Inogen, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Sales Revenue Disaggregated by Sales Channel and Geographic Region

The following table sets forth the Company’s sales revenue disaggregated by sales channel and geographic region:


	Years ended December 31,
Revenue by region and category	2024		2023		2022
Business-to-business domestic sales	$	83,555	$	66,196	$	86,049
Business-to-business international sales		117,207		89,401		101,163
Direct-to-consumer domestic sales		77,994		96,010		133,337
Total sales revenue	$	278,756	$	251,607	$	320,549

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 December 31, 2024
			Gross				Cash
	Adjusted		unrealized				and cash		Restricted
	cost		gains		Fair value		equivalents		cash
Cash	$	23,053	$	—	$	23,053	$	23,053	$	—
Level 1:
Money market accounts		72,129		—		72,129		68,509		3,620

Level 2:
Institutional Insured Liquidity Deposit Savings		22,233		—		22,233		22,233		—
Total	$	117,415	$	—	$	117,415	$	113,795	$	3,620

	As of December 31, 2023
			Gross				Cash
	Adjusted		unrealized				and cash		Marketable
	cost		gains		Fair value		equivalents		securities
Cash	$	12,611	$	—	$	12,611	$	12,611	$	—
Level 1:
Money market accounts		72,368		—		72,368		72,368		—

Level 2:
Corporate bonds		2,979		—		2,979		—		2,979
U.S. Treasury securities		19,252		136		19,388		19,388		—
Institutional Insured Liquidity Deposit Savings		21,125		—		21,125		21,125		—
Total	$	128,335	$	136	$	128,471	$	125,492	$	2,979

Summary of Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows:


	As of December 31, 2024
	Foreign			Unrealized			Accumulated
	currency			losses			other
	translation			on marketable			comprehensive
	adjustments			securities			income (loss)
Balance as of December 31, 2023	$	1,089		$	136		$	1,225
Other comprehensive loss		(2,590	)		(136	)		(2,726	)
Balance as of December 31, 2024	$	(1,501	)	$	—		$	(1,501	)

	As of December 31, 2023
	Foreign			Unrealized			Accumulated
	currency			gains			other
	translation			on marketable			comprehensive
	adjustments			securities			income (loss)
Balance as of December 31, 2022	$	(269	)	$	26		$	(243	)
Other comprehensive income		1,358			110			1,468
Balance as of December 31, 2023	$	1,089		$	136		$	1,225

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

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


Balance as of December 31, 2022	$	—
Addition for acquisition		3,178
Change in fair value		6,822
Balance as of December 31, 2023	$	10,000
Change in fair value		3,000
Balance as of December 31, 2024	$	13,000

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 December 31, 2024 and December 31, 2023 were as follows:


	As of					As of
	December 31, 2024					December 31, 2023
Net accounts receivable	$		%			$		%
Rental (1)	$	4,863		16.4	%	$	6,401		15.2	%
Business-to-business and other receivables (2)		24,700		83.6	%		35,840		84.8	%
Total net accounts receivable	$	29,563		100.0	%	$	42,241		100.0	%

(1)

Rental includes Medicare, Medicaid/other government, private insurance and patient pay.

(2)

One customer represented more than 10% of the Company’s net accounts receivable balance with a net accounts receivable balance of $3,288 as of December 31, 2024. Two customers each represented more than 10% of the Company’s net accounts receivable balance with net accounts receivable balances of $8,639 and $4,994, respectively, as of December 31, 2023.

Schedule of Percentage Breakdown of Net Accounts Receivable by Aging Category by Invoice Due Date

The following table sets forth the percentage breakdown of the Company’s net accounts receivable by aging category and invoice due date as of December 31, 2024 and December 31, 2023.


