Natus Medical (NTUS) 10-Q 6 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Entity Address, Address Line One	3150 Pleasant View Road
Entity File Number	000-33001
Entity Incorporation, State or Country Code	DE
Document Transition Report	false
Document Quarterly Report	true
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	NTUS
Security Exchange Name	NASDAQ
Entity Small Business	false
Entity Registrant Name	NATUS MEDICAL INC
Entity Central Index Key	0000878526
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,585,114
Entity Emerging Growth Company	false
Entity Tax Identification Number	77-0154833
Entity Address, City or Town	Middleton
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53562
City Area Code	608
Local Phone Number	829-8500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 84,285	$ 75,595
Accounts receivable, net of allowance for doubtful accounts of $4,997 in 2022 and $5,271 in 2021	103,714	111,760
Inventories	72,238	67,745
Prepaid expenses and other current assets	26,531	22,191
Total current assets	286,768	277,291
Property and equipment, net	21,391	21,783
Operating lease right-of-use assets	8,027	9,288
Intangible assets, net	59,815	65,513
Goodwill	148,304	148,657
Deferred income tax	23,548	23,161
Other assets	20,230	18,595
Total assets	568,083	564,288
Current liabilities:
Accounts payable	34,342	36,405
Accrued liabilities	47,185	48,135
Deferred revenue	26,846	25,097
Current portion of operating lease liabilities	4,482	4,964
Total current liabilities	112,855	114,601
Liabilities, Noncurrent [Abstract]
Other liabilities	17,128	17,237
Operating lease liabilities	5,755	6,567
Deferred income tax	1,451	1,133
Total liabilities	137,189	139,538
Stockholders’ equity:
Common stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 34,576,100 in 2022 and 34,225,682 in 2021	359,319	353,737
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2021 and 2020	0	0
Retained earnings	86,389	84,486
Accumulated other comprehensive loss	(14,814)	(13,473)
Total stockholders’ equity	430,894	424,750
Total liabilities and stockholders’ equity	$ 568,083	$ 564,288

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,977	$ 5,271
Common Stock, par value (dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized (in shares)	120,000,000	120,000,000
Common Stock, shares issued (in shares)	34,576,100	34,225,682
Common Stock, shares outstanding (in shares)	34,576,100	34,225,682
Preferred Stock, par value (dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 119,793	$ 114,927
Cost of revenue	52,781	46,688
Intangibles amortization	1,600	1,751
Gross profit	65,412	66,488
Operating expenses:
Marketing and selling	29,551	28,971
Research and development	13,224	14,040
General and administrative	12,807	14,855
Intangibles amortization	3,598	3,897
Restructuring	2,051	205
Total operating expenses	61,231	61,968
Income from operations	4,181	4,520
Other expense, net	(807)	(1,656)
Income before provision for income tax	3,374	2,864
Provision for income taxes	1,471	468
Net income	$ 1,903	$ 2,396
Net income per share:
Basic (dollars per share)	$ 0.06	$ 0.07
Diluted (dollars per share)	$ 0.06	$ 0.07
Weighted average shares used in the calculation of net income per share:
Basic (in shares)	34,119	33,611
Diluted (in shares)	34,276	33,782

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,903	$ 2,396
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(1,341)	(6,494)
Interest rate swap designated as a cash flow hedge	0	68
Other comprehensive loss	(1,341)	(6,426)
Comprehensive income (loss)	$ 562	$ (4,030)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity (unaudited) Condensed Consolidated Statement of Stockholders' Equity (unaudited) - USD ($)	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning of period (shares) at Dec. 31, 2020		33,911,703
Beginning of period at Dec. 31, 2020	$ 411,094,000	$ 342,828,000	$ 71,309,000	$ (3,043,000)
Vesting Of Restricted Stock Units (shares)		19,650
Net issuance of restricted stock awards (in shares)		222,899
Stock-based compensation expense	3,018,000	$ 3,018,000
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(57,357)
Taxes paid related to net share settlement of equity awards	(1,150,000)	$ (1,150,000)
Other comprehensive loss	(6,426,000)
Other Comprehensive Income (Loss) Excluding Impact Of New Accounting Pronouncement	(6,426,000)			(6,426,000)
Net income	2,396,000		2,396,000
End of period (shares) at Mar. 31, 2021		34,096,895
End of period at Mar. 31, 2021	408,932,000	$ 344,696,000	73,705,000	(9,469,000)
Beginning of period (shares) at Dec. 31, 2021		34,225,682
Beginning of period at Dec. 31, 2021	424,750,000	$ 353,737,000	84,486,000	(13,473,000)
Vesting Of Restricted Stock Units (shares)		33,794
Net issuance of restricted stock awards (in shares)		164,760
Stock-based compensation expense	2,619,000	$ 2,619,000
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(51,482)
Taxes paid related to net share settlement of equity awards	(1,228,000)	$ (1,228,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		203,346
Stock Issued During Period, Value, Stock Options Exercised		$ 4,191,000
Other comprehensive loss	(1,341,000)			(1,341,000)
Net income	1,903,000		1,903,000
End of period (shares) at Mar. 31, 2022		34,576,100
End of period at Mar. 31, 2022	$ 430,894,000	$ 359,319,000	$ 86,389,000	$ (14,814,000)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net income	$ 1,903	$ 2,396
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	87	101
Depreciation and amortization	6,673	7,257
Loss on disposal of property and equipment	30	8
Warranty reserve	1,363	341
Share-based compensation	2,619	3,114
Loss on commencement of sales-type leases	0	6
Loss on equity method investment	192	136
Changes in operating assets and liabilities:
Accounts receivable	8,803	4,962
Inventories	(6,132)	4,139
Prepaid expenses and other assets	(4,752)	(4,028)
Accounts payable	(1,957)	1,303
Accrued liabilities	(1,762)	1,172
Deferred revenue	1,949	2,732
Deferred income tax	(119)	1,064
Net cash provided by operating activities	8,897	24,703
Investing activities:
Purchase of property and equipment	(1,062)	(731)
Purchase of equity method investments	(572)	0
Net cash used in investing activities	(1,634)	(731)
Financing activities:
Proceeds from stock option exercises and Employee Stock Purchase Program purchases	4,191	0
Taxes paid related to net share settlement of equity awards	(1,228)	(1,150)
Principal payments of financing lease liability	(447)	(125)
Payments on borrowings	0	(20,000)
Net cash provided by (used in) financing activities	2,516	(21,275)
Exchange rate changes effect on cash and cash equivalents	(1,089)	(4,230)
Net increase (decrease) in cash and cash equivalents	8,690	(1,533)
Cash and cash equivalents, beginning of period	75,595	82,082
Cash and cash equivalents, end of period	84,285	80,549
Supplemental disclosure of cash flow information:
Cash paid for interest	114	513
Cash paid for income taxes	1,066	(320)
Non-cash investing activities:
Property and equipment included in accounts payable	32	39
Inventory transferred to property and equipment	291	94
Transfer of leased assets to sales-type leases	$ 0	$ 13

