Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 73

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 and losses on accounts receivable have historically not been significant.Accounts Receivable and Allowance for Expected Credit LossesTrade accounts receivable are recorded at the invoiced amount and do not bear interest. Customer credit terms are established prior to shipment with the general standard being net 30 days. Collateral or any other security to support payment of these receivables generally is not required. Each reporting period, we estimate the credit loss related to accounts receivable based on a migration analysis of accounts grouped by individual receivables delinquency status and apply our historic loss rate adjusted for management's assumption of future market conditions. Any change in the allowance from new receivables acquired or changes due to credit deterioration on previously existing receivables is recorded in selling, general and administrative expenses. Write-offs of receivables considered uncollectible are deducted from the allowance. 

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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)

Specific accounts receivable are written off once a determination is made that the amount is uncollectible. The write-off is recorded in the period in which the account receivable is deemed uncollectible. Recoveries are recognized when received and as a direct credit to earnings or as a reduction to the allowance for credit losses (which would indirectly reduce the loss by decreasing bad debt expense).The following table presents the changes in the allowance for credit losses related to accounts receivable: Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Balance at beginning of period$1,229 $515 $880 $1,648 Charges (credits) to the allowance, net179 96 778 459 Write-offs charged against the allowance— — — (1,496)Recoveries of amounts previously reserved(310)(96)(560)(96)Balance at the end of the period$1,098 $515 $1,098 $515 The write-offs charged against the allowance during the nine months ended September 30, 2024 are related primarily to accounts receivable with two healthcare systems.InventoriesInventories are valued at the lower of cost or net realizable value, computed on a first-in, first-out basis and consisted of the following:September 30, 2025December 31, 2024Raw materials$21,215 $22,430 Work in