☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-1329150 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A Common Stock, $0.0001 par value | ORGO | Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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43 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 89,790 | $ | 84,394 | $ | 102,237 | $ | 84,394 | ||||||||
Restricted cash | 517 | 412 | 487 | 412 | ||||||||||||
Accounts receivable, net | 76,767 | 56,804 | 74,583 | 56,804 | ||||||||||||
Inventory | 28,106 | 27,799 | 29,495 | 27,799 | ||||||||||||
Prepaid expenses and other current assets | 6,583 | 4,935 | 5,033 | 4,935 | ||||||||||||
Total current assets | 201,763 | 174,344 | 211,835 | 174,344 | ||||||||||||
Property and equipment, net | 69,739 | 60,068 | 74,774 | 55,792 | ||||||||||||
Intangible assets, net | 28,136 | 30,622 | 26,896 | 30,622 | ||||||||||||
Goodwill | 28,772 | 28,772 | 28,772 | 28,772 | ||||||||||||
Operating lease right-of-use | 26,531 | — | 26,522 | — | ||||||||||||
Deferred tax asset, net | 18 | 18 | 18 | 18 | ||||||||||||
Other assets | 605 | 670 | 1,606 | 670 | ||||||||||||
Total assets | $ | 355,564 | $ | 294,494 | $ | 370,423 | $ | 290,218 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Deferred acquisition consideration | $ | — | $ | 483 | $ | — | $ | 483 | ||||||||
Current portion of term loan | 22,500 | 16,666 | 2,186 | 16,666 | ||||||||||||
Current portion of finance lease obligations | 4,134 | 3,619 | 8,531 | 3,619 | ||||||||||||
Current portion of operating lease obligations | 4,504 | — | 4,667 | — | ||||||||||||
Current portion of deferred rent and lease incentive obligation | — | 95 | — | 95 | ||||||||||||
Accounts payable | 26,789 | 23,381 | 28,488 | 23,381 | ||||||||||||
Accrued expenses and other current liabilities | 26,618 | 23,973 | 37,128 | 23,973 | ||||||||||||
Total current liabilities | 84,545 | 68,217 | 81,000 | 68,217 | ||||||||||||
Line of credit | 10,000 | 10,000 | 0 | 10,000 | ||||||||||||
Term loan, net of current portion | 37,290 | 43,044 | 71,667 | 43,044 | ||||||||||||
Deferred acquisition consideration, net of current portion | 1,436 | 1,436 | 1,436 | 1,436 | ||||||||||||
Earnout liability | 927 | 3,985 | 0 | 3,985 | ||||||||||||
Deferred rent and lease incentive obligation, net of current portion | — | 2,315 | — | 2,315 | ||||||||||||
Finance lease obligations, net of current portion | 9,553 | 11,442 | 831 | 11,442 | ||||||||||||
Operating lease obligations, net of current portion | 24,224 | — | 24,204 | — | ||||||||||||
Other liabilities | 8,667 | 7,971 | 2,111 | 7,971 | ||||||||||||
Total liabilities | 176,642 | 148,410 | 181,249 | 148,410 | ||||||||||||
Commitments and contingencies (Note 18) | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued | 0— | 0— | 0— | 0— | ||||||||||||
Common stock, $0.0001 par value; 400,000,000 shares authorized; 129,011,789 and 128,460,381 shares issued; 128,283,241 and 127,731,833 shares outstanding at June 30, 2021 and December 31, 2020, respectively. | 13 | 13 | ||||||||||||||
Common stock, $0.0001 par value; 400,000,000 shares authorized; 129,365,209 and 128,460,381 shares issued; 128,636,661 and 127,731,833 shares outstanding at September 30, 2021 and December 31, 2020, respectively. | 13 | 13 | ||||||||||||||
Additional paid-in capital | 299,038 | 296,830 | 300,989 | 296,830 | ||||||||||||
Accumulated deficit | (120,129 | ) | (150,759 | ) | (111,828 | ) | (155,035 | ) | ||||||||
Total stockholders’ equity | 178,922 | 146,084 | 189,174 | 141,808 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 355,564 | $ | 294,494 | $ | 370,423 | $ | 290,218 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenue | $ | 123,196 | $ | 68,960 | $ | 225,748 | $ | 130,692 | ||||||||
Cost of goods sold | 29,940 | 20,042 | 55,435 | 38,835 | ||||||||||||
Gross profit | 93,256 | 48,918 | 170,313 | 91,857 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 62,349 | 46,502 | 120,581 | 99,115 | ||||||||||||
Research and development | 7,320 | 4,668 | 13,529 | 10,078 | ||||||||||||
Total operating expenses | 69,669 | 51,170 | 134,110 | 109,193 | ||||||||||||
