Select Balance Sheet and Statement of Operations Information

6 Months Ended

Jun. 30, 2021

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:

	June 30, 2021		December 31, 2020
Raw materials	$	1,786	$	838
Work-in-progress		1,494		1,232
Finished goods		16,487		15,689
Total inventory	$	19,767	$	17,759

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 three months from upgraded sales. The Company expensed $5,339 and $11,359 in cost of goods sold in the three and six months ended June 30, 2021 ($3,603 and $7,203 in the three and six months ended June 30, 2020). 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 June 30, 2021, a provision for obsolescence of $2,014 ($1,208 as of December 31, 2020) was taken against inventory.

Property and Equipment, Net

Property and equipment, net consist of the following:

	Useful Lives (in years)	June 30, 2021			December 31, 2020
Lab equipment tooling and molds	4 - 10	$	8,104		$	8,053
Office furniture and equipment	6 - 10		1,739			1,760
Leasehold improvements	up to 10		1,793			1,838
Computers and software	3		1,863			1,815
Vehicles	5 - 7		20			12
Total property and equipment			13,519			13,478
Less: Accumulated depreciation			(10,582	)		(9,939	)
Total property and equipment, net		$	2,937		$	3,539

Depreciation expense was $280 and $400 for the three months ended June 30, 2021 and 2020, respectively. Depreciation expense was $728 and $777 for the six months ended June 30, 2021 and 2020, respectively.

Other Current Assets

	June 30, 2021		December 31, 2020
Government remittances (1)	$	1,436	$	1,009
Consideration receivable from sales of subsidiaries		2,199		2,580
Deferred financing costs		223		1,063
Sundry assets and miscellaneous		777		1,022
Total other current assets	$	4,635	$	5,674

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

Accrued Expenses and Other Current Liabilities

	June 30, 2021		December 31, 2020
Payroll and related expense	$	1,442	$	1,312
Accrued expenses		6,387		8,582
Commission accrual		2,952		2,827
Sales and consumption taxes		6,315		7,532
Total accrued expenses and other current liabilities	$	17,096	$	20,253

Warranty Accrual

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

	June 30, 2021			December 31, 2020
Balance as of the beginning of the period	$	1,639		$	1,977
Warranties issued during the period		538			761
Warranty costs incurred during the period		(396	)		(1,099	)
Balance at the end of the period	$	1,781		$	1,639
Current		1,314			1,106
Long-term		467			533
Total	$	1,781		$	1,639

Finance Expenses

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Interest expense	$	930		2,220	$	2,068	$	4,328
Accretion on long-term debt and amortization of fees		231		151		978		297
Total finance expenses	$	1,161	$	2,371	$	3,046	$	4,625