Balance Sheet Components

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Inventory and Other Assets

Inventory consisted of the following (in thousands):

	June 30, 2020		December 31, 2019
Raw materials	$	2,563	$	1,574
Finished goods	2,426		2,463
Total	$	4,989	$	4,037

        The Company uses Printed Circuit Board Assemblies (“PCBAs”), in each wearable Zio XT and Zio AT monitor as well as in the wireless gateway used in conjunction with the Zio AT monitor. The PCBAs are used numerous times and have useful lives beyond one year. Each time a PCBA is used in a wearable Zio XT monitor or Zio AT monitor, a portion of the cost of the PCBA is recorded as a cost of revenue. Each time a wireless gateway is used with a Zio AT monitor, a portion of the gateway is recorded as a cost of revenue. PCBAs which are recorded as other assets, were $10.3 million and $7.4 million as of June 30, 2020, and December 31, 2019, respectively.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2020		December 31, 2019
Laboratory and manufacturing equipment	$	4,656	$	4,238
Computer equipment and software	2,395		2,315
Furniture and fixtures	3,822		3,669
Leasehold improvements	9,107		7,597
Internal-use software	21,047		16,277
Total property and equipment, gross	41,027		34,096
Less: accumulated depreciation and amortization	(10,828)		(7,632)
Total property and equipment, net	$	30,199	$	26,464

Depreciation and amortization expense was $1.6 million and $3.2 million for the three and six months ended June 30, 2020, respectively, and $0.7 million and $1.3 million for three and six months ended June 30, 2019, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	June 30, 2020		December 31, 2019
Accrued vacation	$	5,076	$	3,809
Accrued payroll and related expenses	10,574		19,156
Accrued ESPP contribution	459		417
Accrued professional services fees	1,167		2,846
Accrued interest	124		128
Claims payable	3,566		2,802
Other	4,204		3,556
Total accrued liabilities	$	25,170	$	32,714