Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.1.9
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2015
Changes in Warranty Liability

Changes in the Company’s warranty liability for the three months ended March 31, 2015 are as follows:

 

(in thousands)

   2015  

Warranty liability, January 1

   $ 443   

Provisions for current year sales

     44   

Current period claims

     (26
  

 

 

 

Warranty liability, March 31

$ 461   
  

 

 

 
Fair Value Remeasurement Based on Significant Inputs Not Observable, Level 3 Measurement

The Company determines the fair value of acquisition liabilities on a recurring basis based on a probability-weighted discounted cash flow analysis and Monte Carlo simulation. The fair value remeasurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in the fair value hierarchy. In each period, the Company reassesses its current estimates of performance relative to the stated targets and adjusts the liability to fair value. Any such adjustments are included as a component of Selling, general and administrative expense in the Consolidated Statement of Operations. Changes in the fair value of acquisition liabilities during the three months ended March 31, 2015 were as follows:

 

(in thousands)

   2015  

Fair value, January 1

   $ 12,355   

Fair value of acquisition liabilities paid during the period

     (5,839

Fair value of consideration issued

     500   

Change in fair value

     406   
  

 

 

 

Fair value, March 31

$ 7,422   
  

 

 

 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents quantitative information about level 3 fair value measurements as of March 31, 2015:

 

(in thousands)

   Fair Value at
March 31, 2015
    

Valuation Technique

  

Unobservable Inputs

Earnout liabilities

   $ 5,025       Income approach    Discount rate - 15.5%

Stock distribution price floor

     1,897       Monte Carlo simulation    Volatility - 120%
         Risk free rate - 0.95%
         Dividend yield - 0

Time based payments

     500       Expected payments    None
  

 

 

       

Fair value, March 31

$ 7,422   
  

 

 

       
Summary of Changes in Allowance for Doubtful Accounts

The following summarizes the changes in the allowance for doubtful accounts for the three months ended March 31, 2015:

 

(in thousands)

   2015  

Allowance for doubtful accounts, January 1

   $ 108   

Additions

     198   

Write-offs

     (253
  

 

 

 

Allowance for doubtful accounts, March 31

$ 53   
  

 

 

 
Estimated Useful Lives of Property and Equipment

The estimated useful lives of property and equipment are as follows:

 

     Estimated useful lives

Machinery and equipment

   3-7 years

Furniture and fixtures

   5-7 years

Computers and software

   3-7 years

Motor vehicles

   5 years

Leasehold improvements

   Lesser of lease term or estimated useful life