Selected Consolidated Financial Statement Information

Accounts Receivable, Net

Accounts receivable consists of the following:



	September 30,			June 30,
	2016			2016
Accounts receivable	$	25,133		$	23,840
Less: Allowance for doubtful accounts	(825		)	(712		)
Accounts receivable, net	$	24,308		$	23,128

Inventories

Inventories consist of the following:



	September 30,		June 30,
	2016		2016
Raw materials	$	7,404	$	7,439
Work in process	728		1,142
Finished goods	8,755		8,859
Inventories	$	16,887	$	17,440

Property and Equipment, Net

Property and equipment consists of the following:



	September 30,			June 30,
	2016			2016
Land	$	500		$	500
Building	22,575			22,575
Equipment	15,566			14,141
Furniture	2,709			2,709
Leasehold improvements	86			86
Construction in progress	414			1,533
	41,850			41,544
Less: Accumulated depreciation	(10,030		)	(9,073		)
Property and equipment, net	$	31,820		$	32,471

Accrued Expenses

Accrued expenses consist of the following:



	September 30,		June 30,
	2016		2016
Salaries and bonus	$	3,698	$	4,305
Commissions	5,809		7,788
Accrued vacation	3,452		3,498
Accrued excise, sales and other taxes	3,399		3,372
Clinical studies	874		1,757
Legal settlement	1,322		3,872
Restructuring	939		1,337
Other accrued expenses	2,195		1,064
Total Accrued expenses	$	21,688	$	26,993

Legal Settlement

On June 28, 2016, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the United States of America, acting through the Department of Justice (the “DOJ”) and on behalf of the Office of Inspector General of the Department of Health and Human Services, and Travis Thams, to resolve the investigation by the DOJ and the Civil Action underlying such investigation. Under the Settlement Agreement, the Company will pay $8,000, as follows: an initial payment of $3,000, which the Company paid on July 1, 2016, with the remaining $5,000, which bears interest at 1.8% per annum, payable in 11 equal quarterly installments, beginning January 1, 2017. The amount payable within the next twelve months is included in accrued expenses as noted in the table above.

Restructuring

On March 31, 2016, the Company announced a restructuring to reduce costs as a part of its plan to progress towards profitability and positive cash flow. As a result, the Company recorded a restructuring expense of $2,364 during the year ended June 30, 2016, which was comprised of severance and other employee related costs.

The following table provides information regarding the restructuring accrual:



	Severance
Restructuring accrual at June 30, 2016	$	1,521
Cash payments	(495		)
Restructuring accrual at September 30, 2016	$	1,026

The Company anticipates that $939 of the restructuring accrual at September 30, 2016 will be paid within the next twelve months and is therefore recorded in accrued expenses on the consolidated balance sheet. Estimated payments of $87 are recorded in other liabilities on the consolidated balance sheet. The Company does not anticipate additional restructuring costs.

CEO Departure

On February 29, 2016, the Company’s former Chief Executive Officer (“CEO”) resigned from his positions as President and CEO of the Company and as a director of the Company. The Company and the former CEO entered into a Separation Agreement with benefits consistent with the Company’s Amended and Restated Executive Officer Severance Plan. The total expense related to the former CEO’s departure was $1,507 and was recorded in selling, general and administrative expenses for the year ended June 30, 2016. As of September 30, 2016, $701 of the package benefits is recorded in accrued expenses and $238 is recorded in other liabilities on the consolidated balance sheet, representing the long-term portion of the former CEO’s benefits.

Other Liabilities

Other non-current liabilities consist of the following:



	September 30,		June 30,
	2016		2016
Legal settlement	$	3,678	$	4,128
Deferred compensation	358		684
Accrued severance	325		610
Other liabilities	578		588
Total Other liabilities	$	4,939	$	6,010