,616 
Property, plant and equipment, net 47,889 52,300 
Intangible assets, net 981 1,652 
Goodwill12,408 12,399 
Other assets, net7,706 7,026 
          Total assets$291,294 $306,803 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$16,467 $12,166 
     Accrued liabilities14,141 12,556 
     Deferred revenues2,921 4,849 
     Current portion of lease liabilities2,616 3,181 
          Total current liabilities36,145 32,752 
Non-current income taxes payable5,638 5,391 
Long-term lease liabilities10,017 10,978 
Other long-term liabilities4,224 3,263 
          Total liabilities56,024 52,384 
Stockholders' equity:
  Common stock - $0.0001 par value; 190,000 shares authorized, 48,343 and 47,266 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
16 16 
     Additional paid-in capital537,776 521,184 
     Accumulated other comprehensive loss(2,388)(2,477)
     Accumulated deficit(300,134)(264,304)
          Total stockholders’ equity235,270 254,419 
          Total liabilities and stockholders’ equity$291,294 $306,803 


See accompanying notes to consolidated financial statements.
1

nLIGHT, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenue:
Products$41,132 $38,103 $104,960 $118,802 
Development14,997 12,531 46,207 39,227 
Total revenue56,129 50,634 151,167 158,029 
Cost of revenue:
Products29,286 29,015 76,528 84,813 
Development14,293 11,681 42,751 36,907 
Total cost of revenue43,579 40,696 119,279 121,720 
Gross profit12,550 9,938 31,888 36,309 
Operating expenses:
Research and development11,328 10,744 33,723 34,049 
Sales, general, and administrative13,021 11,725 37,372 34,684 
Total operating expenses24,349 22,469 71,095 68,733 
Loss from operations(11,799)(12,531)(39,207)(32,424)
Other income:
Interest income, net394 303 1,308 990 
Other income, net1,331 536 2,594 1,997 
Loss before income taxes(10,074)(11,692)(35,305)(29,437)
Income tax expense (benefit)261 187 525 (1,005)
Net loss$(10,335)$(11,879)$(35,830)$(28,432)
Net loss per share, basic and diluted$(0.21)$(0.26)$(0.75)$(0.62)
Shares used in per share calculations, basic and diluted48,133 46,403 47,679 45,857 

See accompanying notes to consolidated financial statements.

2

nLIGHT, Inc.
Consolidated Statements of Comprehensive Loss
(In thousands)
(Unaudited)


Three Months Ended September 30,Nine Months Ended
September 30,
2024202320242023
Net loss$(10,335)$(11,879)$(35,830)$(28,432)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments335 (131)47 (816)
Unrealized gains (losses) on available-for-sale securities(216)21 42 339 
Comprehensive loss$(10,216)$(11,989)$(35,741)$(28,909)

See accompanying notes to consolidated financial statements.

3

nLIGHT, Inc.
Consolidated Statements of Stockholders' Equity
(In thousands)
(Unaudited)

Three Months Ended September 30, 2024
Common stockAdditional paid-in capitalAccumulated other comprehensive lossAccumulated deficitTotal stockholders' equity
SharesAmount
Balance, June 30, 202448,099 $16 $531,822 $(2,507)$(289,799)$239,532 
Net loss— — — — (10,335)(10,335)
Issuance of common stock pursuant to exercise of stock options105 — 84 — — 84 
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax139 — (657)— — (657)
Stock-based compensation— — 6,527 — — 6,527 
Unrealized losses on available-for-sale securities— — — (216)— (216)
Cumulative translation adjustment, net of tax— — — 335 — 335 
Balance, September 30, 202448,343 $16 $537,776 $(2,388)$(300,134)$235,270 
Nine Months Ended September 30, 2024
Common stockAdditional paid-in capitalAccumulated other comprehensive lossAccumulated deficitTotal stockholders' equity
SharesAmount
Balance, December 31, 202347,266 $16 $521,184 $(2,477)$(264,304)$254,419 
Net loss— — — — (35,830)(35,830)
Issuance of common stock pursuant to exercise of stock options247 — 221 — — 221 
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax684 — (3,945)— — (3,945)
Issuance of common stock under the Employee Stock Purchase Plan146 — 1,355 — — 1,355 
Stock-based compensation— — 18,961 — — 18,961 
Unrealized gains on available-for-sale securities— — — 42 — 42 
Cumulative translation adjustment, net of tax— — — 47 — 47 
Balance, September 30, 202448,343 $16 $537,776 $(2,388)$(300,134)$235,270 


4

Three Months Ended September 30, 2023
Common stockAdditional paid-in capitalAccumulated other comprehensive lossAccumulated deficitTotal stockholders' equity
SharesAmount
Balance, June 30, 202346,503 $16 $507,649 $(3,115)$(239,187)$265,363 
Net loss— — — — (11,879)(11,879)
Issuance of common stock pursuant to exercise of stock options61 — 53 — — 53 
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax109 — (535)— — (535)
Stock-based compensation— — 6,627 — — 6,627 
Unrealized gains on available-for-sale securities— — — 21 — 21 
Cumulative translation adjustment, net of tax— — — (131)— (131)
Balance, September 30, 202346,673 $16 $513,794 $(3,225)$(251,066)$259,519 


Nine Months Ended September 30, 2023
Common stockAdditional paid-in capitalAccumulated other comprehensive lossAccumulated deficitTotal stockholders' equity
SharesAmount
Balance, December 31, 202245,629 $16 $496,211 $(2,748)$(222,634)$270,845 
Net loss— — — — (28,432)(28,432)
Issuance of common stock pursuant to exercise of stock options278 — 385 — — 385 
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax632 — (3,667)— — (3,667)
Issuance of common stock under the Employee Stock Purchase Plan134 — 1,220 — — 1,220 
Stock-based compensation— — 19,645 — — 19,645 
Unrealized gains on available-for-sale securities— — — 339 — 339 
Cumulative translation adjustment, net of tax— — — (816)— (816)
Balance, September 30, 202346,673 $16 $513,794 $(3,225)$(251,066)$259,519 

See accompanying notes to consolidated financial statements.
5
nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30,
20242023
Cash flows from operating activities:
Net loss$(35,830)$(28,432)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation9,356 9,292 
Amortization3,403 2,697 
Reduction in carrying amount of right-of-use assets1,367 947 
Provision for losses on (recoveries of) accounts receivable1,489 (2)
Stock-based compensation18,961 19,645 
Deferred income taxes— 7 
Loss on disposal of property, plant and equipment76 525 
Changes in operating assets and liabilities:
Accounts receivable, net(2,119)2,308 
Inventory3,348 5,491 
Prepaid expenses and other current assets954 1,358 
Other assets, net(3,351)(442)
Accounts payable4,628 (2,079)
Accrued and other long-term liabilities2,511 161 
Deferred revenues(1,931)617 
Lease liabilities(1,546)(1,076)
Non-current income taxes payable212 (1,330)
Net cash provided by operating activities1,528 9,687 
Cash flows from investing activities:
Purchases of property, plant and equipment(5,313)(4,386)
Purchase of marketable securities(88,643)(103,008)
Proceeds from maturities and sales of marketable securities83,033 94,231 
Net cash used in investing activities(10,923)(13,163)
Cash flows from financing activities:
Proceeds from employee stock plan purchases1,355 1,220 
Proceeds from stock option exercises221 385 
Tax payments related to stock award issuances(3,945)(3,667)
Net cash used in financing activities(2,369)(2,062)
Effect of exchange rate changes on cash12 (198)
Net decrease in cash, cash equivalents, and restricted cash(11,752)(5,736)
Cash, cash equivalents, and restricted cash, beginning of period53,466 58,078 
Cash, cash equivalents, and restricted cash, end of period$41,714 $52,342 
Supplemental disclosures:
Cash paid for interest, net$40 $20 
Cash paid for income taxes302 270 
Operating cash outflows from operating leases3,057 2,890 
Right-of-use assets obtained in exchange for lease liabilities995 1,295 
Accrued purchases of property, equipment and patents415 561 
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents$41,456 52,087 
Restricted cash258 255 
Total cash, cash equivalents, and restricted cash$41,714 $52,342 

See accompanying notes to consolidated financial statements.
6
nLIGHT, Inc.
Notes to Consolidated Financial Statements
Note 1 - Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Critical Accounting Policies
Our critical accounting policies have not materially changed during the nine months ended September 30, 2024, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

New Accounting Pronouncements

ASU 2023-07
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are
currently evaluating the impact of this guidance on our consolidated financial statements.


ASU 2023-09
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.

Note 2 - Revenue

We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations.

We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a, revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, we recognize, over time, revenue as per ASC 606-10-55-18 (invoice practical expedient) for our cost plus contracts and, accordingly, elect not to disclose
7
information related to those performance obligations under ASC 606-10-50-14b. As of September 30, 2024, we had $10 million of performance obligations relating to firm fixed price contracts that did not qualify for the aforementioned disclosure exemptions. We expect to recognize 50% of these performance obligations by the end of 2024 and the remainder by the end of 2025.

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

Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. For long-term contracts, we estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts.

Contract estimates are based on various assumptions to project the outcome of future events that may span several
years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached.

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):
    
Sales by End Market
Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Industrial$11,588 $19,607 $36,478 $56,078 
Microfabrication14,263 12,000 35,276 37,285 
Aerospace and Defense30,278 19,027 79,413 64,666 
$56,129 $50,634 $151,167 $158,029 

Sales by Geography

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
North America$36,332 $31,330 $100,696 $94,750 
China2,371 2,624 8,877 9,134 
Rest of World17,426 16,680 41,594 54,145 
$56,129 $50,634 $151,167 $158,029 

Sales by Timing of Revenue

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Point in time$41,070 $37,913 $105,062 $117,361 
Over time15,059 12,721 46,105 40,668 
$56,129 $50,634 $151,167 $158,029 


8
Our contract assets and liabilities were as follows (in thousands):
Balance Sheet ClassificationAs of
 September 30, 2024December 31, 2023
Contract assetsPrepaid expenses and
other current assets		$8,802 $7,298 
Contract liabilitiesDeferred revenues and other long-term liabilities5,769 6,368 

Contract assets generally consist of revenue recognized on an over-time basis where revenue recognition has been met, but the amounts are billed and collected in a subsequent period. In our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities recorded in deferred revenues on the Consolidated Balance Sheets. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration.