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, the accounting policies followed in the preparation of the interim condensed consolidated financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports do not include all of the information and notes required by GAAP for annual financial statements. The interim financial information is unaudited, and reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2021 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Recently Adopted Accounting Pronouncements None.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Unbilled accounts receivable (“AR”) for the periods presented primarily represent the difference between revenue recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to extended service contracts, installation, and training, for which the service fees are billed in advance. The associated deferred revenue is generally recognized ratably over the extended service period or when installation and training are complete. The following table summarizes the changes in the unbilled AR and deferred revenue balances for the three months ended March 31, 2022 (in thousands): Unbilled AR, December 31, 2021 $ 252 Additions 1,535 Transferred to trade receivable (31) Unbilled AR, March 31, 2022 $ 1,756 Deferred revenue, December 31, 2021 $ 30,097 Additions 11,844 Revenue recognized (9,912) Deferred revenue, March 31, 2022 $ 32,029 At March 31, 2022, the short-term portion of deferred revenue of $26.8 million and the long-term portion of

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The components of basic and diluted EPS, and shares excluded from the calculation of diluted loss per share because the effect would have been anti-dilutive, are as follows (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income $ 1,903 $ 2,396 Weighted average common shares 34,119 33,611 Dilutive effect of stock based awards 157 171 Diluted shares 34,276 33,782 Basic earnings per share $ 0.06 $ 0.07 Diluted earnings per share $ 0.06 $ 0.07 Shares excluded from calculation of diluted EPS — —

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts	3 Months Ended
	Mar. 31, 2022
Credit Loss [Abstract]
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We estimate the lifetime allowance for doubtful, potentially uncollectible, accounts receivable upon their inception based on historical collection experience within the markets in which we operate, customer-specific information such as bankruptcy filings or customer liquidity problems, current conditions, and reasonable and supportable forecasts about the future. Our allowance for doubtful accounts is presented as a reduction to accounts receivable on our consolidated balance sheet. When all internal efforts have been exhausted to collect the receivable, it is written off and relieved from the reserve. The details of activity in allowance for doubtful accounts are as follows (in thousands): Three Months Ended 2022 2021 Balance, beginning of period $ 5,271 $ 6,213 Additions charged to expense 87 101 Write-offs charged against allowance (361) (229) Balance, end of period $ 4,997 $ 6,085

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials and subassemblies $ 25,092 $ 20,750 Work in process 2,739 2,825 Finished goods 59,011 57,836 Total inventories 86,842 81,411 Less: Non-current inventories (14,604) (13,666) Inventories, current $ 72,238 $ 67,745 As of March 31, 2022 and December 31, 2021, we have classified $14.6 million and $13.7 million, respectively, of inventories as other assets. This inventory consists primarily of service components used to repair products held by customers pursuant to warranty obligations and extended service contracts, including service components for products we no longer sell, inventory purchased for lifetime buys, and inventory that is turning over at a slow rate. We believe these inventories will be utilized for their intended purpose.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets The following table summarizes the components of gross and net intangible asset balances (in thousands): March 31, 2022 December 31, 2021 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 99,288 $ (6,033) $ (67,934) $ 25,321 $ 99,920 $ (6,039) $ (66,679) $ 27,202 Customer related 89,260 (50) (58,913) 30,297 89,794 (50) (57,133) 32,611 Trade names 45,442 (3,235) (38,302) 3,905 45,593 (3,260) (36,960) 5,373 Internally developed software 13,281 — (13,010) 271 13,281 — (12,985) 296 Patents 2,688 (133) (2,555) — 2,705 (133) (2,572) — Service agreements 800 — (779) 21 800 — (769) 31 Definite-lived intangible assets $ 250,759 $ (9,451) $ (181,493) $ 59,815 $ 252,093 $ (9,482) $ (177,098) $ 65,513 Intangible assets with indefinite lives: Intellectual Property $ 1,993 $ (1,993) $ — $ — $ 2,004 $ (2,004) $ — $ — Total intangible assets $ 252,752 $ (11,444) $ (181,493) $ 59,815 $ 254,097 $ (11,486) $ (177,098) $ 65,513 Finite-lived intangible assets are amortized over their weighted average lives, which are 14 years for technology, 10 years for customer related intangibles, 7 years for trade names, 6 years for internally developed software, 13 years for patents, 2 years for service agreements and 11 years weighted average in total. Internally developed software consists of $11.1 million relating to costs incurred for development of internal use computer software and $2.2 million for development of software to be sold. Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended 2022 2021 Technology $ 1,629 $ 1,795 Customer related 2,116 2,360 Trade names 1,443 1,483 Internally developed software 24 50 Service agreements 10 10 Total amortization $ 5,222 $ 5,698 The amortization expense amounts shown above include internally developed software not held for sale of $24 thousand and $24 thousand for the three months ended March 31, 2022 and March 31, 2021, respectively, which is recorded within our income statement as a general and administrative operating expense. The amortization expense amounts shown above include internally developed software held for sale of zero and $26 thousand for the three months ended March 31, 2022 and March 31, 2021, respectively, which is recorded within our income statement as cost of goods sold. Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Nine months ending December 31, 2022 $ 12,301 2023 14,748 2024 12,866 2025 12,261 2026 2,398 2027 2,267 Thereafter 2,974 Total expected amortization expense $ 59,815

