Note 6 - Accrued Expenses and Other Long-term Liabilities

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block]

6.

Accrued Expenses and Other Long-term Liabilities

Accrued expenses consist of the following:

	December 31, 2018		December 31, 2017
	(in thousands)
Compensation and related taxes	$	7,973	$	6,494
Income and other taxes		2,927		703
Professional fees		43		35
Deferred revenue		552		-
Other		4,352		2,538
Total	$	15,847	$	9,770

As discussed in Note

2

above, deferred revenue relates to our divestiture of the Reddick product line and an associated transition services agreement that we entered into contemporaneously with the divestiture, under which we agreed to manufacture and sell product to the buyer at prices at or below our cost. We allocated a portion of the consideration received from the divestiture to this transition services agreement to reflect it at fair value and recorded it as deferred revenue. As the products are sold to the buyer, which we expect will occur over approximately the next

nine

to

twelve

months, we amortize a portion of the deferred revenue to adjust the gross margin on the sale to fair value on a specific identification basis. The following table summarizes the changes in the deferred revenue balance during the year ended

December 31, 2018:

	December 31, 2018
	(in thousands)
Beginning contract liability balance	$	-
Deferred revenue recorded		1,081
Revenue recognized upon satisfaction of performance obligations in the period		(529	)
Ending balance	$	552

 Other long-term liabilities consist of the following:

	December 31, 2018		December 31, 2017
	(in thousands)
Acquisition-related liabilities	$	1,326	$	127
Deferred rent		530		561
Income taxes		559		321
Other		196		179
Total	$	2,611	$	1,188