| Significant Balance Sheet Components |
NOTE 4 —Significant Balance Sheet Components
Inventory consisted of the following:
|
|
|
December 31
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Devices – for resale
|
|
$
|
13,559
|
|
|
$
|
11,319
|
|
|
Raw materials
|
|
|
4,522
|
|
|
|
8,826
|
|
|
Accessories
|
|
|
1,450
|
|
|
|
1,686
|
|
|
|
|
$
|
19,531
|
|
|
$
|
21,831
|
|
During the year ended December 31, 2019, the Company recorded a one-time inventory reserve adjustment of $3.1 million as a result of aging materials and finished goods and accrued a loss of $0.7 million of purchase commitments in connection with end of life products.
Prepaids and other current assets consisted of the following:
|
|
|
December 31
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Deposits for manufacturing inventory
|
|
$
|
897
|
|
|
$
|
4,294
|
|
|
Prepaid taxes
|
|
|
1,031
|
|
|
|
606
|
|
|
Refundable value added taxes
|
|
|
1,376
|
|
|
|
2,561
|
|
|
Prepaid licenses and royalties
|
|
|
761
|
|
|
|
1,128
|
|
|
Director & officer insurance
|
|
|
604
|
|
|
|
—
|
|
|
Prepaid parts (direct buy)
|
|
|
536
|
|
|
|
458
|
|
|
Other
|
|
|
1,225
|
|
|
|
1,064
|
|
|
|
|
$
|
6,430
|
|
|
$
|
10,111
|
|
Property and equipment consisted of the following:
|
|
|
December 31
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Computer equipment
|
|
$
|
5,087
|
|
|
$
|
4,182
|
|
|
Software
|
|
|
981
|
|
|
|
981
|
|
|
Furniture, fixtures, and office equipment
|
|
|
175
|
|
|
|
173
|
|
|
Leasehold Improvements
|
|
|
179
|
|
|
|
152
|
|
|
|
|
|
6,422
|
|
|
|
5,488
|
|
|
Less: accumulated depreciation and amortization
|
|
|
(4,980
|
)
|
|
|
(4,417
|
)
|
|
|
|
$
|
1,442
|
|
|
$
|
1,071
|
|
Depreciation and amortization expense of property and equipment for the years ended December 31, 2019 and 2018, was $3,525 and $1,850, respectively.
Accrued Expenses consisted of the following:
|
|
|
December 31
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Customer allowances
|
|
$
|
2,647
|
|
|
$
|
5,732
|
|
|
Employee-related liabilities
|
|
|
1,873
|
|
|
|
3,077
|
|
|
Warranties
|
|
|
1,154
|
|
|
|
1,103
|
|
|
Accrual for goods received not invoiced
|
|
|
1,047
|
|
|
|
2,700
|
|
|
Contractual obligations
|
|
|
1,230
|
|
|
|
—
|
|
|
Royalties
|
|
|
657
|
|
|
|
1,212
|
|
|
Contractors
|
|
|
285
|
|
|
|
36
|
|
|
Research and development
|
|
|
271
|
|
|
|
462
|
|
|
Shipping
|
|
|
120
|
|
|
|
480
|
|
|
Interest
|
|
|
33
|
|
|
|
275
|
|
|
Commissions
|
|
|
—
|
|
|
|
290
|
|
|
Other
|
|
|
948
|
|
|
|
1,014
|
|
|
|
|
$
|
10,265
|
|
|
$
|
16,381
|
|
Warranty Liability consisted of the following:
The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the consolidated balance sheets for the periods ended December 31, 2019 and 2018:
|
Balance, January 1, 2019
|
|
$
|
1,103
|
|
|
Additions
|
|
|
1,157
|
|
|
Cost of warranty claims
|
|
|
(1,106
|
)
|
|
Balance, December 31, 2019
|
|
$
|
1,154
|
|
|
|
|
|
|
|
|
Balance, January 1, 2018
|
|
$
|
1,742
|
|
|
Additions
|
|
|
355
|
|
|
Cost of warranty claims
|
|
|
(994
|
)
|
|
Balance, December 31, 2018
|
|
$
|
1,103
|
|
|