Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.22.2.2
Balance Sheet Components (Tables)
9 Months Ended
Sep. 30, 2022
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

 

2022

 

 

2021

 

Cash

 

$

36,934

 

 

$

48,817

 

Money market accounts

 

 

147,810

 

 

 

186,707

 

Corporate bonds

 

 

16,412

 

 

 

 

U.S. Treasury securities

 

 

8,477

 

 

 

 

Total cash and cash equivalents

 

$

209,633

 

 

$

235,524

 

Marketable securities

 

 

 

 

 

 

Corporate bonds

 

$

 

 

$

9,989

 

Total marketable securities

 

$

 

 

$

9,989

 

 

 

 

 

 

 

 

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, 2022 and December 31, 2021 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Net accounts receivable

 

2022

 

 

2021

 

Rental (1)

 

$

5,532

 

 

$

6,011

 

Business-to-business and other receivables (2)

 

 

45,001

 

 

 

18,441

 

Total net accounts receivable

 

$

50,533

 

 

$

24,452

 

 

(1)
Rental includes Medicare, Medicaid/other government, private insurance and patient pay.
(2)
Business-to-business receivables included one customer with an accounts receivable balance of $7,220 and $5,945 as of September 30, 2022 and December 31, 2021, respectively. The 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 $12,000 and $10,000 in coverage as of September 30, 2022 and December 31, 2021, respectively, for this customer with a $400 deductible and 10% retention.
Schedule of Allowances for Accounts Receivable

The following table sets forth the accounts receivable allowances as of September 30, 2022 and December 31, 2021:

 

 

 

September 30,

 

 

December 31,

 

Allowances - accounts receivable

 

2022

 

 

2021

 

Doubtful accounts

 

$

72

 

 

$

52

 

Sales returns

 

 

816

 

 

 

810

 

Total allowances - accounts receivable

 

$

888

 

 

$

862

 

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 48.3% and 71.0% of the non-U.S. revenue for the three months ended September 30, 2022 and 2021, respectively, were invoiced in Euros. Approximately 70.5% and 71.9% of the non-U.S. revenue for the nine months ended September 30, 2022 and 2021, 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, 2022 and 2021, respectively, is as follows:

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

U.S. revenue

 

$

90,311

 

 

$

71,271

 

 

$

208,690

 

 

$

222,223

 

Non-U.S. revenue

 

 

15,078

 

 

 

21,834

 

 

 

80,460

 

 

 

59,377

 

Total revenue

 

$

105,389

 

 

$

93,105

 

 

$

289,150

 

 

$

281,600

 

 

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

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Raw materials and work-in-progress

 

$

26,255

 

 

$

21,909

 

Finished goods

 

 

11,697

 

 

 

12,116

 

Less: reserves

 

 

(2,227

)

 

 

(2,152

)

Inventories, net

 

$

35,725

 

 

$

31,873

 

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 nine months ended September 30, 2022 and 2021, respectively.

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Rental equipment

 

$

2,795

 

 

$

2,315

 

 

$

8,153

 

 

$

6,257

 

Other property and equipment

 

 

983

 

 

 

1,052

 

 

 

2,936

 

 

 

2,982

 

Total depreciation and amortization

 

$

3,778

 

 

$

3,367

 

 

$

11,089

 

 

$

9,239

 

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 September 30, 2022 and December 31, 2021, respectively.

 

 

 

September 30,

 

 

December 31,

 

Property and equipment

 

2022

 

 

2021

 

Rental equipment, net of allowances of $2,085 and $1,290, respectively

 

$

58,698

 

 

$

59,073

 

Other property and equipment

 

 

32,753

 

 

 

31,522

 

Property and equipment

 

 

91,451

 

 

 

90,595

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

Rental equipment

 

 

31,309

 

 

 

33,355

 

Other property and equipment

 

 

19,510

 

 

 

18,314

 

Accumulated depreciation

 

 

50,819

 

 

 

51,669

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

Rental equipment, net of allowances of $2,085 and $1,290, respectively

 

 

27,389

 

 

 

25,718

 

Other property and equipment

 

 

13,243

 

 

 

13,208

 

Property and equipment, net

 

$

40,632

 

 

$

38,926

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 were as follows:

 

Balance as of December 31, 2021

 

$

32,979

 

Translation adjustment

 

 

(305

)

Balance as of September 30, 2022

 

$

32,674

 

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

 

 

 

 

September 30, 2022

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

24,281

 

 

$

53,419

 

Licenses

 

10

 

 

185

 

 

 

182

 

 

 

3

 

Patents and websites

 

5

 

 

4,519

 

 

 

4,293

 

 

 

226

 

Customer relationships

 

4

 

 

1,175

 

 

 

1,175

 

 

 

 

Commercials

 

2-3

 

 

318

 

 

 

266

 

 

 

52

 

Total

 

 

 

$

83,897

 

 

$

30,197

 

 

$

53,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

December 31, 2021

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

18,454

 

 

$

59,246

 

Licenses

 

10

 

 

185

 

 

 

180

 

 

 

5

 

Patents and websites

 

5

 

 

4,519

 

 

 

3,746

 

 

 

773

 

Customer relationships

 

4

 

 

1,361

 

 

 

1,361

 

 

 

 

Commercials

 

2-3

 

 

799

 

 

 

676

 

 

 

123

 

Total

 

 

 

$

84,564

 

 

$

24,417

 

 

$

60,147

 

Schedule of Annual Estimated Amortization Expense

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

 

 

 

September 30,

 

 

 

2022

 

Remaining 3 months of 2022

 

$

2,023

 

2023

 

 

7,878

 

2024

 

 

7,839

 

2025

 

 

7,790

 

2026

 

 

7,774

 

Thereafter

 

 

20,396

 

 

 

$

53,700

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2022 and December 31, 2021 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Accounts payable

 

$

21,470

 

 

$

10,258

 

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

 

 

7,158

 

 

 

12,488

 

Accrued purchasing card liability

 

 

3,338

 

 

 

1,488

 

Accrued franchise, sales and use taxes

 

 

500

 

 

 

486

 

Other accrued expenses

 

 

1,046

 

 

 

969

 

Accounts payable and accrued expenses

 

$

33,512

 

 

$

25,689

 

 

Schedule of Accrued Payroll

Accrued payroll as of September 30, 2022 and December 31, 2021 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Accrued bonuses

 

$

3,665

 

 

$

8,274

 

Accrued wages and other payroll related items

 

 

4,741

 

 

 

5,469

 

Accrued vacation

 

 

3,200

 

 

 

2,894

 

Accrued employee stock purchase plan deductions

 

 

183

 

 

 

670

 

Accrued payroll

 

$

11,789

 

 

$

17,307