NOTE 4 —Significant Balance Sheet Components

Inventory consisted of the following:

During the year ended December 31, 2021, the Company recorded a $1,594 write-down of the inventory value for scanners, aging raw materials and aging finished goods. The Company accrued a loss of approximately $300 on purchase commitments in connection with end-of-life products.

During the year ended December 31, 2020, the Company recorded an inventory reserve adjustment of approximately $700 as a result of aging materials and finished goods, and accrued a loss of approximately $500 of purchase commitments in connection with end-of-life products.

Distributor returns allowance

The Company records reductions to revenue related to future distributor product returns based on the Company’s expectation. The Company had inventory related to distributor product returns totaling approximately $229 and zero as of December 31, 2021 and 2020.

Prepaid expenses and other current assets consisted of the following:

Property and equipment consisted of the following:

Depreciation and amortization expense of property and equipment for the years ended December 31, 2021 and 2020, was $301 and $426, respectively. During 2021, the Company disposed of computer equipment with a cost of $910 and accumulated depreciation of $856.

Other assets consisted of the following:

Accrued Expenses consisted of the following:

The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the Consolidated Balance Sheets for the years ended December 31, 2021 and 2020: