3. Selected Consolidated Financial Statement Information

Accounts Receivable, Net

Accounts receivable consists of the following:



	December 31,			June 30,
	2017			2017
Accounts receivable	$	28,687		$	29,336
Less: Allowance for doubtful accounts	(826		)	(864		)
Accounts receivable, net	$	27,861		$	28,472

Inventories

Inventories consist of the following:



	December 31,		June 30,
	2017		2017
Raw materials	$	9,234	$	7,898
Work in process	771		1,221
Finished goods	7,396		7,778
Inventories	$	17,401	$	16,897

Property and Equipment, Net

Property and equipment consists of the following:



	December 31,			June 30,
	2017			2017
Land	$	500		$	500
Building	22,420			22,420
Equipment	16,991			16,502
Furniture	2,709			2,709
Leasehold improvements	438			86
Construction in progress	601			421
	43,659			42,638
Less: Accumulated depreciation	(14,930		)	(12,942		)
Property and equipment, net	$	28,729		$	29,696

In December, 2016, the Company entered into a Purchase and Sale Agreement, as subsequently amended (collectively, the “Sale Agreement”), with Krishna Holdings, LLC (“Krishna”), providing for the sale to Krishna of the Company’s headquarters facility in St. Paul, Minnesota (the “Facility”) for a cash purchase price of $21,500. On March 30, 2017, the sale of the Facility under the Sale Agreement closed. The Company received proceeds of approximately $20,944 ($21,500, less $556 of transaction expenses). The net proceeds are to be used for working capital and general corporate purposes.

Under the Sale Agreement, the Company entered into a Lease Agreement (the “Lease Agreement”) with Krishna Holdings, LLC, Apex Holdings, LLC, Kashi Associates, LLC, Keva Holdings, LLC, S&V Ventures, LLC, Polo Group LLC, SPAV Holdings LLC, Star Associates LLC, and The Global Villa, LLC. As the lease terms resulted in a capital lease classification, the Company accounted for the sale and leaseback of the Facility as a financing transaction where the assets remain on the Company’s balance sheet. See Note 4 for further discussion of future payment obligations under the Lease Agreement.

Accrued Expenses

Accrued expenses consist of the following:



	December 31,		June 30,
	2017		2017
Salaries and bonus	$	6,064	$	8,247
Commissions	5,600		8,217
Accrued vacation	3,552		3,436
Accrued excise, sales and other taxes	3,407		3,497
Accrued legal	—		2,600
Legal settlement	1,831		1,814
Clinical studies	456		657
Other accrued expenses	1,770		1,768
Accrued expenses	$	22,680	$	30,236

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 previously disclosed DOJ investigation and the qui tam complaint filed by Thams pursuant to the False Claims Act. Under the Settlement Agreement, the Company agreed to pay $8,000 (the “Settlement Amount”), as follows: an initial payment of $3,000, 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) with the long-term portion included in other liabilities (as noted in the table below). Under the Settlement Agreement, if the Company makes a single payment in excess of $2,000, which payment is not covered by an insurance policy, in settlement of any claims before paying the full Settlement Amount, the remaining unpaid balance of the Settlement Amount will become immediately due and payable, with interest accruing on the unpaid principal portion at an interest rate of 1.8% per annum.

Other Liabilities

Other non-current liabilities consist of the following:



	December 31,		June 30,
	2017		2017
Legal settlement	$	1,395	$	2,314
Deferred compensation	440		519
Deferred grant incentive	467		473
Other non-current liabilities	318		173
Other liabilities	$	2,620	$	3,479

Deferred Revenue

In November 2016, the Company signed an exclusive distribution agreement with Medikit to sell its Diamondback 360^®Coronary and Peripheral OAS in Japan. To secure exclusive distribution rights, Medikit made an upfront payment of $10,000 to the Company, which is refundable based on performance under the terms of the agreement. On February 1, 2018, the Coronary OAS Micro Crown received reimbursement approval in Japan, followed by the first commercial sales. Accordingly, the Company has classified $1,095 of the upfront payment as current and $8,905 as long-term based on its expected amount of deferred revenue that will be recognized over the next year. The estimate will be assessed and adjusted accordingly on a quarterly basis.