During the three and nine months ended September 30, 2024, we recognized revenue of $43 thousand and $4.3 million that was included in the deferred revenues balance at the beginning of the period as the performance obligations under the associated agreements were satisfied.

Note 3 - Concentrations of Credit and Other Risks
The following customers accounted for 10% or more of our revenues for the periods presented:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
U.S. Government*12%16%15%17%
Raytheon Technologies
(1)
(1)
10%
(1)
KORD Technologies19%
(1)
14%
(1)
*Excludes sales to customers who sell our products and services exclusively to the U.S. Government
(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 September 30, 2024 and December 31, 2023, two customers accounted for a total of 22% and 24%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date. 

Note 4 - 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 $1.1 million and $2.5 million for the three and nine months ended September 30, 2024, respectively. Unrealized losses were $0.2 million and immaterial for the three and nine months ended September
9
30, 2024, respectively. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. Realized gains were $0.8 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. Unrealized gains were immaterial for the three months ended September 30, 2023 and $0.3 million for the nine months ended September 30, 2023.

See Note 5 for additional information.

Note 5 - 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):

September 30, 2024
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities $20,189 $— $— $20,189 
  Commercial paper2,446 — — 2,446 
22,635 — — 22,635 
Marketable Securities:
  U.S. treasuries65,241 — — 65,241 
Total$87,876 $— $— $87,876 
December 31, 2023
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities$22,441 $— $— $22,441 
  Commercial paper1,995 — — 1,995 
24,436 — — 24,436 
Marketable Securities:
  U.S. treasuries59,672 — — 59,672 
Total$84,108 $— $— $84,108 
10

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.

Note 6 - 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
September 30, 2024December 31, 2023
Raw materials$20,278 $23,426 
Work in process and semi-finished goods22,113 19,640 
Finished goods6,437 9,094 
$48,828 $52,160 

Note 7 - Property, Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
Useful lifeAs of
 (years)September 30, 2024December 31, 2023
Automobiles3$518 $109 
Computer hardware and software
3 - 5
16,037 9,145 
Manufacturing and lab equipment
2 - 7
85,964 91,050 
Office equipment and furniture
5 - 7
4,990 2,634 
Leasehold and building improvements
2 - 12
30,937 31,988 
Buildings309,392 9,392 
LandN/A3,399 3,399 
151,237 147,717 
Accumulated depreciation (103,348)(95,417)
$47,889 $52,300 

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Note 8 - 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
 September 30, 2024December 31, 2023
Patents
3 - 5
$— $6,345 
Development programs
2 - 4
7,200 7,200 
Developed technology52,959 2,959 
10,159 16,504 
Accumulated amortization (9,178)(14,852)
$981 $1,652 

Amortization related to intangible assets was as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Amortization expense$149 $633 $671 $1,896 

Estimated amortization expense for future years is as follows (in thousands):
2024$149 
2025484 
2026348 
Thereafter— 
$981 

Goodwill
The carrying amount of goodwill by segment was as follows (in thousands):
Laser ProductsAdvanced DevelopmentTotals
Balance, December 31, 2023$2,151 $10,248 $12,399 
Currency exchange rate adjustment9 — 9 
Balance, September 30, 2024$2,160 $10,248 $12,408 

Note 9 - Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
As of
September 30, 2024December 31, 2023
Accrued payroll and benefits$10,497 $7,898 
Product warranty, current2,440 3,339 
Other accrued expenses1,204 1,319 
$14,141 $12,556 

Note 10 - 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
12
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):
Nine Months Ended September 30,
 20242023
Product warranty liability, beginning$4,469 $5,441 
Warranty charges incurred, net(3,492)(2,805)
Provision for warranty charges, net of adjustments2,597 2,267 
Product warranty liability, ending3,574 4,903 
Less: current portion of product warranty liability(2,440)(3,694)
Non-current portion of product warranty liability$1,134 $1,209 

Note 11 - Stockholders' Equity and Stock-Based Compensation

Restricted Stock Awards and Units
Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:

Number of Restricted Stock Units (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 20232,817 $13.27 
Granted1,787 14.09 
Vested(998)15.08 
Forfeited(77)13.94 
Balance, September 30, 20243,529 13.16 

Number of Restricted Stock Awards (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 2023133 $30.44 
Vested(96)29.20 
Balance, September 30, 202437 33.66 

The total fair value of RSUs vested during the nine months ended September 30, 2024, was $15.0 million. Awards outstanding as of September 30, 2024 include 1.3 million performance-based awards that will vest upon meeting certain performance criteria. 0.5 million performance-based awards were granted during the nine months ended September 30, 2024.


13
Stock Options
The following table summarizes our stock option activity during the nine months ended September 30, 2024:
 Number of Options (Thousands)Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 20231,398 $1.242.5$17,142
Options exercised(247)0.89
Outstanding, September 30, 20241,151 1.311.910,795
Options exercisable at September 30, 20241,151 1.311.910,795
Options vested as of September 30, 2024, and expected to vest after September 30, 20241,151 1.311.910,795

Total intrinsic value of options exercised for the nine months ended September 30, 2024 and 2023, was $2.7 million and $2.5 million, respectively. We received proceeds of $0.2 million and $0.4 million from the exercise of options for the nine months ended September 30, 2024 and 2023, respectively.

Stock-Based Compensation
Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenues$629 $508 $1,829 $1,871 
Research and development2,046 2,613 5,834 7,537 
Sales, general and administrative3,852 3,506 11,298 10,237 
$6,527 $6,627 $18,961 $19,645 

Unrecognized Compensation Costs
As of September 30, 2024, total unrecognized stock-based compensation was $36.5 million, which will be recognized over an average expected recognition period of 2.0 years.

Note 12 - Commitments and Contingencies

Leases
See Note 13.

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 or reasonably estimable and, as such, no loss contingency has been recorded.

From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of September 30, 2024 we believe these matters will not have a material adverse effect on our consolidated financial statements.

Note 13 - Leases

We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.1 to 10.7 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 4.1 years. These leases are primarily operating leases; financing leases are not
14
material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 7 years as of September 30, 2024, and the weighted-average discount rate was 4.0%.

The components of lease expense related to operating leases were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Lease expense:
Operating lease expense$943 $948 $2,773 $2,763 
Short-term lease expense139 142 265 348 
Variable and other lease expense273 271 793 744 
$1,355 $1,361 $3,831 $3,855 

Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):
2024$959 
20252,669 
20261,971 
20271,886 
20281,617 
Thereafter5,445 
Total minimum lease payments14,547 
Less: interest(1,914)
Present value of net minimum lease payments12,633 
Less: current portion of lease liabilities(2,616)
Total long-term lease liabilities$10,017 

Note 14 - Segment Information
We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands):
Three Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$41,132 $14,997 $— $56,129 
Gross profit$12,475 $704 $(629)$12,550 
Gross margin30.3 %4.7 %NM*22.4 %
Nine Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$104,960 $46,207 $— $151,167 
Gross profit$30,261 $3,456 $(1,829)$31,888 
Gross margin28.8 %7.5 %NM*21.1 %
15
Three Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$38,103 $12,531 $— $50,634 
Gross profit$9,596 $850 $(508)$9,938 
Gross margin25.2 %6.8 %NM*19.6 %
Nine Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$118,802 $39,227 $— $158,029 
Gross profit$35,860 $2,320 $(1,871)$36,309 
Gross margin30.2 %5.9 %NM*23.0 %
*Not meaningful

Corporate and Other is unallocated expenses related to stock-based compensation.

There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Note 15 - Net Loss per Share

Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position.

The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Restricted stock units and awards715 918 947 942 
Common stock options1,082 1,413 1,177 1,485 
 1,797 2,331 2,124 2,427 

Note 16 - Subsequent Event
In October 2024, we gave notice to employees at our Shanghai manufacturing facility of a reduction in force. A severance charge of approximately $3.8 million will be recorded in the fourth quarter of 2024.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "ability," "anticipate," "attempt," "believe," "can be," "continue," "could," "depend," "enable," "estimate," "expect," "extend," "grow," "if," "intend," "likely," "may," "objective," "ongoing," "plan," "possible," "potential," "predict," "project," "propose," "rely," "should," "target," "will," "would" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

These statements involve risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about: our business model and strategic plans; our expectations regarding manufacturing; our future financial performance; demand for our semiconductor and fiber laser solutions; our ability to develop innovative products; our expectations regarding product volumes and the introduction of new products; our technology and new product research and development activities; the impact of inflation; the impact of seasonality; the effect on our business of litigation to which we are or may become a party; and the sufficiency of our existing liquidity sources to meet our cash needs.

You should refer to the "Risk Factors" section of this report for a discussion of other important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this report will prove to be accurate. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, which although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted a thorough inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Overview
    
nLIGHT, Inc. is a leading provider of high‑power semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. Headquartered in Camas, Washington, we design, develop, and manufacture the critical elements of our lasers, and believe our vertically integrated business model enables us to rapidly introduce innovative products, control our costs and protect our intellectual property.

We operate in two reportable segments—Laser Products and Advanced Development —and we serve three primary end-markets—Industrial, Microfabrication, and Aerospace and Defense. Sales of our semiconductor lasers, fiber lasers, fiber amplifiers, and other directed energy laser products are included in the Laser Products segment, while revenue earned from research and development contracts are included in the Advanced Development segment.

Revenues decreased to $151.2 million in the nine months ended September 30, 2024 compared to $158.0 million in the same period of 2023 due primarily to decreased sales in the Laser Products segment. We generated a net loss of $35.8 million for the nine months ended September 30, 2024 compared to a net loss of $28.4 million for the same period of 2023.


