Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 26

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 cash flows expected to be generated by the asset to the carrying amount of the asset. If the carrying amount of the asset is not recoverable on an undiscounted cash flow basis, we determine the fair value of the asset and recognize an impairment loss to the extent the carrying amount of the asset exceeds its fair value. We determine fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. Our cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. We did not record any impairment charges on long-lived assets during either of the three months ended March 31, 2025 or 2024.Accrued ExpensesAccrued expenses consisted of the following:

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Table of ContentsInspire Medical Systems, Inc. Notes to Consolidated Financial Statements (unaudited) (Table amounts in thousands, except share and per share amounts)

March 31, 2025December 31, 2024Payroll related$25,385 $40,162 Income tax payable910 1,612 Product warranty liability649 933 Operating lease liabilities, current portion2,035 1,754 Other accrued expenses5,354 5,353 Total accrued expenses$34,333 $49,814 The following table shows the changes in our estimated product warranty liability accrual, included in accrued liabilities:Three Months Ended March 31,20252024Balance at beginning of period$933 $1,100 Provisions for warranty(195)535 Settlements of warranty claims(89)(247)Balance at the end of the period$649 $1,388 Revenue Recognition We derive our revenue from sales of our products in the U.S. and internationally. Customers are primarily comprised of hospitals and ambulatory surgery centers, with distributors being used in certain international locations where we do not have a direct commercial presence.Revenues from product sales are recognized when the customer obtains control of the product, which occurs at a point in time, either upon shipment of the product or receipt of the product, depending on shipment terms. Our standard shipping terms are free on board shipping point, unless the customer requests that control and title to the inventory transfer upon delivery. In those cases where shipping and handling costs are billed to customers, we classify the amounts billed as a component of cost of goods sold.Revenue is measured as the amount of consideration we expect to receive, adjusted for any applicable estimates of variable consideration and other