Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities

v3.24.2.u1
Accrued Liabilities
6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities

NOTE 8—ACCRUED LIABILITIES

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Payroll and benefits

 

$

3,640

 

 

$

3,343

 

Warranty accrual, current portion

 

 

1,000

 

 

 

1,321

 

Operating lease liability

 

 

904

 

 

 

888

 

Accrued professional services

 

 

994

 

 

 

422

 

Taxes

 

 

349

 

 

 

452

 

Accrued insurance premium

 

 

161

 

 

 

473

 

Other

 

 

614

 

 

 

619

 

Accrued liabilities

 

$

7,662

 

 

$

7,518

 

Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties are included within accrued liabilities and were as follows (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Balance, beginning of period

 

$

1,891

 

 

$

1,855

 

 

$

1,914

 

 

$

1,653

 

Provision for estimated warranty cost

 

 

808

 

 

 

802

 

 

 

1,487

 

 

 

1,960

 

Warranty expenditures

 

 

(856

)

 

 

(885

)

 

 

(1,558

)

 

 

(1,841

)

Balance, end of period

 

 

1,843

 

 

 

1,772

 

 

 

1,843

 

 

 

1,772

 

Less: long-term portion of warranty accrual

 

 

843

 

 

 

397

 

 

 

843

 

 

 

397

 

Current portion of warranty accrual

 

$

1,000

 

 

$

1,375

 

 

$

1,000

 

 

$

1,375

 

 

The Company's Waterlase laser systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to one year from the date of sale to the end-user by the Company or a distributor. The Company's diode systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to two years from the date of sale to the end-user by the Company or a distributor. Waterlase systems and diode systems sold internationally are covered by a warranty against defects in material and workmanship for a period of up to 24 months from date of sale to the international distributor. The Company's laser systems warranty covers parts and service for sales in its North American territories and parts only for international distributor sales.

In North America and select international locations, the Company sells extended warranty contracts to its laser systems end-users that cover the period after the expiration of the Company's standard warranty coverage for its laser systems. Extended warranty coverage provided under the Company's service contracts varies by the type of system and the level of service desired by the customer. Products or accessories remanufactured, refurbished, or sold by unauthorized parties, voids all warranties in place for such products and exempts the Company from liability issues relating to the use of such products.