BIOLASE, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary Of Significant Accounting Policies (Tables)

Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Estimated Useful Lives of Property, Plant and Equipment

The cost of property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives of the respective assets, except for leasehold improvements, which are depreciated over the lesser of the estimated useful lives of the respective assets or the related lease terms.


Building			30 years
Leasehold improvements			3 to 5 years
Equipment and computers			3 to 5 years
Furniture and fixtures			5 years

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 our initial and extended warranties for the years ended December 31 were as follows (in thousands):


	Years Ended December 31,
	2012			2011			2010
Initial warranty accrual, beginning balance	$	2,218		$	2,725		$	2,235
Provision for estimated warranty cost		1,705			1,586			3,126
Warranty expenditures		(2,224	)		(2,093	)		(2,636	)

Initial warranty accrual, ending balance		1,699			2,218			2,725
Total warranty accrual, long term		—			—			424

Total warranty accrual, current portion	$	1,699		$	2,218		$	2,301

Summary of Income Statement Classification of Compensation Expense

The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):


	Years Ended December 31,
	2012		2011		2010
Cost of revenue	$	245	$	175	$	41
Sales and marketing		514		463		193
General and administrative		668		751		407
Engineering and development		173		139		86

	$	1,600	$	1,528	$	727

Assumptions on Estimation of Stock Option Fair Values

The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions:


	2012			2011			2010
Expected term (years)		3.70			4.15			4.54
Volatility		97	%		105	%		91	%
Annual dividend per share	$	0.00		$	0.00		$	0.00
Risk-free interest rate		0.77	%		1.53	%		1.94	%

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details