Select Condensed Consolidated Balance Sheet Details

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Select Condensed Consolidated Balance Sheet Details

3. Select Condensed Consolidated Balance Sheet Details

Accounts Receivable, net

Accounts receivable, net consist of the following (in thousands):

	September 30, 2020			December 31, 2019
Accounts receivable	$	24,604		$	16,436
Allowance for doubtful accounts		(334	)		(286	)
Accounts receivable, net	$	24,270		$	16,150

Inventories, net

Inventories, net consist of the following (in thousands):

	September 30, 2020			December 31, 2019
Raw materials	$	5,184		$	5,822
Work-in-process		1,387			1,578
Finished goods		64,025			51,669
		70,596			59,069
Less reserve for excess and obsolete finished goods		(28,452	)		(24,215	)
Inventories, net	$	42,144		$	34,854

Property and Equipment, net

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

	Useful lives (in years)		September 30, 2020			December 31, 2019
Surgical instruments		4	$	67,012		$	58,502
Machinery and equipment		7		6,562			6,038
Computer equipment		3		4,206			3,594
Office furniture and equipment		5		1,380			1,297
Leasehold improvements	various			1,761			1,761
Construction in progress	n/a			862			496
				81,783			71,688
Less accumulated depreciation and amortization				(54,102	)		(51,966	)
Property and equipment, net			$	27,681		$	19,722

Total depreciation expense was $2.3 million and $6.5 million for the three and nine months ended September 30, 2020, respectively, and $1.8 million and $4.8 million for the three and nine months ended September 30, 2019, respectively. At both September 30, 2020 and December 31, 2019, 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

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives (in years)		September 30, 2020			December 31, 2019
Developed technology		9	$	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		3		7,458			7,458
Distribution network		2		4,027			4,027
In process research and development		19		8,800			8,800
				54,593			54,593
Less accumulated amortization				(30,310	)		(28,988	)
Intangible assets, net			$	24,283		$	25,605

Total amortization expense attributed to intangible assets was $0.4 million and $1.3 million for the three and nine months ended September 30, 2020, and $0.2 million and $0.5 million for the three and nine months ended September 30, 2019, respectively.

Developed technology and in process research and development intangibles are expected to begin amortizing when the relevant products reach full commercial launch. Future amortization expense related to intangible assets as of September 30, 2020 is as follows (in thousands):

Year Ending December 31,
Remainder of 2020	$	537
2021		1,888
2022		1,888
2023		1,888
2024		1,785
Thereafter		16,297
	$	24,283

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	September 30, 2020		December 31, 2019
Commissions and sales milestones	$	6,928	$	5,299
Payroll and payroll related		8,924		7,949
Litigation settlement obligation - short-term portion		4,400		4,400
Professional fees		2,049		3,945
Royalties		3,284		1,981
Interest		669		155
Other		4,726		2,687
Total accrued expenses	$	30,980	$	26,416

Other Long-Term Liabilities

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

	September 30, 2020		December 31, 2019
Litigation settlement obligation - long-term portion	$	8,126	$	10,712
Line of credit exit fee		—		600
Tax liabilities		373		373
Other		539		266
Other long-term liabilities	$	9,038	$	11,951