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, 2017

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

	September 30,		December 31,
	2017		2016
Payroll and benefits	$	2,200	$	2,147
Warranty accrual, current portion		1,043		933
Taxes		428		638
Accrued professional services		652		782
Accrued capital lease obligations, current portion		32		159
Accrued insurance premium		61		906
Other		297		213
Total accrued liabilities	$	4,713	$	5,778

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, 2017 and 2016 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,
	2017			2016			2017			2016
Initial warranty accrual, beginning balance	$	1,285		$	1,919		$	1,706		$	2,188
Provision for estimated warranty cost		190			282			192			379
Warranty expenditures		(325	)		(224	)		(748	)		(590	)
		1,150			1,977			1,150			1,977
Less warranty accrual, long-term		107			955			107			955
Total warranty accrual, current portion	$	1,043		$	1,022		$	1,043		$	1,022

Components of Deferred Revenue

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

	September 30,		December 31,
	2017		2016
Undelivered elements (training, installation, and product and support services)	$	1,066	$	1,404
Extended warranty contracts		1,460		1,487
Deferred royalties		52		142
Total deferred revenue		2,578		3,033
Less long-term amounts:
Deferred royalties		14		23
Total deferred revenue - long-term		14		23
Total deferred revenue - current	$	2,564	$	3,010