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2021 $ 148,657 Foreign currency translation (353) March 31, 2022 $ 148,304

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consist of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 1,781 $ 1,782 Buildings 7,209 7,238 Leasehold improvements 7,729 7,722 Finance lease right-of-use assets 2,037 2,356 Equipment and furniture 21,121 20,637 Computer software and hardware 11,566 11,308 Demonstration and loaned equipment 4,424 4,050 55,867 55,093 Accumulated depreciation (34,476) (33,310) Total $ 21,391 $ 21,783 Depreciation expense of property and equipment, net was approximately $1.5 million and $1.6 million for the three months ended March 31, 2022 and March 31, 2021, respectively.

Reserve for Product Warranties

Reserve for Product Warranties	3 Months Ended
	Mar. 31, 2022
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	Reserve for Product Warranties We provide a warranty for products that is generally one year in length. In some cases, regulations may require us to provide repair or remediation beyond the typical warranty period. If any of the products contain defects, we may incur additional repair and remediation costs. Service, repair and calibration services are provided by a combination of our owned facilities and vendors on a contract basis. We accrue estimated product warranty costs at the time of sale based on historical experience. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management’s best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of the reserve. The reserve is reduced as costs are incurred to honor existing warranty and regulatory obligations. As of March 31, 2022, we have accrued $6.4 million for product related warranties. Our estimate of these costs is primarily based upon the number of units outstanding that may require repair and costs associated with shipping. The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended 2022 2021 Balance, beginning of period $ 6,042 $ 5,195 Additions and adjustments charged to expense 1,363 341 Utilizations (958) (740) Balance, end of period $ 6,447 $ 4,796 Our estimate of future product warranty costs may vary from actual product warranty costs, and any variance from estimates could impact our cost of sales, operating profits and results of operations.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation As of March 31, 2022, we have one active share-based compensation plan, the 2021 Equity Incentive Plan. The terms of all awards granted during the three months ended March 31, 2022 and the methods for determining grant-date fair value of the awards are consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Details of share-based compensation expense are as follows (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 113 $ 100 Marketing and selling 612 640 Research and development 195 355 General and administrative 1,699 1,923 Total $ 2,619 $ 3,018 As of March 31, 2022, unrecognized compensation expense related to the unvested portion of stock options and other stock awards was approximately $21.9 million, which is expected to be recognized over a weighted average period of 2.4 years.

Other Expense, net

Other Expense, net	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
Other Expense, net	Other Expense, net Other expense, net consists of (in thousands): Three Months Ended 2022 2021 Interest income $ 3 $ 3 Interest expense (267) (766) Foreign currency loss (307) (731) Other expense (236) (162) Total other expense, net $ (807) $ (1,656)

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete events arising in each respective quarter. During each interim period, we update the estimated annual effective tax rate which is subject to significant volatility due to several factors, including our ability to accurately predict the income before provision for income taxes in multiple jurisdictions, the effects of acquisitions, the integration of those acquisitions, and changes in tax law. In circumstances where we are unable to predict income in multiple jurisdictions, the actual year to date effective tax rate may be the best estimate of the annual effective tax rate for purposes of determining the interim provision for income tax. We recorded income tax expense of $1.5 million and $0.5 million for the three months ended March 31, 2022 and March 31, 2021, respectively. The effective tax rate was 43.6% and 16.4% for the three months ended March 31, 2022 and March 31, 2021, respectively. The increase in the effective tax rate for the three months ended March 31, 2022 compared with the three months ended March 31, 2021, is primarily attributable to a tax law change in effect from January 1, 2022 that requires the capitalization of research and experimental costs under IRC Section 174 and directly increased the Company's Subpart F inclusion. The approximate impact of the change in the estimated tax rate due to all impacts from IRC Section 174 resulted in a $0.01 reduction in the GAAP earnings per share. Other significant factors impacting the current period effective tax rate included the benefit of Federal and California research and development credits, offset by global intangible low taxed income inclusions (“GILTI”) that was also impacted by IRC Section 174, and non-deductible executive compensation expenses. Factors impacting the effective rate for the three months ended March 31, 2021, include the benefit of Federal and California research and development credits, favorable discrete items for the carryback of losses, partially offset by non-deductible executive compensation expenses, and other discrete events. Under the Tax Cut and Jobs Act (the “Act”) enacted on December 22, 2017, research and experimental (“R&E”) expenditures under IRC Section 174 incurred for tax years beginning after December 31, 2021 must be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted, U.S. or foreign respectively. Although there is proposed legislation that would defer the capitalization requirement to later years, we have no assurance that IRC Section 174 will be repealed or otherwise modified. We recorded no change related to unrecognized tax benefits for the three months ended March 31, 2022. Within the next twelve months, it is possible that the uncertain tax positions may change with a range of approximately zero to $0.8 million. Our tax returns remain open to examination as follows: U.S Federal, 2018 through 2021, U.S. states, 2017 through 2021, and significant foreign jurisdictions, generally 2017 through 2021.