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Factors Affecting Our Performance

Demand for our Semiconductor and Fiber Laser Solutions

Our revenue growth depends on market demand and achievement of design wins for our semiconductor and fiber lasers. We consider a design win to occur when a customer notifies us that it has selected one of our products to be incorporated into a product or system under development by such customer. For the foreseeable future, our operations will continue to depend upon capital expenditures by customers in the Industrial and Microfabrication markets, which, in turn, depend upon the demand for these customers’ products or services. In addition, in the Aerospace and Defense market, our business depends in large part on continued investment in laser technology by the U.S. government and its allies, and our ability to continue to successfully develop leading technology in this area and commercialize that technology in the future.

Demand for our products also fluctuates based on market cycles, continuously evolving industry supply chains, trade and tariff terms, as well as evolving competitive dynamics in each of our end-markets. Erosion of average selling prices, or ASPs, of established products is typical in our industry, and the ASPs of our products generally decrease as our products mature. We may also negotiate discounted selling prices from time to time with certain customers that purchase higher volumes, or to penetrate new markets or applications. Historically, we have been able to offset decreasing ASPs by introducing new and higher value products, increasing the sales of our existing products, expanding into new applications and reducing our product and manufacturing costs. Although we anticipate further increases in product volumes and the continued introduction of new and higher value products, ASP reduction may cause our revenues to decline or grow at a slower rate.

Technology and New Product Development

We invest heavily in the development of our semiconductor, fiber laser, directed energy, and laser-sensing technologies to provide solutions to our current and future customers. We anticipate that we will continue to invest in research and development to achieve our technology and product roadmap. Our product development is targeted to specific sectors of the market where we believe the performance of our products provides a significant benefit to our customers. We believe our close coordination with our customers regarding their future product requirements enhances the efficiency of our research and development expenditures.

Manufacturing Costs and Gross Margins

Our product gross profit, in absolute dollars and as a percentage of revenues, is impacted by our product sales mix, sales volumes, changes in ASPs, production volumes, the corresponding absorption of manufacturing overhead expenses, the cost of purchased materials, production costs and manufacturing yields. Our product sales mix can affect gross profits due to variations in profitability related to product configurations and cost profiles, customer volume pricing, availability of competitive products in various markets, and new product introductions, among other factors. We have invested heavily in U.S.-based manufacturing capabilities in the last several years. Capacity utilization affects our gross margin because we have a high fixed cost base due to our vertically integrated business model. Increases in sales and production volumes drive favorable absorption of fixed costs, improved manufacturing efficiencies and lower production costs. Gross margins may fluctuate from period to period depending on product mix and the level of capacity utilization.

Our Advanced Development gross profit varies with the type and terms of contracts, contract volume, project mix, changes in the estimated cost of projects at completion, and successful execution on projects during the period. Most of our Advanced Development contracts have historically been structured as cost plus fixed fee due to the technical complexity of the research and development services, but we also perform work under fixed price contracts where gross margin can change from period to period based on the estimated cost of the project at completion.

Seasonality

Our quarterly revenues can fluctuate with general economic trends, the timing of capital expenditures by our customers, holidays, and general economic trends. In addition, as is typical in our industry, we tend to recognize a larger percentage of our quarterly revenues in the last month of the quarter, which may impact our working capital trends.

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Results of Operations

The following table sets forth our operating results as a percentage of revenues for the periods indicated (which may not add up due to rounding):

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenue:
Products73.3 %75.3 %69.4 %75.2 %
Development26.7 24.7 30.6 24.8 
Total revenue100.0 100.0 100.0 100.0 
Cost of revenue:
Products52.2 57.3 50.6 53.7 
Development25.4 23.1 28.3 23.3 
Total cost of revenue77.6 80.4 78.9 77.0 
Gross profit22.4 19.6 21.1 23.0 
Operating expenses:
Research and development20.2 21.2 22.3 21.5 
Sales, general, and administrative23.2 23.2 24.7 21.9 
Total operating expenses43.4 44.4 47.0 43.5 
Loss from operations(21.0)(24.7)(25.9)(20.5)
Other income:
Interest income, net0.7 0.6 0.9 0.6 
Other income, net2.4 1.1 1.7 1.3 
Loss before income taxes(17.9)(23.1)(23.3)(18.6)
Income tax expense (benefit)0.5 0.4 0.3 (0.6)
Net loss(18.4)%(23.5)%(23.6)%(18.0)%

Revenues by End Market

Our revenues by end market were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,Change
2024% of Revenue2023% of Revenue$%
Industrial$11,588 20.6 %$19,607 38.7 %$(8,019)(40.9)%
Microfabrication14,263 25.4 12,000 23.7 2,263 18.9 
Aerospace and Defense30,278 54.0 19,027 37.6 11,251 59.1 
$56,129 100.0 %$50,634 100.0 %$5,495 10.9 %
Nine Months Ended September 30,Change
2024% of Revenue2023% of RevenueAmount%
Industrial$36,478 24.1 %$56,078 35.5 %$(19,600)(35.0)%
Microfabrication35,276 23.4 37,285 23.6 (2,009)(5.4)
Aerospace and Defense79,413 52.5 64,666 40.9 14,747 22.8 
$151,167 100.0 %$158,029 100.0 %$(6,862)(4.3)%

The decreases in revenue from the Industrial market for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by decreases in unit sales due to deteriorating market conditions and lower customer demand in cutting and additive manufacturing.

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The increase in revenue from the Microfabrication market for the three months ended September 30, 2024 compared to the same period in 2023 was primarily attributable to an increase in unit sales of semiconductor lasers to Rest of World customers due to improved demand. The decrease in revenue from the Microfabrication market for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by lower unit sales for the first six months of 2024 that was partially offset by an increase in unit sales for the third quarter of 2024.

The increases in revenue from the Aerospace and Defense market for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were the result of increased unit sales of products due to higher market demand, an increase in ASPs, and increased development revenue from development contracts awarded primarily in the second half of 2023.

Revenues by Segment

Our revenues by segment were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,Change
2024% of Revenue2023% of Revenue$%
Laser Products$41,132 73.3 %$38,103 75.3 %$3,029 7.9 %
Advanced Development14,997 26.7 12,531 24.7 2,466 19.7 
$56,129 100.0 %$50,634 100.0 %$5,495 10.9 %
Nine Months Ended September 30,Change
2024% of Revenue2023% of RevenueAmount%
Laser Products$104,960 69.4 %$118,802 75.2 %$(13,842)(11.7)%
Advanced Development46,207 30.6 39,227 24.8 6,980 17.8 
$151,167 100.0 %$158,029 100.0 %$(6,862)(4.3)%

The increase in Laser Products revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of increased revenue from the Microfabrication and Aerospace and Defense markets as discussed above, offset partially by a decrease in revenue from the Industrial market. The decrease in Laser Products revenue for the nine month ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from the Industrial and Microfabrication markets as discussed above, offset partially by an increase in revenue from the Aerospace and Defense market.

The increases in Advanced Development revenue for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by development contracts awarded primarily in the second half of 2023. All Advanced Development revenue is included in the Aerospace and Defense market.

Revenues by Geographic Region

Our revenues by geographic region were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,Change
2024% of Revenue2023% of Revenue$%
North America$36,332 64.7 %$31,330 61.9 %$5,002 16.0 %
China2,371 4.2 2,624 5.2 (253)(9.6)
Rest of World17,426 31.1 16,680 32.9 746 4.5 
$56,129 100.0 %$50,634 100.0 %$5,495 10.9 %
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Nine Months Ended September 30,Change
2024% of Revenue2023% of RevenueAmount%
North America$100,696 66.6 %$94,750 60.0 %$5,946 6.3 %
China8,877 5.9 9,134 5.8 (257)(2.8)
Rest of World41,594 27.5 54,145 34.2 (12,551)(23.2)
$151,167 100.0 %$158,029 100.0 %$(6,862)(4.3)%

Geographic revenue information is based on the location to which we ship our products. The increases in North America revenue for the three and nine months ended September 30, 2024 compared to the same periods in 2023, were primarily attributable to increased revenue from the Aerospace and Defense market as previously discussed, offset partially by decreased revenue from the Industrial market.

The decrease in China revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from the Microfabrication and Industrial markets. The decrease in China revenue for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by a decreased in revenue from the Industrial market offset partially by an increase in revenue from the Microfabrication market.

The increase in Rest of World revenue for the three months ended September 30, 2024 compared to the same period in 2023 was the result of increased revenue from the Aerospace and Defense and Microfabrication markets, offset partially by decreased revenue from the Industrial market. The decrease in Rest of World revenue for the nine months ended September 30, 2024 compared to the same period in 2023 was the result of decreased revenue from both the Industrial and Microfabrication markets, offset partially by increased revenue from the Aerospace and Defense market.

Cost of Revenues and Gross Margin

Cost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs, tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecasted demand from our customers. We expense all warranty costs and inventory provisions as cost of revenues.

Cost of Advanced Development revenue consists of materials, labor, subcontracting costs, and an allocation of indirect costs including overhead and general and administrative.

Our gross profit and gross margin were as follows for the periods presented (dollars in thousands):
Three Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotal
Gross profit$12,475 $704 $(629)$12,550 
Gross margin30.3 %4.7 %NM*22.4 %
Nine Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotal
Gross profit$30,261 $3,456 $(1,829)$31,888 
Gross margin28.8 %7.5 %NM*21.1 %

Three Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotal
Gross profit$9,596 $850 $(508)$9,938 
Gross margin25.2 %6.8 %NM*19.6 %
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Nine Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotal
Gross profit$35,860 $2,320 $(1,871)$36,309 
Gross margin30.2 %5.9 %NM*23.0 %
*NM = not meaningful

The increase in Laser Products gross margin for the three months ended September 30, 2024 compared to the same period of 2023 was driven primarily by positive changes in sales mix and increases in ASPs in the Aerospace and Defense market. Our average gross margins on sales for the Industrial market have been lower than those for the Microfabrication and Aerospace and Defense markets. The decrease in Laser Products gross margin for the nine months ended September 30, 2024 compared to same period of 2023, was driven by the impact of lower production volumes on fixed manufacturing costs due to the decrease in overall customer demand, partially offset by positive changes in sales mix.