Income (loss) from operations | 23,587 | (2,252 | ) | 36,203 | (17,336 | ) | ||||||||||
Other expense, net: | ||||||||||||||||
Interest expense, net | (2,431 | ) | (2,912 | ) | (4,901 | ) | (5,422 | ) | ||||||||
Gain on settlement of deferred acquisition consideration | — | — | — | 1,295 | ||||||||||||
Other income, net | 18 | 25 | 15 | 46 | ||||||||||||
Total other expense, net | (2,413 | ) | (2,887 | ) | (4,886 | ) | (4,081 | ) | ||||||||
Net income (loss) before income taxes | 21,174 | (5,139 | ) | 31,317 | (21,417 | ) | ||||||||||
Income tax expense | (487 | ) | (27 | ) | (687 | ) | (62 | ) | ||||||||
Net income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | ||||||
Net income (loss), per share: | ||||||||||||||||
Basic | $ | 0.16 | $ | (0.05 | ) | $ | 0.24 | $ | (0.21 | ) | ||||||
Diluted | $ | 0.15 | $ | (0.05 | ) | $ | 0.23 | $ | (0.21 | ) | ||||||
Weighted-average common shares outstanding | ||||||||||||||||
Basic | 128,235,224 | 104,714,725 | 128,053,654 | 104,600,825 | ||||||||||||
Diluted | 133,988,413 | 104,714,725 | 133,721,191 | 104,600,825 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenue | $ | 113,753 | $ | 100,799 | $ | 339,501 | $ | 231,491 | ||||||||
Cost of goods sold | 26,167 | 22,964 | 81,602 | 61,799 | ||||||||||||
Gross profit | 87,586 | 77,835 | 257,899 | 169,692 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 62,369 | 51,325 | 182,950 | 150,797 | ||||||||||||
Research and development | 8,953 | 3,709 | 22,482 | 13,787 | ||||||||||||
Total operating expenses | 71,322 | 55,034 | 205,432 | 164,584 | ||||||||||||
Income from operations | 16,264 | 22,801 | 52,467 | 5,108 | ||||||||||||
Other expense, net: | ||||||||||||||||
Interest expense, net | (1,482 | ) | (2,969 | ) | (6,383 | ) | (8,391 | ) | ||||||||
Loss on extinguishment of debt | (1,883 | ) | — | (1,883 | ) | — | ||||||||||
Gain on settlement of deferred acquisition consideration | — | 951 | — | 2,246 | ||||||||||||
Other income, net | (19 | ) | 44 | (4 | ) | 90 | ||||||||||
Total other expense, net | (3,384 | ) | (1,974 | ) | (8,270 | ) | (6,055 | ) | ||||||||
Net income (loss) before income taxes | 12,880 | 20,827 | 44,197 | (947 | ) | |||||||||||
Income tax expense | (303 | ) | (72 | ) | (990 | ) | (134 | ) | ||||||||
Net income (loss) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||
Net income (loss), per share: | ||||||||||||||||
Basic | $ | 0.10 | $ | 0.20 | $ | 0.34 | $ | (0.01 | ) | |||||||
Diluted | $ | 0.09 | $ | 0.19 | $ | 0.32 | $ | (0.01 | ) | |||||||
Weighted-average common shares outstanding | ||||||||||||||||
Basic | 128,546,301 | 105,040,035 | 128,219,674 | 104,748,297 | ||||||||||||
Diluted | 133,850,216 | 108,489,768 | 133,766,004 | 104,748,297 | ||||||||||||
Three and Six Months Ended June 30, 2021 | |||||||||||||||||||||||
Additional | |||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | |||||||||||||||||||
Balance as of March 31, 2021 | 128,102,255 | $ | 13 | $ | 298,095 | $ | (140,816 | ) | $ | 157,292 | |||||||||||||
Exercise of stock options | 78,163 | — | 221 | — | 221 | ||||||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes | 102,823 | — | (320 | ) | (320 | ) | |||||||||||||||||
Stock-based compensation expense | �� | — | — | 1,042 | — | 1,042 | |||||||||||||||||
Net income | — | — | — | 20,687 | 20,687 | ||||||||||||||||||
Balance as of June 30, 2021 | 128,283,241 | $ | 13 | $ | 299,038 | $ | (120,129 | ) | $ | 178,922 | |||||||||||||
Balance as of December 31, 2020 (as reported) | 127,731,833 | $ | 13 | $ | 299,129 | $ | (153,058 | ) | $ | 146,084 | |||||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | |||||||||||||||||
Balance as of December 31, 2020 (as adjusted) | 127,731,833 | 13 | 296,830 | (150,759 | ) | 146,084 | |||||||||||||||||
Exercise of stock options | 363,507 | — | 1,205 | — | 1,205 | ||||||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes | 187,901 | — | (737 | ) | (737 | ) | |||||||||||||||||
Stock-based compensation expense | — | — | 1,740 | — | 1,740 | ||||||||||||||||||
Net income | — | — | — | 30,630 | 30,630 | ||||||||||||||||||
Balance as of June 30, 2021 | 128,283,241 | $ | 13 | $ | 299,038 | $ | (120,129 | ) | $ | 178,922 | |||||||||||||
