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Note 6 - Select Balance Sheet and Statement of Operations Information

3 Months Ended

Mar. 31, 2022

Balance Sheet and Income Statement Disclosures [Text Block]

6. SELECT BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

Inventory

Inventory consists of the following:

	*March 31,*		*December 31,*
	*2022*		*2021*
Raw materials	$	2,964	$	2,368
Work-in-progress		628		1,649
Finished goods		17,727		16,526
Total inventory	$	21,319	$	20,543

Additions to inventory are primarily comprised of newly produced units and applicators, refurbishment cost from demonstration units and used equipment which were reacquired during the period from upgraded sales. The Company expensed $7,500 and $6,020 in cost of goods sold during the three months ended March 31, 2022 and 2021, respectively. The balance of cost of goods sold represents the sale of applicators, parts and warranties.

The Company provides for excess and obsolete inventories when conditions indicate that the inventory cost is not recoverable due to physical deterioration, usage, obsolescence, reductions in estimated future demand and reductions in selling prices. Inventory provisions are measured as the difference between the cost of inventory and net realizable value to establish a lower cost basis for the inventories. As of March 31, 2022 and December 31, 2021, a provision for obsolescence of $2,110 and $2,213 was taken against inventory, respectively.

Property and Equipment, Net

Property and equipment, net consist of the following:

	*Useful Lives*	*March 31,*			*December 31,*
	*(in years)*	*2022*			*2021*
Lab equipment tooling and molds	4 – 10	$	8,236		$	8,194
Office furniture and equipment	6 – 10		2,012			1,743
Leasehold improvements	up to 10		37			1,839
Computers and software	3		1,780			1,939
Vehicles	5 – 7		1,781			37
Demo units	5		114			114
Total property and equipment			13,960			13,866
Less: Accumulated depreciation			(11,377	)		(11,197	)
Total property and equipment, net		$	2,583		$	2,669

Depreciation expense amounted to $244 and $448 for the three months ended March 31, 2022 and 2021, respectively.

Other Current Assets

	*March 31,*		*December 31,*
	*2022*		*2021*
Government remittances ⁽¹⁾	$	1,799	$	1,322
Consideration receivable from sale of subsidiaries		1,251		1,405
Deferred financing costs		223		223
Sundry assets and miscellaneous		866		808
Total other current assets	$	4,139	$	3,758

(1) Government remittances are receivables from the local tax authorities for refunds of sales taxes and income taxes.

Accrued Expenses and Other Current Liabilities

	*March 31,*		*December 31,*
	*2022*		*2021*
Payroll and related expense	$	1,940	$	1,770
Accrued expenses		6,303		6,584
Commission accrual		3,780		4,529
Sales and consumption taxes		6,795		6,629
Total accrued expenses and other current liabilities	$	18,818	$	19,512

Warranty Accrual

The following table provides the details of the change in the Company’s warranty accrual:

	*March 31,*			*December 31,*
	*2022*			*2021*
Balance as of the beginning of the period	$	1,753		$	1,639
Warranties issued during the period		189			1,231
Warranty costs incurred during the period		(383	)		(1,117	)
Balance at the end of the period	$	1,559		$	1,753
Current		1,127			1,245
Long-term		432			508
Total	$	1,559		$	1,753

Finance Expenses

	*Three Months Ended March 31,*
	*2022*		*2021*
Interest expense	$	858	$	1,138
Accretion on long-term debt and amortization of fees		65		747
Total finance expenses	$	923	$	1,885