The decrease in Advanced Development gross margin for the three months ended September 30, 2024 compared to the same period in 2023 was driven by changes in the composition of research and development contracts and a increase in the estimated cost at completion on a significant fixed priced contract in the third quarter of 2024. The increase in Advanced Development gross margin for the nine months ended September 30, 2024 compared to the same periods in 2023 was primarily the result of changes in the composition of research and development contracts. The nine month period ended September 30, 2024 included more revenue from fixed priced contracts that carried higher average gross margins than cost-plus fixed fee contracts during the period.

Operating Expenses

Our operating expenses were as follows for the periods presented (dollars in thousands):

Research and Development

Three Months Ended September 30,Change
20242023$%
Research and development$11,328 $10,744 $584 5.4 %
Nine Months Ended September 30,Change
20242023Amount%
Research and development$33,723 $34,049 $(326)(1.0)%

The increase in research and development expense for the three months ended September 30, 2024 compared to the same period in 2023 was primarily attributable to an increase in employee compensation costs and project-related spending, offset partially by a decrease in stock-based compensation of $0.6 million. The decrease in research and development expense for the nine months ended September 30, 2024 compared to the same period in 2023 was driven by a decrease in stock-based compensation of $1.7 million, offset partially by increases in employee compensation costs and project-related spending.

Sales, General and Administrative
Three Months Ended September 30,Change
20242023$%
Sales, general, and administrative$13,021 $11,725 $1,296 11.1 %
22
Nine Months Ended September 30,Change
20242023Amount%
Sales, general, and administrative$37,372 $34,684 $2,688 7.7 %

The increases in sales, general and administrative expense for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were primarily due to increases in bad debt expense and stock-based compensation of $0.3 million and $1.1 million for the three and nine months ended September 30, 2024, respectively.

Interest Income, net
Three Months Ended September 30,Change
20242023$%
Interest income, net$394 $303 $91 30.0%
Nine Months Ended September 30,Change
20242023Amount%
Interest income, net$1,308 $990 $318 32.1 %

The increases in interest income, net, for the three and nine months ended September 30, 2024, compared to the same periods in 2023, were driven by increases in interest rates and increased investment in marketable securities.

Other Income, net
Three Months Ended September 30,Change
20242023$%
Other income, net$1,331 $536 $795 148.3 %
Nine Months Ended September 30,Change
20242023Amount%
Other income, net$2,594 $1,997 $597 29.9 %

Changes in other income, net, are primarily attributable to realized gains on the sale of marketable securities and changes in net realized and unrealized foreign exchange transactions resulting from currency rate fluctuations.

Income Tax Expense (Benefit)
Three Months Ended September 30,Change
20242023$%
Income tax expense (benefit)$261 $187 $74 39.6 %
Nine Months Ended September 30,Change
20242023Amount%
Income tax expense (benefit)$525 $(1,005)$1,530 152.2 %

We record income tax expense for taxes in our foreign jurisdictions including Austria, Finland, Italy, and South Korea. While our tax expense is largely dependent on the geographic mix of earnings related to our foreign operations, we also record tax expense for uncertain tax positions taken and associated penalties and interest. We consider all available evidence, both positive and negative, in assessing the extent to which a valuation allowance should be applied against our deferred tax assets. Due to the uncertainty with respect to their ultimate realizability in
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the United States and China, we continue to maintain a full valuation allowance in these jurisdictions as of September 30, 2024.

The increase in income tax expense for the nine months ended September 30, 2024 compared to the same period in 2023 is primarily due to a benefit for expiring statutes of limitations on unrecognized tax positions in the second quarter of 2023 and accrued interest on unrecognized tax positions. The increase in income tax expense for the three months ended September 30, 2024 compared to the same period in 2023 was mainly driven by an increase in income in foreign jurisdictions.

Liquidity and Capital Resources

We had cash and cash equivalents and restricted cash of $41.7 million and $53.5 million as of September 30, 2024 and December 31, 2023, respectively. In addition, we had marketable securities of $65.2 million and $59.7 million at September 30, 2024 and December 31, 2023, respectively. Our total balance of cash, cash equivalents, restricted cash and marketable securities decreased by $6.2 million from December 31, 2023 to September 30, 2024.

For the nine months ended September 30, 2024, our principal source of liquidity was cash collected from customers. We believe our existing sources of liquidity will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. Our future capital requirements may vary materially from period to period and will depend on many factors, including the timing and extent of spending on research and development efforts, the expansion of sales and marketing activities, the continuing market acceptance of our products and ongoing investments to support the growth of our business. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, technologies and intellectual property rights. From time to time, we may explore additional financing sources which could include equity, equity‑linked and debt financing arrangements.

The following table summarizes our cash flows for the periods presented (in thousands):

Nine Months Ended September 30,
20242023
Net cash provided by operating activities$1,528 $9,687 
Net cash used in investing activities(10,923)(13,163)
Net cash used in financing activities(2,369)(2,062)
Effect of exchange rate changes on cash12 (198)
Net decrease in cash, cash equivalents and restricted cash$(11,752)$(5,736)

Net Cash Provided by Operating Activities

During the nine months ended September 30, 2024, net cash provided by operating activities was $1.5 million, which was the result of a $35.8 million net loss, offset by a decrease in net working capital of $2.7 million and non-cash expenses totaling $34.7 million related primarily to depreciation, amortization, and stock-based compensation. The decrease in net working capital in the nine months ended September 30, 2024 was driven by a $3.3 million decrease in inventory, a $1.0 million decrease in prepaid expenses and other current assets, a $4.6 million increase in accounts payable and a $2.5 million increase in accrued and other long-term liabilities. These increases were offset by a $2.1 million increase in accounts receivable, a $3.4 million increase in other assets, net, a $1.9 million decrease in deferred revenues and a $1.5 million decrease in lease liabilities.
Net Cash Used in Investing Activities

During the nine months ended September 30, 2024, net cash used in investing activities was $10.9 million, which was driven by the net purchase of marketable securities of $5.6 million and capital expenditures of $5.3 million.

Net Cash Used in Financing Activities

During the nine months ended September 30, 2024, net cash used in financing activities was $2.4 million, which consisted of taxes paid on the net settlement of stock awards of $3.9 million, partially offset by proceeds from stock option exercises and employee stock plan purchases of $1.6 million.

Credit Facilities
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We have a $40.0 million revolving line of credit, or LOC, with Banc of California dated September 24, 2018, which is secured by our assets.

On September 27, 2024, we amended the LOC to extend the maturity date to September 24, 2027, updated financial covenants, and amend the unused line fee and interest rate applicable to revolving loans.

The LOC agreement contains restrictive and financial covenants and bears an unused credit fee of 0.25% 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 September 30, 2024 and we were in compliance with all covenants.

Contractual Obligations

There have been no material changes to our contractual obligations as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Inflation

We do not believe that inflation had a material effect on our business, financial condition or results of operations during the three and nine months ended September 30, 2024, If our costs become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could materially adversely affect our business, financial condition and results of operations.


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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” contained in Part II of our Annual Report on Form 10-K for the year ended December 31, 2023. Our exposure to market risk has not changed materially since December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and our chief financial officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and our chief financial officer have concluded that, as of such date, our disclosure controls and procedures were, in design and operation, effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Internal Control

Control systems, including ours, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control systems’ objectives are being met. Further, the design of any control systems must reflect the fact that there are resource constraints, and the benefits of all controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Control systems can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based, in part, on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.


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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a description of our material pending legal proceedings, see Note 12 - Commitments and Contingencies to our consolidated financial statements included elsewhere in this report.

ITEM 1A. RISK FACTORS

For risk factors related to our business, reference is made to Item 1A, "Risk Factors," contained in Part I of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.


ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.


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ITEM 6. EXHIBITS

(a) Exhibits
Exhibit
Number		Incorporated by ReferenceFiled
Herewith
DescriptionFormFile No.ExhibitFiling Date
10.18-K001-3846210.1September 27, 2024
31.1X
31.2X
32.1*X
101.INSInline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)X
101.SCHInline XBRL Taxonomy Extension Schema DocumentX
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.X
101.DEFInline XBRL Taxonomy Extension Definition Linkbase DocumentX
101.LABInline XBRL Taxonomy Extension Label Linkbase DocumentX
101.PREInline XBRL Taxonomy Extension Presentation Linkbase DocumentX
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)X
*
The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NLIGHT, INC.
(Registrant)
November 8, 2024By:/s/ SCOTT KEENEY
DateScott Keeney
President and Chief Executive Officer
(Principal Executive Officer)
November 8, 2024By:/s/ JOSEPH CORSO
DateJoseph Corso
Chief Financial Officer
(Principal Financial Officer)
November 8, 2024By:/s/ JAMES NIAS
DateJames Nias
Chief Accounting Officer
(Principal Accounting Officer)

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Exhibit 31.1

NLIGHT, INC.
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Scott Keeney, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of nLIGHT, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2024
/s/ SCOTT KEENEY
Scott Keeney
President, Chief Executive Officer and Chairman (Principal Executive Officer)



Exhibit 31.2

NLIGHT, INC.
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

I, Joseph Corso, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of nLIGHT, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2024
/s/ JOSEPH CORSO
Joseph Corso
Chief Financial Officer (Principal Financial Officer)


Exhibit 32.1


CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal year ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report") by nLIGHT, Inc. (the "Company"), Scott Keeney, as the Chief Executive Officer of the Company, and Joseph Corso, as the Chief Financial Officer of the Company, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2024
/s/ SCOTT KEENEY
Scott Keeney
President, Chief Executive Officer and Chairman (Principal Executive Officer)
/s/ JOSEPH CORSO
Joseph Corso
Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies the Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.


