5. Balance Sheet Components

Property and Equipment, net

The Company’s property and equipment consisted of the following:


		June 30,		December 31,
	Useful Life	2016		2015
		(in thousands)
Machinery and equipment	3-5 years	$	20,949	$	20,670
Furniture and fixtures	3 years		450		217
Computer equipment	3 years		789		789
Capitalized software held for internal use	3 years		1,871		1,159
Leasehold improvements	Life of lease		1,687		1,686
Construction-in-process			9,456		1,979
			35,202		26,500
Less: Accumulated depreciation and amortization			(16,106)		(13,790)
Total Property and equipment, net		$	19,096	$	12,710

The Company periodically evaluates the carrying value of long-lived assets when events or circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the estimated realizable value of the asset is less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined based on the estimated realizable value of the long-lived asset.

Accrued Compensation

The Company’s accrued compensation consisted of the following:


	June 30,		December 31,
	2016		2015
	(in thousands)
Accrued paid time off	$	1,952	$	2,024
Accrued commissions		3,170		3,691
Accrued bonuses		1,695		1,348
Other accrued compensation		2,278		1,489
Total Accrued compensation	$	9,095	$	8,552

Other Accrued Liabilities

The Company’s other accrued liabilities consisted of the following:


	June 30,		December 31,
	2016		2015
	(in thousands)
Accrued expenses	$	23,242	$	17,870
Accrued rent		116		450
Deferred lease obligation		14		42
Sales and use tax payable		214		346
Total Other accrued liabilities	$	23,586	$	18,708

In April 2016, the Company entered into a four-year agreement with an insurance carrier whereby in return for partial exclusivity and the right to pricing benefits the Company agreed to pay total consideration of $3.2 million. As of June 30, 2016, the total obligation of $3.2 million was included in short-term accrued liabilities and $3.0 million in deferred cost was included in other long-term assets. The deferred costs are being amortized ratably over the four-year term of the agreement and for the three months ended June 30, 2016, the Company amortized $0.2 million which was recorded as a reduction of product revenue.