Company: INGN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029993
Chunk: 259

Company: Inogen Inc
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 259
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400 of outstanding purchase orders due within one year with its outside vendors and suppliers as of December 31, 2024.  The Company has $672 and $2,057 accrued within accounts payable and other accrued expenses in the consolidated balance sheet as of December 31, 2024 and 2023, respectively, related to estimated losses for firm commitment contractual obligations under these agreements. Losses on these firm commitment contractual obligations are recognized based upon the terms of the respective agreement and similar factors considered for the write-down of inventory, including expected sales requirements as determined by internal sales forecasts.Warranty obligation The following table identifies the changes in the Company’s aggregate product warranty liabilities for the years ended December 31, 2024, 2023 and 2022, respectively:  

        December 31,

        2024

        2023

        2022

        Product warranty liability at beginning of period
         
        $
        23,478

        $
        19,913

        $
        13,726

        Accruals for warranties issued

        12,076

        9,843

        10,416

        Adjustments related to preexisting warranties (including changes in estimates)

        280

        5,014

        8,234

        Settlements made (in cash or in kind)

        (9,748
        )

        (11,292
        )

        (12,463
        )

        Product warranty liability at end of period
         
        $
        26,086

        $
        23,478

        $
        19,913

      During the years ended December 31, 2023 and 2022, the Company recorded $5,014 and $8,234 of changes in estimates related to preexisting warranties due to data and information that became available during those years. The changes in estimates were primarily due to the increased cost to repair for all products stemming from the current year inflationary environment and increased product failure rates.Legislation and HIPAA The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Compliance with government laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time.