Balance Sheet Components (Tables)
|
6 Months Ended |
Jun. 30, 2019 |
|---|
| Balance Sheet Related Disclosures [Abstract] |
|
| Summary of Cash, Cash Equivalents and Short-term Investments |
Cash, cash equivalents, and marketable securities consist of the following:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
Cash and cash equivalents
|
|
2019
|
|
|
2018
|
|
|
Cash
|
|
$
|
34,834
|
|
|
$
|
33,671
|
|
|
Money market accounts
|
|
|
171,094
|
|
|
|
158,438
|
|
|
Corporate bonds
|
|
|
3,522
|
|
|
|
—
|
|
|
U.S. Treasury securities
|
|
|
4,497
|
|
|
|
4,525
|
|
|
Total cash and cash equivalents
|
|
$
|
213,947
|
|
|
$
|
196,634
|
|
|
Marketable securities
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
6,514
|
|
|
$
|
13,613
|
|
|
U.S. Treasury securities
|
|
|
35,688
|
|
|
|
30,102
|
|
|
Total marketable securities
|
|
$
|
42,202
|
|
|
$
|
43,715
|
|
|
| Schedule of Gross Accounts Receivable Balance Concentrations by Major Category |
Gross accounts receivable balance concentrations by major category as of June 30, 2019 and December 31, 2018 were as follows:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
Gross accounts receivable
|
|
2019
|
|
|
2018
|
|
|
Rental (1)
|
|
$
|
3,110
|
|
|
$
|
3,406
|
|
|
Business-to-business and other receivables (2)
|
|
|
45,838
|
|
|
|
35,656
|
|
|
Total gross accounts receivable
|
|
$
|
48,948
|
|
|
$
|
39,062
|
|
|
(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 $18,989 and $16,198 as of June 30, 2019 and December 31, 2018, 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 $20,000 in coverage as of June 30, 2019 and allocated up to $18,000 in coverage as of December 31, 2018 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 June 30, 2019 and December 31, 2018 were as follows:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
Net accounts receivable
|
|
2019
|
|
|
2018
|
|
|
Rental (1)
|
|
$
|
2,310
|
|
|
$
|
2,413
|
|
|
Business-to-business and other receivables (2)
|
|
|
44,411
|
|
|
|
34,628
|
|
|
Total net accounts receivable
|
|
$
|
46,721
|
|
|
$
|
37,041
|
|
|
(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 $18,989 and $16,198 as of June 30, 2019 and December 31, 2018, 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 $20,000 in coverage as of June 30, 2019 and allocated up to $18,000 in coverage as of December 31, 2018 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 June 30, 2019 and December 31, 2018:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
Allowances - accounts receivable
|
|
2019
|
|
|
2018
|
|
|
Doubtful accounts (1)
|
|
$
|
450
|
|
|
$
|
693
|
|
|
Rental revenue adjustments (1)
|
|
|
473
|
|
|
|
438
|
|
|
Sales returns
|
|
|
1,304
|
|
|
|
890
|
|
|
Total allowances - accounts receivable
|
|
$
|
2,227
|
|
|
$
|
2,021
|
|
|
(1)
|
Prior to the adoption of ASC 842, the Company separately recorded an allowance for doubtful accounts by charging bad debt expense. Upon adoption of ASC 842, such balances are recorded as part of rental revenue adjustments to report rental revenue at an expected collectible amount.
|
|
| 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 71.8% and 76.0% of the non-U.S. revenue for the three months ended June 30, 2019 and June 30, 2018, respectively, were invoiced in Euros. Approximately 71.6% and 76.4% of the non-U.S. revenue for the six months ended June 30, 2019 and June 30, 2018, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and six months ended June 30, 2019 and June 30, 2018, respectively, is as follows:
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
U.S. revenue
|
|
$
|
78,499
|
|
|
$
|
76,479
|
|
|
$
|
148,898
|
|
|
$
|
138,624
|
|
|
Non-U.S. revenue
|
|
|
22,564
|
|
|
|
20,759
|
|
|
|
42,367
|
|
|
|
37,665
|
|
|
Total revenue
|
|
$
|
101,063
|
|
|
$
|
97,238
|
|
|
$
|
191,265
|
|
|
$
|
176,289
|
|
|
| Schedule of Inventories |
Inventories that are considered current consist of the following:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Raw materials and work-in-progress
|
|
$
|
22,082
|
|
|
$
|
24,980
|
|
|
Finished goods
|
|
|
3,017
|
|
|
|
2,756
|
|
|
Less: reserves
|
|
|
(614
|
)
|
|
|
(665
|
)
|
|
Inventories, net
|
|
$
|
24,485
|
|
|
$
|
27,071
|
|
|
| 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
|
|
3-5 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 six months ended June 30, 2019 and June 30, 2018, respectively.