Three and Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Additional | |||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | |||||||||||||||||||
Balance as of March 31, 2020 (as reported) | 105,360,015 | $ | 11 | $ | 227,604 | $ | (187,320 | ) | $ | 40,295 | |||||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | |||||||||||||||||
Balance as of March 31, 2020 (as adjusted) | 105,360,015 | 11 | 225,305 | (185,021 | ) | 40,295 | |||||||||||||||||
Exercise of stock options | 57,153 | — | 152 | — | 152 | ||||||||||||||||||
Stock-based compensation expense | — | — | 469 | — | 469 | ||||||||||||||||||
Net loss | — | — | — | (5,166 | ) | (5,166 | ) | ||||||||||||||||
Balance as of June 30, 2020 (as adjusted) | 105,417,168 | $ | 11 | $ | 225,926 | $ | (190,187 | ) | $ | 35,750 | |||||||||||||
Balance as of December 31, 2019 (as reported) | 104,870,886 | $ | 10 | $ | 226,580 | $ | (171,007 | ) | $ | 55,583 | |||||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | |||||||||||||||||
Balance as of December 31, 2019 (as adjusted) | 104,870,886 | 10 | 224,281 | (168,708 | ) | 55,583 | |||||||||||||||||
Exercise of stock options | 546,282 | 1 | 967 | — | 968 | ||||||||||||||||||
Stock-based compensation expense | — | — | 678 | — | 678 | ||||||||||||||||||
Net loss | — | — | — | (21,479 | ) | (21,479 | ) | ||||||||||||||||
Balance as of June 30, 2020 (as adjusted) | 105,417,168 | $ | 11 | $ | 225,926 | $ | (190,187 | ) | $ | 35,750 | |||||||||||||
Three and Nine Months Ended September 30, 2021 | ||||||||||||||||||||
Additional | ||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | ||||||||||||||||
Balance as of June 30, 2021 (as reported) | 128,283,241 | $ | 13 | $ | 299,038 | $ | (120,129 | ) | $ | 178,922 | ||||||||||
Adjustment due to right of use asset amortization | — | — | — | (4,276 | ) | (4,276 | ) | |||||||||||||
Balance as of June 30, 2021 (as adjusted) | 128,283,241 | 13 | 299,038 | (124,405 | ) | 174,646 | ||||||||||||||
Exercise of stock options | 353,420 | — | 910 | — | 910 | |||||||||||||||
Stock-based compensation expense | — | — | 1,041 | — | 1,041 | |||||||||||||||
Net income | — | — | — | 12,577 | 12,577 | |||||||||||||||
Balance as of September 30, 2021 | 128,636,661 | $ | 13 | $ | 300,989 | $ | (111,828 | ) | $ | 189,174 | ||||||||||
Balance as of December 31, 2020 (as reported) | 127,731,833 | $ | 13 | $ | 299,129 | $ | (153,058 | ) | $ | 146,084 | ||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | ||||||||||||||
Adjustment due to right of use asset amortization | — | — | — | (4,276 | ) | (4,276 | ) | |||||||||||||
Balance as of December 31, 2020 (as adjusted) | 127,731,833 | 13 | 296,830 | (155,035 | ) | 141,808 | ||||||||||||||
Exercise of stock options | 716,927 | — | 2,115 | — | 2,115 | |||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes | 187,901 | — | (737 | ) | — | (737 | ) | |||||||||||||
Stock-based compensation expense | — | — | 2,781 | — | 2,781 | |||||||||||||||
Net income | — | — | — | 43,207 | 43,207 | |||||||||||||||
Balance as of September 30, 2021 | 128,636,661 | $ | 13 | $ | 300,989 | $ | (111,828 | ) | $ | 189,174 | ||||||||||
Three and Nine Months Ended September 30, 2020 | ||||||||||||||||||||
Additional | ||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | ||||||||||||||||
Balance as of June 30, 2020 (as reported) | 105,417,168 | $ | 11 | $ | 228,225 | $ | (192,486 | ) | $ | 35,750 | ||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | ||||||||||||||
Adjustment due to right of use asset amortization | — | — | — | (3,918 | ) | (3,918 | ) | |||||||||||||
Balance as of June 30, 2020 (as adjusted) | 105,417,168 | 11 | 225,926 | (194,105 | ) | 31,832 | ||||||||||||||
Exercise of stock options | 92,033 | — | 318 | — | 318 | |||||||||||||||
Issuance of common stock associated with business acquisition | 1,947,953 | — | 7,986 | — | 7,986 | |||||||||||||||
Stock-based compensation expense | — | — | 486 | — | 486 | |||||||||||||||
Net income | — | — | — | 20,755 | 20,755 | |||||||||||||||
Balance as of September 30, 2020 (as adjusted) | 107,457,154 | $ | 11 | $ | 234,716 | $ | (173,350 | ) | $ | 61,377 | ||||||||||