Debt and Credit Arrangements

Debt and Credit Arrangements	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt and Credit Arrangements	Debt and Credit Arrangements We have a Credit Agreement with JP Morgan Chase Bank ("JP Morgan"), Citibank, NA (“Citibank”), and Wells Fargo Bank, National Association (“Wells Fargo”). During the third quarter of 2020 we amended the terms of the Credit Agreement to extend the maturity date of the original agreement, reduce the aggregate value of the revolving facility, and amend certain covenants. The amended Credit Agreement provides for an aggregate $150.0 million of secured revolving credit facility. The Credit Agreement contains covenants, including covenants relating to maintenance of books and records, financial reporting and notification, compliance with laws, maintenance of properties and insurance, and limitations on guaranties, investments, issuance of debt, lease obligations and capital expenditures, and is secured by virtually all of our assets. The Credit Agreement provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, bankruptcy or insolvency events and the occurrence of the event has a material adverse effect. We have no other significant credit facilities. As of March 31, 2022, no amounts were outstanding under the Credit Agreement. In addition to the customary restrictive covenants listed above, the Credit Agreement also contains financial covenants that require us to maintain a certain leverage ratio and fixed charge coverage ratio, each as defined in the Credit Agreement: • Leverage Ratio, as defined, to be no higher than 3.25 to 1.00. • Interest Coverage Ratio, as defined, to be at least 1.75 to 1.00 at all times.