v3.24.3
Cover - shares
 9 Months Ended
Sep. 30, 2024
Nov. 05, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-38462  
Entity Registrant Name NLIGHT, INC.  
Entity Incorporation, Date of Incorporation DE  
Entity Tax Identification Number 91-2066376  
Entity Address, Address Line One 4637 NW 18th Avenue  
Entity Address, City or Town Camas  
Entity Address, State or Province WA  
Entity Address, Postal Zip Code 98607  
City Area Code 360  
Local Phone Number 566-4460  
Title of 12(b) Security Common Stock, par value $0.0001 per share  
Trading Symbol LASR  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Smaller Reporting Company false  
Emerging Growth false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   48,429,356
Entity Central Index Key 0001124796  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 41,456 $ 53,210
Marketable securities 65,241 59,672
Accounts receivable, net of allowances of $1,810 and $315 40,282 39,585
Inventory 48,828 52,160
Prepaid expenses and other current assets 14,975 15,927
Total current assets 210,782 220,554
Restricted cash 258 256
Lease right-of-use assets 11,270 12,616
Property, plant and equipment, net 47,889 52,300
Intangible assets, net 981 1,652
Goodwill 12,408 12,399
Other assets, net 7,706 7,026
Total assets 291,294 306,803
Current liabilities:    
Accounts payable 16,467 12,166
Accrued liabilities 14,141 12,556
Deferred revenues 2,921 4,849
Current portion of lease liabilities 2,616 3,181
Total current liabilities 36,145 32,752
Non-current income taxes payable 5,638 5,391
Long-term lease liabilities 10,017 10,978
Other long-term liabilities 4,224 3,263
Total liabilities 56,024 52,384
Stockholders' equity:    
Common stock - $0.0001 par value; 190,000 shares authorized, 48,343 and 47,266 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 16 16
Additional paid-in capital 537,776 521,184
Accumulated other comprehensive loss (2,388) (2,477)
Accumulated deficit (300,134) (264,304)
Total stockholders’ equity 235,270 254,419
Total liabilities and stockholders’ equity $ 291,294 $ 306,803
v3.24.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowances $ 1,810 $ 315
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) 48,343 47,266
Common stock, shares outstanding (in shares) 48,343 47,266
v3.24.3
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Total revenue $ 56,129 $ 50,634 $ 151,167 $ 158,029
Total cost of revenue 43,579 40,696 119,279 121,720
Gross profit 12,550 9,938 31,888 36,309
Operating expenses:        
Research and development 11,328 10,744 33,723 34,049
Sales, general, and administrative 13,021 11,725 37,372 34,684
Total operating expenses 24,349 22,469 71,095 68,733
Loss from operations (11,799) (12,531) (39,207) (32,424)
Other income:        
Interest income, net 394 303 1,308 990
Other income, net 1,331 536 2,594 1,997
Loss before income taxes (10,074) (11,692) (35,305) (29,437)
Income tax expense (benefit) 261 187 525 (1,005)
Net loss $ (10,335) $ (11,879) $ (35,830) $ (28,432)
Net loss per share, basic (in dollars per share) $ (0.21) $ (0.26) $ (0.75) $ (0.62)
Net loss per share, diluted (in dollars per share) $ (0.21) $ (0.26) $ (0.75) $ (0.62)
Shares used in per share calculations, basic (in shares) 48,133 46,403 47,679 45,857
Shares used in per share calculations, diluted (in shares) 48,133 46,403 47,679 45,857
Products        
Total revenue $ 41,132 $ 38,103 $ 104,960 $ 118,802
Total cost of revenue 29,286 29,015 76,528 84,813
Development        
Total revenue 14,997 12,531 46,207 39,227
Total cost of revenue $ 14,293 $ 11,681 $ 42,751 $ 36,907
v3.24.3
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net loss $ (10,335) $ (11,879) $ (35,830) $ (28,432)
Other comprehensive income (loss), net of tax:        
Foreign currency translation adjustments 335 (131) 47 (816)
Unrealized gains (losses) on available-for-sale securities (216) 21 42 339
Comprehensive loss $ (10,216) $ (11,989) $ (35,741) $ (28,909)
v3.24.3
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, 2022   45,629      
Beginning balance at Dec. 31, 2022 $ 270,845 $ 16 $ 496,211 $ (2,748) $ (222,634)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (28,432)       (28,432)
Issuance of common stock pursuant to exercise of stock options (in shares)   278      
Issuance of common stock pursuant to exercise of stock options 385   385    
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)   632      
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (3,667)   (3,667)    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   134      
Issuance of common stock under the Employee Stock Purchase Plan 1,220   1,220    
Stock-based compensation 19,645   19,645    
Unrealized gains (losses) on available-for-sale securities 339     339  
Cumulative translation adjustment, net of tax (816)     (816)  
Ending balance (in shares) at Sep. 30, 2023   46,673      
Ending balance at Sep. 30, 2023 259,519 $ 16 513,794 (3,225) (251,066)
Beginning balance (in shares) at Jun. 30, 2023   46,503      
Beginning balance at Jun. 30, 2023 265,363 $ 16 507,649 (3,115) (239,187)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (11,879)       (11,879)
Issuance of common stock pursuant to exercise of stock options (in shares)   61      
Issuance of common stock pursuant to exercise of stock options 53   53    
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)   109      
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (535)   (535)    
Stock-based compensation 6,627   6,627    
Unrealized gains (losses) on available-for-sale securities 21     21  
Cumulative translation adjustment, net of tax (131)     (131)  
Ending balance (in shares) at Sep. 30, 2023   46,673      
Ending balance at Sep. 30, 2023 $ 259,519 $ 16 513,794 (3,225) (251,066)
Beginning balance (in shares) at Dec. 31, 2023 47,266 47,266      
Beginning balance at Dec. 31, 2023 $ 254,419 $ 16 521,184 (2,477) (264,304)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss $ (35,830)       (35,830)
Issuance of common stock pursuant to exercise of stock options (in shares) 247 247      
Issuance of common stock pursuant to exercise of stock options $ 221   221    
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)   684      
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (3,945)   (3,945)    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   146      
Issuance of common stock under the Employee Stock Purchase Plan 1,355   1,355    
Stock-based compensation 18,961   18,961    
Unrealized gains (losses) on available-for-sale securities 42     42  
Cumulative translation adjustment, net of tax $ 47     47  
Ending balance (in shares) at Sep. 30, 2024 48,343 48,343      
Ending balance at Sep. 30, 2024 $ 235,270 $ 16 537,776 (2,388) (300,134)
Beginning balance (in shares) at Jun. 30, 2024   48,099      
Beginning balance at Jun. 30, 2024 239,532 $ 16 531,822 (2,507) (289,799)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (10,335)       (10,335)
Issuance of common stock pursuant to exercise of stock options (in shares)   105      
Issuance of common stock pursuant to exercise of stock options 84   84    
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)   139      
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (657)   (657)    
Stock-based compensation 6,527   6,527    
Unrealized gains (losses) on available-for-sale securities (216)     (216)  
Cumulative translation adjustment, net of tax $ 335     335  
Ending balance (in shares) at Sep. 30, 2024 48,343 48,343      
Ending balance at Sep. 30, 2024 $ 235,270 $ 16 $ 537,776 $ (2,388) $ (300,134)
v3.24.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Net loss $ (35,830) $ (28,432)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation 9,356 9,292
Amortization 3,403 2,697
Reduction in carrying amount of right-of-use assets 1,367 947
Provision for losses on (recoveries of) accounts receivable 1,489 (2)
Stock-based compensation 18,961 19,645
Deferred income taxes 0 7
Loss on disposal of property, plant and equipment 76 525
Changes in operating assets and liabilities:    
Accounts receivable, net (2,119) 2,308
Inventory 3,348 5,491
Prepaid expenses and other current assets 954 1,358
Other assets, net (3,351) (442)
Accounts payable 4,628 (2,079)
Accrued and other long-term liabilities 2,511 161
Deferred revenues (1,931) 617
Lease liabilities (1,546) (1,076)
Non-current income taxes payable 212 (1,330)
Net cash provided by operating activities 1,528 9,687
Cash flows from investing activities:    
Purchases of property, plant and equipment (5,313) (4,386)
Purchase of marketable securities (88,643) (103,008)
Proceeds from maturities and sales of marketable securities 83,033 94,231
Net cash used in investing activities (10,923) (13,163)
Cash flows from financing activities:    
Proceeds from employee stock plan purchases 1,355 1,220
Proceeds from stock option exercises 221 385
Tax payments related to stock award issuances (3,945) (3,667)
Net cash used in financing activities (2,369) (2,062)
Effect of exchange rate changes on cash 12 (198)
Net decrease in cash, cash equivalents, and restricted cash (11,752) (5,736)
Cash, cash equivalents, and restricted cash, beginning of period 53,466 58,078
Cash, cash equivalents, and restricted cash, end of period 41,714 52,342
Supplemental disclosures:    
Cash paid for interest, net 40 20
Cash paid for income taxes 302 270
Operating cash outflows from operating leases 3,057 2,890
Right-of-use assets obtained in exchange for lease liabilities 995 1,295
Accrued purchases of property, equipment and patents 415 561
Reconciliation of cash, cash equivalents, and restricted cash:    
Cash and cash equivalents 41,456 52,087
Restricted cash 258 255
Total cash, cash equivalents, and restricted cash $ 41,714 $ 52,342
v3.24.3
Basis of Presentation and New Accounting Pronouncements
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation and New Accounting Pronouncements Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Critical Accounting Policies
Our critical accounting policies have not materially changed during the nine months ended September 30, 2024, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

New Accounting Pronouncements

ASU 2023-07
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are
currently evaluating the impact of this guidance on our consolidated financial statements.


ASU 2023-09
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.
v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations.

We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a, revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, we recognize, over time, revenue as per ASC 606-10-55-18 (invoice practical expedient) for our cost plus contracts and, accordingly, elect not to disclose
information related to those performance obligations under ASC 606-10-50-14b. As of September 30, 2024, we had $10 million of performance obligations relating to firm fixed price contracts that did not qualify for the aforementioned disclosure exemptions. We expect to recognize 50% of these performance obligations by the end of 2024 and the remainder by the end of 2025.

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

Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. For long-term contracts, we estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts.

