Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2015

Changes in the Company’s warranty liability for the six months ended June 30, 2015 are as follows:


(in thousands)	2015
Warranty liability, January 1	$	443
Provision for current period		92
Current period claims		(67	)

Warranty liability, June 30	$	468

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

The Company determines the fair value of purchase price obligations 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 expenses in the Consolidated Statement of Operations. Changes in the fair value of purchase price obligations during the six months ended June 30, 2015 were as follows:


(in thousands)	2015
Fair value, January 1	$	12,355
Fair value of acquisition liabilities paid during the period		(6,047	)
Fair value of consideration issued		500
Change in fair value		485

Fair value, June 30	$	7,293

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents quantitative information about Level 3 fair value measurements as of June 30, 2015:


(in thousands)	Fair Value at June 30, 2015		Valuation Technique	Unobservable Inputs
Earnout liabilities	$	5,213	Income approach	Discount rate -15.5%

Stock distribution price floor		1,580	Monte Carlo simulation	Volatility - 115%
				Risk free rate - 0.98%
				Dividend yield - 0%

Time based payments		500	Expected payments	None

Fair value, June 30, 2015	$	7,293

Summary of Changes in Allowance for Doubtful Accounts

The following summarizes the changes in the allowance for doubtful accounts for the six months ended June 30, 2015:


(in thousands)	2015
Allowance for doubtful accounts, January 1	$	516
Additions		455
Write-offs		(124	)

Allowance for doubtful accounts, June 30	$	847

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