Balance as of December 31, 2019 (as reported) | 104,870,886 | $ | 10 | $ | 226,580 | $ | (171,007 | ) | $ | 55,583 | ||||||||||
Adjustment due to Private Warrant reclassification | — | — | (2,299 | ) | 2,299 | — | ||||||||||||||
Adjustment due to right of use asset amortization | — | — | — | (3,561 | ) | (3,561 | ) | |||||||||||||
Balance as of December 31, 2019 (as adjusted) | 104,870,886 | 10 | 224,281 | (172,269 | ) | 52,022 | ||||||||||||||
Exercise of stock options | 638,315 | 1 | 1,285 | — | 1,286 | |||||||||||||||
Issuance of common stock associated with business acquisition | 1,947,953 | — | 7,986 | — | 7,986 | |||||||||||||||
Stock-based compensation expense | — | — | 1,164 | — | 1,164 | |||||||||||||||
Net loss | — | — | — | (1,081 | ) | (1,081 | ) | |||||||||||||
Balance as of September 30, 2020 (as adjusted) | 107,457,154 | $ | 11 | $ | 234,716 | $ | (173,350 | ) | $ | 61,377 | ||||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 30,630 | $ | (21,479 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 2,073 | 1,793 | ||||||
Amortization of intangible assets | 2,486 | 1,633 | ||||||
Amortization of operating lease right-of-use | 2,562 | — | ||||||
Non-cash interest expense | 143 | 103 | ||||||
Deferred interest expense | 1,036 | 1,022 | ||||||
Deferred rent expense | — | 64 | ||||||
Gain on settlement of deferred acquisition consideration | — | (1,295 | ) | |||||
Provision recorded for sales returns and doubtful accounts | 2,158 | 970 | ||||||
Loss on disposal of property and equipment | 239 | 201 | ||||||
Adjustment for excess and obsolete inventories | 4,678 | 1,709 | ||||||
Stock-based compensation | 1,740 | 678 | ||||||
Change in fair value of Earnout liability | (3,058 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (22,122 | ) | (5,727 | ) | ||||
Inventory | (4,984 | ) | (7,353 | ) | ||||
Prepaid expenses and other current assets | (1,649 | ) | (1,302 | ) | ||||
Operating leases | (2,774 | ) | — | |||||
Accounts payable | 716 | 235 | ||||||
Accrued expenses and other current liabilities | 2,646 | 1,266 | ||||||
Other liabilities | (340 | ) | 864 | |||||
Net cash provided by (used in) operating activities | 16,180 | (26,618 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (9,290 | ) | (6,411 | ) | ||||
Proceeds from the repayment of notes receivable from related parties | — | 293 | ||||||
Net cash used in investing activities | (9,290 | ) | (6,118 | ) | ||||
Cash flows from financing activities: | ||||||||
Line of credit borrowings | — | 5,869 | ||||||
Proceeds from term loan | — | 10,000 | ||||||
Payments of withholding taxes in connection with RSUs vesting | (737 | ) | — | |||||
Proceeds from the exercise of stock options | 1,205 | 968 | ||||||
Principal repayments of finance lease obligations | (1,374 | ) | (1,149 | ) | ||||
Payment of deferred acquisition consideration | (483 | ) | (2,568 | ) | ||||
Net cash (used in) provided by financing activities | (1,389 | ) | 13,120 | |||||
Change in cash and restricted cash | 5,501 | (19,616 | ) | |||||
Cash and restricted cash, beginning of period | 84,806 | 60,370 | ||||||
Cash and restricted cash, end of period | $ | 90,307 | $ | 40,754 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 3,836 | $ | 4,626 | ||||
Cash paid for income taxes | $ | 582 | $ | — | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 4,349 | $ | 4,692 | ||||
Right-of-use | $ | 29,092 | $ | — |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 43,207 | $ | (1,081 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 4,010 | 3,285 | ||||||
Amortization of intangible assets | 3,726 | 2,518 | ||||||
Amortization of operating lease right-of-use | 4,117 | — | ||||||
Non-cash interest expense | 236 | 160 | ||||||
Deferred interest expense | 1,331 | 1,577 | ||||||
Deferred rent expense | — | 33 | ||||||
Gain on settlement of deferred acquisition consideration | — | (2,246 | ) | |||||
Provision recorded for sales returns and doubtful accounts | 2,862 | 2,559 | ||||||
Loss on disposal of property and equipment | 1,397 | 201 | ||||||
Adjustment for excess and obsolete inventories | 8,045 | 2,024 | ||||||
Stock-based compensation | 2,781 | 1,164 | ||||||