Contract estimates are based on various assumptions to project the outcome of future events that may span several
years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached.

The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):
    
Sales by End Market
Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Industrial$11,588 $19,607 $36,478 $56,078 
Microfabrication14,263 12,000 35,276 37,285 
Aerospace and Defense30,278 19,027 79,413 64,666 
$56,129 $50,634 $151,167 $158,029 

Sales by Geography

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
North America$36,332 $31,330 $100,696 $94,750 
China2,371 2,624 8,877 9,134 
Rest of World17,426 16,680 41,594 54,145 
$56,129 $50,634 $151,167 $158,029 

Sales by Timing of Revenue

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Point in time$41,070 $37,913 $105,062 $117,361 
Over time15,059 12,721 46,105 40,668 
$56,129 $50,634 $151,167 $158,029 
Our contract assets and liabilities were as follows (in thousands):
Balance Sheet ClassificationAs of
 September 30, 2024December 31, 2023
Contract assetsPrepaid expenses and
other current assets		$8,802 $7,298 
Contract liabilitiesDeferred revenues and other long-term liabilities5,769 6,368 

Contract assets generally consist of revenue recognized on an over-time basis where revenue recognition has been met, but the amounts are billed and collected in a subsequent period. In our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities recorded in deferred revenues on the Consolidated Balance Sheets. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration.

During the three and nine months ended September 30, 2024, we recognized revenue of $43 thousand and $4.3 million that was included in the deferred revenues balance at the beginning of the period as the performance obligations under the associated agreements were satisfied.
v3.24.3
Concentrations of Credit and Other Risks
 9 Months Ended
Sep. 30, 2024
Risks and Uncertainties [Abstract]  
Concentrations of Credit and Other Risks Concentrations of Credit and Other Risks
The following customers accounted for 10% or more of our revenues for the periods presented:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
U.S. Government*12%16%15%17%
Raytheon Technologies
(1)
(1)
10%
(1)
KORD Technologies19%
(1)
14%
(1)
*Excludes sales to customers who sell our products and services exclusively to the U.S. Government
(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 September 30, 2024 and December 31, 2023, two customers accounted for a total of 22% and 24%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date.
v3.24.3
Marketable Securities
 9 Months Ended
Sep. 30, 2024
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 $1.1 million and $2.5 million for the three and nine months ended September 30, 2024, respectively. Unrealized losses were $0.2 million and immaterial for the three and nine months ended September
30, 2024, respectively. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. Realized gains were $0.8 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. Unrealized gains were immaterial for the three months ended September 30, 2023 and $0.3 million for the nine months ended September 30, 2023.

See Note 5 for additional information.
v3.24.3
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2024
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):

September 30, 2024
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities $20,189 $— $— $20,189 
  Commercial paper2,446 — — 2,446 
22,635 — — 22,635 
Marketable Securities:
  U.S. treasuries65,241 — — 65,241 
Total$87,876 $— $— $87,876 
December 31, 2023
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities$22,441 $— $— $22,441 
  Commercial paper1,995 — — 1,995 
24,436 — — 24,436 
Marketable Securities:
  U.S. treasuries59,672 — — 59,672 
Total$84,108 $— $— $84,108 
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.
v3.24.3
Inventory
 9 Months Ended
Sep. 30, 2024
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
September 30, 2024December 31, 2023
Raw materials$20,278 $23,426 
Work in process and semi-finished goods22,113 19,640 
Finished goods6,437 9,094 
$48,828 $52,160 
v3.24.3
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
Useful lifeAs of
 (years)September 30, 2024December 31, 2023
Automobiles3$518 $109 
Computer hardware and software
3 - 5
16,037 9,145 
Manufacturing and lab equipment
2 - 7
85,964 91,050 
Office equipment and furniture
5 - 7
4,990 2,634 
Leasehold and building improvements
2 - 12
30,937 31,988 
Buildings309,392 9,392 
LandN/A3,399 3,399 
151,237 147,717 
Accumulated depreciation (103,348)(95,417)
$47,889 $52,300 
v3.24.3
Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2024
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
 September 30, 2024December 31, 2023
Patents
3 - 5
$— $6,345 
Development programs
2 - 4
7,200 7,200 
Developed technology52,959 2,959 
10,159 16,504 
Accumulated amortization (9,178)(14,852)
$981 $1,652 

Amortization related to intangible assets was as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Amortization expense$149 $633 $671 $1,896 

Estimated amortization expense for future years is as follows (in thousands):
2024$149 
2025484 
2026348 
Thereafter— 
$981 

Goodwill
The carrying amount of goodwill by segment was as follows (in thousands):
Laser ProductsAdvanced DevelopmentTotals
Balance, December 31, 2023$2,151 $10,248 $12,399 
Currency exchange rate adjustment9 — 9 
Balance, September 30, 2024$2,160 $10,248 $12,408 
v3.24.3
Accrued Liabilities
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
As of
September 30, 2024December 31, 2023
Accrued payroll and benefits$10,497 $7,898 
Product warranty, current2,440 3,339 
Other accrued expenses1,204 1,319 
$14,141 $12,556 
v3.24.3
Product Warranties
 9 Months Ended
Sep. 30, 2024
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):
Nine Months Ended September 30,
 20242023
Product warranty liability, beginning$4,469 $5,441 
Warranty charges incurred, net(3,492)(2,805)
Provision for warranty charges, net of adjustments2,597 2,267 
Product warranty liability, ending3,574 4,903 
Less: current portion of product warranty liability(2,440)(3,694)
Non-current portion of product warranty liability$1,134 $1,209 
v3.24.3
Stockholders' Equity and Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Stockholders' Equity and Stock-Based Compensation Stockholders' Equity and Stock-Based Compensation
Restricted Stock Awards and Units
Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:

Number of Restricted Stock Units (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 20232,817 $13.27 
Granted1,787 14.09 
Vested(998)15.08 
Forfeited(77)13.94 
Balance, September 30, 20243,529 13.16 

Number of Restricted Stock Awards (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 2023133 $30.44 
Vested(96)29.20 
Balance, September 30, 202437 33.66 

The total fair value of RSUs vested during the nine months ended September 30, 2024, was $15.0 million. Awards outstanding as of September 30, 2024 include 1.3 million performance-based awards that will vest upon meeting certain performance criteria. 0.5 million performance-based awards were granted during the nine months ended September 30, 2024.
Stock Options
The following table summarizes our stock option activity during the nine months ended September 30, 2024:
 Number of Options (Thousands)Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 20231,398 $1.242.5$17,142
Options exercised(247)0.89
Outstanding, September 30, 20241,151 1.311.910,795
Options exercisable at September 30, 20241,151 1.311.910,795
Options vested as of September 30, 2024, and expected to vest after September 30, 20241,151 1.311.910,795

Total intrinsic value of options exercised for the nine months ended September 30, 2024 and 2023, was $2.7 million and $2.5 million, respectively. We received proceeds of $0.2 million and $0.4 million from the exercise of options for the nine months ended September 30, 2024 and 2023, respectively.

Stock-Based Compensation
Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenues$629 $508 $1,829 $1,871 
Research and development2,046 2,613 5,834 7,537 
Sales, general and administrative3,852 3,506 11,298 10,237 
$6,527 $6,627 $18,961 $19,645 

Unrecognized Compensation Costs
As of September 30, 2024, total unrecognized stock-based compensation was $36.5 million, which will be recognized over an average expected recognition period of 2.0 years.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
See Note 13.

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 or reasonably estimable and, as such, no loss contingency has been recorded.

From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of September 30, 2024 we believe these matters will not have a material adverse effect on our consolidated financial statements.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases Leases
We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.1 to 10.7 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 4.1 years. These leases are primarily operating leases; financing leases are not
material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 7 years as of September 30, 2024, and the weighted-average discount rate was 4.0%.

The components of lease expense related to operating leases were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Lease expense:
Operating lease expense$943 $948 $2,773 $2,763 
Short-term lease expense139 142 265 348 
Variable and other lease expense273 271 793 744 
$1,355 $1,361 $3,831 $3,855 

Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):
2024$959 
20252,669 
20261,971 
20271,886 
20281,617 
Thereafter5,445 
Total minimum lease payments14,547 
Less: interest(1,914)
Present value of net minimum lease payments12,633 
Less: current portion of lease liabilities(2,616)
Total long-term lease liabilities$10,017 
v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands):
Three Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$41,132 $14,997 $— $56,129 
Gross profit$12,475 $704 $(629)$12,550 
Gross margin30.3 %4.7 %NM*22.4 %
Nine Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$104,960 $46,207 $— $151,167 
Gross profit$30,261 $3,456 $(1,829)$31,888 
Gross margin28.8 %7.5 %NM*21.1 %
Three Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$38,103 $12,531 $— $50,634 
Gross profit$9,596 $850 $(508)$9,938 
Gross margin25.2 %6.8 %NM*19.6 %
Nine Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$118,802 $39,227 $— $158,029 
Gross profit$35,860 $2,320 $(1,871)$36,309 
Gross margin30.2 %5.9 %NM*23.0 %
*Not meaningful

Corporate and Other is unallocated expenses related to stock-based compensation.

There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.
v3.24.3
Net Loss per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Loss per Share Net Loss per Share
Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position.

The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Restricted stock units and awards715 918 947 942 
Common stock options1,082 1,413 1,177 1,485 
 1,797 2,331 2,124 2,427 
v3.24.3
Subsequent Event
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
In October 2024, we gave notice to employees at our Shanghai manufacturing facility of a reduction in force. A severance charge of approximately $3.8 million will be recorded in the fourth quarter of 2024.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ (10,335) $ (11,879) $ (35,830) $ (28,432)
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Basis of Presentation and New Accounting Pronouncements (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.
New Accounting Pronouncements
New Accounting Pronouncements

ASU 2023-07
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are
currently evaluating the impact of this guidance on our consolidated financial statements.


