Balance Sheet Details

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

3. Balance Sheet Details

Accounts Receivable, net

Accounts receivable consist of the following (in thousands):

	December 31,
	2019			2018
Accounts receivable	$	16,436		$	15,291
Less allowance for doubtful accounts		(286	)		(196	)
Accounts receivable, net	$	16,150		$	15,095

Inventories, net

Inventories consist of the following (in thousands):

	December 31,
	2019			2018
Raw materials	$	5,822		$	5,813
Work-in-process		1,578			952
Finished goods		51,669			39,758
		59,069			46,523
Less reserve for excess and obsolete		(24,215	)		(17,758	)
Inventories, net	$	34,854		$	28,765

Property and Equipment, net

Property and equipment consist of the following (in thousands, except as indicated):

	Useful lives		December 31,
	(in years)		2019			2018
Surgical instruments		4	$	58,502		$	54,848
Machinery and equipment		7		6,038			5,971
Computer equipment		3		3,594			3,104
Office furniture and equipment		5		1,297			1,155
Leasehold improvements	various			1,761			1,765
Construction in progress	n/a			496			92
				71,688			66,935
Less accumulated depreciation and amortization				(51,966	)		(53,700	)
Property and equipment, net			$	19,722		$	13,235

Total depreciation expense was $6.8 million and $6.0 million for the years ended December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, assets recorded under capital leases of $0.1 million were included in the machinery and equipment balance. Amortization of assets under capital leases is included in depreciation expense.

Intangible Assets, net

In conjunction with the acquisition of SafeOp in March 2018, the Company recorded $21.6 million of new intangible assets. See Note 8 for further information regarding the acquisition. Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives		December 31,
	(in years)		2019			2018
Developed product technology		10	$	26,976		$	26,976
Intellectual property		—		1,004			1,004
License agreements		1		5,536			5,536
Trademarks and trade names		—		792			792
Customer-related		5		7,458			7,458
Distribution network		4		4,027			4,027
In process research and development		19		8,800			8,800
				54,593			54,593
Less accumulated amortization				(28,988	)		(28,185	)
Intangible assets, net			$	25,605		$	26,408

Total expense related to amortization of intangible assets was $0.7 million and $0.8 million for the years ended December 31, 2019 and 2018, respectively.

Future amortization expense related to intangible assets as of December 31, 2019 is as follows (in thousands):

Year Ending December 31,
2020	$	1,869
2021		1,888
2022		1,888
2023		1,888
2024		1,785
Thereafter		16,287
Total	$	25,605

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	December 31,
	2019		2018
Commissions and sales milestones	$	5,299	$	3,594
Payroll and payroll related		7,949		3,222
Litigation settlement obligation		4,400		4,400
Professional fees		3,945		2,637
Royalties		1,981		1,354
Restructuring and severance accruals		29		710
Taxes		82		(3	)
Interest		155		261
Acquisition related - contingent consideration		-		2,600
Other		2,576		3,541
Total accrued expenses	$	26,416	$	22,316

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	December 31, 2019		December 31, 2018
Litigation settlement obligation - long-term portion	$	10,712	$	13,954
Line of credit exit fee		600		600
Tax liabilities		373		835
Other		266		-
Other long-term liabilities	$	11,951	$	15,389