Balance Sheet Details

12 Months Ended

Dec. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

3. Balance Sheet Details

Accounts Receivable, net

Accounts receivable consist of the following (in thousands):

	December 31,
	2018			2017
Accounts receivable	$	15,291		$	15,328
Less allowance for doubtful accounts		(196	)		(506	)
Accounts receivable, net	$	15,095		$	14,822

Inventories, net

Inventories consist of the following (in thousands):

	December 31,
	2018			2017
Raw materials	$	5,813		$	4,969
Work-in-process		952			502
Finished goods		40,165			37,933
		46,930			43,404
Less reserve for excess and obsolete		(18,165	)		(16,112	)
Inventories, net	$	28,765		$	27,292

Property and Equipment, net

Property and equipment consist of the following (in thousands except for useful lives):

	Useful lives		December 31,
	(in years)		2018			2017
Surgical instruments		4	$	54,848		$	53,198
Machinery and equipment		7		5,971			5,503
Computer equipment		3		3,104			3,500
Office furniture and equipment		5		1,155			2,794
Leasehold improvements	various			1,765			1,714
Construction in progress	n/a			92			336
				66,935			67,045
Less accumulated depreciation and amortization				(53,700	)		(54,375	)
Property and equipment, net			$	13,235		$	12,670

Total depreciation expense was $6.0 million and $6.6 million for the years ended December 31, 2018 and 2017, respectively. At December 31, 2018 and 2017, assets recorded under capital leases of $0.4 million were included in the machinery and equipment balance. Amortization of assets under capital leases is included in depreciation expense.

Intangible Assets, net

In conjunction with the acquisition of SafeOp in March 2018, the Company recorded $21.6 million of new intangible assets. See Note 8 for further information regarding the acquisition. Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives		December 31,
	(in years)		2018			2017
Developed product technology		10	$	26,976		$	13,876
Intellectual property		—		1,004			1,004
License agreements		1		5,064			5,738
Trademarks and trade names		—		792			732
Customer-related		5		7,458			7,458
Distribution network		4		4,027			4,027
In process research and development		19		8,800			—
				54,121			32,835
Less accumulated amortization				(27,713	)		(27,587	)
Intangible assets, net			$	26,408		$	5,248

Total expense related to amortization of intangible assets was $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017, respectively.

Future amortization expense related to intangible assets as of December 31, 2018 is as follows (in thousands):

Year Ending December 31,
2019	$	1,566
2020		1,890
2021		1,890
2022		1,890
2023		1,890
Thereafter		17,282
Total	$	26,408

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	December 31,
	2018			2017
Commissions and sales milestones	$	3,594		$	3,360
Payroll and payroll related		3,222			2,968
Litigation settlement obligation		4,400			4,400
Professional fees		2,637			1,484
Royalties		1,354			1,269
Restructuring and severance accruals		710			520
Taxes		(3	)		246
Guaranteed collaboration compensation, current		—			4,485
Interest		261			376
Acquisition related - contingent consideration		2,600			—
Other		3,541			3,138
Total accrued expenses	$	22,316		$	22,246