BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.

Accounts receivable consists of the following:



	June 30, 2017			December 31, 2016
Accounts receivable, gross	$	5,733		$	3,150
Less: allowance for doubtful accounts	(57		)	(32		)
Accounts receivable, net	$	5,676		$	3,118

The following is the change in our allowance for doubtful accounts:



	Six Months Ended
	June 30,
	2017		2016
Balance at beginning of period	$	32	$	60
Additions charged (reductions credited)	25		(21		)
Balance at end of period	$	57	$	39

Inventories

Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Inventories consist of the following:



	June 30, 2017		December 31, 2016
Work-in-process	$	1,099	$	1,096
Finished goods	855		1,707
Inventories	$	1,954	$	2,803

Property and Equipment, Net

Property and equipment consists of the following:



	June 30, 2017			December 31, 2016
Gross carrying amount	$	25,363		$	24,416
Less: accumulated depreciation and amortization	(20,727		)	(20,623		)
Property and equipment, net	$	4,636		$	3,793

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:



	June 30, 2017		December 31, 2016
Accrued payroll and related liabilities	$	3,468	$	2,169
Accrued commissions and royalties	2,751		2,427
Accrued interest payable	2,303		2,078
Deferred research and development reimbursement	1,311		—
Current portion of accrued liabilities for asset financings	1,013		389
Liability for warranty returns	33		28
Accrued costs related to restructuring	—		60
Other	2,362		709
Accrued liabilities and current portion of long-term liabilities	$	13,241	$	7,860

The following is the change in our liability for warranty returns:



	Six Months Ended
	June 30,
	2017			2016
Liability for warranty returns:
Balance at beginning of period	$	28		$	49
Provision (benefit)	10			(4		)
Charge-offs	(5		)	(18		)
Balance at end of period	$	33		$	27

Short-Term Line of Credit

On December 21, 2010, we entered into a Loan and Security Agreement with Silicon Valley Bank (the "Bank"), which was amended on December 14, 2012, December 4, 2013, December 18, 2015 and December 15, 2016 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement provides a secured working capital-based revolving line of credit (the "Revolving Line") in an aggregate amount of up to the lesser of (i) $10,000, or (ii) $1,000 plus 80% of eligible domestic accounts receivable and certain foreign accounts receivable. The Revolving Line has a maturity date of December 29, 2017. In addition, the Revolving Loan Agreement provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by the Company on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide the Company with usable liquidity.

The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of the Company's obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of June 30, 2017, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended.

As of June 30, 2017 and December 31, 2016, we had no outstanding borrowings under the Revolving Line.

On July 21, 2017 and in connection with our acquisition of ViXS (see Note 11: “Subsequent Events”), we entered into Amendment No. 5 to the Revolving Loan Agreement with the Bank which provides the Bank’s consent to the acquisition under the Revolving Loan Agreement and stipulates that any credit extensions are at the Bank’s sole discretion and provides the Company with relief from our compliance with certain affirmative and negative covenants while no credit extensions are outstanding.