Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.10.0.1
Balance Sheet Components (Tables)
9 Months Ended
Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]  
Summary of Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and marketable securities consist of the following:

 

 

 

September 30,

 

 

December 31,

 

Cash and cash equivalents

 

2018

 

 

2017

 

Cash

 

$

25,257

 

 

$

46,237

 

Money market accounts

 

 

151,025

 

 

 

93,430

 

Certificates of deposit

 

 

 

 

 

490

 

Corporate bonds

 

 

 

 

 

2,796

 

Total cash and cash equivalents

 

$

176,282

 

 

$

142,953

 

Marketable securities

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

 

 

$

10,516

 

Corporate bonds

 

 

16,091

 

 

 

17,972

 

Agency mortgage-backed securities

 

 

 

 

 

2,004

 

U.S. Treasury securities

 

 

31,483

 

 

 

499

 

Total marketable securities

 

$

47,574

 

 

$

30,991

 

 

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of September 30, 2018 and December 31, 2017 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Gross accounts receivable

 

2018

 

 

2017

 

Rental (1)

 

$

4,616

 

 

$

6,236

 

Business-to-business & other receivables (2)

 

 

33,041

 

 

 

28,474

 

Total gross accounts receivable

 

$

37,657

 

 

$

34,710

 

(1)

Rental includes Medicare, Medicaid/other government, private insurance and patient pay.

(2)

Business-to-business receivables included one customer with a gross accounts receivable balance of $13,207 and $10,394 as of September 30, 2018 and December 31, 2017, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $18,000 in coverage as of September 30, 2018 and allocated up to $12,000 in coverage as of December 31, 2017 for this customer with a $400 deductible and 10% retention.

Schedule of Net Accounts Receivable Balance Concentrations by Major Category

Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2018 and December 31, 2017 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Net accounts receivable

 

2018

 

 

2017

 

Rental (1)

 

$

2,782

 

 

$

4,212

 

Business-to-business & other receivables (2)

 

 

31,468

 

 

 

27,232

 

Total net accounts receivable

 

$

34,250

 

 

$

31,444

 

 

(1)

Rental includes Medicare, Medicaid/other government, private insurance and patient pay.

(2)

Business-to-business receivables included one customer with a gross accounts receivable balance of $13,207 and $10,394 as of September 30, 2018 and December 31, 2017, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $18,000 in coverage as of September 30, 2018 and allocated up to $12,000 in coverage as of December 31, 2017 for this customer with a $400 deductible and 10% retention.

 

Schedule of Allowances for Accounts Receivable

The following tables set forth the accounts receivable allowances as of September 30, 2018 and December 31, 2017:

 

 

 

September 30,

 

 

December 31,

 

Allowances - accounts receivable

 

2018

 

 

2017

 

Doubtful accounts

 

$

1,205

 

 

$

1,415

 

Rental revenue adjustments

 

 

869

 

 

 

947

 

Sales returns

 

 

1,333

 

 

 

904

 

Total allowances - accounts receivable

 

$

3,407

 

 

$

3,266

 

 

Breakdown of Company's Revenue from U.S. and Non-U.S. Sources

A portion of revenue is earned from sales outside the United States. Approximately 77.2% and 77.2% of the non-U.S. revenue for the three months ended September 30, 2018 and September 30, 2017, respectively, were invoiced in Euros. Approximately, 76.7% and 75.2% of the non-U.S. revenue for the nine months ended September 30, 2018 and September 30, 2017, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2018 and September 30, 2017 is as follows:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

U.S. revenue

 

$

74,149

 

 

$

51,844

 

 

$

212,773

 

 

$

142,123

 

Non-U.S. revenue

 

 

21,142

 

 

 

17,186

 

 

 

58,807

 

 

 

43,528

 

Total revenue

 

$

95,291

 

 

$

69,030

 

 

$

271,580

 

 

$

185,651

 

 

 

Schedule of Inventories

Inventories that are considered current consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Raw materials and work-in-progress

 

$

26,777

 

 

$

16,324

 

Finished goods

 

 

4,490

 

 

 

2,917

 

Less: reserves

 

 

(646

)

 

 

(399

)

Inventories

 

$

30,621

 

 

$

18,842

 

 

Computation of Depreciation and Amortization using Straight Line Method Over Estimated Useful Lives of Assets

Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows:  

 

Rental equipment

 

1.5-5 years

Manufacturing equipment and tooling

 

2-5 years

Computer equipment and software

 

2-3 years

Furniture and equipment

 

3-5 years

Leasehold improvements

 

Lesser of estimated useful life or remaining lease term

 

Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment

Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three and nine months ended September 30, 2018 and September 30, 2017, respectively.