Change in fair value of Earnout liability | (3,985 | ) | — | |||||
Loss on extinguishment of debt | 1,883 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (20,642 | ) | (19,160 | ) | ||||
Inventory | (9,741 | ) | (7,757 | ) | ||||
Prepaid expenses and other current assets | (98 | ) | (1,647 | ) | ||||
Operating leases | (4,179 | ) | — | |||||
Accounts payable | 5,237 | (3,778 | ) | |||||
Accrued expenses and other current liabilities | 6,765 | 3,521 | ||||||
Other liabilities | (2,922 | ) | 878 | |||||
Net cash provided by (used in) operating activities | 44,030 | (17,749 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (25,993 | ) | (12,260 | ) | ||||
Cash paid for business acquisition | — | (5,820 | ) | |||||
Net cash used in investing activities | (25,993 | ) | (18,080 | ) | ||||
Cash flows from financing activities: | ||||||||
Line of credit borrowings (repayments) under the 2019 Credit Agreement | (10,000 | ) | 5,869 | |||||
Term loan borrowings (repayments) under the 2019 Credit Agreement | (60,000 | ) | 10,000 | |||||
Proceeds from term loan under the 2021 Credit Agreement, net of debt discount and issuance cost | 73,174 | — | ||||||
Term loan repayments under the 2021 Credit Agreement | (469 | ) | — | |||||
Payments of withholding taxes in connection with RSUs vesting | (737 | ) | — | |||||
Proceeds from the exercise of stock options | 2,115 | 1,286 | ||||||
Principal repayments of finance lease obligations | (2,099 | ) | (1,776 | ) | ||||
Payment to extinguish debt | (1,620 | ) | — | |||||
Payment of deferred acquisition consideration | (483 | ) | (3,034 | ) | ||||
Net cash (used in) provided by financing activities | (119 | ) | 12,345 | |||||
Change in cash and restricted cash | 17,918 | (23,484 | ) | |||||
Cash and restricted cash, beginning of period | 84,806 | 60,370 | ||||||
Cash and restricted cash, end of period | $ | 102,724 | $ | 36,886 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 5,830 | $ | 7,130 | ||||
Cash paid for income taxes | $ | 582 | $ | — | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Fair value of shares issued for business acquisition | $ | — | $ | 7,986 | ||||
Deferred acquisition consideration and earnout liability recorded for business acquisition | $ | — | $ | 5,218 | ||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 1,523 | $ | 2,628 | ||||
Right-of-use | $ | 30,639 | $ | — |
As of December 31, 2020 | ||||||||||||
CONSOLIDATED BALANCE SHEETS | As Previously Reported | Adjustments | As Revised | |||||||||
Property and equipment, net | $ | 60,068 | $ | (4,276 | ) | $ | 55,792 | |||||
Total assets | $ | 294,494 | $ | (4,276 | ) | $ | 290,218 | |||||
Accumulated deficit | $ | (150,759 | ) | $ | (4,276 | ) | $ | (155,035 | ) | |||
Total stockholders’ equity | $ | 146,084 | $ | (4,276 | ) | $ | 141,808 | |||||
Total liabilities and stockholders’ equity | $ | 294,494 | $ | (4,276 | ) | $ | 290,218 |
For September | For September | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | As Previously Reported | Adjustments | As | As Previously Reported | Adjustments | As | ||||||||||||||||||
Selling, general and administrative | $ | 51,146 | $ | 179 | $ | 51,325 | $ | 150,261 | $ | 536 | $ | 150,797 | ||||||||||||
Total operating expenses | $ | 54,855 | $ | 179 | $ | 55,034 | $ | 164,048 | $ | 536 | $ | 164,584 | ||||||||||||
Income from operations | $ | 22,980 | $ | (179 | ) | $ | 22,801 | $ | 5,644 | $ | (536 | ) | $ | 5,108 | ||||||||||
Net income (loss) before income taxes | $ | 21,006 | $ | (179 | ) | $ | 20,827 | $ | (411 | ) | $ | (536 | ) | $ | (947 | ) | ||||||||
Net income (loss) | $ | 20,934 | $ | (179 | ) | $ | 20,755 | $ | (545 | ) | $ | (536 | ) | $ | (1,081 | ) |
Nine Months Ended September 30, 2020 | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | As Previously Reported | Adjustments | As | |||||||||
Net loss | $ | (545 | ) | $ | (536 | ) | $ | (1,081 | ) | |||
Depreciation | $ | 2,749 | $ | 536 | $ | 3,285 |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Advanced Wound Care | $ | 111,436 | $ | 59,731 | $ | 107,341 | $ | 89,990 | ||||||||
Surgical & Sports Medicine | 11,760 | 9,229 | 6,412 | 10,809 | ||||||||||||
