Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (13,094)	$ (49,150)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	8	36
Amortization of intangible assets	1,249	1,249
Impairment of intangible assets		6,588
Noncash interest expense	175	880
Fair value adjustment to embedded derivative		(481)
Loss on extinguishment of debt	2,435	71
Stock-based compensation	1,029	1,486
Bad debt expense	184	287
Provision for inventory excess and obsolescence	244
Warrant expense		26,821
Amortization of debt discount and deferred debt issuance costs	1,392
Deferred income tax benefit		(586)
Other noncash items	21	31
Change in operating assets and liabilities:
Accounts and other receivables	962	(2,343)
Inventory	(915)	(204)
Prepaid expenses and other current assets	613	(527)
Accounts payable and accrued liabilities	(1,260)	2,986
Warranty liability	116
Other	53	(23)
Net cash used in operating activities	(6,788)	(12,879)
Cash flows from investing activities:
Capital expenditures	(230)
Cash used in investing activities:	(230)
Cash flows from financing activities:
Proceeds from issuance of subordinated convertible debentures		2,000
Payments of financing costs	(59)	(21)
Repayment of subordinated convertible debentures		(2,200)
Proceeds from sale and issuance of equity securities		15,083
Payments of equity issuance costs		(44)
Proceeds from institutional exercise of warrants	610	239
Proceeds from credit agreement	4,500
Proceeds from PPP loan	955
Net cash provided by financing activities	6,006	15,057
Effect of currency exchange rate changes on cash and cash equivalents	(66)	(9)
Net decrease in cash, cash equivalents and restricted cash	(1,078)	2,169
Cash, cash equivalents and restricted cash at beginning of period	2,985	5,548
Cash, cash equivalents and restricted cash at end of period	1,907	7,717
Noncash investing and financing activities:
Relative fair value of warrants classified as debt issuance costs	1,393
Fair value of warrants included as a component of loss on extinguishment of debt	2,899
Capital expenditures accruals	$ 193
Conversion of common stock to convertible preferred stock		$ (1)

ReShape Lifesciences Inc. 10-Q