Select Balance Sheet and Statement of Operations Information

9 Months Ended

Sep. 30, 2020

Select Balance Sheet And Income Statement Information [Abstract]

Select Balance Sheet and Statement of Operations Information

6. SELECT BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

Inventory

Inventory consists of the following:


	September 30, 2020		December 31, 2019
Raw materials	$	678	$	877
Work-in-progress		789		2,067
Finished goods		18,026		15,900
Total inventory	$	19,493	$	18,844

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 nine months from upgraded sales. The Company expensed $6,149 and $13,352 in cost of goods sold in the three and nine months ended September 30, 2020, respectively ($5,829 and $17,142 in the three and nine months ended September 30, 2019, 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 September 30, 2020, a provision for obsolescence of $1,433 ($1,439 as of December 31, 2019) was taken against inventory.

Property and Equipment, Net

Property and equipment, net consist of the following:

	Useful Lives (in years)	September 30, 2020			December 31, 2019
Lab equipment tooling and molds	4 - 10	$	8,050		$	7,872
Office furniture and equipment	6 - 10		1,714			1,710
Leasehold improvements	up to 10		1,725			1,950
Computers and software	3		1,786			1,811
Vehicles	5 - 7		12			16
Total property and equipment			13,287			13,359
Less: Accumulated depreciation			(9,560	)		(8,711	)
Total property and equipment, net		$	3,727		$	4,648

Depreciation expense was $318 and $195 for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense was $1,095 and $663 for the nine months ended September 30, 2020 and 2019, respectively.

Other Current Assets

	September 30, 2020		December 31, 2019
Government remittances⁽¹⁾	$	2,113	$	1,704
Sundry assets and miscellaneous		1,993		1,397
Total other current assets	$	4,106	$	3,101

(1)

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

Accrued Expenses and Other Current Liabilities


	September 30, 2020		December 31, 2019
Payroll and related expense	$	1,953	$	3,117
Accrued expenses		7,145		10,645
Commission accrual		2,519		4,215
Sales and consumption taxes		3,561		3,143
Total accrued expenses and other current liabilities	$	15,178	$	21,120

Warranty Accrual

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

	September 30, 2020			December 31, 2019
Balance as of the beginning of the year	$	1,977		$	1,336
Warranties assumed through business combination		-			273
Warranties issued during the year		485			1,038
Warranty costs incurred during the year		(738	)		(670	)
Balance at the end of the year	$	1,724		$	1,977
Current		1,278			1,254
Long-term		446			723
Total	$	1,724		$	1,977

Finance Expenses

	Three Months Ended September 30				Nine Months Ended September 30
	2020		2019		2020		2019
Interest expense	$	1,750	$	1,979	$	6,084	$	5,555
Accretion on long-term debt and amortization of fees		147		118		438		349
Total finance expenses	$	1,897	$	2,097	$	6,522	$	5,904