Company: INSP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001609550-25-000020
Chunk: 68

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 68
---
 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 $11.2 million and $10.6 million as of March 31, 2025 and December 31, 2024, respectively. There were no adjustments to the carrying amount during either of the three months ended March 31, 2025 or 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 during either of the three months ended March 31, 2025 or 2024.Accrued ExpensesAccrued expenses consisted of the following:

15

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 Settlement