Note 7 - Select Balance Sheet and Statement of Operations Information

12 Months Ended

Dec. 31, 2022

Balance Sheet and Income Statement Disclosures [Text Block]

7. SELECT BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

Inventory

Inventory consists of the following:

	*December 31,*
	*2022*		*2021*
Raw materials	$	2,478	$	2,368
Work-in-progress		2,112		1,649
Finished goods		19,316		16,526
Total inventory	$	23,906	$	20,543

Additions to inventory are primarily comprised of newly produced units and applicators, refurbishment cost from demonstration units and used equipment which were reacquired during the year from upgraded sales. The Company expensed $31,555 ($28,089 in 2021) in cost of goods sold during the year. The balance of cost of goods sold represents the sale of applicators, parts and warranties.

The Company provides for excess and obsolete inventories when conditions indicate that the inventory cost is not recoverable due to physical deterioration, usage, obsolescence, reductions in estimated future demand and reductions in selling prices. Inventory provisions are measured as the difference between the cost of inventory and net realizable value to establish a lower cost basis for the inventories. As of December 31, 2022, a provision for obsolescence of $3,258 ($2,213 in 2021) was taken against inventory.

Property and Equipment, Net

Property and equipment, net consist of the following:

		*December 31,*
	*Useful Lives (in years)*	*2022*			*2021*
Lab equipment tooling and molds	4 – 10	$	4,356		$	8,194
Office furniture and equipment	6 – 10		1,240			1,743
Leasehold improvements	up to 10		794			1,839
Computers and software	3		906			1,939
Vehicles	5 – 7		37			37
Demo units	5		214			114
Total property and equipment			7,547			13,866
Less: Accumulated depreciation			(5,690	)		(11,197	)
Total property and equipment, net		$	1,857		$	2,669

Depreciation expense amounted to $990 and $1,381 for the years ended December 31, 2022 and 2021.

Other Current Assets

	*December 31,*
	*2022*		*2021*
Government remittances ⁽¹⁾	$	1,602	$	1,322
Consideration receivable from subsidiaries sale		629		1,405
Deferred financing costs		301		223
Sundry assets and miscellaneous		1,170		808
Total other current assets	$	3,702	$	3,758

⁽¹⁾	Government remittances are receivables from the local tax authorities for refund of sales taxes and income taxes.

Accrued Expenses and Other Current Liabilities

	*December 31,*
	*2022*		*2021*
Payroll and related expense	$	2,244	$	1,770
Accrued expenses		5,045		6,584
Commission accrual		3,761		4,529
Sales and consumption taxes		5,617		6,629
Total accrued expenses and other current liabilities	$	16,667	$	19,512

Warranty Accrual

The following table provides the details of the change in the Company’s warranty accrual:

	*December 31,*
	*2022*			*2021*
Balance as of the beginning of the year	$	1,753		$	1,639
Warranties issued during the year		993			1,231
Warranty costs incurred during the year		(1,264	)		(1,117	)
Balance at the end of the year	$	1,482		$	1,753
Current		1,074			1,245
Long-term		408			508
Total	$	1,482		$	1,753

Finance Expenses

The following table provides the details of the Company’s finance expenses:

	*December 31,*
	*2022*		*2021*
Interest expense	$	4,297	$	3,720
Accretion on long-term debt and amortization of fees		264		1,235
Total finance expenses	$	4,561	$	4,955