Segment, Customer and Geographi

Segment, Customer and Geographic Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment, Customer and Geographic Information	Segment, Customer and Geographic Information We operate in one reportable segment in which we provide medical device solutions to screen, diagnose, and treat disorders affecting the brain, neural pathways, and eight sensory nervous systems. End-user customer base includes hospitals, clinics, laboratories, physicians, audiologists, and governmental agencies. Most of our international sales are to distributors who resell products to end users or sub-distributors. The following tables present revenue by end market and geographic region and long-lived asset information by geographic region. Revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands): Three Months Ended 2022 2021 Consolidated Revenue: United States $ 69,970 $ 67,772 International 49,823 47,155 Total $ 119,793 $ 114,927 Three Months Ended 2022 2021 Revenue by End Market: Brain Products: Devices and Systems $ 37,807 $ 37,293 Supplies 6,291 5,486 Services 7,290 5,705 Total Brain Revenue 51,388 48,484 Neural Pathway Products: Devices and Systems 9,657 8,832 Supplies 9,531 8,751 Services 204 257 Total Neural Pathways Revenue 19,392 17,840 Sensory Nervous Systems Products: Devices and Systems 23,342 21,292 Supplies 8,473 8,143 Services 5,858 6,097 Total Sensory Nervous Systems Revenue 37,673 35,532 Other Products: Devices and Systems 5,025 7,067 Supplies 2,781 2,898 Services 3,534 3,106 Total Other Revenue 11,340 13,071 Total Revenue $ 119,793 $ 114,927 March 31, 2022 December 31, 2021 Property and equipment, net: United States $ 9,635 $ 9,642 Ireland 6,131 6,223 Canada 3,546 3,594 Denmark 1,078 1,262 Other foreign countries 1,001 1,062 Total $ 21,391 $ 21,783 During the three months ended March 31, 2022 and 2021, no single customer and no country outside the United States contributed more than 10% of our consolidated revenue.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events As previously announced, on April 17, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Prince Parent Inc., a Delaware corporation (“Parent”), and Prince Mergerco Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), providing for, among other things, the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent. Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.001 per share, of the Company (“Company Common Stock”) outstanding as of immediately prior to the Effective Time (other than any shares of Company Common Stock held in treasury, held by Parent, Merger Sub or their respective subsidiaries or as to which appraisal rights have been perfected in accordance with the Delaware General Corporation Law, but including each share of Company Restricted Stock (as defined below)) will be cancelled and extinguished and automatically converted into the right to receive cash in an amount equal to $33.50, without interest thereon (the “Per Share Price”). Pursuant to the Merger Agreement, at the Effective Time: • except as set forth below with respect to Employee Interim Awards (as defined below), each share of Company Common Stock subject to vesting restrictions or a risk of forfeiture (“Company Restricted Stock”) outstanding as of immediately prior to the Effective Time, whether vested or unvested and whether or not granted pursuant to any of the Company’s equity plans (“Company Stock Plans”), will be cancelled and converted into and will become a right to receive an amount in cash, without interest and subject to any required tax withholding, equal to the Per Share Price; • except as set forth below with respect to Employee Interim Awards or as set forth in the CEO Retention Agreement (as defined below), each restricted stock unit in respect of shares of Company Common Stock (each, a “Company Restricted Stock Unit”) outstanding as of immediately prior to the Effective Time, whether vested or unvested and whether or not granted pursuant to any Company Stock Plan, will be cancelled and be converted into and will become a right to receive an amount in cash, without interest and subject to any required tax withholding, equal to (i) the amount of the Per Share Price; multiplied by (ii) (1) with respect to Company Restricted Stock Units that are only subject to time-vesting requirements, the total number of shares of Company Common Stock subject to such Company Restricted Stock Unit, and (2) with respect to Company Restricted Stock Units that are subject to time- and performance-vesting requirements, the total number of shares of Company Common Stock determined to be performance vested with the performance goals deemed achieved at maximum levels and with the remaining time-vesting requirements deemed satisfied; • any Company Restricted Stock and Company Restricted Stock Units granted after the date of the Merger Agreement, other than awards that may be granted to non-employee directors after the date of the Merger Agreement (such awards, “Employee Interim Awards”), that are outstanding as of immediately prior to the Effective Time, whether vested or unvested and whether or not granted pursuant to any Company Stock Plan, will be treated at the Effective Time in the manner set forth above, provided that any applicable performance goals will be deemed achieved at target levels, rather than at maximum, and the number of shares subject to such Employee Interim Awards that will vest at the Effective Time will be prorated to reflect the portion of the applicable vesting period that has elapsed from the date of grant until the Effective Time (rather than vesting in full), and the remaining unvested portion of any Employee Interim Awards will be forfeited at the Effective Time; • each option (or portion thereof) to purchase a share of Company Common Stock (a “Company Option”) that is outstanding as of immediately prior to the Effective Time, whether vested or unvested and whether or not granted pursuant to any Company Stock Plan, and that has an exercise price per share less than the Per Share Price (each, an “In-the-Money Company Option”) will be cancelled and converted into and will become a right to receive an amount in cash, without interest and subject to any required tax withholding, equal to (i) the amount of the Per Share Price (less the exercise price per share attributable to such Company Option), multiplied by (ii) the total number of shares of Company Common Stock that are issuable upon the full exercise of such Company Option; and • each Company Option that is not an In-the-Money Company Option will be cancelled without any cash payment being made in respect thereof. The consummation of the Merger (the “Closing”) is subject to certain customary closing conditions, including, but not limited to, the: (i) adoption of the Merger Agreement by the holders of a majority of the outstanding shares of Company Common Stock; (ii) expiration or termination of any waiting periods applicable to the consummation of the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and certain other applicable foreign antitrust laws and foreign direct investment laws of certain other jurisdictions; and (iii) absence of any law or order restraining, enjoining or otherwise prohibiting the Merger. The Merger is not subject to any financing condition. The transaction is expected to close in the third quarter of 2022, although there can be no assurance that the Merger will occur by that date, subject to customary closing conditions, including approval by the Company's stockholders and receipt of regulatory approvals. If the Merger Agreement is terminated by the Company in order for the Company to enter concurrently into an alternative acquisition agreement with respect to a Superior Proposal (as defined in the Merger Agreement), (i) prior to May 22, 2022 (the “Cut-Off Date”), the Company will be obligated to pay to Parent a one-time fee equal to $19,753,676 in cash or (ii) after the Cut-Off Date, the Company will be obligated to pay Parent a one-time fee equal to $39,507,352 in cash. The Company also expects to incur costs, expenses, and fees for professional services and other transaction costs in connection with the Merger. If the transaction closes, Natus will become a private company and Natus shares will no longer be listed on any public market. To encourage the continued retention of the Company's President and Chief Executive Officer, Thomas J. Sullivan, following the Closing, in connection with entering into the Merger Agreement, Parent required Mr. Sullivan to enter into a retention agreement, dated as of April 17, 2022, with Parent and the Company (the “CEO Retention Agreement”). Pursuant to the CEO Retention Agreement, Mr. Sullivan agreed that, notwithstanding the treatment of Company Restricted Stock Units set forth in the Merger Agreement (as described above), he would not receive payments in respect of his Company Restricted Stock Units that are market stock units (“MSUs”) based on deemed achievement of performance goals at maximum levels. Instead, Mr. Sullivan's MSUs will be deemed attained at the level of performance actually achieved through the Closing based on the Per Share Price (which is approximately 143.4% of target, in the case of MSUs granted to Mr. Sullivan in December 2021, and 139.6% of target, in the case of MSUs granted to Mr. Sullivan in January 2022), consistent with the level of return to the Company's stockholders pursuant to the Merger Agreement. The consequence to Mr. Sullivan will be a reduction by over $3.0 million in the amount of gross proceeds that he otherwise was entitled to receive and would have received in respect of his MSUs. Furthermore, pursuant to the CEO Retention Agreement, Mr. Sullivan agreed that an amount equal to $6.0 million (the “Retention Payment”) payable to him at the Effective Time in respect of his Company Restricted Stock Units would not become payable at the Effective Time and, instead, would become payable 50% on the six-month anniversary of the Closing and 50% on the one-year anniversary of the Closing, subject to his continued employment with the Company until the relevant retention date. If Mr. Sullivan's employment is terminated by the Company without cause, by Mr. Sullivan with good reason, or due to his death or disability, any then-unpaid portion of the Retention Payment shall be paid to him upon his termination (subject to, in the case of a termination by the Company without cause or by Mr. Sullivan for good reason, his execution and non-revocation of a release of claims). If Mr. Sullivan's employment terminates for any other reason prior to the relevant retention date, he will immediately forfeit all portions of the Retention Payment that relate to a future retention date. Mr. Sullivan's right to receive the Retention Payment is further subject to his continued compliance with certain restrictive covenants. At the Effective Time, all other amounts payable to Mr. Sullivan in respect of his Company Restricted Stock and Company Restricted Stock Units will become payable in accordance with the Merger Agreement, as described above.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, the accounting policies followed in the preparation of the interim condensed consolidated financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports do not include all of the information and notes required by GAAP for annual financial statements. The interim financial information is unaudited, and reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2021 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements None.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of contract assets and liabilities	The following table summarizes the changes in the unbilled AR and deferred revenue balances for the three months ended March 31, 2022 (in thousands): Unbilled AR, December 31, 2021 $ 252 Additions 1,535 Transferred to trade receivable (31) Unbilled AR, March 31, 2022 $ 1,756 Deferred revenue, December 31, 2021 $ 30,097 Additions 11,844 Revenue recognized (9,912) Deferred revenue, March 31, 2022 $ 32,029

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	The components of basic and diluted EPS, and shares excluded from the calculation of diluted loss per share because the effect would have been anti-dilutive, are as follows (in thousands, except per share amounts): Three Months Ended 2022 2021 Net income $ 1,903 $ 2,396 Weighted average common shares 34,119 33,611 Dilutive effect of stock based awards 157 171 Diluted shares 34,276 33,782 Basic earnings per share $ 0.06 $ 0.07 Diluted earnings per share $ 0.06 $ 0.07 Shares excluded from calculation of diluted EPS — —

