Balance Sheet Details

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

3. BALANCE SHEET DETAILS

Accounts receivable

	March 31, 2020			December 31, 2019

Trade receivables	$	998		$	1,011
Allowance for doubtful accounts		(62	)		(94	)
	$	936		$	917

Inventory

Inventory is recorded at the lower of cost and net realizable value on a first-in, first-out basis and consists of finished goods.

	March 31, 2020		December 31, 2019

Finished goods	$	1,948	$	2,269
Inventory reserves		-		-
	$	1,948	$	2,269

The Company evaluates inventory for estimated excess quantities and obsolescence, based on expected future sales levels and projections of future demand, and establishes inventory reserves for obsolete and excess inventories. In addition, the Company assesses the impact of changing technology and market conditions. The Company has entered into a long-term purchase commitment to buy the test cards from MiniFAB (Note 8). As part of its analysis of excess or obsolete inventories, the Company considers future annual minimum purchases, estimated future usage and the expiry dating of the cards to determine if any inventory reserve is needed.

Prepaid expenses and other current assets

	March 31, 2020		December 31, 2019
Prepaid trade shows	$	16	$	17
Prepaid insurance		401		464
Manufacturing deposits		880		880
Subscriptions		114		155
Other fees and services		37		44
Other current assets		1		2
	$	1,449	$	1,562

Fixed assets

	March 31, 2020			December 31, 2019
Capitalized TearLab equipment	$	7,044		$	6,892
Manufacturing equipment		317			317
Leasehold improvements		13			13
Computer equipment and software		315			310
Furniture and office equipment		368			368
Medical equipment		1,454			1,454
	$	9,511		$	9,354
Less accumulated depreciation		(7,779	)		(7,684	)
	$	1,732		$	1,670

Depreciation expense was $135 and $221 during the three months ended March 31, 2020 and 2019, respectively.

Accrued liabilities

	March 31, 2020		December 31, 2019
Due to professionals	$	72	$	62
Due to employees and directors		691		1,414
Sales and use tax liabilities		235		268
Royalty liability		240		245
Warranty		34		36
Other		429		311
	$	1,701	$	2,336

TearLab Corp 10-Q