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

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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Notes to Consolidated Financial Statements (unaudited) (Table amounts in thousands, except share and per share amounts)

March 31, 2025December 31, 2024Internal-use software$17,231 $16,553 Manufacturing equipment44,949 29,117 Other equipment5,259 4,981 Leasehold improvements10,075 10,057 Construction in process16,464 24,975 Property and equipment, cost93,978 85,683 Less: accumulated depreciation and amortization(16,803)(13,758)Property and equipment, net$77,175 $71,925 Internal-use software costs are capitalized during the application development stage. Costs related to planning and post implementation activities are expensed as incurred. Capitalized internal-use software is amortized, and recognized as cost of goods sold or selling, general and administrative expenses, on a straight-line basis over the estimated useful life of three years. Construction in process is comprised primarily of manufacturing equipment. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to ten years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Depreciation and amortization expense was $3.0 million and $0.8 million for the three months ended March 31, 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 $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