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)

6 Months Ended

Jun. 30, 2014

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 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 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.

Summary of Deferred Revenue

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