Balance Sheet Components

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash and Cash Equivalents

The Company’s cash and cash equivalents consist of the following (in thousands):


	December 31,
	2022		2021
Cash	$	97,089	$	141,239
Cash equivalents:
Money market funds	4,647		831
Commercial paper	—		2,000
Corporate bonds	—		4,410
Total cash and cash equivalents	$	101,736	$	148,480

Inventory

Inventory consists of the following (in thousands):


	December 31,
	2022		2021
Raw materials	$	3,820	$	3,738
Work in process	386		518
Finished goods	15,641		12,029
Total inventory	$	19,847	$	16,285
Reported as:
Inventory	$	14,564	$	16,285
Long-term inventory	5,283		—
Total inventory	$	19,847	$	16,285

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):


	December 31,
	2022		2021
Prepaid expenses	$	2,044	$	1,869
Prepaid insurance	1,407		2,305
VAT and other receivable	602		362
Other current assets	290		347
Total prepaid expenses and other current assets	$	4,343	$	4,883

Capitalized Implementation Costs of a Hosting Arrangement

The Company has several software systems that are cloud-based hosting arrangements with service contracts. The Company accounts for costs incurred in connection with the implementation of these various software systems under ASU 2018-15, Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350–40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The Company expenses all costs (internal and external) that are incurred in the planning and post-implementation operation stages. As of December 31, 2022, the Company has capitalized approximately $0.5 million of implementation costs, net of amortization. As of December 31, 2021, the Company did not capitalize expenses in implementation costs. The capitalized costs are amortized on a straight-line basis over the non-cancelable contract terms, which are generally three years. As of December 31, 2022, approximately $0.3 million and $0.2 million capitalized costs were included in prepaid expenses and other current assets, and other long-term assets, respectively. Amortization expense, which was included in selling, general and administrative expenses, was $0.2 million and $0 for the years ended December 31, 2022 and December 31, 2021, respectively.

Property and Equipment, Net

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


	December 31,
	2022		2021
Machinery and equipment	$	2,112	$	1,635
Computer equipment and software	1,773		1,561
Furniture and fixtures	263		252
Leasehold improvements	2,277		2,277
Construction in progress	1,825		1,332
Total	8,250		7,057
Less: accumulated depreciation	(3,556)		(2,243)
Property and equipment, net	$	4,694	$	4,814

Depreciation expense for the years ended December 31, 2022 and December 31, 2021 was $1.4 million and $0.7 million, respectively.

Goodwill

Goodwill was $2.3 million as of December 31, 2022 and December 31, 2021 arising from the Company’s acquisition of Emphasys Medical, Inc, in March 2009. No goodwill impairment losses have been recognized since the acquisition. There were no acquisitions or dispositions of goodwill in 2022 and 2021. The Company performed an annual test for goodwill impairment in the fourth quarter of the fiscal years ended December 31, 2022 and December 31, 2021 and determined that goodwill was not impaired.

Intangible Assets

Intangible assets consist of the following (in thousands):


	December 31, 2022
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Developed technology	$	1,658	$	(1,520)	$	138
Trademarks	191		(175)		16
Total intangible assets	$	1,849	$	(1,695)	$	154


	December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Developed technology	$	1,658	$	(1,410)	$	248
Trademarks	191		(162)		29
Total intangible assets	$	1,849	$	(1,572)	$	277

Amortization expense relating to the intangibles totaled $0.1 million during each of the years ended on December 31, 2022 and 2021.

Future amortization expense is as follows (in thousands):


Year Ending December 31,
2023	$	123
2024	31
Total amortization expense	$	154

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Accrued employee bonuses and commissions	$	4,973	$	4,741
Accrued vacation	2,113		1,850
Other accrued personnel related expenses	2,513		2,145
Accrued professional fees	2,366		2,420
Sales taxes, franchise tax and VAT	627		730
Liability for early exercise of stock options	145		399
Accrued inventory purchases	167		258
Other	372		823
Total accrued liabilities	$	13,276	$	13,366