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)

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Summary of Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents, and marketable securities consist of the following:

	June 30,		December 31,
Cash and cash equivalents	2021		2020
Cash	$	57,496	$	52,812
Money market accounts		181,354		159,150
Total cash and cash equivalents	$	238,850	$	211,962
Marketable securities
Corporate bonds	$	3,500	$	11,548
U.S. Treasury securities		4,054		4,107
Agency mortgage-backed securities		3,552		3,602
Total marketable securities	$	11,106	$	19,257

Schedule of Gross Accounts Receivable Balance Concentrations by Major Category

Gross accounts receivable balance concentrations by major category as of June 30, 2021 and December 31, 2020 were as follows:

	June 30,		December 31,
Gross accounts receivable	2021		2020
Rental ⁽¹⁾	$	5,333	$	4,190
Business-to-business and other receivables⁽²⁾		33,144		26,717
Total gross accounts receivable	$	38,477	$	30,907

(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 $7,800 and $7,044 as of June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 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 June 30, 2021 and December 31, 2020 were as follows:

	June 30,		December 31,
Net accounts receivable	2021		2020
Rental ⁽¹⁾	$	4,813	$	3,794
Business-to-business and other receivables ⁽²⁾		32,133		25,923
Total net accounts receivable	$	36,946	$	29,717

(1)	Rental includes Medicare, Medicaid/other government, private insurance and patient pay.

(2)

Schedule of Allowances for Accounts Receivable

The following tables set forth the accounts receivable allowances as of June 30, 2021 and December 31, 2020:

	June 30,		December 31,
Allowances - accounts receivable	2021		2020
Doubtful accounts	$	47	$	52
Rental revenue adjustments		520		396
Sales returns		964		742
Total allowances - accounts receivable	$	1,531	$	1,190

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 67.4% and 77.2% of the non-U.S. revenue for the three months ended June 30, 2021 and June 30, 2020, respectively, were invoiced in Euros. Approximately 72.4% and 72.2% of the non-U.S. revenue for the six months ended June 30, 2021 and June 30, 2020, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and six months ended June 30, 2021 and June 30, 2020, respectively, is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
U.S. revenue	$	79,740	$	57,817	$	150,952	$	126,223
Non-U.S. revenue		21,823		13,874		37,543		33,957
Total revenue	$	101,563	$	71,691	$	188,495	$	160,180

Schedule of Inventories

Inventories that are considered current consist of the following:

	June 30,			December 31,
	2021			2020
Raw materials and work-in-progress	$	22,348		$	22,318
Finished goods		6,480			3,743
Less: reserves		(1,603	)		(1,246	)
Inventories, net	$	27,225		$	24,815

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 six months ended June 30, 2021 and June 30, 2020, respectively.

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Rental equipment	$	2,054	$	1,221	$	3,942	$	2,520
Other property and equipment		984		1,009		1,930		1,930
Total depreciation and amortization	$	3,038	$	2,230	$	5,872	$	4,450

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 June 30, 2021 and December 31, 2020, respectively.

	June 30,		December 31,
Property and equipment	2021		2020
Rental equipment, net of allowances of $955 and $575, respectively	$	52,507	$	46,953
Other property and equipment		30,471		27,071
Property and equipment		82,978		74,024

Accumulated depreciation
Rental equipment		31,721		30,283
Other property and equipment		17,227		15,511
Accumulated depreciation		48,948		45,794

Property and equipment, net
Rental equipment, net of allowances of $955 and $575, respectively		20,786		16,670
Other property and equipment		13,244		11,560
Property and equipment, net	$	34,030	$	28,230

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2021 were as follows:

Balance as of December 31, 2020	$	33,165
Translation adjustment		(80	)
Balance as of June 30, 2021	$	33,085

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
June 30, 2021	(in years)	amount		amortization		Net amount
Technology	10	$	77,700	$	14,569	$	63,131
Licenses	10		185		179		6
Patents and websites	5		4,488		3,378		1,110
Customer relationships	4		1,425		1,425		—
Commercials	2-3		834		657		177
Total		$	84,632	$	20,208	$	64,424


	Average
	estimated	Gross
	useful lives	carrying		Accumulated
December 31, 2020	(in years)	amount		amortization		Net amount
Technology	10	$	77,700	$	10,684	$	67,016
Licenses	10		185		174		11
Patents and websites	5		4,488		3,015		1,473
Customer relationships	4		1,474		1,351		123
Commercials	2-3		733		559		174
Total		$	84,580	$	15,783	$	68,797

Schedule of Annual Estimated Amortization Expense

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

	June 30,
	2021
Remaining 6 months of 2021	$	4,303
2022		8,469
2023		7,870
2024		7,832
2025		7,784
Thereafter		28,166
	$	64,424

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of June 30, 2021 and December 31, 2020 consisted of the following:

	June 30,		December 31,
	2021		2020
Accounts payable	$	15,560	$	12,520
Accrued inventory (in-transit and unvouchered receipts) and trade payables		11,228		9,023
Accrued litigation settlement		—		8,000
Accrued purchasing card liability		3,539		2,468
Accrued franchise, sales and use taxes		484		449
Other accrued expenses		732		1,252
Accounts payable and accrued expenses	$	31,543	$	33,712

Schedule of Accrued Payroll

Accrued payroll as of June 30, 2021 and December 31, 2020 consisted of the following:

	June 30,		December 31,
	2021		2020
Accrued bonuses	$	4,161	$	4
Accrued wages and other payroll related items		4,118		3,796
Accrued vacation		3,071		2,642
Accrued employee stock purchase plan deductions		758		649
Accrued payroll	$	12,108	$	7,091