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Rental equipment

 

$

1,689

 

 

$

2,366

 

 

$

5,820

 

 

$

7,577

 

Other property and equipment

 

 

691

 

 

 

469

 

 

 

1,772

 

 

 

1,427

 

Total depreciation and amortization

 

$

2,380

 

 

$

2,835

 

 

$

7,592

 

 

$

9,004

 

 

Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation

Property and equipment and rental equipment with associated accumulated depreciation are summarized below for September 30, 2018 and December 31, 2017, respectively.

 

 

 

September 30,

 

 

December 31,

 

Property and equipment

 

2018

 

 

2017

 

Rental equipment, net of allowances of $639 and $754, respectively

 

$

44,515

 

 

$

49,349

 

Other property and equipment

 

 

22,161

 

 

 

15,219

 

Property and equipment

 

 

66,676

 

 

 

64,568

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Rental equipment

 

 

32,605

 

 

 

34,754

 

Other property and equipment

 

 

11,056

 

 

 

9,711

 

Accumulated depreciation

 

 

43,661

 

 

 

44,465

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

Rental equipment, net of allowances of $639 and $754, respectively

 

 

11,910

 

 

 

14,595

 

Other property and equipment

 

 

11,105

 

 

 

5,508

 

Property and equipment, net

 

$

23,015

 

 

$

20,103

 

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows:

 

Balance as of December 31, 2017

 

$

2,363

 

Translation adjustment

 

 

(75

)

Balance as of September 30, 2018

 

$

2,288

 

 

Summary of Intangible Assets

The following tables represent the net carrying values of intangible assets as of the respective dates:

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

September 30, 2018

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

151

 

 

$

34

 

Patents and websites

 

5

 

 

4,173

 

 

 

1,476

 

 

 

2,697

 

Customer relationships

 

4

 

 

1,392

 

 

 

493

 

 

 

899

 

Non-compete agreement

 

2.3

 

 

232

 

 

 

123

 

 

 

109

 

Commercials

 

2-3

 

 

653

 

 

 

289

 

 

 

364

 

Total

 

 

 

$

6,635

 

 

$

2,532

 

 

$

4,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

December 31, 2017

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

137

 

 

$

48

 

Patents and websites

 

5

 

 

4,173

 

 

 

959

 

 

 

3,214

 

Customer relationships

 

4

 

 

1,437

 

 

 

240

 

 

 

1,197

 

Non-compete agreement

 

3

 

 

240

 

 

 

52

 

 

 

188

 

Commercials

 

2-3

 

 

303

 

 

 

233

 

 

 

70

 

Total

 

 

 

$

6,338

 

 

$

1,621

 

 

$

4,717

 

 

Schedule of Annual Estimated Amortization Expense for Intangibles

Annual estimated amortization expense for intangibles for each of the succeeding fiscal years is summarized as follows:

 

 

 

September 30, 2018

 

Remaining 3 months of 2018

 

$

337

 

2019

 

 

1,240

 

2020

 

 

1,136

 

2021

 

 

846

 

2022

 

 

544

 

Thereafter

 

 

 

 

 

$

4,103

 

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2018 and December 31, 2017 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Accounts payable

 

$

13,134

 

 

$

9,541

 

Accrued inventory (in-transit and unvouchered receipts) and trade payables

 

 

10,124

 

 

 

7,252

 

Accrued purchasing card liability

 

 

2,095

 

 

 

2,381

 

Accrued franchise, sales and use taxes

 

 

523

 

 

 

479

 

Other accrued expenses

 

 

893

 

 

 

973

 

Accounts payable and accrued expenses

 

$

26,769

 

 

$

20,626

 

 

Schedule of Accrued Payroll

Accrued payroll as of September 30, 2018 and December 31, 2017 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Accrued bonuses

 

$

5,141

 

 

$

3,086

 

Accrued wages and other payroll related items

 

 

4,597

 

 

 

1,746

 

Accrued vacation

 

 

1,861

 

 

 

1,338

 

Accrued employee stock purchase plan deductions

 

 

305

 

 

 

707

 

Accrued payroll

 

$

11,904

 

 

$

6,877