Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2014
Changes in Warranty Liability

Changes in the Company’s warranty liability for the nine months ended September 30, 2014 and 2013 are as follows:

 

(in thousands)

    2014     2013  

Warranty liability, January 1

    $ 597      $ 346   

Provisions for current year sales

      145        267   

Acquisition of Relume

      —          99   

Adjustments

      (185 )   

Current period claims

      (135 )      (112 ) 
  

 

 

    

 

 

  

Warranty liability, September 30

    $ 422      $ 600   
  

 

 

    

 

 

  
Fair Value Remeasurement Based on Significant Inputs Not Observable, Level 3 Measurement

The fair value remeasurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in the fair value hierarchy. In each period, the Company reassesses its current estimates of performance relative to the stated targets and adjusts the liability to fair value.

 

(in thousands)

    2014  

Fair value, January 1

    $ 960   

Fair value of contingent consideration issued during the period

      7,775   

Change in fair value

      (120 ) 
  

 

 

  

Fair value, September 30

    $ 8,615   
  

 

 

  
Summary of Changes in Allowance for Doubtful Accounts

The following summarizes the changes in the allowance for doubtful accounts for the periods indicated:

 

(in thousands)

    2014     2013  

Allowance for doubtful accounts, January 1

    $ 210      $ 57   

Additions

      38        11   

Write-offs

      (89 )      (6 ) 
  

 

 

    

 

 

  

Allowance for doubtful accounts, September 30

    $ 159      $ 62   
  

 

 

    

 

 

  
Estimated Useful Lives of Property and Equipment

The estimated useful lives of property and equipment are as follows:

 

    

Estimated useful lives

Machinery and equipment

    3-7 years

Furniture and fixtures

    5-7 years

Computers and software

    3-7 years

Motor vehicles

    5 years

Leasehold improvements

    Lesser of lease term or estimated useful life
Valuation Assumptions used in Computation of Stock Option Expense

For the nine months ended September 30, 2014, the Company computed expense for each group utilizing the following assumptions:

 

     Nine Months Ended
September 30, 2014

Expected volatility

    75.8 – 81.1%

Weighted-average volatility

    76.0%

Risk-free interest rate

    0.4 – 0.9%

Expected dividend

    0%

Expected life in years

    3.5 – 8.6 Years