ASU 2023-09
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.
Inventory Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.
Product Warranties
We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is
included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets.
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Sales by End Market
The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):
    
Sales by End Market
Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Industrial$11,588 $19,607 $36,478 $56,078 
Microfabrication14,263 12,000 35,276 37,285 
Aerospace and Defense30,278 19,027 79,413 64,666 
$56,129 $50,634 $151,167 $158,029 
Schedule of Sales by Geography
Sales by Geography

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
North America$36,332 $31,330 $100,696 $94,750 
China2,371 2,624 8,877 9,134 
Rest of World17,426 16,680 41,594 54,145 
$56,129 $50,634 $151,167 $158,029 
Schedule of Sales by Timing of Revenue
Sales by Timing of Revenue

Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
Point in time$41,070 $37,913 $105,062 $117,361 
Over time15,059 12,721 46,105 40,668 
$56,129 $50,634 $151,167 $158,029 
Schedule of Contract Assets and Liabilities
Our contract assets and liabilities were as follows (in thousands):
Balance Sheet ClassificationAs of
 September 30, 2024December 31, 2023
Contract assetsPrepaid expenses and
other current assets		$8,802 $7,298 
Contract liabilitiesDeferred revenues and other long-term liabilities5,769 6,368 
v3.24.3
Concentrations of Credit and Other Risks (Tables)
 9 Months Ended
Sep. 30, 2024
Risks and Uncertainties [Abstract]  
Schedule of Concentration of Credit
The following customers accounted for 10% or more of our revenues for the periods presented:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
U.S. Government*12%16%15%17%
Raytheon Technologies
(1)
(1)
10%
(1)
KORD Technologies19%
(1)
14%
(1)
*Excludes sales to customers who sell our products and services exclusively to the U.S. Government
(1) Represents less than 10% of total revenues.
v3.24.3
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
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):

September 30, 2024
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities $20,189 $— $— $20,189 
  Commercial paper2,446 — — 2,446 
22,635 — — 22,635 
Marketable Securities:
  U.S. treasuries65,241 — — 65,241 
Total$87,876 $— $— $87,876 
December 31, 2023
Level 1Level 2Level 3Total
Cash Equivalents:
  Money market securities$22,441 $— $— $22,441 
  Commercial paper1,995 — — 1,995 
24,436 — — 24,436 
Marketable Securities:
  U.S. treasuries59,672 — — 59,672 
Total$84,108 $— $— $84,108 
v3.24.3
Inventory (Tables)
 9 Months Ended
Sep. 30, 2024
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands):
As of
September 30, 2024December 31, 2023
Raw materials$20,278 $23,426 
Work in process and semi-finished goods22,113 19,640 
Finished goods6,437 9,094 
$48,828 $52,160 
v3.24.3
Property, Plant and Equipment (Tables)
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
Useful lifeAs of
 (years)September 30, 2024December 31, 2023
Automobiles3$518 $109 
Computer hardware and software
3 - 5
16,037 9,145 
Manufacturing and lab equipment
2 - 7
85,964 91,050 
Office equipment and furniture
5 - 7
4,990 2,634 
Leasehold and building improvements
2 - 12
30,937 31,988 
Buildings309,392 9,392 
LandN/A3,399 3,399 
151,237 147,717 
Accumulated depreciation (103,348)(95,417)
$47,889 $52,300 
v3.24.3
Intangible Assets and Goodwill (Tables)
 9 Months Ended
Sep. 30, 2024
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
 September 30, 2024December 31, 2023
Patents
3 - 5
$— $6,345 
Development programs
2 - 4
7,200 7,200 
Developed technology52,959 2,959 
10,159 16,504 
Accumulated amortization (9,178)(14,852)
$981 $1,652 
Schedule of Finite-lived Intangible Assets Amortization Expense
Amortization related to intangible assets was as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Amortization expense$149 $633 $671 $1,896 
Schedule of Estimated Future Amortization Expense
Estimated amortization expense for future years is as follows (in thousands):
2024$149 
2025484 
2026348 
Thereafter— 
$981 
Schedule of Goodwill
The carrying amount of goodwill by segment was as follows (in thousands):
Laser ProductsAdvanced DevelopmentTotals
Balance, December 31, 2023$2,151 $10,248 $12,399 
Currency exchange rate adjustment9 — 9 
Balance, September 30, 2024$2,160 $10,248 $12,408 
v3.24.3
Accrued Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
As of
September 30, 2024December 31, 2023
Accrued payroll and benefits$10,497 $7,898 
Product warranty, current2,440 3,339 
Other accrued expenses1,204 1,319 
$14,141 $12,556 
v3.24.3
Product Warranties (Tables)
 9 Months Ended
Sep. 30, 2024
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):
Nine Months Ended September 30,
 20242023
Product warranty liability, beginning$4,469 $5,441 
Warranty charges incurred, net(3,492)(2,805)
Provision for warranty charges, net of adjustments2,597 2,267 
Product warranty liability, ending3,574 4,903 
Less: current portion of product warranty liability(2,440)(3,694)
Non-current portion of product warranty liability$1,134 $1,209 
v3.24.3
Stockholders' Equity and Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Schedule of Restricted Stock Awards and Units
Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:

Number of Restricted Stock Units (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 20232,817 $13.27 
Granted1,787 14.09 
Vested(998)15.08 
Forfeited(77)13.94 
Balance, September 30, 20243,529 13.16 

