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

Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

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