Balance Sheet Account Detail

(a) Inventories

Inventories are stated at the lower of cost or market value. Inventories consisted of the following:



	September 30, 2013		December 31, 2012
Raw materials	$	3,031	$	3,901
Work-in-process	4,953		5,102
Finished goods	10,020		9,084
Inventories	$	18,004	$	18,087

(b) Property and Equipment

Property and equipment consisted of the following:



	September 30, 2013			December 31, 2012
Production equipment, molds, and office furniture	$	7,668		$	7,256
Computer hardware and software	3,184			2,265
Leasehold improvements	3,055			2,819
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	274			556
Property and equipment, at cost	$	14,181		$	12,896
Accumulated depreciation	(9,144		)	(7,912		)
Property and equipment, net	$	5,037		$	4,984

The Company recognized depreciation expense on property and equipment during the three and nine months ended September 30, 2013 and 2012 as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Depreciation expense	$	475	$	336	$	1,589	$	1,003

(d) Goodwill and Intangible Assets

The following table is a summary of goodwill, indefinite lived intangible assets, finite lived intangible assets, and related accumulated amortization:



	September 30, 2013			December 31, 2012
Goodwill (1)	$	29,067		$	29,022

Intangible assets:
Indefinite lived intangibles
In-process research and development (2)	$	—		$	40,100
Trademarks and trade names	2,708			2,708
Total indefinite lived intangibles	$	2,708		$	42,808

Finite lived intangibles
Developed technology (2)	$	40,100		$	—
Accumulated amortization	(33		)	—
Developed technology, net	$	40,067		$	—

Patent	$	100		$	100
Accumulated amortization	(90		)	(75		)
Patent, net	$	10		$	25

License	$	100		$	100
Accumulated amortization	(34		)	(12		)
License, net	$	66		$	88

Customer relationships	$	533		$	522
Accumulated amortization	(222		)	(87		)
Customer relationships, net	$	311		$	435

Intangible assets (excluding goodwill), net	$	43,162		$	43,356

(1) Difference in goodwill value between these dates is solely due to a foreign currency translation adjustment.

(2) Was reclassified in the first quarter of 2013 to finite lived intangibles, which coincided with the European commercial launch of the product (Nellix System) associated with this intangible asset. A significant portion of this intangible asset will not begin amortization until the U.S. launch of this product, currently scheduled for 2016.

The Company recognized amortization expense on intangible assets during the three and nine months ended September 30, 2013 and 2012 as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Amortization expense	$	77	$	52	$	198	$	648

Estimated amortization expense for the remainder of 2013 and the five succeeding fiscal years is as follows:



	Amortization Expense
Remainder of 2013	$	64
2014	442
2015	639
2016	953
2017	2,251
2018	3,867
2019 and thereafter	32,238
	$	40,454