Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.8.0.1
Balance Sheet Components (Tables)
3 Months Ended
Mar. 31, 2018
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

 

2018

 

 

2017

 

Cash

 

$

43,188

 

 

$

46,237

 

Money market accounts

 

 

107,906

 

 

 

93,430

 

Certificates of deposit

 

 

3,190

 

 

 

490

 

Corporate bonds

 

 

 

 

 

2,796

 

Total cash and cash equivalents

 

$

154,284

 

 

$

142,953

 

Marketable securities

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

8,461

 

 

$

10,516

 

Corporate bonds

 

 

22,043

 

 

 

17,972

 

Agency mortgage-backed securities

 

 

1,005

 

 

 

2,004

 

U.S. Treasury securities

 

 

2,503

 

 

 

499

 

Total marketable securities

 

$

34,012

 

 

$

30,991

 

 

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of March 31, 2018 and December 31, 2017 were as follows:

 

 

 

March 31,

 

 

December 31,

 

Gross accounts receivable

 

2018

 

 

2017

 

Rental (1)

 

$

6,143

 

 

$

6,236

 

Business-to-business & other receivables (2)

 

 

32,945

 

 

 

28,474

 

Total gross accounts receivable

 

$

39,088

 

 

$

34,710

 

(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 $9,461 and $10,394 as of March 31, 2018 and December 31, 2017, 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 $18,000 in coverage as of March 31, 2018 and allocated up to $12,000 in coverage as of December 31, 2017 for this customer with a $1,000 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, 2018 and December 31, 2017 were as follows:

 

 

 

March 31,

 

 

December 31,

 

Net accounts receivable

 

2018

 

 

2017

 

Rental (1)

 

$

3,695

 

 

$

4,212

 

Business-to-business & other receivables (2)

 

 

31,394

 

 

 

27,232

 

Total net accounts receivable

 

$

35,089

 

 

$

31,444

 

 

(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 $9,461 and $10,394 as of March 31, 2018 and December 31, 2017, 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 $18,000 in coverage as of March 31, 2018 and allocated up to $12,000 in coverage as of December 31, 2017 for this customer with a $1,000 deductible and 10% retention.

 

Schedule of Allowances for Accounts Receivable

The following tables set forth the accounts receivable allowances as of March 31, 2018 and December 31, 2017:

 

 

 

March 31,

 

 

December 31,

 

Allowances - accounts receivable

 

2018

 

 

2017

 

Doubtful accounts

 

$

1,589

 

 

$

1,415

 

Rental revenue adjustments

 

 

1,013

 

 

 

947

 

Sales returns

 

 

1,397

 

 

 

904

 

Total allowances - accounts receivable

 

$

3,999

 

 

$

3,266

 

 

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 76.9% and 72.2% of the non-U.S. revenue for the three months ended March 31, 2018 and March 31, 2017, 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, 2018 and March 31, 2017 is as follows:

 

 

 

Three months ended March 31,

 

 

 

2018

 

 

2017

 

U.S. revenue

 

$

62,145

 

 

$

41,077

 

Non-U.S. revenue

 

 

16,906

 

 

 

11,423

 

Total revenue

 

$

79,051

 

 

$

52,500

 

 

 

Schedule of Inventories

Inventories that are considered current consist of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Raw materials and work-in-progress

 

$

18,814

 

 

$

16,324

 

Finished goods

 

 

4,640

 

 

 

2,917

 

Less: reserves

 

 

(489

)

 

 

(399

)

Inventories

 

$

22,965

 

 

$

18,842

 

 

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

 

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, 2018 and March 31, 2017, respectively.

 

 

 

Three months ended March 31,

 

 

 

2018

 

 

2017

 

Rental equipment

 

$

2,165

 

 

$

2,689

 

Other property and equipment

 

 

530

 

 

 

488

 

Total depreciation and amortization

 

$

2,695

 

 

$

3,177

 

 

Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation

Property and equipment and rental equipment with associated accumulated depreciation are summarized below for March 31, 2018 and December 31, 2017, respectively.

 

 

 

March 31,

 

 

December 31,

 

Property and equipment

 

2018

 

 

2017

 

Rental equipment, net of allowances of $754 and $754, respectively

 

$

47,420

 

 

$

49,349

 

Other property and equipment

 

 

17,387

 

 

 

15,219

 

Property and equipment

 

 

64,807

 

 

 

64,568

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Rental equipment

 

 

33,671

 

 

 

34,754

 

Other property and equipment

 

 

10,238

 

 

 

9,711

 

Accumulated depreciation

 

 

43,909

 

 

 

44,465

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

Rental equipment, net of allowances of $754 and $754, respectively

 

 

13,749

 

 

 

14,595

 

Other property and equipment

 

 

7,149

 

 

 

5,508

 

Property and equipment, net

 

$

20,898

 

 

$

20,103

 

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2018 were as follows:

 

Balance as of December 31, 2017

 

$

2,363

 

Translation adjustment

 

 

67

 

Balance as of March 31, 2018

 

$

2,430

 

 

Summary of Intangible Assets

The following tables represent the net carrying values of intangible assets as of the respective dates:

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

March 31, 2018

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

142

 

 

$

43

 

Patents and websites

 

5

 

 

4,173

 

 

 

1,131

 

 

 

3,042

 

Customer relationships

 

4

 

 

1,479

 

 

 

339

 

 

 

1,140

 

Non-compete agreement

 

3

 

 

246

 

 

 

75

 

 

 

171

 

Commercials

 

2-3

 

 

303

 

 

 

243

 

 

 

60

 

Total

 

 

 

$

6,386

 

 

$

1,930

 

 

$

4,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

December 31, 2017

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

137

 

 

$

48

 

Patents and websites

 

5

 

 

4,173

 

 

 

959

 

 

 

3,214

 

Customer relationships

 

4

 

 

1,437

 

 

 

240

 

 

 

1,197

 

Non-compete agreement

 

3

 

 

240

 

 

 

52

 

 

 

188

 

Commercials

 

2-3

 

 

303

 

 

 

233

 

 

 

70

 

Total

 

 

 

$

6,338

 

 

$

1,621

 

 

$

4,717

 

 

Schedule of Annual Estimated Amortization Expense for Intangibles

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

 

 

 

March 31, 2018

 

Remaining 9 months of 2018

 

$

906

 

2019

 

 

1,147

 

2020

 

 

1,069

 

2021

 

 

790

 

2022

 

 

544

 

Thereafter

 

 

 

 

 

$

4,456

 

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of March 31, 2018 and December 31, 2017 consisted of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Accounts payable

 

$

13,589

 

 

$

9,541

 

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

 

 

7,644

 

 

 

7,252

 

Accrued purchasing card liability

 

 

2,089

 

 

 

2,381

 

Accrued franchise, sales and use taxes

 

 

498

 

 

 

479

 

Other accrued expenses

 

 

940

 

 

 

973

 

Accounts payable and accrued expenses

 

$

24,760

 

 

$

20,626

 

 

Schedule of Accrued Payroll

Accrued payroll as of March 31, 2018 and December 31, 2017 consisted of the following:

 

 

 

March 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Accrued bonuses

 

$

1,306

 

 

$

3,086

 

Accrued wages and other payroll related items

 

 

3,803

 

 

 

2,453

 

Accrued vacation

 

 

1,498

 

 

 

1,338

 

Accrued payroll

 

$

6,607

 

 

$

6,877