Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.3.1.900
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Short-term Investments

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 short-term investments:

 

 

 

As of December 31, 2015

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Cash

 

 

Short-

 

 

 

Adjusted

 

 

unrealized

 

 

 

 

 

 

and cash

 

 

term

 

(amounts in thousands)

 

cost

 

 

losses

 

 

Fair value

 

 

equivalents

 

 

investments

 

Cash

 

$

52,164

 

 

$

 

 

$

52,164

 

 

$

52,164

 

 

$

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market accounts

 

 

6,725

 

 

 

 

 

 

6,725

 

 

 

6,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

24,047

 

 

 

(37

)

 

 

24,010

 

 

 

7,217

 

 

 

16,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

82,936

 

 

$

(37

)

 

$

82,899

 

 

$

66,106

 

 

$

16,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2014

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Cash

 

 

Short-

 

 

 

Adjusted

 

 

unrealized

 

 

 

 

 

 

and cash

 

 

term

 

(amounts in thousands)

 

cost

 

 

losses

 

 

Fair value

 

 

equivalents

 

 

investments

 

Cash

 

$

2,941

 

 

$

 

 

$

2,941

 

 

$

2,941

 

 

$

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market accounts

 

 

42,262

 

 

 

 

 

 

42,262

 

 

 

42,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

11,633

 

 

 

 

 

 

11,633

 

 

 

11,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

56,836

 

 

$

 

 

$

56,836

 

 

$

56,836

 

 

$

 

 

Summary of Fair Value Measurements using Significant Level 3 Inputs

The following table summarizes the fair value measurements using significant Level 3 inputs, and changes therein, for the years ended December 31, 2015 and 2014:

 

(amounts in thousands)

Warrant

liability

 

Balance as of December 31, 2013

$

260

 

Fair value of preferred stock warrants exercised

 

(148

)

Change in fair value

 

(36

)

Reclassification of liability to additional paid-in capital

 

(76

)

Balance as of December 31, 2014

 

 

Balance as of December 31, 2015

$

 

 

Summary of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax

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

 

 

Unrealized

 

 

 

 

 

 

Accumulated

 

 

losses on

 

 

Unrealized

 

 

other

 

 

available-for-

 

 

losses on cash

 

 

comprehensive

 

(amounts in thousands)

sale investments

 

 

flow hedges

 

 

loss

 

Balance as of December 31, 2014

$

 

 

$

 

 

$

 

Other comprehensive loss

 

(23

)

 

 

(14

)

 

 

(37

)

Balance as of December 31, 2015

$

(23

)

 

$

(14

)

 

$

(37

)

 

Summary of Cash, Cash Equivalents and Short-term Investments

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

 

 

 

 

 

 

 

 

 

(amounts in thousands)

 

December 31,

 

Cash and cash equivalents

 

2015

 

 

2014

 

Cash

 

$

52,164

 

 

$

2,941

 

Money market accounts

 

 

6,725

 

 

 

42,262

 

Certificates of deposit

 

 

7,217

 

 

 

11,633

 

Total cash and cash equivalents

 

$

66,106

 

 

$

56,836

 

Short-term investments

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

16,793

 

 

$

 

Total short-term investments

 

$

16,793

 

 

$

 

 

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 53.6% of the non-U.S. revenue for 2015 was invoiced in Euros. The Company did not begin to invoice in Euros until the first quarter of 2015. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the years ended December 31, 2015, 2014 and 2013, respectively, is as follows:

 

 

Years ended December 31,

 

(amounts in thousands)

2015

 

 

2014

 

 

2013

 

U.S. revenue

$

123,660

 

 

$

88,094

 

 

$

58,677

 

Non-U.S. revenue

 

35,345

 

 

 

24,443

 

 

 

16,766

 

Total revenue

$

159,005

 

 

$

112,537

 

 

$

75,443

 

 

Schedule of Inventories

Inventories consist of the following:

 

 

December 31,

 

(amounts in thousands)

2015

 

 

2014

 

Raw materials and work-in-progress

$

7,097

 

 

$

6,774

 

Finished goods

 

1,679

 

 

 

983

 

Less: reserves

 

(128

)

 

 

(141

)

Inventories

$

8,648

 

 

$

7,616

 

 

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 is summarized below for the years ended December 31, 2015, 2014 and 2013, respectively.

