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Balance Sheet Components (Tables)
 6 Months Ended
Jun. 30, 2020
Balance Sheet Components [Abstract]  
Inventories
Inventories
(in thousands)
June 30,
2020
 
December 31,
2019
Raw materials
$
637

 
$
831

Finished goods
7,919

 
3,745

        Total inventories
$
8,556

 
$
4,576
Property and Equipment
Property and equipment, net
(in thousands)
June 30,
2020
 
December 31,
2019
Computer equipment and software
$
14,224

 
$
13,596

Furniture, fixtures and equipment
2,583

 
2,430

Leasehold improvements
5,286

 
5,283

Manufacturing tools and equipment
2,409

 
2,435

Construction in process
320

 
582

        Property and equipment, at cost
24,822

 
24,326

Less: Accumulated depreciation
(17,153
)
 
(15,665
)
        Property and equipment, net
$
7,669

 
$
8,661

Depreciation and amortization expense for property and equipment was $1.2 million and $0.9 million for the three months ended June 30, 2020 and 2019, respectively.
Schedule of Components of Leveraged Lease Investments
Net investment in sales-type leases
The Company has sales-type leases with terms of 3 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of the Company’s net investment in sales-type leases are as follows:
(in thousands)
June 30,
2020
 
December 31,
2019
Minimum payments to be received on sales-type leases
$
1,687

 
$
2,078

Less: Unearned interest income and executory revenue portion
(860
)
 
(1,190
)
Net investment in sales-type leases
827

 
888

Less: Current portion
(435
)
 
(452
)
Non-current net investment in sales-type leases
$
392

 
$
436

Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows:
 
Three months ended June 30,
 
Six months ended June 30,
(in thousands)
2020
 
2019
 
2020
 
2019
Lease revenue
$
1,118

 
$
2,703

 
$
1,553

 
$
3,364

Less: Cost of lease shipments
(165
)
 
(805
)
 
(175
)
 
(857
)
Gross profit
$
953

 
$
1,898

 
$
1,378

 
$
2,507

 
 
 
 
 
 
 
 
Interest income (expense), net on lease receivable
$
(6
)
 
$
3

 
$
(12
)
 
$
—

Initial direct cost incurred
$
60

 
$
109

 
$
83

 
$
140


There were no allowances for doubtful accounts on these leases as of June 30, 2020 and December 31, 2019. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the condensed consolidated balance sheet captions “other receivables” and “other long-term assets,” respectively.
Schedule of Future Minimum Lease Payments for Capital Leases
The minimum payments expected to be received for future years under sales-type leases as of June 30, 2020 were as follows:
(in thousands)
Future lease payments
2020 (remaining six months)
$
433

2021
678

2022
450

2023
126

     Total
$
1,687
Accrued Liabilities
Accrued payroll and other current liabilities
(in thousands)
June 30,
2020
 
December 31,
2019
Payroll and related expenses
$
8,214

 
$
6,053

Accrued payables
2,368

 
2,674

Operating lease liabilities, current portion
2,389

 
2,323

Lease financing, current portion
905

 
1,033

Product warranty
521

 
420

Customer prepayments
1,147

 
631

Sales and use tax payable
334

 
599

Other
1,201

 
1,024

        Total accrued payroll and other current liabilities
$
17,079

 
$
14,757
Schedule of Product Warranty Liability
The changes in the Company’s product warranty reserve are as follows:
 
Three months ended June 30,
 
Six months ended June 30,
(in thousands)
2020
 
2019
 
2020
 
2019
Warranty balance at the beginning of the period
$
440

 
$
374

 
$
420

 
$
376

Warranty expense accrued for shipments during the period
115

 
92

 
223

 
169

Changes in estimate related to pre-existing warranties
40

 
(55
)
 
9

 
(86
)
Warranty settlements made
(74
)
 
(56
)
 
(131
)
 
(104
)
Total product warranty
$
521

 
$
355

 
$
521

 
$
355
Information Related to Leases
Supplemental balance sheet information related to leases was as follows:
(in thousands)
June 30,
2020
Other long-term assets
$
5,191

 
 
Accrued payroll and other current liabilities
2,389

Other long-term liabilities
3,530

Total operating lease liabilities
$
5,919

Other information related to leases was as follows:
 
Three months ended June 30,
Six months ended June 30,
(in thousands)
2020
 
2019
2020
 
2019
Supplemental Cash Flow Information
 
 
 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities
$
732

 
$
634

$
1,444

 
1,264

Right-of-use assets obtained in exchange for lease obligations
$
122

 
$
329

$
122

 
1,018

Weighted average remaining lease term
2.46 years

 
2.84 years

2.46 years

 
2.84 years

Weighted average discount rate
8
%
 
8
%
8
%
 
8
%