Note

Balance Sheet Details

Inventories

As of

March 31, 2020

and

December 31, 2019,

inventories consist of the following (in thousands):

	March 31, 20 20		December 31, 201 9
Raw materials	$	19,092	$	17,935
Work in process		3,161		2,016
Finished goods		14,688		13,970
Total	$	36,941	$	33,921

Accrued Liabilities

As of

March 31, 2020

and

December 31, 2019,

accrued liabilities consist of the following (in thousands):

	March 31, 20 20		December 31, 201 9
Accrued payroll and related expenses	$	11,842	$	14,341
Sales and marketing accruals		1,581		2,527
Warranty liability		3,398		4,401
Sales tax		1,443		3,922
Other		5,399		5,116
Total	$	23,663	$	30,307

Product Remediation Liability

During the

fourth

quarter of

2018,

the Company recognized a liability for a product remediation plan related to

one

of its legacy systems. This was related to a voluntary action initiated by the Company to replace a component in

one

of the Company’s legacy products. The remediation plan consists primarily of replacement of a component in the system. The accrued liability consisted of cost of materials and labor to replace the component in all units that are under the Company's standard warranty or are covered under the existing extended warranty contracts. The Company recorded a liability of approximately

$5.0

million in

2018.

As of

March 31, 2020

and

December 31 2019,

approximately

$0.5

million of the total product remediation liability balance was accrued as a component of the Company’s product warranty and included in accrued liabilities, and

$1.8

million and

$2.0

million, respectively, was separately recorded as Extended warranty liabilities. Total costs incurred related to product warranty and Extended warranty liabilities during the

three

months ended

March 31, 2020

were

Nil

and

$0.2

million, respectively. Total costs incurred related to product warranty and Extended warranty liabilities during the

three

months ended

March 31, 2019

were

$0.1

million and

$0.5

million, respectively.