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)

3 Months Ended

Mar. 31, 2016

Balance Sheet Related Disclosures [Abstract]

Summary of Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments consist of the following:

	March 31,		December 31,
Cash and cash equivalents	2016		2015
Cash	$	55,309	$	52,164
Money market accounts		6,765		6,725
Certificates of deposit		10,326		7,217
Total cash and cash equivalents	$	72,400	$	66,106
Short-term investments
Certificates of deposit	$	13,694	$	16,793
Total short-term investments	$	13,694	$	16,793

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of March 31, 2016 and December 31, 2015 were as follows:

	March 31,		December 31,
Gross accounts receivable	2016		2015
Medicare	$	11,195	$	10,510
Medicaid/other government		683		683
Private insurance		4,970		4,852
Patient responsibility		3,928		3,603
Business-to-business & other receivables		10,495		6,369
Total gross accounts receivable	$	31,271	$	26,017

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, 2016 and December 31, 2015 were as follows:

	March 31,		December 31,
Net accounts receivable	2016		2015
Medicare	$	7,432	$	7,441
Medicaid/other government		503		550
Private insurance		3,907		3,895
Patient responsibility		2,211		2,060
Business-to-business & other receivables		9,695		5,926
Total net accounts receivable	$	23,748	$	19,872

Schedule of Allowances for Accounts Receivable

The following tables set forth the allowances for accounts receivable as of March 31, 2016 and December 31, 2015:

	March 31,		December 31,
Allowances - accounts receivable	2016		2015
Doubtful accounts	$	2,021	$	1,664
Rental revenue adjustments		4,761		4,115
Sales returns		741		366
Total allowances - accounts receivable	$	7,523	$	6,145

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 68.3% and 22.0% of the non-U.S. revenue for the three months ended March 31, 2016 and March 31, 2015, respectively, was 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, 2016 and March 31, 2015 is as follows:

	Three months ended March 31,
	2016		2015
U.S. revenue	$	33,024	$	25,354
Non-U.S. revenue		9,965		8,398
Total revenue	$	42,989	$	33,752

Schedule of Inventories

Inventories consist of the following:

	March 31,			December 31,
	2016			2015
Raw materials and work-in-progress	$	8,785		$	7,097
Finished goods		1,655			1,679
Less: reserves		(165	)		(128	)
Inventories	$	10,275		$	8,648

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		2-5 years
Computer equipment and software		2-3 years
Furniture and equipment		3-5 years
Leasehold improvements		Shorter of 3-10 years or remaining life of underlying lease

Summary of Depreciation and Amortization Expense of Property and Equipment and Rental Equipment

Depreciation and amortization expense related to property and equipment and rental equipment are summarized below for the three months ended March 31, 2016 and March 31, 2015, respectively.

	Three months ended March 31,
	2016		2015
Rental equipment	$	2,947	$	2,956
Other property and equipment		478		467
Total depreciation and amortization	$	3,425	$	3,423

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 for March 31, 2016 and December 31, 2015, respectively.

	March 31,		December 31,
Property and equipment	2016		2015
Rental equipment, net of allowances of $850 and $850	$	54,876	$	54,677
Other property and equipment		12,310		11,596
Property and equipment		67,186		66,273

Accumulated depreciation
Rental equipment		30,365		28,894
Other property and equipment		7,177		6,699
Accumulated depreciation		37,542		35,593

Net property and equipment
Rental equipment		24,511		25,783
Other property and equipment		5,133		4,897
Property and equipment, net	$	29,644	$	30,680

Summary of Intangible Assets

The following tables represent the changes in net carrying values of the intangibles as of the respective dates:

	Average
	estimated	Gross
	useful lives	carrying		Accumulated
March 31, 2016	(in years)	amount		amortization		Net amount
Licenses	10	$	185	$	104	$	81
Patents and websites	5		873		787		86
Commercials	2		174		135		39
Total		$	1,232	$	1,026	$	206


	Average
	estimated	Gross
	useful lives	carrying		Accumulated
December 31, 2015	(in years)	amount		amortization		Net amount
Licenses	10	$	185	$	100	$	85
Patents and websites	5		873		779		94
Commercials	2		174		124		50
Total		$	1,232	$	1,003	$	229

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of March 31, 2016 and December 31, 2015 consisted of the following:

	March 31,		December 31,
	2016		2015
Accounts payable	$	8,504	$	7,448
Accrued inventory (in-transit and unvouchered receipts) and trade payables		5,398		3,548
Accrued purchasing card liability		2,754		1,581
Accrued franchise and use taxes		49		45
Other accrued expenses		515		245
Accounts payable and accrued expenses	$	17,220	$	12,867