Select Condensed Consolidated Balance Sheet Details

3 Months Ended

Mar. 31, 2021

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):

	March 31, 2021			December 31, 2020
Accounts receivable	$	26,121		$	23,887
Allowance for doubtful accounts		(370	)		(360	)
Accounts receivable, net	$	25,751		$	23,527

Inventories, net

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

	March 31, 2021			December 31, 2020
Raw materials	$	6,182		$	6,064
Work-in-process		2,303			1,982
Finished goods		80,597			67,892
		89,082			75,938
Less reserve for excess and obsolete finished goods		(31,706	)		(29,937	)
Inventories, net	$	57,376		$	46,001

Property and Equipment, net

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

	Useful lives (in years)		March 31, 2021			December 31, 2020
Surgical instruments		4	$	94,932		$	76,669
Machinery and equipment		7		8,401			6,562
Computer equipment		3		4,891			4,206
Office furniture and equipment		5		3,511			1,380
Leasehold improvements	various			1,876			1,761
Construction in progress	n/a			1,680			2,738
				115,291			93,316
Less accumulated depreciation and amortization				(59,167	)		(56,646	)
Property and equipment, net			$	56,124		$	36,670

Total depreciation expense was $3.4 million and $2.0 million for the three months ended March 31, 2021 and 2020, respectively. 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)		March 31, 2021			December 31, 2020
Developed product technology		12	$	35,376		$	35,376
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		7		1,128			1,278
Total Gross Amount			$	54,317		$	54,467
Less accumulated amortization				(30,188	)		(29,747	)
Intangible assets, net			$	24,129		$	24,720

Total amortization expense attributed to intangible assets was $0.4 million for the three months ended March 31, 2021 and 2020, respectively. The Company recognized a $0.2 million impairment loss related to certain intellectual property on its condensed consolidated statement of operations for the three months ended March 31, 2021.

In process research and development intangibles begin amortizing when the relevant products reach full commercial launch. Future amortization expense related to intangible assets as of March 31, 2021 is as follows (in thousands):

Year Ending December 31,
Remainder of 2021	$	1,552
2022		1,993
2023		1,993
2024		1,890
2025		1,305
Thereafter		15,396
	$	24,129

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	March 31, 2021		December 31, 2020
Commissions and sales milestones	$	7,886	$	6,734
Payroll and payroll related		6,101		12,247
Litigation settlement obligation - short-term portion		4,000		4,000
Professional fees		9,262		3,551
Royalties		2,203		2,293
Interest		88		619
Other		7,190		5,787
Total accrued expenses	$	36,730	$	35,231

Other Long-Term Liabilities

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

	March 31, 2021		December 31, 2020
Litigation settlement obligation - long-term portion	$	6,721	$	7,634
Tax liabilities		373		373
Royalties		2,071		1,678
Other		2,124		1,668
Other long-term liabilities	$	11,289	$	11,353