Ekso Bionics Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Accrued Liabilities

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