Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventory

As of June 30, 2023, inventory consisted of finished goods of $18.6 million and work-in-progress of $1.9 million. As of December 31, 2022, inventory consisted of finished goods of $15.6 million and work-in-progress and components of $1.7 million.

Property and Equipment, net:


	June 30, 2023		December 31, 2022
	(in thousands)
Surgical equipment and instrument trays	$	16,901	$	13,092
Machinery and equipment	1,883		1,828
Construction in progress	8,008		7,854
Computer and office equipment	1,260		976
Leasehold improvements	1,625		1,631
Furniture and fixtures	391		390
	30,068		25,771
Less: Accumulated depreciation and amortization	(12,489)		(10,207)
	$	17,579	$	15,564

As of June 30, 2023, construction in progress pertains to the cost of individual components of a custom instrument set used for surgical placement of the Company's products that have not yet been placed into service of $3.9 million and construction costs related to the Company's lease for research and development and warehouse space in Santa Clara and software costs of $4.1 million. Depreciation expense was $1.2 million and $0.8 million for the three months ended June 30, 2023 and 2022, respectively. Depreciation expense was $2.3 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively.

Accrued Liabilities and Other:


	June 30, 2023		December 31, 2022
	(in thousands)
Accrued compensation and related expenses	$	8,155	$	11,365

Accrued royalty	1,087		818
Accrued professional services	517		355

Others	883		973
	$	10,642	$	13,511

Accounts Receivable and Allowance for Credit Losses:

The movement in the allowance for credit losses was as follows:


	June 30, 2023		December 31, 2022
	(in thousands)
Balance at beginning of period	$	400	$	264
Provision	103		150
Write-offs	(3)		(14)
Balance at end of period	$	500	$	400