Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.21.1
Balance Sheet Components (Tables)
3 Months Ended
Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]  
Summary of Cash, Cash Equivalents and Short-term Investments

 

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

 

 

 

March 31,

 

 

December 31,

 

Cash and cash equivalents

 

2021

 

 

2020

 

Cash

 

$

48,706

 

 

$

52,812

 

Money market accounts

 

 

171,308

 

 

 

159,150

 

Total cash and cash equivalents

 

$

220,014

 

 

$

211,962

 

Marketable securities

 

 

 

 

 

 

 

 

Corporate bonds

 

$

5,476

 

 

$

11,548

 

U.S. Treasury securities

 

 

4,054

 

 

 

4,107

 

Agency mortgage-backed securities

 

 

3,606

 

 

 

3,602

 

Total marketable securities

 

$

13,136

 

 

$

19,257

 

 

 

 

 

 

 

 

 

 

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of March 31, 2021 and December 31, 2020 were as follows:

 

 

 

March 31,

 

 

December 31,

 

Gross accounts receivable

 

2021

 

 

2020

 

Rental (1)

 

$

5,701

 

 

$

4,190

 

Business-to-business and other receivables (2)

 

 

34,055

 

 

 

26,717

 

Total gross accounts receivable

 

$

39,756

 

 

$

30,907

 

(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 $8,102 and $7,044 as of March 31, 2021 and December 31, 2020, 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 $10,000 in coverage as of March 31, 2021 and as of December 31, 2020 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 March 31, 2021 and December 31, 2020 were as follows:

 

 

 

March 31,

 

 

December 31,

 

Net accounts receivable

 

2021

 

 

2020

 

Rental (1)

 

$

5,316

 

 

$

3,794

 

Business-to-business and other receivables (2)

 

 

33,109

 

 

 

25,923

 

Total net accounts receivable

 

$

38,425

 

 

$

29,717

 

 

(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 $8,102 and $7,044 as of March 31, 2021 and December 31, 2020, 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 $10,000 in coverage as of March 31, 2021 and as of December 31, 2020 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 March 31, 2021 and December 31, 2020:

 

 

 

March 31,

 

 

December 31,

 

Allowances - accounts receivable

 

2021

 

 

2020

 

Doubtful accounts

 

$

21

 

 

$

52

 

Rental revenue adjustments

 

 

385

 

 

 

396

 

Sales returns

 

 

925

 

 

 

742

 

Total allowances - accounts receivable

 

$

1,331

 

 

$

1,190

 

 

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 79.3% and 68.7% of the non-U.S. revenue for the three months ended March 31, 2021 and March 31, 2020, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three months ended March 31, 2021 and March 31, 2020, respectively, is as follows:

 

 

 

Three months ended

March 31,

 

 

 

2021

 

 

2020

 

U.S. revenue

 

$

71,212

 

 

$

68,406

 

Non-U.S. revenue

 

 

15,720

 

 

 

20,083

 

Total revenue

 

$

86,932

 

 

$

88,489

 

 

 

Schedule of Inventories Inventories that are considered current consist of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Raw materials and work-in-progress

 

$

24,210

 

 

$

22,318

 

Finished goods

 

 

3,541

 

 

 

3,743

 

Less: reserves

 

 

(1,357

)

 

 

(1,246

)

Inventories, net

 

$

26,394

 

 

$

24,815

 

 

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 months ended March 31, 2021 and March 31, 2020, respectively.

 

 

 

Three months ended

March 31,

 

 

 

2021

 

 

2020

 

Rental equipment

 

$

1,888

 

 

$

1,299

 

Other property and equipment

 

 

946

 

 

 

921

 

Total depreciation and amortization

 

$

2,834

 

 

$

2,220

 

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 March 31, 2021 and December 31, 2020, respectively.

 

 

 

March 31,

 

 

December 31,

 

Property and equipment

 

2021

 

 

2020

 

Rental equipment, net of allowances of $650 and $575, respectively

 

$

49,872

 

 

$

46,953

 

Other property and equipment

 

 

28,642

 

 

 

27,071

 

Property and equipment

 

 

78,514

 

 

 

74,024

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Rental equipment

 

 

31,016

 

 

 

30,283

 

Other property and equipment

 

 

16,445

 

 

 

15,511

 

Accumulated depreciation

 

 

47,461

 

 

 

45,794

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

Rental equipment, net of allowances of $650 and $575, respectively

 

 

18,856

 

 

 

16,670

 

Other property and equipment

 

 

12,197

 

 

 

11,560

 

Property and equipment, net

 

$

31,053

 

 

$

28,230

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2021 were as follows:

 

Balance as of December 31, 2020

 

$

33,165

 

Translation adjustment

 

 

(110

)

Balance as of March 31, 2021

 

$

33,055

 

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

 

 

 

 

 

March 31, 2021

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

12,626

 

 

$

65,074

 

Licenses

 

10

 

 

185

 

 

 

176

 

 

 

9

 

Patents and websites

 

5

 

 

4,488

 

 

 

3,197

 

 

 

1,291

 

Customer relationships

 

4

 

 

1,407

 

 

 

1,378

 

 

 

29

 

Commercials

 

2-3

 

 

759

 

 

 

605

 

 

 

154

 

Total

 

 

 

$

84,539

 

 

$

17,982

 

 

$

66,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

December 31, 2020

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

10,684

 

 

$

67,016

 

Licenses

 

10

 

 

185

 

 

 

174

 

 

 

11

 

Patents and websites

 

5

 

 

4,488

 

 

 

3,015

 

 

 

1,473

 

Customer relationships

 

4

 

 

1,474

 

 

 

1,351

 

 

 

123

 

Commercials

 

2-3

 

 

733

 

 

 

559

 

 

 

174

 

Total

 

 

 

$

84,580

 

 

$

15,783

 

 

$

68,797

 

Schedule of Annual Estimated Amortization Expense

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

 

 

 

March 31,

 

 

 

2021

 

Remaining 9 months of 2021

 

$

6,488

 

2022

 

 

8,431

 

2023

 

 

7,856

 

2024

 

 

7,832

 

2025

 

 

7,784

 

Thereafter

 

 

28,166

 

 

 

$

66,557

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of March 31, 2021 and December 31, 2020 consisted of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Accounts payable

 

$

14,606

 

 

$

12,520

 

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

 

 

9,666

 

 

 

9,023

 

Accrued litigation settlement

 

 

 

 

 

8,000

 

Accrued purchasing card liability

 

 

4,051

 

 

 

2,468

 

Accrued franchise, sales and use taxes

 

 

482

 

 

 

449

 

Other accrued expenses

 

 

544

 

 

 

1,252

 

Accounts payable and accrued expenses

 

$

29,349

 

 

$

33,712

 

Schedule of Accrued Payroll

Accrued payroll as of March 31, 2021 and December 31, 2020 consisted of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Accrued bonuses

 

$

1,166

 

 

$

4

 

Accrued wages and other payroll related items

 

 

4,873

 

 

 

3,796

 

Accrued vacation

 

 

2,970

 

 

 

2,642

 

Accrued employee stock purchase plan deductions

 

 

182

 

 

 

649

 

Accrued payroll

 

$

9,191

 

 

$

7,091