Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 27

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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ire Medical Systems, Inc. Notes to Consolidated Financial Statements (unaudited) (Table amounts in thousands, except share and per share amounts)

September 30, 2025December 31, 2024Internal-use software$21,680 $16,553 Manufacturing equipment49,191 29,117 Other equipment6,842 4,981 Leasehold improvements11,619 10,057 Construction in process26,058 24,975 Property and equipment, cost115,390 85,683 Less: accumulated depreciation and amortization(23,884)(13,758)Property and equipment, net$91,506 $71,925 Internal-use software costs are capitalized during the application development stage. Costs related to planning and post implementation activities are expensed as incurred. Capitalized internal-use software is amortized, and recognized as cost of goods sold or selling, general and administrative expenses, on a straight-line basis over the estimated useful life of three years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Construction in process is comprised primarily of manufacturing equipment. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to ten years. Depreciation and amortization expense was $3.7 million and $1.9 million for the three months ended September 30, 2025 and 2024, respectively, and $10.1 million and $4.1 million for the nine months ended September 30, 2025 and 2024, respectively.Strategic InvestmentsFor equity securities without readily determinable fair values, we have elected the measurement alternative under which we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These securities are presented within other non-current assets on the consolidated balance sheets. The balance of equity securities without readily determinable fair values was $16.4 million and $10.6 million as of September 30, 2025 and December 31, 2024, respectively. During the three months ended September 30, 2025, we invested $7.0 million in a minority interest of a private company, and during the nine months ended September 30, 2025 we invested a total of $9.0 million in minority investments in two