Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 28

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 private companies. We recognized an impairment charge of $4.0 million during the nine months ended September 30, 2025 in other expense (income), net in the consolidated statements of operations and comprehensive income due to an observable price change of one of the equity securities that had an original carrying amount of $10.0 million. There were no adjustments to the carrying amounts during the three months ended September 30, 2025 or the three or nine months ended September 30, 2024.Impairment of Long-lived AssetsLong-lived assets consist primarily of property and equipment, operating lease right-of-use assets, and strategic investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that an asset be tested for possible impairment, we compare the undiscounted 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, other than the $4.0 million discussed above in the Strategic Investments section, during either of the three or nine months ended September 30, 2025 or 2024.

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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)

Accrued ExpensesAccrued expenses consisted of the following: September 30, 2025December 31, 2024Payroll related$36,641 $40,162 Income tax payable1,000 1,612 Product warranty liability572 933 Operating lease liabilities, current portion2,274 1,754 Other accrued expenses11,116 5,353 Total accrued expenses$51,603 $49,814 The following table shows the changes in our estimated product warranty liability accrual, included in accrued liabilities:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Balance at beginning of period$550 $1,