Annual report pursuant to Section 13 and 15(d)

Significant Balance Sheet Components

v3.20.1
Significant Balance Sheet Components
12 Months Ended
Dec. 31, 2019
Significant Balance Sheet Components [Abstract]  
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