Balance Sheet Account Details

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Account Details

Balance Sheet Account Details

Accounts Receivable and Allowance for Credit Losses

	June 30, 2023		December 31, 2022
Accounts receivable, net:
Accounts receivable, trade	$	7,875,000	$	7,315,000
Allowance for credit losses	(262,000)		(293,000)
	$	7,613,000	$	7,022,000

Changes to the allowance for credit losses during the six months ended June 30, 2023 were as follows:

	Allowance for Credit Losses
Balance as of January 1, 2023	$	(293,000)
Provision for expected credit loss	(5,000)
Write-offs and payments	36,000
Balance as of June 30, 2023	$	(262,000)

The Company’s adoption of ASU No. 2016-13, Financial Instruments - Credit Losses, included an assessment of our aged trade receivables balances and their underlying credit risk characteristics. Our evaluation of past events, current conditions, and reasonable and supportable forecasts about the future resulted in an expectation of immaterial credit losses.

Inventory

The components of inventories are as follows:

	June 30, 2023		December 31, 2022
Inventory:
Raw materials	$	6,204,000	$	5,319,000
Work in process	10,577,000		7,055,000
Finished goods	15,672,000		17,387,000
	$	32,453,000	$	29,761,000

Intangible Assets

Intangible assets that are subject to amortization consisted of the following for the periods presented:

	June 30, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	$	2,630,000	$	(815,000)	$	1,815,000	$	2,630,000	$	(552,000)	$	2,078,000
Customer relationships	4,150,000		(1,587,000)		2,563,000		4,150,000		(1,172,000)		2,978,000
Developed technology	41,600,000		(8,521,000)		33,079,000		41,600,000		(5,615,000)		35,985,000
Intangibles, net	$	48,380,000	$	(10,923,000)	$	37,457,000	$	48,380,000	$	(7,339,000)	$	41,041,000

Intangible assets not subject to amortization totaled $0.1 million at June 30, 2023 and December 31, 2022, and related to the Company’s domain name.

Accrued Expenses

Accrued expenses consist of the following:

	June 30, 2023		December 31, 2022
Compensation expenses	$	5,917,000	$	7,002,000
Customer deposits	17,000		17,000
Taxes payable	897,000		825,000
Insurance	125,000		613,000
Professional fees and royalties	153,000		210,000
Warranty liabilities	640,000		489,000
Accrued clinical study fees	150,000		250,000
Other	417,000		1,146,000
Total	$	8,316,000	$	10,552,000