Note 6 - Select Balance Sheet and Statement of Operations Information

12 Months Ended

Dec. 31, 2024

Balance Sheet and Income Statement Disclosures [Text Block]

6. SELECT BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

Inventory

Inventory consists of the following:

	*December 31,*
	*2024*		*2023*
Raw materials	$	1,649	$	1,949
Work-in-progress		1,658		2,048
Finished goods		14,254		19,075
Total inventory	$	17,561	$	23,072

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 $18,137 and $22,687 in cost of goods sold for the years ending December 31, 2024 and December, 31, 2023, respectively. The balance of cost of goods sold represents the sale of applicators, parts, consumables 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, 2024 and December 31, 2023, a provision for obsolescence of $1,977 and $2,733 was taken against inventory, respectively. The Company had write-offs of inventory of $1,804 and $1,683 for the years ending December 31, 2024 and 2023, respectively.

Property and Equipment, Net

Property and equipment, net consist of the following:

		*December 31,*
	*Useful Lives (in years)*	*2024*			*2023*
Lab equipment tooling and molds	4 – 10	$	4,549		$	4,356
Office furniture and equipment	6 – 10		1,160			1,223
Leasehold improvements	up to 10		752			854
Computers and software	3		863			919
Vehicles	5 – 7		57			37
Demo units	5		214			214
Total property and equipment			7,595			7,603
Less: Accumulated depreciation			(6,659	)		(6,281	)
Total property and equipment, net		$	936		$	1,322

Depreciation expense amounted to $415 and $642 for the years ended December 31, 2024 and 2023, respectively.

Other Current Assets

Other current assets consist of the following:

	*December 31,*
	*2024*		*2023*
Government remittances ⁽¹⁾	$	560	$	1,336
Consideration receivable from subsidiaries sale		49		85
Sundry assets and miscellaneous		495		504
Total other current assets	$	1,104	$	1,925

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

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	*December 31,*
	*2024*		*2023*
Payroll and related expense	$	3,336	$	2,260
Accrued expenses		3,552		3,924
Commission accrual		2,096		2,385
Sales and consumption taxes		2,449		3,868
Total accrued expenses and other current liabilities	$	11,433	$	12,437

Warranty Accrual

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

	*December 31,*
	*2024*			*2023*
Balance as of the beginning of the year	$	1,363		$	1,482
Warranties issued during the year		727			933
Warranty costs incurred during the year		(951	)		(1,052	)
Balance at the end of the year	$	1,139		$	1,363
Current		917			1,029
Long-term		222			334
Total	$	1,139		$	1,363

Finance Expenses

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

	*Year Ended December 31,*
	*2024*			*2023*
Interest expense	$	6,469		$	6,629
Change in fair value of derivative liability		(771	)		—
Accretion on long-term debt and amortization of fees		1,187			264
Total finance expenses	$	6,885		$	6,893