Allowance for Doubtful Accoun_2

Allowance for Doubtful Accounts (Tables)	3 Months Ended
	Mar. 31, 2022
Credit Loss [Abstract]
Schedule of Allowance for Credit Losses	The details of activity in allowance for doubtful accounts are as follows (in thousands): Three Months Ended 2022 2021 Balance, beginning of period $ 5,271 $ 6,213 Additions charged to expense 87 101 Write-offs charged against allowance (361) (229) Balance, end of period $ 4,997 $ 6,085

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials and subassemblies $ 25,092 $ 20,750 Work in process 2,739 2,825 Finished goods 59,011 57,836 Total inventories 86,842 81,411 Less: Non-current inventories (14,604) (13,666) Inventories, current $ 72,238 $ 67,745

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets with definite lives	The following table summarizes the components of gross and net intangible asset balances (in thousands): March 31, 2022 December 31, 2021 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 99,288 $ (6,033) $ (67,934) $ 25,321 $ 99,920 $ (6,039) $ (66,679) $ 27,202 Customer related 89,260 (50) (58,913) 30,297 89,794 (50) (57,133) 32,611 Trade names 45,442 (3,235) (38,302) 3,905 45,593 (3,260) (36,960) 5,373 Internally developed software 13,281 — (13,010) 271 13,281 — (12,985) 296 Patents 2,688 (133) (2,555) — 2,705 (133) (2,572) — Service agreements 800 — (779) 21 800 — (769) 31 Definite-lived intangible assets $ 250,759 $ (9,451) $ (181,493) $ 59,815 $ 252,093 $ (9,482) $ (177,098) $ 65,513 Intangible assets with indefinite lives: Intellectual Property $ 1,993 $ (1,993) $ — $ — $ 2,004 $ (2,004) $ — $ — Total intangible assets $ 252,752 $ (11,444) $ (181,493) $ 59,815 $ 254,097 $ (11,486) $ (177,098) $ 65,513
Amortization expense	Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended 2022 2021 Technology $ 1,629 $ 1,795 Customer related 2,116 2,360 Trade names 1,443 1,483 Internally developed software 24 50 Service agreements 10 10 Total amortization $ 5,222 $ 5,698
Expected amortization expense related to amortizable intangible assets	Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Nine months ending December 31, 2022 $ 12,301 2023 14,748 2024 12,866 2025 12,261 2026 2,398 2027 2,267 Thereafter 2,974 Total expected amortization expense $ 59,815

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying amount of Goodwill	The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2021 $ 148,657 Foreign currency translation (353) March 31, 2022 $ 148,304

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment net	Property and equipment, net consist of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 1,781 $ 1,782 Buildings 7,209 7,238 Leasehold improvements 7,729 7,722 Finance lease right-of-use assets 2,037 2,356 Equipment and furniture 21,121 20,637 Computer software and hardware 11,566 11,308 Demonstration and loaned equipment 4,424 4,050 55,867 55,093 Accumulated depreciation (34,476) (33,310) Total $ 21,391 $ 21,783

Reserve for Product Warranties

Reserve for Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2022
Product Warranties Disclosures [Abstract]
Reserve for Product Warranties	The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended 2022 2021 Balance, beginning of period $ 6,042 $ 5,195 Additions and adjustments charged to expense 1,363 341 Utilizations (958) (740) Balance, end of period $ 6,447 $ 4,796

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Share-Based Compensation Expense	Details of share-based compensation expense are as follows (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 113 $ 100 Marketing and selling 612 640 Research and development 195 355 General and administrative 1,699 1,923 Total $ 2,619 $ 3,018

Other Expense, net (Tables)

Other Expense, net (Tables)	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
Other Expense, net	Other expense, net consists of (in thousands): Three Months Ended 2022 2021 Interest income $ 3 $ 3 Interest expense (267) (766) Foreign currency loss (307) (731) Other expense (236) (162) Total other expense, net $ (807) $ (1,656)

Segment, Customer and Geograp_2

Segment, Customer and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Revenue and Long-lived Asset Information by Geographic Region	Revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands): Three Months Ended 2022 2021 Consolidated Revenue: United States $ 69,970 $ 67,772 International 49,823 47,155 Total $ 119,793 $ 114,927 Three Months Ended 2022 2021 Revenue by End Market: Brain Products: Devices and Systems $ 37,807 $ 37,293 Supplies 6,291 5,486 Services 7,290 5,705 Total Brain Revenue 51,388 48,484 Neural Pathway Products: Devices and Systems 9,657 8,832 Supplies 9,531 8,751 Services 204 257 Total Neural Pathways Revenue 19,392 17,840 Sensory Nervous Systems Products: Devices and Systems 23,342 21,292 Supplies 8,473 8,143 Services 5,858 6,097 Total Sensory Nervous Systems Revenue 37,673 35,532 Other Products: Devices and Systems 5,025 7,067 Supplies 2,781 2,898 Services 3,534 3,106 Total Other Revenue 11,340 13,071 Total Revenue $ 119,793 $ 114,927 March 31, 2022 December 31, 2021 Property and equipment, net: United States $ 9,635 $ 9,642 Ireland 6,131 6,223 Canada 3,546 3,594 Denmark 1,078 1,262 Other foreign countries 1,001 1,062 Total $ 21,391 $ 21,783

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	Mar. 31, 2022USD ($)
Revenue from Contract with Customer [Abstract]
Short-term contract liability	$ 26.8
Long-term contract liability	5.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 22.8
Expected timing of satisfaction for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6.3
Expected timing of satisfaction for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1.7
Expected timing of satisfaction for remaining performance obligation	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0.6
Expected timing of satisfaction for remaining performance obligation	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 0.6
Expected timing of satisfaction for remaining performance obligation

