8.	Balance Sheet Components

Allowance for Sales Returns and Doubtful Accounts

The Company has established an allowance for sales returns of $4.2 million and $3.9 million as of March 31, 2017 and December 31, 2016, respectively, recorded net against accounts receivable in the balance sheet.

The Company has established an allowance for doubtful accounts of $0.4 million and $0.4 million as of March 31, 2017 and December 31, 2016, respectively, recorded net against accounts receivable in the balance sheet.

Property and Equipment

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

	March 31,			December 31,
	2017			2016
Leasehold improvements	$	96		$	86
Laboratory equipment and toolings		2,441			2,264
Computer equipment		299			287
Software		692			669
Office equipment		131			129
Furniture and fixtures		747			743
		4,406			4,178
Less accumulated depreciation		(1,335	)		(1,192	)
	$	3,071		$	2,986

Depreciation expense for the three months ended March 31, 2017 and 2016 was $0.1 million and $0.1 million, respectively.

Goodwill and Other Intangible Assets, net

Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Goodwill is not amortized, but instead subject to impairment tests on at least an annual basis and whenever circumstances suggest that goodwill may be impaired. The Company’s annual test for impairment is performed as of October 1 of each fiscal year. The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it is not required to perform the two-step impairment test for that reporting unit.

Under the first step of the test, the Company is required to compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the test is not performed. If the results of the first step of the impairment test indicate that the fair value of a reporting unit does not exceed its carrying amount, then the second step of the test is required. The second step of the test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The impairment loss is measured by the excess of the carrying amount of the reporting unit goodwill over the implied fair value of that goodwill.

The changes in the carrying amount of goodwill during the three months ended March 31, 2017 were as follows (in thousands):

Balances as of December 31, 2016
Goodwill	$	19,156
Accumulated impairment losses		(14,278	)
Goodwill, net	$	4,878
Balances as of March 31, 2017
Goodwill	$	19,156
Accumulated impairment losses		(14,278	)
Goodwill, net	$	4,878

The components of the Company’s other intangible assets consist of the following (in thousands):

			March 31, 2017
	Average Amortization
	Period		Gross Carrying		Accumulated			Intangible
	(in years)		Amount		Amortization			Assets, net
Intangibles with definite lives
Acquired FDA non-gel product approval		11	$	1,713	$	(1,701	)	$	12
Customer relationships		9.5		4,940		(855	)		4,085
Trade names - finite life		12		800		(72	)		728
Regulatory approvals		1.17		670		(239	)		431
Non-compete agreement		2.0		80		(27	)		53
Total definite-lived intangible assets			$	8,203	$	(2,894	)	$	5,309

Intangibles with indefinite lives
Trade names - indefinite life	—			450		—			450
Total indefinite-lived intangible assets			$	450	$	—		$	450

			December 31, 2016
	Average Amortization
	Period		Gross Carrying		Accumulated			Intangible
	(in years)		Amount		Amortization			Assets, net
Intangibles with definite lives
Acquired FDA non-gel product approval		11	$	1,713	$	(1,696	)	$	17
Customer relationships		9.5		4,940		(602	)		4,338
Trade names - finite life		12		800		(56	)		744
Regulatory approvals		1.17		670		(96	)		574
Non-compete agreement		2.0		80		(17	)		63
Total definite-lived intangible assets			$	8,203	$	(2,467	)	$	5,736

Intangibles with indefinite lives
Trade names - indefinite life	—			450		—			450
Total indefinite-lived intangible assets			$	450	$	—		$	450

Amortization expense for the three months ended March 31, 2017 and 2016 was $0.4 million and $0.1 million, respectively. The following table summarizes the estimated amortization expense relating to the Company's intangible assets as of March 31, 2017 (in thousands):

	Amortization
Period	Expense
Remainder of 2017	$	1,281
2018		1,090
2019		794
2020		582
2021		435
	$	4,182

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):

	March 31,		December 31,
	2017		2016
Accrued clinical trial and research and development expenses	$	159	$	119
Audit, consulting and legal fees		2,073		803
Payroll and related expenses		2,390		2,592
Accrued commission		2,049		1,222
Warrant liability		178		99
Other		1,513		1,672
	$	8,362	$	6,507