Inogen, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities

The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities:

	As of September 30, 2019
			Gross					Cash
	Adjusted		unrealized					and cash		Marketable
	cost		gains			Fair value		equivalents		securities
Cash	$	43,843	$	—		$	43,843	$	43,843	$	—
Level 1:
Money market accounts		109,288		—			109,288		109,288		—

Level 2:
Corporate bonds		6,530		7			6,537		—		6,537
U.S. Treasury securities		40,959		18			40,977		3,000		37,977
Total	$	200,620	$	25		$	200,645	$	156,131	$	44,514

	As of December 31, 2018
			Gross					Cash
	Adjusted		unrealized					and cash		Marketable
	cost		gains (losses)			Fair value		equivalents		securities
Cash	$	33,671	$	—		$	33,671	$	33,671	$	—
Level 1:
Money market accounts		158,438		—			158,438		158,438		—

Level 2:
Corporate bonds		13,629		(16	)		13,613		—		13,613
U.S. Treasury securities		34,620		7			34,627		4,525		30,102
Total	$	240,358	$	(9	)	$	240,349	$	196,634	$	43,715

Summary of Estimated Fair Value of Company's Investments in Marketable Debt Securities

The following table summarizes the estimated fair value of the Company’s investments in marketable securities, classified by the contractual maturity date of the securities:

	September 30,
	2019
Due within one year	$	44,514

Summary of Components of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows:

	Foreign			Unrealized		Unrealized			Accumulated
	currency			gains on		gains (losses)			other
	translation			marketable		on cash			comprehensive
	adjustments			securities		flow hedges			income
Balance as of December 31, 2018	$	394		$	—	$	330		$	724
Other comprehensive income (loss)		(340	)		18		(158	)		(480	)
Balance as of September 30, 2019	$	54		$	18	$	172		$	244

Summary of Quantitative Information about Level 3 Inputs for Fair Value Measurement of Earnout Liability

The following table provides quantitative information about Level 3 inputs for fair value measurement of the earnout liability as of the acquisition date and September 30, 2019. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement:

	At acquisition			As of
Simulation input	August 9, 2019			September 30, 2019
Revenue volatility		35.00	%		35.00	%
WACC		12.50	%		12.50	%
20-year risk free rate		2.03	%		1.94	%
Market price of risk		9.00	%		9.00	%

Summary of Reconciliation of Earnout Liability Measured and Carried Fair Value on a Recurring Basis

The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows:

	Three months ended		Nine months ended
	September 30,		September 30,
	2019		2019
Balance at beginning of period	$	—	$	—
Addition for acquisition		25,749		25,749
Balance at end of period	$	25,749	$	25,749