Total net revenue | $ | 123,196 | $ | 68,960 | $ | 113,753 | $ | 100,799 | ||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Advanced Wound Care | $ | 202,144 | $ | 111,019 | ||||
Surgical & Sports Medicine | 23,604 | 19,673 | ||||||
Total net revenue | $ | 225,748 | $ | 130,692 | ||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Advanced Wound Care | $ | 309,485 | $ | 201,009 | ||||
Surgical & Sports Medicine | 30,016 | 30,482 | ||||||
Total net revenue | $ | 339,501 | $ | 231,491 | ||||
Fair Value Measurements as of June 30, 2021 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Earnout liability | $ | — | $ | — | $ | 927 | $ | 927 | ||||||||
$ | — | $ | — | $ | 927 | $ | 927 | |||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
Fair Value Measurements as of December 31, 2020 Using: | as of September 30, 2021 Using: | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Earnout liability | $ | — | $ | — | $ | 3,985 | $ | 3,985 | $ | — | $ | — | $ | 0 | $ | 0 | ||||||||||||||||
$ | — | $ | — | $ | 3,985 | $ | 3,985 | $ | — | $ | — | $ | 0 | $ | 0 | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
as of December 31, 2020 Using: | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Earnout liability | $ | — | $ | — | $ | 3,985 | $ | 3,985 | ||||||||||||||||||||||||
$ | — | $ | — | $ | 3,985 | $ | 3,985 | |||||||||||||||||||||||||
Earnout liability | ||||
Balance as of December 31, 2020 | $ | 3,985 | ||
Change in fair value | (3,058 | ) | ||
Balance as of June 30, 2021 | $ | 927 | ||
Earnout liability | ||||
Balance as of December 31, 2020 | $ | 3,985 | ||
Change in fair value | (3,985 | ) | ||
Balance as of September 30, 2021 | $ | 0 | ||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Accounts receivable | $ | 83,880 | $ | 61,792 | ||||
Less — allowance for sales returns and doubtful accounts | (7,113 | ) | (4,988 | ) | ||||
$ | 76,767 | $ | 56,804 | |||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Accounts receivable | $ | 81,925 | $ | 61,792 | ||||
Less — allowance for sales returns and doubtful accounts | (7,342 | ) | (4,988 | ) | ||||
$ | 74,583 | $ | 56,804 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Balance at beginning of period | $ | 6,076 | $ | 3,204 | $ | 4,988 | $ | 3,049 | ||||||||
Additions | 1,056 | 753 | 2,158 | 970 | ||||||||||||
Write-offs | (19 | ) | (29 | ) | (33 | ) | (91 | ) | ||||||||
Balance at end of period | $ | 7,113 | $ | 3,928 | $ | 7,113 | $ | 3,928 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Balance at beginning of period | $ | 7,113 | $ | 3,928 | $ | 4,988 | $ | 3,049 | ||||||||
Additions | 704 | 1,589 | 2,862 | 2,559 | ||||||||||||
Write-offs | (475 | ) | (392 | ) | (508 | ) | (483 | ) | ||||||||
Balance at end of period | $ | 7,342 | $ | 5,125 | $ | 7,342 | $ | 5,125 | ||||||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Raw materials | $ | 10,144 | $ | 10,075 | ||||
Work in process | 1,732 | 1,305 | ||||||
Finished goods | 16,230 | 16,419 | ||||||
$ | 28,106 | $ | 27,799 | |||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Raw materials | $ | 8,761 | $ | 10,075 | ||||
Work in process | 2,144 | 1,305 | ||||||
Finished goods | 18,590 | 16,419 | ||||||
$ | 29,495 | $ | 27,799 | |||||
June 30, 2021 | December 31, 2020 | |||||||
Subscriptions | $ | 2,211 | $ | 2,013 | ||||
Conferences and marketing expenses | 921 | 63 | ||||||
Deposits | 1,796 | 1,438 | ||||||
Reimbursement of offering expenses | 0 | 1,009 | ||||||
Other | 1,655 | 412 | ||||||
$ | 6,583 | $ | 4,935 | |||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Subscriptions | $ | 2,091 | $ | 2,013 | ||||
Conferences and marketing expenses | 623 | 63 | ||||||
Deposits | 1,185 | 1,438 | ||||||
Reimbursement of offering expenses | 0 | 1,009 | ||||||
Insurance | 997 | 240 | ||||||
Other | 137 | 172 | ||||||
$ | 5,033 | $ | 4,935 | |||||
June 30, | December 31, | |||||||||||||||
2021 | 2020 | September 30, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||||
Leasehold improvements | $ | 48,503 | $ | 39,574 | $ | 45,050 | $ | 39,574 | ||||||||
Building | 4,943 | $ | — | |||||||||||||
Furniture, computers and equipment | 50,221 | 48,236 | 52,696 | 48,236 | ||||||||||||
