BIOLASE, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities and Deferred Revenue (Tables)

Accrued Liabilities and Deferred Revenue (Tables)

9 Months Ended

Sep. 30, 2016

Accrued liabilities are comprised of the following (in thousands):

	September 30,		December 31,
	2016		2015
Payroll and benefits	$	2,381	$	2,303
Warranty accrual, current portion		1,022		1,345
Taxes		441		445
Accrued professional services		1,178		681
Accrued capital lease obligations, current portion		169		167
Accrued insurance premium		—		467
Other		263		498
Total accrued liabilities	$	5,454	$	5,906

Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties

Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three and nine months ended September 30, 2016 and 2015 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Initial warranty accrual, beginning balance	$	1,919		$	1,997		$	2,188		$	1,449
Provision for estimated warranty cost		282			608			379			1,604
Warranty expenditures		(224	)		(270	)		(590	)		(718	)
		1,977			2,335			1,977			2,335
Less warranty accrual, long-term		955			1,059			955			1,059
Total warranty accrual, current portion	$	1,022		$	1,276		$	1,022		$	1,276

Components of Deferred Revenue

Deferred revenue is comprised of the following (in thousands):

	September 30,		December 31,
	2016		2015
Undelivered elements (training, installation, and product and support services)	$	1,470	$	1,608
Extended warranty contracts		1,453		1,428
Deferred royalties		171		261
Total Deferred Revenue		3,094		3,297
Less long-term amounts:
Deferred royalties		52		142
Total Deferred Revenue - Long-Term		52		142
Total Deferred Revenue - Current	$	3,042	$	3,155