Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 26

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 the amount is uncollectible. The write-off is recorded in the period in which the account receivable is deemed uncollectible. Recoveries are recognized when received and as a direct credit to earnings or as a reduction to the allowance for credit losses (which would indirectly reduce the loss by decreasing bad debt expense).The following table presents the changes in the allowance for credit losses related to accounts receivable: Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Balance at beginning of period$1,229 $515 $880 $1,648 Charges (credits) to the allowance, net179 96 778 459 Write-offs charged against the allowance— — — (1,496)Recoveries of amounts previously reserved(310)(96)(560)(96)Balance at the end of the period$1,098 $515 $1,098 $515 The write-offs charged against the allowance during the nine months ended September 30, 2024 are related primarily to accounts receivable with two healthcare systems.InventoriesInventories are valued at the lower of cost or net realizable value, computed on a first-in, first-out basis and consisted of the following:September 30, 2025December 31, 2024Raw materials$21,215 $22,430 Work in process9,315 — Finished goods111,247 57,688 Total inventories, net of reserves$141,777 $80,118 We expense prelaunch inventory as research and development expense in the period incurred unless objective and persuasive evidence exists that regulatory approval and subsequent commercialization of a product candidate is probable and where we also expect the future economic benefit from the sales of the product candidate to be realized. We regularly review inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, incur charges to write down inventories to their net realizable value. The determination of a reserve for excess and obsolete inventory involves management exercising judgment to determine the required reserve, considering future demand, product life cycles, introduction of new products, and current market conditions. The reserve for excess and obsolete inventory was $1.4 million and $1.0 million as of September 30, 2025 and December 31, 2024, respectively.Property and EquipmentProperty and equipment are stated at cost, less accumulated depreciation and amortization and consisted of the following:

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