	As of					As of
	December 31, 2024					December 31, 2023
Net accounts receivable by aging category	$		%			$		%
Held and Unbilled	$	491		1.7	%	$	1,388		3.3	%
Aged 0-90 days		27,973		94.6	%		32,020		75.8	%
Aged 91-180 days		633		2.1	%		8,222		19.5	%
Aged 181-365 days		466		1.6	%		574		1.4	%
Aged over 365 days		—		0.0	%		37		0.0	%
Total net accounts receivable	$	29,563		100.0	%	$	42,241		100.0	%

Schedule of Allowances for Accounts Receivable

The following table sets forth the accounts receivable allowances as of December 31, 2024 and December 31, 2023:


	As of					As of
	December 31, 2024					December 31, 2023
Allowances - accounts receivable	$		%			$		%
Doubtful accounts	$	458		1.5	%	$	2,341		5.2	%
Sales returns		413		1.4	%		479		1.1	%
Total allowances - accounts receivable	$	871		2.9	%	$	2,820		6.3	%

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 77.2%, 77.7% and 70.9% of the non-U.S. revenue for the years ended December 31, 2024, 2023 and 2022, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the years ended December 31, 2024, 2023 and 2022, respectively, is as follows:


	Years ended December 31,
	2024		2023		2022
U.S. revenue	$	218,498	$	226,259	$	276,078
Non-U.S. revenue		117,207		89,401		101,163
Total revenue	$	335,705	$	315,660	$	377,241

Schedule of Inventories

Inventories that are considered current consist of the following:


	December 31,
	2024			2023
Raw materials and work-in-progress	$	19,224		$	18,036
Finished goods		7,633			6,871
Less: reserves		(2,045	)		(3,067	)
Inventories, net	$	24,812		$	21,840

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		1.5-8 years
Manufacturing equipment and tooling		3-5 years
Computer equipment and software		2-3 years
Furniture and equipment		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 years ended December 31, 2024, 2023 and 2022, respectively.


	Years ended December 31,
	2024		2023		2022
Rental equipment	$	12,592	$	12,893	$	11,103
Other property and equipment		4,082		4,057		3,942
Total depreciation and amortization	$	16,674	$	16,950	$	15,045

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 December 31, 2024 and 2023, respectively.


	December 31,
Property and equipment	2024		2023
Rental equipment, net of allowances of $3,744 and $2,606, respectively	$	64,012	$	67,804
Other property and equipment		25,123		30,357
Property and equipment		89,135		98,161

Accumulated depreciation
Rental equipment		32,294		31,023
Other property and equipment		12,441		16,822
Accumulated depreciation		44,735		47,845

Property and equipment, net
Rental equipment, net of allowances of $3,744 and $2,606, respectively		31,718		36,781
Other property and equipment		12,682		13,535
Property and equipment, net	$	44,400	$	50,316

Computation of Earnings Per Share

The computation of EPS is as follows:


	Years ended December 31,
	2024			2023			2022
Numerator—basic and diluted:
Net loss	$	(35,888	)	$	(102,449	)	$	(83,772	)

Denominator:
Weighted average shares of common stock - basic common stock (1)		23,654,395			23,176,098			22,852,571
Weighted average shares of common stock - diluted common stock		23,654,395			23,176,098			22,852,571

Net loss per share - basic common stock	$	(1.52	)	$	(4.42	)	$	(3.67	)
Net loss per share - diluted common stock (2)	$	(1.52	)	$	(4.42	)	$	(3.67	)

Denominator calculation from basic to diluted:
Weighted average shares of common stock - basic common stock (1)		23,654,395			23,176,098			22,852,571
Stock options and other dilutive awards		557,197			160,682			115,155
Weighted average shares of common stock - diluted common stock		24,211,592			23,336,780			22,967,726

Shares excluded from diluted weighted average shares:
Stock options		5,000			104,681			329,586
Restricted stock units and restricted stock awards		375,486			926,859			528,398
Shares excluded from diluted weighted average shares		380,486			1,031,540			857,984

(1)

Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common stock during the vesting period; however, such dividends are not paid until the restrictions lapse.

(2)

Due to net losses for the years ended December 31, 2024, 2023 and 2022, diluted loss per share is the same as basic loss per share.