Note 6 - Select Balance Sheet and Statement of Operations Information

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

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,
	2023		2022
Raw materials	$	2,090	$	2,478
Work-in-progress		1,983		2,112
Finished goods		18,600		19,316
Total inventory	$	22,673	$	23,906

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 $6,832 and $7,500 in cost of goods sold in the three months ended March 31, 2023 and 2022, 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, 2023 and December 31, 2022, a provision for obsolescence of $617 and $3,258 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)		2023			2022
Lab equipment tooling and molds		4 – 10	$	3,579		$	4,356
Office furniture and equipment		6 – 10		1,246			1,240
Leasehold improvements		up to 10		616			794
Computers and software		3		919			906
Vehicles		5 – 7		37			37
Demo units		5		214			214
Total property and equipment				6,611			7,547
Less: Accumulated depreciation				(4,868	)		(5,690	)
Total property and equipment, net			$	1,743		$	1,857

Depreciation expense amounted to $151 and $244 for the three months ended March 31, 2023 and 2022, respectively.

Other Current Assets

	March 31,		December 31,
	2023		2022
Government remittances (1)	$	781	$	1,602
Consideration receivable from subsidiaries sale		362		629
Deferred financing costs		239		301
Sundry assets and miscellaneous		647		1,170
Total other current assets	$	2,029	$	3,702

(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,
	2023		2022
Payroll and related expense	$	1,906	$	2,244
Accrued expenses		5,631		5,045
Commission accrual		2,609		3,761
Sales and consumption taxes		4,819		5,617
Total accrued expenses and other current liabilities	$	14,965	$	16,667

Warranty Accrual

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

	March 31,			December 31,
	2023			2022
Balance as of the beginning of the period	$	1,482		$	1,753
Warranties issued during the period		195			993
Warranty costs incurred during the period		(341	)		(1,264	)
Balance at the end of the period	$	1,336		$	1,482
Current		945			1,074
Long-term		391			408
Total	$	1,336		$	1,482

Finance Expenses

The following table provides the details of the Company’s finance expenses:

	Three Months Ended March 31,
	2023		2022
Interest expense	$	1,443	$	858
Accretion on long-term debt and amortization of fees		65		65
Total finance expenses	$	1,508	$	923