Number of Restricted Stock Awards (Thousands)Weighted-Average Grant Date Fair Value
Balance, December 31, 2023133 $30.44 
Vested(96)29.20 
Balance, September 30, 202437 33.66 
Schedule of Stock Option Activity
The following table summarizes our stock option activity during the nine months ended September 30, 2024:
 Number of Options (Thousands)Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (Thousands)
Outstanding, December 31, 20231,398 $1.242.5$17,142
Options exercised(247)0.89
Outstanding, September 30, 20241,151 1.311.910,795
Options exercisable at September 30, 20241,151 1.311.910,795
Options vested as of September 30, 2024, and expected to vest after September 30, 20241,151 1.311.910,795
Schedule of Stock-based Compensation Expense
Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenues$629 $508 $1,829 $1,871 
Research and development2,046 2,613 5,834 7,537 
Sales, general and administrative3,852 3,506 11,298 10,237 
$6,527 $6,627 $18,961 $19,645 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Schedule of Components of Lease Expense
The components of lease expense related to operating leases were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Lease expense:
Operating lease expense$943 $948 $2,773 $2,763 
Short-term lease expense139 142 265 348 
Variable and other lease expense273 271 793 744 
$1,355 $1,361 $3,831 $3,855 
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations
Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):
2024$959 
20252,669 
20261,971 
20271,886 
20281,617 
Thereafter5,445 
Total minimum lease payments14,547 
Less: interest(1,914)
Present value of net minimum lease payments12,633 
Less: current portion of lease liabilities(2,616)
Total long-term lease liabilities$10,017 
v3.24.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of Operating Results by Reportable Segment The following table summarizes the operating results by reportable segment (dollars in thousands):
Three Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$41,132 $14,997 $— $56,129 
Gross profit$12,475 $704 $(629)$12,550 
Gross margin30.3 %4.7 %NM*22.4 %
Nine Months Ended September 30, 2024
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$104,960 $46,207 $— $151,167 
Gross profit$30,261 $3,456 $(1,829)$31,888 
Gross margin28.8 %7.5 %NM*21.1 %
Three Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$38,103 $12,531 $— $50,634 
Gross profit$9,596 $850 $(508)$9,938 
Gross margin25.2 %6.8 %NM*19.6 %
Nine Months Ended September 30, 2023
Laser ProductsAdvanced DevelopmentCorporate and OtherTotals
Revenue$118,802 $39,227 $— $158,029 
Gross profit$35,860 $2,320 $(1,871)$36,309 
Gross margin30.2 %5.9 %NM*23.0 %
*Not meaningful
v3.24.3
Net Loss per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares
The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Restricted stock units and awards715 918 947 942 
Common stock options1,082 1,413 1,177 1,485 
 1,797 2,331 2,124 2,427 
v3.24.3
Revenue - Narrative (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligation $ 10,000 $ 10,000
Revenue recognized, previously included in customer advances and deferred revenue $ 43 $ 4,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligation, percentage 50.00% 50.00%
Performance obligation, scheduled delivery, period 3 months 3 months
v3.24.3
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Total revenue $ 56,129 $ 50,634 $ 151,167 $ 158,029
Point in time        
Disaggregation of Revenue [Line Items]        
Total revenue 41,070 37,913 105,062 117,361
Over time        
Disaggregation of Revenue [Line Items]        
Total revenue 15,059 12,721 46,105 40,668
North America        
Disaggregation of Revenue [Line Items]        
Total revenue 36,332 31,330 100,696 94,750
China        
Disaggregation of Revenue [Line Items]        
Total revenue 2,371 2,624 8,877 9,134
Rest of World        
Disaggregation of Revenue [Line Items]        
Total revenue 17,426 16,680 41,594 54,145
Industrial        
Disaggregation of Revenue [Line Items]        
Total revenue 11,588 19,607 36,478 56,078
Microfabrication        
Disaggregation of Revenue [Line Items]        
Total revenue 14,263 12,000 35,276 37,285
Aerospace and Defense        
Disaggregation of Revenue [Line Items]        
Total revenue $ 30,278 $ 19,027 $ 79,413 $ 64,666
v3.24.3
Revenue - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Contract assets $ 8,802 $ 7,298
Contract liabilities $ 5,769 $ 6,368
v3.24.3
Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Sales Revenue | U.S. Government          
Concentration Risk [Line Items]          
Concentration risk (as a percent) 12.00% 16.00% 15.00% 17.00%  
Sales Revenue | Raytheon Technologies          
Concentration Risk [Line Items]          
Concentration risk (as a percent)     10.00%    
Sales Revenue | KORD Technologies          
Concentration Risk [Line Items]          
Concentration risk (as a percent) 19.00%   14.00%    
Accounts Receivable | Two customers          
Concentration Risk [Line Items]          
Concentration risk (as a percent)     22.00%   24.00%
v3.24.3
Marketable Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Investments, All Other Investments [Abstract]        
Realized gains on available-for-sale securities $ 1,100 $ 800 $ 2,500 $ 1,700
Unrealized gains (losses) on available-for-sale securities $ (216) $ 21 $ 42 $ 339
v3.24.3
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents $ 22,635 $ 24,436
Total 87,876 84,108
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 22,635 24,436
Total 87,876 84,108
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 0
Total 0 0
Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 0
Total 0 0
Money market securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 20,189 22,441
Money market securities | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 20,189 22,441
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 2,446 1,995
Commercial paper | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 2,446 1,995
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 65,241 59,672
U.S. treasuries | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 65,241 59,672
U.S. treasuries | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 0 0
U.S. treasuries | Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities $ 0 $ 0
v3.24.3
Inventory (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 20,278 $ 23,426
Work in process and semi-finished goods 22,113 19,640
Finished goods 6,437 9,094
Inventory $ 48,828 $ 52,160
v3.24.3
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 151,237 $ 147,717
Accumulated depreciation (103,348) (95,417)
Property and equipment, net $ 47,889 52,300
Automobiles    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 518 109
Computer hardware and software    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 16,037 9,145
Computer hardware and software | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
Computer hardware and software | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Manufacturing and lab equipment    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 85,964 91,050
Manufacturing and lab equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 2 years  
Manufacturing and lab equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 7 years  
Office equipment and furniture    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 4,990 2,634
Office equipment and furniture | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Office equipment and furniture | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 7 years  
Leasehold and building improvements    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 30,937 31,988
Leasehold and building improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 2 years  
Leasehold and building improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 12 years  
Buildings    
Property, Plant and Equipment [Line Items]    
Useful life 30 years  
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 9,392 9,392
Land    
Property, Plant and Equipment, Net [Abstract]    
Property and equipment, gross $ 3,399 $ 3,399
v3.24.3
Intangible Assets and Goodwill - Intangible Assets & Finite-lived Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]          
Gross carrying amount $ 10,159   $ 10,159   $ 16,504
Accumulated amortization (9,178)   (9,178)   (14,852)
Net value 981   981   1,652
Amortization expense 149 $ 633 671 $ 1,896  
Patents          
Finite-Lived Intangible Assets [Line Items]          
Gross carrying amount 0   0   6,345
Development programs          
Finite-Lived Intangible Assets [Line Items]          
Gross carrying amount $ 7,200   $ 7,200   7,200
Developed technology          
Finite-Lived Intangible Assets [Line Items]          
Estimated useful life (in years) 5 years   5 years    
Gross carrying amount $ 2,959   $ 2,959   $ 2,959
Minimum | Patents          
Finite-Lived Intangible Assets [Line Items]          
Estimated useful life (in years) 3 years   3 years    
Minimum | Development programs          
Finite-Lived Intangible Assets [Line Items]          
Estimated useful life (in years) 2 years   2 years    
Maximum | Patents          
Finite-Lived Intangible Assets [Line Items]          
Estimated useful life (in years) 5 years   5 years    
Maximum | Development programs          
Finite-Lived Intangible Assets [Line Items]          
Estimated useful life (in years) 4 years   4 years    
v3.24.3
Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 149  
2025 484  
2026 348  
Thereafter 0  
Net value $ 981 $ 1,652
v3.24.3
Intangible Assets and Goodwill - Goodwill (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 12,399
Currency exchange rate adjustment 9
Ending balance 12,408
Laser Products  
Goodwill [Roll Forward]  
Beginning balance 2,151
Currency exchange rate adjustment 9
Ending balance 2,160
Advanced Development  
Goodwill [Roll Forward]  
Beginning balance 10,248
Currency exchange rate adjustment 0
Ending balance $ 10,248
v3.24.3
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accrued payroll and benefits $ 10,497 $ 7,898
Product warranty, current 2,440 3,339
Other accrued expenses 1,204 1,319
Total accrued liabilities $ 14,141 $ 12,556
v3.24.3
Product Warranties (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]    
Product warranty liability, beginning $ 4,469 $ 5,441
Warranty charges incurred, net (3,492) (2,805)
Provision for warranty charges, net of adjustments 2,597 2,267
Product warranty liability, ending 3,574 4,903
Less: current portion of product warranty liability (2,440) (3,694)
Non-current portion of product warranty liability $ 1,134 $ 1,209
v3.24.3
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details)
shares in Thousands
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Restricted Stock Units  
Number of Restricted Stock Units (Thousands)  
Balance, beginning (in shares) | shares 2,817
Awards granted (in shares) | shares 1,787
Awards vested (in shares) | shares (998)
Awards forfeited (in shares) | shares (77)
Balance, ending (in shares) | shares 3,529
Weighted-Average Grant Date Fair Value  
Balance, beginning (in dollars per share) | $ / shares $ 13.27
Awards granted (in dollars per share) | $ / shares 14.09
Awards vested (in dollars per share) | $ / shares 15.08
Awards forfeited (in dollars per share) | $ / shares 13.94
Balance, ending (in dollars per share) | $ / shares $ 13.16
Restricted Stock Awards (RSAs)  
Number of Restricted Stock Units (Thousands)  
Balance, beginning (in shares) | shares 133
Awards vested (in shares) | shares (96)
Balance, ending (in shares) | shares 37
Weighted-Average Grant Date Fair Value  
Balance, beginning (in dollars per share) | $ / shares $ 30.44
Awards vested (in dollars per share) | $ / shares 29.20
Balance, ending (in dollars per share) | $ / shares $ 33.66
v3.24.3
Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($)
shares in Thousands, $ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Intrinsic value of options exercised $ 2,700 $ 2,500  
Proceeds from stock option exercises 221 $ 385  
Unrecognized expense $ 36,500    
Period for recognition (in years) 2 years    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vested, fair value $ 15,000    
Awards outstanding (in shares) 3,529   2,817
Granted (in shares) 1,787    
Performance-based Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards outstanding (in shares) 1,300    
Granted (in shares) 500    
v3.24.3
Stockholders' Equity and Stock-Based Compensation - Stock Option Activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Number of Options    
Outstanding, beginning of period (in shares) | shares 1,398  
Options exercised (in shares) | shares (247)  
Outstanding, end of period (in shares) | shares 1,151 1,398
Weighted-Average Exercise Price    
Outstanding, beginning of period (in dollars per share) | $ / shares $ 1.24  
Options exercised (in dollars per share) | $ / shares 0.89  
Outstanding, end of period (in dollars per share) | $ / shares $ 1.31 $ 1.24
Outstanding, Weighted average remaining contractual term (in years) 1 year 10 months 24 days 2 years 6 months
Outstanding, Aggregate intrinsic value | $ $ 10,795 $ 17,142
Options exercisable at end of period    
Options exercisable (in shares) | shares 1,151  
Weighted average exercise price (in dollars per share) | $ / shares $ 1.31  
Weighted-Average Remaining Contractual Term 1 year 10 months 24 days  
Aggregate Intrinsic Value | $ $ 10,795  
Options vested as of end of period and expected to vest after end of period    
Options vested and expected to vest (in shares) | shares 1,151  
Weighted average exercise price (in dollars per share) | $ / shares $ 1.31  
Weighted-Average Remaining Contractual Term 1 year 10 months 24 days  
Aggregate Intrinsic Value | $ $ 10,795  
v3.24.3
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 6,527 $ 6,627 $ 18,961 $ 19,645
Cost of revenues        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 629 508 1,829 1,871
Research and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 2,046 2,613 5,834 7,537
Sales, general and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 3,852 $ 3,506 $ 11,298 $ 10,237
v3.24.3
Leases - Narrative (Details)
Sep. 30, 2024
Lessee, Lease, Description [Line Items]  
Weighted-average remaining lease term for operating leases (in years) 7 years
Weighted-average discount rate for operating leases (as a percent) 4.00%
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 6 days
Operating Leases, Facilities | Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease term (in years) 10 years 8 months 12 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 1 month 6 days
v3.24.3
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]        
Operating lease expense $ 943 $ 948 $ 2,773 $ 2,763
Short-term lease expense 139 142 265 348
Variable and other lease expense 273 271 793 744
Lease expense $ 1,355 $ 1,361 $ 3,831 $ 3,855
v3.24.3
Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
2024 $ 959  
2025 2,669  
2026 1,971  
2027 1,886  
2028 1,617  
Thereafter 5,445  
Total minimum lease payments 14,547  
Less: interest (1,914)  
Present value of net minimum lease payments 12,633  
Less: current portion of lease liabilities (2,616) $ (3,181)
Total long-term lease liabilities $ 10,017 $ 10,978
v3.24.3
Segment Information - Narrative (Details)
 9 Months Ended
Sep. 30, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.24.3
Segment Information - Operating Results (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Segment Reporting Information [Line Items]        
Revenue $ 56,129 $ 50,634 $ 151,167 $ 158,029
Gross profit $ 12,550 $ 9,938 $ 31,888 $ 36,309
Gross margin 22.40% 19.60% 21.10% 23.00%
Operating Segments | Laser Products        
Segment Reporting Information [Line Items]        
Revenue $ 41,132 $ 38,103 $ 104,960 $ 118,802
Gross profit $ 12,475 $ 9,596 $ 30,261 $ 35,860
Gross margin 30.30% 25.20% 28.80% 30.20%
Operating Segments | Advanced Development        
Segment Reporting Information [Line Items]        
Revenue $ 14,997 $ 12,531 $ 46,207 $ 39,227
Gross profit $ 704 $ 850 $ 3,456 $ 2,320
Gross margin 4.70% 6.80% 7.50% 5.90%
Corporate and Other        
Segment Reporting Information [Line Items]        
Revenue $ 0 $ 0 $ 0 $ 0
Gross profit $ (629) $ (508) $ (1,829) $ (1,871)
v3.24.3
Net Loss per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares) 1,797 2,331 2,124 2,427
Restricted stock units and awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares) 715 918 947 942
Common stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares) 1,082 1,413 1,177 1,485
v3.24.3
Subsequent Event (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2024
USD ($)
Forecast  
SubsequentEventTable [Line Items]  
Severance charge $ 3.8
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