Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Components (Tables)

v3.20.2
Balance Sheet Components (Tables)
9 Months Ended
Sep. 30, 2020
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

 

2020

 

 

2019

 

Cash

 

$

46,137

 

 

$

51,560

 

Money market accounts

 

 

167,847

 

 

 

146,477

 

Total cash and cash equivalents

 

$

213,984

 

 

$

198,037

 

Marketable securities

 

 

 

 

 

 

 

 

Corporate bonds

 

$

6,525

 

 

$

2,013

 

U.S. Treasury securities

 

 

 

 

 

9,044

 

Total marketable securities

 

$

6,525

 

 

$

11,057

 

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of September 30, 2020 and December 31, 2019 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Gross accounts receivable

 

2020

 

 

2019

 

Rental (1)

 

$

5,081

 

 

$

3,003

 

Business-to-business and other receivables (2)

 

 

28,018

 

 

 

33,101

 

Total gross accounts receivable

 

$

33,099

 

 

$

36,104

 

(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 $5,568 and $10,695 as of September 30, 2020 and December 31, 2019, 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 $10,000 in coverage as of September 30, 2020 and allocated up to $20,000 in coverage as of December 31, 2019 for this customer with a $400 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, 2020 and December 31, 2019 were as follows:

 

 

 

September 30,

 

 

December 31,

 

Net accounts receivable

 

2020

 

 

2019

 

Rental (1)

 

$

4,354

 

 

$

2,464

 

Business-to-business and other receivables (2)

 

 

27,337

 

 

 

31,861

 

Total net accounts receivable

 

$

31,691

 

 

$

34,325

 

 

(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 $5,568 and $10,695 as of September 30, 2020 and December 31, 2019, 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 $10,000 in coverage as of September 30, 2020 and allocated up to $20,000 in coverage as of December 31, 2019 for this customer with a $400 deductible and 10% retention.

 

Schedule of Allowances for Accounts Receivable

The following tables set forth the accounts receivable allowances as of September 30, 2020 and December 31, 2019:

 

 

 

September 30,

 

 

December 31,

 

Allowances - accounts receivable

 

2020

 

 

2019

 

Doubtful accounts

 

$

114

 

 

$

205

 

Rental revenue adjustments

 

 

640

 

 

 

411

 

Sales returns

 

 

654

 

 

 

1,163

 

Total allowances - accounts receivable

 

$

1,408

 

 

$

1,779

 

 

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 83.4% and 70.3% of the non-U.S. revenue for the three months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. Approximately 75.6% and 71.2% of the non-U.S. revenue for the nine months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2020 and September 30, 2019, respectively, is as follows:

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

U.S. revenue

 

$

59,748

 

 

$

73,269

 

 

$

185,971

 

 

$

222,167

 

Non-U.S. revenue

 

 

14,581

 

 

 

18,492

 

 

 

48,538

 

 

 

60,859

 

Total revenue

 

$

74,329

 

 

$

91,761

 

 

$

234,509

 

 

$

283,026

 

 

 

Schedule of Inventories Inventories that are considered current consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Raw materials and work-in-progress

 

$

25,566

 

 

$

31,676

 

Finished goods

 

 

4,560

 

 

 

5,174

 

Less: reserves

 

 

(906

)

 

 

(1,186

)

Inventories, net

 

$

29,220

 

 

$

35,664

 

 

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

 

3-5 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 and nine months ended September 30, 2020 and September 30, 2019, respectively.

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Rental equipment

 

$

1,475

 

 

$

1,482

 

 

$

3,995

 

 

$

4,781

 

Other property and equipment

 

 

982

 

 

 

911

 

 

 

2,912

 

 

 

2,514

 

Total depreciation and amortization

 

$

2,457

 

 

$

2,393

 

 

$

6,907

 

 

$

7,295

 

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 September 30, 2020 and December 31, 2019, respectively.

 

 

 

September 30,

 

 

December 31,

 

Property and equipment

 

2020

 

 

2019

 

Rental equipment, net of allowances of $345 and $395, respectively

 

$

44,464

 

 

$

39,308

 

Other property and equipment

 

 

26,011

 

 

 

24,986

 

Property and equipment

 

 

70,475

 

 

 

64,294

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Rental equipment

 

 

30,625

 

 

 

30,984

 

Other property and equipment

 

 

14,530

 

 

 

13,872

 

Accumulated depreciation

 

 

45,155

 

 

 

44,856

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

Rental equipment, net of allowances of $345 and $395, respectively

 

 

13,839

 

 

 

8,324

 

Other property and equipment

 

 

11,481

 

 

 

11,114

 

Property and equipment, net

 

$

25,320

 

 

$

19,438

 

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2020 were as follows:

 

Balance as of December 31, 2019

 

$

32,954

 

Translation adjustment

 

 

100

 

Balance as of September 30, 2020

 

$

33,054

 

Summary of Changes in Net Carrying Values of Intangible Assets

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

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

September 30, 2020

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

8,741

 

 

$

68,959

 

Licenses

 

10

 

 

185

 

 

 

171

 

 

 

14

 

Patents and websites

 

5

 

 

4,483

 

 

 

2,834

 

 

 

1,649

 

Customer relationships

 

4

 

 

1,407

 

 

 

1,202

 

 

 

205

 

Commercials

 

2-3

 

 

698

 

 

 

516

 

 

 

182

 

Total

 

 

 

$

84,473

 

 

$

13,464

 

 

$

71,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estimated

 

Gross

 

 

 

 

 

 

 

 

 

 

 

useful lives

 

carrying

 

 

Accumulated

 

 

 

 

 

December 31, 2019

 

(in years)

 

amount

 

 

amortization

 

 

Net amount

 

Technology

 

10

 

$

77,700

 

 

$

2,914

 

 

$

74,786

 

Licenses

 

10

 

 

185

 

 

 

165

 

 

 

20

 

Patents and websites

 

5

 

 

4,274

 

 

 

2,308

 

 

 

1,966

 

Customer relationships

 

4

 

 

1,346

 

 

 

897

 

 

 

449

 

Commercials

 

2-3

 

 

777

 

 

 

465

 

 

 

312

 

Total

 

 

 

$

84,282

 

 

$

6,749

 

 

$

77,533

 

Schedule of Annual Estimated Amortization Expense

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

 

 

 

September 30,

 

 

 

2020

 

Remaining 3 months of 2020

 

$

2,257

 

2021

 

 

8,728

 

2022

 

 

8,410

 

2023

 

 

7,835

 

2024

 

 

7,830

 

Thereafter

 

 

35,949

 

 

 

$

71,009

 

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Accounts payable

 

$

9,514

 

 

$

16,399

 

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

 

 

8,812

 

 

 

11,124

 

Accrued purchasing card liability

 

 

2,323

 

 

 

1,675

 

Accrued franchise, sales and use taxes

 

 

429

 

 

 

713

 

Other accrued expenses

 

 

8,122

 

 

 

819

 

Accounts payable and accrued expenses

 

$

29,200

 

 

$

30,730

 

Schedule of Accrued Payroll

Accrued payroll as of September 30, 2020 and December 31, 2019 consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Accrued bonuses

 

$

4

 

 

$

87

 

Accrued wages and other payroll related items

 

 

4,463

 

 

 

3,158

 

Accrued vacation

 

 

2,620

 

 

 

2,169

 

Accrued employee stock purchase plan deductions

 

 

147

 

 

 

801

 

Accrued payroll

 

$

7,234

 

 

$

6,215