Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.8.0.1
Balance Sheet Components (Tables)
9 Months Ended
Sep. 30, 2017
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

 

2017

 

 

2016

 

Cash

 

$

50,670

 

 

$

48,533

 

Money market accounts

 

 

77,020

 

 

 

39,277

 

Certificates of deposit

 

 

 

 

 

5,041

 

Agency mortgage-backed securities

 

 

2,003

 

 

 

 

Total cash and cash equivalents

 

$

129,693

 

 

$

92,851

 

Marketable securities

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

14,299

 

 

$

10,855

 

Corporate bonds

 

 

18,096

 

 

 

10,178

 

Agency mortgage-backed securities

 

 

1,000

 

 

 

 

Total marketable securities

 

$

33,395

 

 

$

21,033

 

 

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of September 30, 2017 and December 31, 2016 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Gross accounts receivable

 

2017

 

 

2016

 

Medicare

 

$

4,168

 

 

$

12,500

 

Medicaid/other government

 

 

400

 

 

 

617

 

Private insurance

 

 

2,034

 

 

 

3,475

 

Patient responsibility

 

 

2,781

 

 

 

3,227

 

Business-to-business & other receivables (1)

 

 

29,651

 

 

 

19,541

 

Total gross accounts receivable

 

$

39,034

 

 

$

39,360

 

1.

Business-to-business receivables included one customer with an accounts receivable balance of $11,790 and $9,791 as of September 30, 2017 and December 31, 2016, respectively. This customer received extended payment terms through a direct financing plan offered.  The Company also has a credit insurance policy in place, which allocates up to $12,000 in coverage as of September 30, 2017 and allocated up to $9,000 in coverage as of December 31, 2016 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 September 30, 2017 and December 31, 2016 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Net accounts receivable

 

2017

 

 

2016

 

Medicare

 

$

2,877

 

 

$

7,208

 

Medicaid/other government

 

 

280

 

 

 

410

 

Private insurance

 

 

1,545

 

 

 

1,832

 

Patient responsibility

 

 

1,351

 

 

 

2,538

 

Business-to-business & other receivables (1)

 

 

28,646

 

 

 

18,840

 

Total net accounts receivable

 

$

34,699

 

 

$

30,828

 

 

(1)

Business-to-business receivables included one customer with an accounts receivable balance of $11,790 and $9,791 as of September 30, 2017 and December 31, 2016, respectively. This customer received extended payment terms through a direct financing plan offered.  The Company also has a credit insurance policy in place, which allocates up to $12,000 in coverage as of September 30, 2017 and allocated up to $9,000 in coverage as of December 31, 2016 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 September 30, 2017 and December 31, 2016:

 

 

 

September 30,

 

 

December 31,

 

Allowances - accounts receivable

 

2017

 

 

2016

 

Doubtful accounts

 

$

1,920

 

 

$

1,869

 

Rental revenue adjustments

 

 

1,593

 

 

 

6,078

 

Sales returns

 

 

822

 

 

 

585

 

Total allowances - accounts receivable

 

$

4,335

 

 

$

8,532

 

 

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% and 72.8% of the non-U.S. revenue for the three months ended September 30, 2017 and September 30, 2016, respectively, were invoiced in Euros. Approximately 75.2% and 70.7% of the non-U.S. revenue for the nine months ended September 30, 2017 and September 30, 2016, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three months and nine months ended September 30, 2017 and September 30, 2016 is as follows:

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

U.S. revenue

 

$

51,844

 

 

$

39,470

 

 

$

142,123

 

 

$

113,963

 

Non-U.S. revenue

 

 

17,186

 

 

 

14,952

 

 

 

43,528

 

 

 

38,015

 

Total revenue

 

$

69,030

 

 

$

54,422

 

 

$

185,651

 

 

$

151,978

 

 

 

Schedule of Inventories

Inventories that are considered current consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Raw materials and work-in-progress

 

$

13,945

 

 

$

12,382

 

Finished goods

 

 

3,209

 

 

 

2,152

 

Less: reserves

 

 

(299

)

 

 

(191

)

Inventories

 

$

16,855

 

 

$

14,343

 

 

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 Property and Equipment and Rental Equipment

Depreciation and amortization expense related to property and equipment and rental equipment are summarized below for the three and nine months ended September 30, 2017 and September 30, 2016, respectively.

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Rental equipment

 

$

2,366

 

 

$

2,878

 

 

$

7,577

 

 

$

8,733

 

Other property and equipment

 

 

469

 

 

 

510

 

 

 

1,427

 

 

 

1,484

 

Total depreciation and amortization

 

$

2,835

 

 

$

3,388

 

 

$

9,004

 

 

$

10,217

 

 

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 September 30, 2017 and December 31, 2016, respectively.

 

 

 

September 30,

 

 

December 31,

 

Property and equipment

 

2017

 

 

2016

 

Rental equipment, net of allowances of $808 and $725, respectively

 

$

51,010

 

 

$

54,582

 

Other property and equipment

 

 

14,729

 

 

 

12,633

 

Property and equipment

 

 

65,739

 

 

 

67,215

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Rental equipment

 

 

35,323

 

 

 

33,937

 

Other property and equipment

 

 

9,465

 

 

 

8,079

 

Accumulated depreciation

 

 

44,788

 

 

 

42,016

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

Rental equipment, net of allowances of $808 and $725, respectively

 

 

15,687

 

 

 

20,645

 

Other property and equipment

 

 

5,264

 

 

 

4,554

 

Property and equipment, net

 

$

20,951

 

 

$

25,199

 

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows:

 

Balance as of December 31, 2016

 

$

 

Acquisition

 

 

2,154

 

Translation adjustment

 

 

176

 

Balance as of September 30, 2017

 

$

2,330

 

 

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

 

 

 

 

 

September 30, 2017

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

132

 

 

$

53

 

Patents and websites

 

5

 

 

873

 

 

 

832

 

 

 

41

 

Customer relationships

 

4

 

 

1,417

 

 

 

147

 

 

 

1,270

 

Non-compete agreement

 

3

 

 

236

 

 

 

33

 

 

 

203

 

Commercials

 

2-3

 

 

303

 

 

 

220

 

 

 

83

 

Total

 

 

 

$

3,014

 

 

$

1,364

 

 

$

1,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

December 31, 2016

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Licenses

 

10

 

$

185

 

 

$

118

 

 

$

67

 

Patents and websites

 

5

 

 

873

 

 

 

810

 

 

 

63

 

Commercials

 

2-3

 

 

287

 

 

 

176

 

 

 

111

 

Total

 

 

 

$

1,345

 

 

$

1,104

 

 

$

241

 

 

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:

 

 

 

September 30, 2017

 

Remaining 3 months of 2017

 

$

133

 

2018

 

 

526

 

2019

 

 

472

 

2020

 

 

390

 

2021

 

 

125

 

Thereafter

 

 

4

 

 

 

$

1,650

 

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2017 and December 31, 2016 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Accounts payable

 

$

11,033

 

 

$

5,738

 

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

 

 

6,999

 

 

 

4,290

 

Accrued purchasing card liability

 

 

2,610

 

 

 

1,760

 

Accrued franchise, sales and use taxes

 

 

582

 

 

 

281

 

Other accrued expenses

 

 

1,143

 

 

 

726

 

Accounts payable and accrued expenses

 

$

22,367

 

 

$

12,795