Revenue - Unbilled AR and Defer

Revenue - Unbilled AR and Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Movement in Deferred Revenue [Roll Forward]
Deferred Revenue, December 31, 2018	$ 30,097
Additions	11,844
Revenue Recognized	(9,912)
Deferred Revenue, March 31, 2019	32,029
Unbilled AR
Movement in Unbilled AR [Roll Forward]
Unbilled AR, December 31, 2018	252
Additions	1,535
Transferred to trade receivable	(31)
Unbilled AR, March 31, 2019	$ 1,756

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 1,903	$ 2,396
Weighted average common shares (in shares)	34,119	33,611
Dilutive effect of stock based awards (in shares)	157	171
Diluted Shares (in shares)	34,276	33,782
Basic earnings per share (dollars per share)	$ 0.06	$ 0.07
Diluted earnings per share (dollars per share)	$ 0.06	$ 0.07
Diluted earnings per share (in shares)	0	0

Allowance for Doubtful Accoun_3

Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 5,271	$ 6,213
Additions charged to expense	87	101
Write-offs charged against allowance	(361)	(229)
Balance, end of period	$ 4,997	$ 6,085

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Summary of Inventories
Raw materials and subassemblies	$ 25,092	$ 20,750
Work in process	2,739	2,825
Finished goods	59,011	57,836
Total inventories	86,842	81,411
Less: Non-current inventories	(14,604)	(13,666)
Inventories, current	$ 72,238	$ 67,745

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Noncurrent inventories	$ 14,604	$ 13,666

Intangible Assets - Components

Intangible Assets - Components of Gross and Net Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Intangible assets with definite lives:
Gross Carrying Amount	$ 250,759	$ 252,093
Accumulated Impairment	(9,451)	(9,482)
Accumulated Amortization	(181,493)	(177,098)
Net Book Value	59,815	65,513
Intangible assets with indefinite lives:
Gross Carrying Amount	252,752	254,097
Accumulated Impairment	(11,444)	(11,486)
Net Book Value	59,815	65,513
Intellectual Property
Intangible assets with indefinite lives:
Gross Carrying Amount	1,993	2,004
Impairment of Intangible Assets Indefined Lived (excluding Goodwill)	(1,993)	(2,004)
Net Book Value	0	0
Technology
Intangible assets with definite lives:
Gross Carrying Amount	99,288	99,920
Accumulated Impairment	(6,033)	(6,039)
Accumulated Amortization	(67,934)	(66,679)
Net Book Value	25,321	27,202
Customer related
Intangible assets with definite lives:
Gross Carrying Amount	89,260	89,794
Accumulated Impairment	(50)	(50)
Accumulated Amortization	(58,913)	(57,133)
Net Book Value	30,297	32,611
Trade names
Intangible assets with definite lives:
Gross Carrying Amount	45,442	45,593
Accumulated Impairment	(3,235)	(3,260)
Accumulated Amortization	(38,302)	(36,960)
Net Book Value	3,905	5,373
Internally developed software
Intangible assets with definite lives:
Gross Carrying Amount	13,281	13,281
Accumulated Impairment	0	0
Accumulated Amortization	(13,010)	(12,985)
Net Book Value	271	296
Patents
Intangible assets with definite lives:
Gross Carrying Amount	2,688	2,705
Accumulated Impairment	(133)	(133)
Accumulated Amortization	(2,555)	(2,572)
Net Book Value	0	0
Service agreements
Intangible assets with definite lives:
Gross Carrying Amount	800	800
Accumulated Impairment	0	0
Accumulated Amortization	(779)	(769)
Net Book Value	$ 21	$ 31

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	11 years
Total amortization	$ 5,222	$ 5,698
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	14 years
Total amortization	$ 1,629	1,795
Customer related
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	10 years
Total amortization	$ 2,116	2,360
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	7 years
Total amortization	$ 1,443	1,483
Internally developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	6 years
Costs incurred for development of internal use computer software	$ 11,100
Costs incurred for development of software to be sold	2,200
Total amortization	$ 24	50
Patents
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	13 years
Service agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	2 years
Total amortization	$ 10	10
General and administrative | Internally developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization	24	24
Cost of sales | Internally developed software | Assets held for sale
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 0	$ 26

Intangible Assets - Schedule of

Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 5,222	$ 5,698
Technology
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,629	1,795
Customer related
Finite-Lived Intangible Assets [Line Items]
Total amortization	2,116	2,360
Trade names
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,443	1,483
Internally developed software
Finite-Lived Intangible Assets [Line Items]
Total amortization	24	50
Service agreements
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 10	$ 10

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Expected annual amortization expense related to amortizable intangible assets
Nine months ending December 31, 2022	$ 12,301
2019	14,748
2020	12,866
2021	12,261
2022	2,398
2023	2,267
Thereafter	2,974
Net Book Value	$ 59,815	$ 65,513

Goodwill (Details)

Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Carrying amount of goodwill
44561	$ 148,657
Foreign currency translation	(353)
44651	$ 148,304

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 55,867		$ 55,093
Finance Lease, Right-of-Use Asset	2,037		2,356
Accumulated depreciation	(34,476)		(33,310)
Total	21,391		21,783
Depreciation	1,500	$ 1,600
Depreciation	1,500	$ 1,600
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,781		1,782
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,209		7,238
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,729		7,722
Equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, gross	21,121		20,637
Computer software and hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,566		11,308
Demonstration and loaned equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,424		$ 4,050

Reserve for Product Warrantie_2

Reserve for Product Warranties - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Product Warranties Disclosures [Abstract]
Product warranty period (in years)	1 year
Product Liability Contingency [Line Items]
Accrual of estimated costs	$ 6,447	$ 6,042	$ 4,796	$ 5,195