98,724 | 87,810 | 102,689 | 87,810 | |||||||||||||
Accumulated depreciation and amortization | (71,593 | ) | (69,521 | ) | (73,894 | ) | (73,797 | ) | ||||||||
Construction in progress | 42,608 | 41,779 | 45,979 | 41,779 | ||||||||||||
$ | 69,739 | $ | 60,068 | $ | 74,774 | $ | 55,792 | |||||||||
Original | Accumulated | Net Book | ||||||||||
Cost | Amortization | Value | ||||||||||
Developed technology | $ | 32,620 | $ | (16,020 | ) | $ | 16,600 | |||||
Trade names and trademarks | 2,080 | (1,056 | ) | 1,024 | ||||||||
Customer relationships | 10,690 | (846 | ) | 9,844 | ||||||||
Non-compete agreements | 1,010 | (342 | ) | 668 | ||||||||
Total | $ | 46,400 | $ | (18,264 | ) | $ | 28,136 | |||||
Original | Accumulated | Net Book | ||||||||||
Cost | Amortization | Value | ||||||||||
Developed technology | $ | 32,620 | $ | (16,864 | ) | $ | 15,756 | |||||
Trade names and trademarks | 2,080 | (1,128 | ) | 952 | ||||||||
Customer relationships | 10,690 | (1,114 | ) | 9,576 | ||||||||
Non-compete agreements | 1,010 | (398 | ) | 612 | ||||||||
Total | $ | 46,400 | $ | (19,504 | ) | $ | 26,896 | |||||
Original | Accumulated | Net Book | ||||||||||
Cost | Amortization | Value | ||||||||||
Developed technology | $ | 32,620 | $ | (14,330 | ) | $ | 18,290 | |||||
Trade names and trademarks | 2,080 | (906 | ) | 1,174 | ||||||||
Customer relationship | 10,690 | (312 | ) | 10,378 | ||||||||
Non-compete agreements | 1,010 | (230 | ) | 780 | ||||||||
Total | $ | 46,400 | $ | (15,778 | ) | $ | 30,622 | |||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Personnel costs | $ | 25,482 | $ | 18,943 | ||||
Royalties | 3,338 | 2,971 | ||||||
Accrued but unpaid lease obligations and interest | 6,390 | — | ||||||
Other | 1,918 | 2,059 | ||||||
$ | 37,128 | $ | 23,973 | |||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Personnel costs | $ | 22,024 | $ | 18,943 | ||||
Royalties | 2,718 | 2,971 | ||||||
Other | 1,876 | 2,059 | ||||||
$ | 26,618 | $ | 23,973 | |||||
Employee | Facility | |||||||
Liability balance as of June 30, 2021 | $ | 2,381 | $ | 29 | ||||
Expenses | 854 | 156 | ||||||
Payments | (26 | ) | (160 | ) | ||||
Liability balance as of September 30, 2021 | $ | 3,209 | $ | 25 | ||||
Employee | Facility | |||||||||||||||
Liability balance as of March 31, 2021 | $ | 1,528 | $ | 17 | ||||||||||||
Expenses | 853 | 86 | ||||||||||||||
Payments | 0 | (74 | ) | |||||||||||||
Liability balance as of June 30, 2021 | $ | 2,381 | $ | 29 | ||||||||||||
Employee | Facility | Employee | Facility | |||||||||||||
Liability balance as of December 31, 2020 | $ | 618 | $ | 0 | $ | 618 | $ | 0 | ||||||||
Expenses | 1,763 | 103 | 2,617 | 259 | ||||||||||||
Payments | 0 | (74 | ) | (26 | ) | (234 | ) | |||||||||
Liability balance as of June 30, 2021 | $ | 2,381 | $ | 29 | ||||||||||||
Liability balance as of September 30, 2021 | $ | 3,209 | $ | 25 | ||||||||||||
June 30, 2021 | December 31, 2020 | |||||||
Line of credit | $ | 10,000 | $ | 10,000 | ||||
Term loan | 60,000 | 60,000 | ||||||
Less debt discount and debt issuance cost | (210 | ) | (290 | ) | ||||
Less current maturities | (22,500 | ) | (16,666 | ) | ||||
Term loan, net of debt discount, debt issuance cost and current maturities | $ | 37,290 | $ | 43,044 | ||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Line of credit | $ | 0 | $ | 10,000 | ||||
Term loan | 74,531 | 60,000 | ||||||
Less debt discount and debt issuance cost | (678 | ) | (290 | ) | ||||
Term loan, net of debt discount and debt issuance cost | $ | 73,853 | $ | 59,710 | ||||
2021 | $ | 11,250 | 469 | |||||
2022 | 22,500 | 2,812 | ||||||
2023 | 22,500 | 4,687 | ||||||
2024 | 13,750 | 5,625 | ||||||
2025 and beyond | 60,938 | |||||||
Total | $ | 70,000 | $ | 74,531 | ||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Shares reserved for issuance for outstanding options | 7,070,008 | 6,425,040 | ||||||
Shares reserved for issuance for outstanding restricted stock units | 787,023 | 806,048 | ||||||
Shares reserved for issuance for future grants | 5,642,864 | 6,832,649 | ||||||
