Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 67

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 the sales of the product candidate to be realized. In August 2024, we received approval from the FDA for our next generation Inspire system, which we expect to fully launch in the U.S. in 2025.We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, incur charges to write down inventories to their net realizable value. The determination of a reserve for excess and obsolete inventory involves management exercising judgment to determine the required reserve, considering future demand, product life cycles, introduction of new products, and current market conditions. The reserve for excess and obsolete inventory was $1.3 million and $1.0 million as of March 31, 2025 and December 31, 2024, respectively.Property and EquipmentProperty and equipment are stated at cost, less accumulated depreciation and amortization and 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, 2024Internal-use software$17,231 $16,553 Manufacturing equipment44,949 29,117 Other equipment5,259 4,981 Leasehold improvements10,075 10,057 Construction in process16,464 24,975 Property and equipment, cost93,978 85,683 Less: accumulated depreciation and amortization(16,803)(13,758)Property and equipment, net$77,175 $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. 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. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Depreciation and amortization expense was $3.0 million and $0.8 million for the three months ended March 31, 2025 and 2024, respectively.Strategic InvestmentsFor equity securities without readily determinable fair values, we have elected the measurement alternative under which