2. Selected Consolidated Financial Statement Information

Accounts Receivable, Net

Accounts receivable consists of the following:



	June 30,
	2018			2017
Accounts receivable	$	32,025		$	29,336
Less: Allowance for doubtful accounts	(800		)	(864		)
Accounts receivable, net	$	31,225		$	28,472

Inventories

Inventories consist of the following:



	June 30,
	2018		2017
Raw materials	$	6,820	$	7,898
Work in process	1,315		1,221
Finished goods	8,470		7,778
Inventories	$	16,605	$	16,897

Property and Equipment, Net

Property and equipment consists of the following:



	June 30,
	2018			2017
Land	$	500		$	500
Building	22,420			22,420
Equipment	16,510			16,502
Furniture	2,709			2,709
Leasehold improvements	438			86
Construction in progress	1,110			421
	43,687			42,638
Less: Accumulated depreciation	(15,943		)	(12,942		)
Total Property and equipment, net	$	27,744		$	29,696

On December 29, 2016, the Company entered into a Purchase and Sale Agreement, as subsequently amended (collectively, the “Sale Agreement”), with Krishna Holdings, LLC (the “Buyer”), providing for the sale to Buyer 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. In connection with the sale, the Company recorded an impairment charge of $158.

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 3 for further discussion on future payment obligations under the Lease Agreement.

Patents, net

Patents, net consist of the following:



	June 30,
	2018			2017
Patents	$	6,435		$	6,056
Less: Accumulated amortization	(1,204		)	(1,000		)
Total Patents, net	$	5,231		$	5,056

As of June 30, 2018, future estimated amortization of patents is as follows:



2019	$	199
2020	193
2021	191
2022	181
2023	174
Thereafter	4,293
	$	5,231

This future amortization expense is an estimate. Actual amounts may vary from these estimated amounts due to additional intangible asset acquisitions, approval of patents-in-process, potential impairment, change in useful life or other events.

Accrued Expenses

Accrued expenses consist of the following:



	June 30,
	2018		2017
Commissions	$	7,234	$	8,217
Salaries and bonus	6,624		8,247
Accrued vacation	3,557		3,436
Accrued excise, sales and other taxes	3,522		3,497
Legal settlement	1,847		1,814
Clinical studies	1,422		657
Accrued litigation	—		2,600
Other accrued expenses	1,570		1,768
Total Accrued expenses	$	25,776	$	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 investigation by the DOJ and the civil action underlying such investigation. 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.

Restructuring

On March 31, 2016, the Company announced a restructuring to reduce costs as 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. There was $22 and $169 of accrued restructuring costs recorded as accrued expenses on the consolidated balance sheet as of June 30, 2018 and June 30, 2017, respectively.

Other Liabilities

The Company’s non-current other liabilities consist of the following:



	June 30,
	2018		2017
Legal settlement	$	467	$	2,314
Deferred compensation	395		519
Deferred grant incentive	460		473
Other liabilities	90		173
Total Other liabilities	$	1,412	$	3,479