Company: INSP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001609550-25-000032
Chunk: 27

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 amortization expense was $3.4 million and $1.4 million for the three months ended June 30, 2025 and 2024, respectively, and $6.5 million and $2.2 million for the six months ended June 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 $8.8 million and $10.6 million as of June 30, 2025 and December 31, 2024, respectively. We recognized an impairment charge of $4.0 million during the three and six months ended June 30, 2025 in other expense, net in the consolidated statements of operations and comprehensive income (loss) 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 amount during the three or six months ended June 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 six months ended June 30, 2025 or 2024.Accrued ExpensesAccrued expenses consisted of the following:

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