Balance Sheet Components

3 Months Ended

Mar. 31, 2022

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):

	March 31, 2022		December 31, 2021
Raw materials	$	6,946	$	5,101
Finished goods	5,500		5,167
Total	$	12,446	$	10,268

    The Company uses 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 $16.4 million and $13.9 million as of March 31, 2022, and December 31, 2021, respectively.

Property and Equipment, Net

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

	March 31, 2022		December 31, 2021
Laboratory and manufacturing equipment	$	5,365	$	5,029
Computer equipment and software	2,417		2,353
Furniture and fixtures	3,678		4,174
Leasehold improvements	18,631		20,431
Internal-use software	52,890		46,661
Total property and equipment, gross	82,981		78,648
Less: accumulated depreciation and amortization	(25,846)		(22,704)
Total property and equipment, net	$	57,135	$	55,944

Depreciation and amortization expense was $3.1 million and $2.0 million for the three months ended March 31, 2022, and 2021, respectively. During the three months ended March 31, 2022, the Company recorded $2.2 million and $0.5 million in impairment charges to leasehold improvements and furniture and fixtures disclosed above, respectively in connection with its decision to sublease its San Francisco headquarters. See Note 6. Impairment and Restructuring.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	March 31, 2022		December 31, 2021
Accrued vacation	$	8,371	$	7,431
Accrued payroll and related expenses	18,871		34,484
Accrued ESPP contribution	2,748		1,002
Accrued professional services fees	1,794		1,724
Accrued interest	47		78
Claims payable	2,770		2,988
Restructuring liability	2,902		—
Other	4,432		3,779
Total accrued liabilities	$	41,935	$	51,486