 

 

Years ended December 31,

 

(amounts in thousands)

2015

 

 

2014

 

 

2013

 

Rental equipment

$

11,965

 

 

$

10,339

 

 

$

7,132

 

Other property and equipment

 

1,961

 

 

 

1,591

 

 

 

1,209

 

Total depreciation and amortization

$

13,926

 

 

$

11,930

 

 

$

8,341

 

 

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 the years ended December 31, 2015 and 2014, respectively.

 

(amounts in thousands)

Years ended December 31,

 

Property and equipment

2015

 

 

2014

 

Rental equipment, net of allowance

$

54,677

 

 

$

48,359

 

Other property and equipment

 

11,596

 

 

 

9,408

 

Property and equipment

 

66,273

 

 

 

57,767

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

Rental equipment

 

28,894

 

 

 

21,084

 

Other property and equipment

 

6,699

 

 

 

4,756

 

Accumulated depreciation

 

35,593

 

 

 

25,840

 

 

 

 

 

 

 

 

 

Net property and equipment

 

 

 

 

 

 

 

Rental equipment

 

25,783

 

 

 

27,275

 

Other property and equipment

 

4,897

 

 

 

4,652

 

Property and equipment, net

$

30,680

 

 

$

31,927

 

 

Computation of Earnings Per Share

The computation of EPS is as follows:

 

 

Years ended December 31,

 

(amounts in thousands, except share and per share amounts)

2015

 

 

2014

 

 

2013

 

Numerator—basic:

 

 

 

 

 

 

 

 

 

 

 

Net income

$

11,585

 

 

$

6,826

 

 

$

25,435

 

Less deemed dividend on redeemable convertible preferred stock

 

 

 

 

(987

)

 

 

(7,278

)

Net income before preferred rights dividend

 

11,585

 

 

 

5,839

 

 

 

18,157

 

Less preferred rights dividend

 

 

 

 

 

 

 

(7,165

)

Less undistributed earnings to preferred stock - basic

 

 

 

 

(567

)

 

 

(10,781

)

Net income attributable to common stockholders - basic

$

11,585

 

 

$

5,272

 

 

$

211

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator—diluted:

 

 

 

 

 

 

 

 

 

 

 

Net income

$

11,585

 

 

$

6,826

 

 

$

25,435

 

Less deemed dividend on redeemable convertible preferred stock

 

 

 

 

(987

)

 

 

(7,278

)

Net income before preferred rights dividend

 

11,585

 

 

 

5,839

 

 

 

18,157

 

Less preferred rights dividend

 

 

 

 

 

 

 

(7,165

)

Less undistributed earnings to preferred stock - diluted

 

 

 

 

(514

)

 

 

(9,625

)

Net income attributable to common stockholders - diluted

$

11,585

 

 

$

5,325

 

 

$

1,367

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares - basic common stock

 

19,398,991

 

 

 

16,182,569

 

 

 

276,535

 

Weighted-average common shares - diluted common stock

 

20,708,170

 

 

 

18,037,498

 

 

 

2,008,156

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - basic common stock

$

0.60

 

 

$

0.33

 

 

$

0.76

 

Net income per share - diluted common stock

$

0.56

 

 

$

0.30

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator calculation from basic to diluted:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares - basic common stock

 

19,398,991

 

 

 

16,182,569

 

 

 

276,535

 

Warrants

 

10,579

 

 

 

128,016

 

 

 

219,766

 

Stock options

 

1,298,600

 

 

 

1,726,913

 

 

 

1,511,855

 

Weighted-average common shares - diluted common stock

 

20,708,170

 

 

 

18,037,498

 

 

 

2,008,156

 

Shares excluded from diluted weighted-average shares:

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

744,301

 

 

 

546,142

 

 

 

 

Shares excluded from diluted weighted-average shares:

 

744,301

 

 

 

546,142