Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.1.9
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2014
Changes in Warranty Liability

Changes in the Company’s warranty liability for the years ended December 31, 2014, 2013 and 2012 are as follows:

 

(in thousands)

   Year Ended December 31,  
     2014      2013      2012  

Warranty liability at January 1,

   $ 597       $ 346       $ 43   

Warranty liability assumed in acquisitions

     —          101         303   

Revision of warranty estimate

     (185      —           —     

Provisions for current year sales

     196         348         6   

Current year claims

     (165      (198      (6
  

 

 

    

 

 

    

 

 

 

Warranty liability at December 31,

$ 443    $ 597    $ 346   
  

 

 

    

 

 

    

 

 

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

The Company determines the fair value of contingent consideration based on a probability-weighted discounted cash flow analysis. 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.

 

(in thousands)

   2014  

Fair value, January 1

   $ 960   

Fair value of contingent consideration issued during the period

     9,976   

Change in fair value

     1,419   
  

 

 

 

Fair value, December 31

$ 12,355   
  

 

 

 
Summary of Changes in Allowance for Doubtful Accounts

The following summarizes the changes in the allowance for doubtful accounts for the periods indicated.

 

(in thousands)

      
     2014      2013      2012  

Allowance for doubtful accounts at January 1,

   $ 210       $ 57       $ 53   

Additions

     350         170         17   

Write-offs

     (452      (17      (13
  

 

 

    

 

 

    

 

 

 

Allowance for doubtful accounts at December 31,

$ 108    $ 210    $ 57   
  

 

 

    

 

 

    

 

 

 
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
Valuation Assumptions used in Computation of Stock Option Expense

For the years ended December 31, 2014 and 2012, the Company computed expense for each group utilizing the following assumptions:

 

     Years Ended December 31,
     2014    2013      2012

Expected volatility

   94.2%      —         75.8% - 118.6%

Weighted-average volatility

   94.2%      —         78.1%

Risk-free interest rate

   1.64%      —         0.3% - 0.9%

Expected dividend yield

   0%      —         0%

Expected life in years

   3.5 – 8.6      —         3.5 - 8.6