| Accrued Liabilities and Deferred Revenue |
NOTE 7—ACCRUED LIABILITIES AND DEFERRED REVENUE
Accrued liabilities are comprised of the following (in thousands):
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
Payroll and benefits
|
$
|
1,744
|
|
|
$
|
1,898
|
|
|
Warranty accrual, current portion
|
|
1,008
|
|
|
|
1,096
|
|
|
Sales and excise tax
|
|
216
|
|
|
|
527
|
|
|
Accrued professional services
|
|
2,600
|
|
|
|
912
|
|
|
Accrued insurance premium
|
|
107
|
|
|
|
428
|
|
|
Other
|
|
232
|
|
|
|
136
|
|
|
Total accrued liabilities
|
$
|
5,907
|
|
|
$
|
4,997
|
|
Changes in the initial product warranty accrual, and the expenses incurred under the Company’s initial and extended warranties, for the three and six months ended June 30, 2014 and 2013 were as follows (in thousands):
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Initial warranty accrual, beginning balance
|
$
|
1,025
|
|
|
$
|
1,755
|
|
|
$
|
1,096
|
|
|
$
|
1,699
|
|
|
Provision for estimated warranty cost
|
|
461
|
|
|
|
23
|
|
|
|
609
|
|
|
|
360
|
|
|
Warranty expenditures
|
|
(231
|
)
|
|
|
(260
|
)
|
|
|
(450
|
)
|
|
|
(541
|
)
|
|
|
|
1,255
|
|
|
|
1,518
|
|
|
|
1,255
|
|
|
|
1,518
|
|
|
Less warranty accrual, long-term
|
|
247
|
|
|
|
—
|
|
|
|
247
|
|
|
|
—
|
|
|
Total warranty accrual, current portion
|
$
|
1,008
|
|
|
$
|
1,518
|
|
|
$
|
1,008
|
|
|
$
|
1,518
|
|
In June 2014, the Company extended the warranty for WaterLase systems from one year to two years for systems purchased after January 1, 2014.
Deferred revenue is comprised of the following (in thousands):
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
Undelivered elements (training, installation and
product and support services)
|
$
|
1,641
|
|
|
$
|
1,823
|
|
|
Extended warranty contracts
|
|
1,593
|
|
|
|
1,642
|
|
|
Total deferred revenue
|
|
3,234
|
|
|
|
3,465
|
|
|
Less long-term amounts:
|
|
|
|
|
|
|
|
|
Extended warranty contracts
|
|
-
|
|
|
|
1
|
|
|
Total deferred revenue, long-term
|
|
-
|
|
|
|
1
|
|
|
Total deferred revenue, current portion
|
$
|
3,234
|
|
|
$
|
3,464
|
|
|