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Balance Sheet Components (Tables)
 9 Months Ended
Sep. 30, 2020
Balance Sheet Components [Abstract]  
Inventories
Inventories
(in thousands)September 30,
2020		December 31,
2019
Raw materials$620 $831 
Finished goods9,831 3,745 
        Total inventories$10,451 $4,576 
Property and Equipment
Property and equipment, net
(in thousands)September 30,
2020		December 31,
2019
Computer equipment and software$15,087 $13,596 
Furniture, fixtures and equipment2,569 2,430 
Leasehold improvements5,295 5,283 
Manufacturing tools and equipment2,460 2,435 
Construction in process617 582 
        Property and equipment, at cost26,028 24,326 
Less: Accumulated depreciation(17,958)(15,665)
        Property and equipment, net$8,070 $8,661 
Depreciation and amortization expense for property and equipment was $1.1 million and $0.9 million for the three months ended September 30, 2020 and 2019, respectively. Depreciation and amortization expense for property and equipment was $3.3 million and $2.7 million for the nine months ended September 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)September 30,
2020		 December 31,
2019
Minimum payments to be received on sales-type leases$1,518  $2,078 
Less: Unearned interest income and executory revenue portion(779) (1,190)
Net investment in sales-type leases739  888 
Less: Current portion(392) (452)
Non-current net investment in sales-type leases$347  $436 
Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2020201920202019
Lease revenue$1,140 $2,228 $2,693 $5,592 
Less: Cost of lease shipments(211)(676)(386)(1,533)
Gross profit$929 $1,552 $2,307 $4,059 
Interest expense, net on lease receivable$(5)$(5)$(17)$(5)
Initial direct cost incurred$63 $89 $146 $229 
There were no allowances for doubtful accounts on these leases as of September 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 September 30, 2020 were as follows:
(in thousands)Future lease payments
2020 (remaining three months)$199 
2021705 
2022476 
2023138 
     Total$1,518 
Accrued Liabilities
Accrued payroll and other current liabilities
(in thousands)September 30,
2020		December 31,
2019
Payroll and related expenses$7,835 $6,053 
Accrued payables2,359 2,674 
Operating lease liabilities, current portion2,433 2,323 
Lease financing, current portion901 1,033 
Product warranty406 420 
Customer prepayments1,000 631 
Sales and use tax payable435 599 
Other1,843 1,024 
        Total accrued payroll and other current liabilities$17,212 $14,757 
Schedule of Product Warranty Liability
The changes in the Company’s product warranty reserve are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2020201920202019
Warranty balance at the beginning of the period$521 $355 $420 $376 
Warranty expense accrued for shipments during the period98 138 320 307 
Changes in estimate related to pre-existing warranties(161)(45)(151)(131)
Warranty settlements made(52)(47)(183)(151)
Total product warranty$406 $401 $406 $401 
Information Related to Leases
Supplemental balance sheet information related to leases was as follows:
(in thousands)September 30,
2020
Other long-term assets$4,716 
Accrued payroll and other current liabilities2,433 
Other long-term liabilities2,922 
Total operating lease liabilities$5,355 
Other information related to leases was as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2020201920202019
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities$740 $645 $2,184 1,909 
Right-of-use assets obtained in exchange for lease obligations$17 $— $139 1,018 
Weighted average remaining lease term2.26 years2.62 years2.26 years2.62 years
Weighted average discount rate8 %8 %8 %8 %