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Rental equipment
|
|
$
|
1,594
|
|
|
$
|
1,966
|
|
|
$
|
3,299
|
|
|
$
|
4,131
|
|
|
Other property and equipment
|
|
|
842
|
|
|
|
551
|
|
|
|
1,603
|
|
|
|
1,081
|
|
|
Total depreciation and amortization
|
|
$
|
2,436
|
|
|
$
|
2,517
|
|
|
$
|
4,902
|
|
|
$
|
5,212
|
|
|
| Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation |
Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of June 30, 2019 and December 31, 2018, respectively.
|
|
|
June 30,
|
|
|
December 31,
|
|
|
Property and equipment
|
|
2019
|
|
|
2018
|
|
|
Rental equipment, net of allowances of $474 and $594, respectively
|
|
$
|
40,587
|
|
|
$
|
43,038
|
|
|
|
Other property and equipment
|
|
|
23,776
|
|
|
|
21,596
|
|
|
Property and equipment
|
|
|
64,363
|
|
|
|
64,634
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation
|
|
|
|
|
|
|
|
|
|
Rental equipment
|
|
|
30,945
|
|
|
|
31,813
|
|
|
Other property and equipment
|
|
|
12,057
|
|
|
|
10,480
|
|
|
Accumulated depreciation
|
|
|
43,002
|
|
|
|
42,293
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
|
|
Rental equipment, net of allowances of $474 and $594, respectively
|
|
|
9,642
|
|
|
|
11,225
|
|
|
Other property and equipment
|
|
|
11,719
|
|
|
|
11,116
|
|
|
Property and equipment, net
|
|
$
|
21,361
|
|
|
$
|
22,341
|
|
|
| Schedule of Changes in Carrying Amount of Goodwill |
The changes in the carrying amount of goodwill for the six months ended June 30, 2019 were as follows:
|
Balance as of December 31, 2018
|
|
$
|
2,257
|
|
|
Translation adjustment
|
|
|
(15
|
)
|
|
Balance as of June 30, 2019
|
|
$
|
2,242
|
|
|
| Summary of Changes in Net Carrying Values of Intangible Assets |
The following tables represent the changes in net carrying values of intangible assets as of the respective dates:
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
estimated
|
|
Gross
|
|
|
|
|
|
|
|
|
|
|
|
|
useful lives
|
|
carrying
|
|
|
Accumulated
|
|
|
|
|
|
|
June 30, 2019
|
|
(in years)
|
|
amount
|
|
|
amortization
|
|
|
Net amount
|
|
|
Licenses
|
|
10
|
|
$
|
185
|
|
|
$
|
160
|
|
|
$
|
25
|
|
|
Patents and websites
|
|
5
|
|
|
4,164
|
|
|
|
1,974
|
|
|
|
2,190
|
|
|
Customer relationships
|
|
4
|
|
|
1,364
|
|
|
|
739
|
|
|
|
625
|
|
|
Non-compete agreement
|
|
2.3
|
|
|
228
|
|
|
|
217
|
|
|
|
11
|
|
|
Commercials
|
|
2-3
|
|
|
664
|
|
|
|
388
|
|
|
|
276
|
|
|
Total
|
|
|
|
$
|
6,605
|
|
|
$
|
3,478
|
|
|
$
|
3,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
estimated
|
|
Gross
|
|
|
|
|
|
|
|
|
|
|
|
|
useful lives
|
|
carrying
|
|
|
Accumulated
|
|
|
|
|
|
|
December 31, 2018
|
|
(in years)
|
|
amount
|
|
|
amortization
|
|
|
Net amount
|
|
|
Licenses
|
|
10
|
|
$
|
185
|
|
|
$
|
155
|
|
|
$
|
30
|
|
|
Patents and websites
|
|
5
|
|
|
4,164
|
|
|
|
1,640
|
|
|
|
2,524
|
|
|
Customer relationships
|
|
4
|
|
|
1,373
|
|
|
|
572
|
|
|
|
801
|
|
|
Non-compete agreement
|
|
2.3
|
|
|
229
|
|
|
|
154
|
|
|
|
75
|
|
|
Commercials
|
|
2-3
|
|
|
633
|
|
|
|
308
|
|
|
|
325
|
|
|
Total
|
|
|
|
$
|
6,584
|
|
|
$
|
2,829
|
|
|
$
|
3,755
|
|
|
| Schedule of Annual Estimated Amortization Expense |
Annual estimated amortization expense for each of the succeeding fiscal years is as follows:
|
|
|
June 30, 2019
|
|
|
Remaining 6 months of 2019
|
|
$
|
586
|
|
|
2020
|
|
|
1,145
|
|
|
2021
|
|
|
852
|
|
|
2022
|
|
|
544
|
|
|
2023
|
|
|
—
|
|
|
Thereafter
|
|
|
—
|
|
|
|
|
$
|
3,127
|
|
|
| Schedule of Accounts Payable and Accrued Expenses |
Accounts payable and accrued expenses as of June 30, 2019 and December 31, 2018 consisted of the following:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Accounts payable
|
|
$
|
16,071
|
|
|
$
|
13,720
|
|
|
Accrued inventory (in-transit and unvouchered receipts) and trade payables
|
|
|
8,225
|
|
|
|
9,597
|
|
|
Accrued purchasing card liability
|
|
|
1,407
|
|
|
|
2,089
|
|
|
Accrued franchise, sales and use taxes
|
|
|
621
|
|
|
|
518
|
|
|
Other accrued expenses
|
|
|
1,001
|
|
|
|
862
|
|
|
Accounts payable and accrued expenses
|
|
$
|
27,325
|
|
|
$
|
26,786
|
|
|
| Schedule of Accrued Payroll |
Accrued payroll as of June 30, 2019 and December 31, 2018 consisted of the following:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Accrued bonuses
|
|
$
|
669
|
|
|
$
|
4,780
|
|
|
Accrued wages and other payroll related items
|
|
|
3,105
|
|
|
|
3,494
|
|
|
Accrued vacation
|
|
|
2,107
|
|
|
|
1,959
|
|
|
Accrued employee stock purchase plan deductions
|
|
|
1,088
|
|
|
|
1,174
|
|
|
Accrued payroll
|
|
$
|
6,969
|
|
|
$
|
11,407
|
|
|