Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities

v3.8.0.1
Accrued Liabilities
12 Months Ended
Dec. 31, 2017
Accrued Liabilities and Other Liabilities [Abstract]  
Accrued Liabilities
8. Accrued Liabilities
 
Accrued liabilities consisted of the following:
 
 
 
December 31,
 
 
 
2017
 
2016
 
Salaries, benefits and related expenses
 
$
2,850
 
$
2,303
 
Device maintenance
 
 
121
 
 
483
 
Device warranty
 
 
232
 
 
203
 
Clinical trials
 
 
136
 
 
35
 
Capital lease obligation
 
 
34
 
 
54
 
Other
 
 
130
 
 
52
 
Total
 
$
3,503
 
$
3,130
 
 
Maintenance and Warranty
 
Sales of devices generally include an initial warranty for parts and services for one year in the U.S. and two years in Europe, the Middle East, and Africa. During the year ended December 31, 2016, the Company determined it had sufficient historical experience of warranty costs to estimate future warranty costs for devices sold. As a result, and beginning during the year ended December 31, 2016, a liability for the estimated cost of product warranty is established at the time revenue is recognized based on the historical experience of known product failure rates and expected material and labor costs to provide warranty services. From time to time, specific additional warranty accruals may be made if unforeseen technical problems arise. Alternatively, if estimates are determined to be greater than the actual amounts necessary, a portion of the liability may be reversed in future periods. Warranty costs are reflected in the consolidated statements of operations and comprehensive loss as a component of costs of revenue.
 
In addition, in the year ended December 31, 2016, the Company recorded in its consolidated statements of operations and comprehensive loss a one-time charge of $911 for a preventative maintenance and improvement program for devices sold prior to 2016 to bring the devices to second generation GT-level functionality. In the year ended December 31, 2017, the Company reassessed the number of devices still needing to be brought to second generation GT-level functionality and adjusted the maintenance accrual accordingly.
 
 
 
2017
 
 
 
Maintenance
 
Warranty
 
Total
 
Balance at December 31, 2016
 
$
483
 
$
204
 
$
687
 
Additions for estimated future expense
 
 
-
 
 
207
 
 
207
 
Incurred costs
 
 
(229)
 
 
(179)
 
 
(408)
 
Adjustment from remeasurement
 
 
(133)
 
 
 
 
 
(133)
 
Balance at December 31, 2017
 
$
121
 
$
232
 
$
353
 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
121
 
 
232
 
 
353
 
Long-term portion
 
 
-
 
 
-
 
 
-
 
Total
 
$
121
 
$
232
 
$
353
 
 
 
 
2016
 
 
 
Maintenance
 
Warranty
 
Total
 
Balance at December 31, 2015
 
$
-
 
$
-
 
$
-
 
Additions for estimated future expense
 
 
911
 
 
430
 
 
1,341
 
Incurred costs
 
 
(428)
 
 
(226)
 
 
(654)
 
Balance at December 31, 2016
 
$
483
 
$
204
 
$
687
 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
483
 
 
203
 
 
686
 
Long-term portion
 
 
-
 
 
1
 
 
1
 
Total
 
$
483
 
$
204
 
$
687