Reserve for Product Warrantie_3

Reserve for Product Warranties - Schedule of Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reserve for Product Warranties
Balance, beginning of period	$ 6,042	$ 5,195
Additions and adjustments charged to expense	1,363	341
Utilizations	(958)	(740)
Balance, end of period	$ 6,447	$ 4,796

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)plan
Share-based Payment Arrangement [Abstract]
Number of active share based compensation plans | plan	1
Unrecognized compensation expense related to unvested portion of stock options | $	$ 21.9
Weighted average period of recognition of unrecognized compensation expense	2 years 4 months 24 days

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,619	$ 3,018
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	113	100
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	612	640
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	195	355
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,699	$ 1,923

Other Expense, net (Details)

Other Expense, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other expense, net
Interest income	$ 3	$ 3
Interest expense	(267)	(766)
Foreign currency loss	(307)	(731)
Other expense	(236)	(162)
Total other expense, net	$ (807)	$ (1,656)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Provision for income taxes	$ 1,471,000	$ 468,000
Effective income tax rate	43.60%	16.40%
Reduction to GAAP EPS	$ 0.01
Change in unrecognized tax benefits	$ 0
Minimum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible of uncertain tax benefit within the next twelve months	0
Maximum
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible of uncertain tax benefit within the next twelve months	$ 800,000

Debt and Credit Arrangements -

Debt and Credit Arrangements - Narrative (Details) - Citibank, National Association - Revolving Credit Facility	3 Months Ended
	Mar. 31, 2022USD ($)
Line of Credit Facility [Line Items]
Aggregate secured revolving credit facility	$ 150,000,000
Amount outstanding on the Credit Agreement	$ 0
Federal Funds Rate
Line of Credit Facility [Line Items]
Interest rate	0.50%
LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	1.00%
Maximum | LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	350.00%
Minimum
Line of Credit Facility [Line Items]
Leverage Ratio	3.25
Interest Coverage Ratio	1.75
Minimum | LIBOR rate
Line of Credit Facility [Line Items]
Interest rate	225.00%

Segment, Customer and Geograp_3

Segment, Customer and Geographic Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2022segment
Segment Reporting [Abstract]
Number of reportable segments (segments)	1

Segment, Customer and Geograp_4

Segment, Customer and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Consolidated Revenue:
Revenue	$ 119,793	$ 114,927
Revenue by End Market:
Total Revenue	119,793	114,927
Property and equipment, net:
Property and equipment, net	21,391		$ 21,783
Brain Products:
Revenue by End Market:
Total Revenue	51,388	48,484
Brain Products: | Devices and Systems
Revenue by End Market:
Total Revenue	37,807	37,293
Brain Products: | Supplies
Revenue by End Market:
Total Revenue	6,291	5,486
Brain Products: | Services
Revenue by End Market:
Total Revenue	7,290	5,705
Neural Pathway Products:
Revenue by End Market:
Total Revenue	19,392	17,840
Neural Pathway Products: | Devices and Systems
Revenue by End Market:
Total Revenue	9,657	8,832
Neural Pathway Products: | Supplies
Revenue by End Market:
Total Revenue	9,531	8,751
Neural Pathway Products: | Services
Revenue by End Market:
Total Revenue	204	257
Sensory Nervous Systems Products:
Revenue by End Market:
Total Revenue	37,673	35,532
Sensory Nervous Systems Products: | Devices and Systems
Revenue by End Market:
Total Revenue	23,342	21,292
Sensory Nervous Systems Products: | Supplies
Revenue by End Market:
Total Revenue	8,473	8,143
Sensory Nervous Systems Products: | Services
Revenue by End Market:
Total Revenue	5,858	6,097
Other Products:
Revenue by End Market:
Total Revenue	11,340	13,071
Other Products: | Devices and Systems
Revenue by End Market:
Total Revenue	5,025	7,067
Other Products: | Supplies
Revenue by End Market:
Total Revenue	2,781	2,898
Other Products: | Services
Revenue by End Market:
Total Revenue	3,534	3,106
United States
Consolidated Revenue:
Revenue	69,970	67,772
Property and equipment, net:
Property and equipment, net	9,635		9,642
International
Consolidated Revenue:
Revenue	49,823	$ 47,155
Property and equipment, net:
Property and equipment, net	1,001		1,062
Ireland
Property and equipment, net:
Long-Lived Assets	6,131		6,223
Canada
Property and equipment, net:
Property and equipment, net	3,546		3,594
Denmark
Property and equipment, net:
Property and equipment, net	$ 1,078		$ 1,262

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Line Items]
Gain (Loss) on Disposition of Property Plant Equipment	$ (30)	$ (8)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Apr. 17, 2022	Mar. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Common Stock, par value (dollars per share)		$ 0.001	$ 0.001
Subsequent Event | Chief Executive Officer | Market Stock Units (MSUs)
Subsequent Event [Line Items]
Reduction in gross proceeds to CEO	$ 3,000,000
Subsequent Event | Chief Executive Officer | Market Stock Units (MSUs) | December 2021
Subsequent Event [Line Items]
MSU attained at level of performance achieved through Closing	139.60%
Subsequent Event | Chief Executive Officer | Market Stock Units (MSUs) | January 2022
Subsequent Event [Line Items]
MSU attained at level of performance achieved through Closing	143.40%
Subsequent Event | Natus Medical Incorporated | Prince Parent, Inc.
Subsequent Event [Line Items]
Business acquisition, share price (in dollars per share)	$ 33.50
Fee paid if agreement terminated prior to cut-off date	$ 19,753,676
Fee paid if agreement terminated after cut-off date	39,507,352
Subsequent Event | Natus Medical Incorporated | Chief Executive Officer | Prince Parent, Inc.
Subsequent Event [Line Items]
Retention payment	$ 6,000,000
Retention payment, percent	50.00%
Retention payment due at six-month anniversary	6 months
Retention payment due at one-year anniversary	1 year