Total shares of authorized common stock reserved for future issuance | 13,499,895 | 14,063,737 | ||||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Shares reserved for issuance for outstanding options | 6,724,574 | 6,425,040 | ||||||
Shares reserved for issuance for outstanding restricted stock units | 768,203 | 806,048 | ||||||
Shares reserved for issuance for future grants | 5,635,822 | 6,832,649 | ||||||
Total shares of authorized common stock reserved for future issuance | 13,128,599 | 14,063,737 | ||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2020 | 806,048 | $ | 3.82 | |||||
Granted | 290,027 | 14.45 | ||||||
Vested | (252,743 | ) | 4.20 | |||||
Canceled/Forfeited | (56,309 | ) | 8.29 | |||||
Unvested at June 30, 2021 | 787,023 | $ | 7.30 | |||||
Weighted Average | ||||||||
Number | Grant Date | |||||||
of Shares | Fair Value | |||||||
Unvested at December 31, 2020 | 787,923 | $ | 3.81 | |||||
Granted | 299,352 | 14.46 | ||||||
Vested | (248,305 | ) | 4.20 | |||||
Canceled/Forfeited | (70,767 | ) | 8.01 | |||||
Unvested at September 30, 2021 | 768,203 | $ | 7.45 | |||||
June 30, 2021 | June 30, 2020 | |||||||
Risk-free interest rate | 0.82 | % | 0.46 | % | ||||
Expected term (in years) | 6.21 | 6.22 | ||||||
Expected volatility | 39.30 | % | 37.41 | % | ||||
Expected dividend yield | 0.0 | % | 0.0 | % | ||||
Exercise price | $ | 13.54 | $ | 4.04 | ||||
Underlying stock price | $ | 13.54 | $ | 3.36 |
September 30, | September 30, | |||||||
2021 | 2020 | |||||||
Risk-free interest rate | 0.83 | % | 0.46 | % | ||||
Expected term (in years) | 6.22 | 6.22 | ||||||
Expected volatility | 39.31 | % | 37.42 | % | ||||
Expected dividend yield | 0.0 | % | 0.0 | % | ||||
Exercise price | $ | 13.57 | $ | 4.04 | ||||
Underlying stock price | $ | 13.57 | $ | 3.37 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding as of December 31, 2020 | 6,620,318 | $ | 2.33 | 5.22 | $ | 34,458 | ||||||||||
Granted | 1,037,099 | 13.54 | ||||||||||||||
Exercised | (558,785 | ) | 2.15 | 5,526 | ||||||||||||
Canceled / forfeited | (28,624 | ) | 9.54 | |||||||||||||
Outstanding as of June 30, 2021 | 7,070,008 | 3.95 | 5.56 | 89,543 | ||||||||||||
Options exercisable as of June 30, 2021 | 4,709,080 | 1.83 | 3.91 | 69,665 | ||||||||||||
Options vested or expected to vest as of June 30, 2021 | 6,557,753 | $ | 3.57 | 5.28 | $ | 85,578 | ||||||||||
Weighted | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | |||||||||||||||
Average | Contractual | Aggregate | ||||||||||||||
Number of | Exercise | Term | Intrinsic | |||||||||||||
Shares | Price | (in years) | Value | |||||||||||||
Outstanding as of December 31, 2020 | 6,617,403 | $ | 2.32 | 5.22 | $ | 34,447 | ||||||||||
Granted | 1,069,658 | 13.57 | ||||||||||||||
Exercised | (912,205 | ) | 2.31 | 9,720 | ||||||||||||
Canceled / forfeited | (50,282 | ) | 8.30 | |||||||||||||
Outstanding as of September 30, 2021 | 6,724,574 | 4.07 | 5.36 | 68,605 | ||||||||||||
Options exercisable as of September 30, 2021 | 4,335,117 | 1.74 | 3.57 | 54,186 | ||||||||||||
Options vested or expected to vest as of September 30, 2021 | 6,271,605 | $ | 3.71 | 5.11 | $ | 66,231 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net Income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding—basic | 128,235,224 | 104,714,725 | 128,053,654 | 104,600,825 | ||||||||||||||||||||||||||||
Weighted average common shares outstanding | 128,546,301 | 105,040,035 | 128,219,674 | 104,748,297 | ||||||||||||||||||||||||||||
Dilutive effect of restricted stock units | 508,015 | — | 517,837 | — | 458,642 | 134,759 | 498,105 | — | ||||||||||||||||||||||||
Dilutive effect of options | 5,245,174 | — | 5,149,700 | — | 4,845,273 | 3,314,974 | 5,048,225 | — | ||||||||||||||||||||||||
Weighted-average common shares outstanding—diluted | 133,988,413 | 104,714,725 | 133,721,191 | 104,600,825 | 133,850,216 | 108,489,768 | 133,766,004 | 104,748,297 | ||||||||||||||||||||||||
Earnings (loss) per share—basic | $ | 0.16 | $ | (0.05 | ) | $ | 0.24 | $ | (0.21 | ) | $ | 0.10 | $ | 0.20 | $ | 0.34 | $ | (0.01 | ) | |||||||||||||
Earnings (loss) per share—diluted | $ | 0.15 | $ | (0.05 | ) | $ | 0.23 | $ | (0.21 | ) | $ | 0.09 | $ | 0.19 | $ | 0.32 | $ | (0.01 | ) | |||||||||||||
Classification | Three Ended June 30, | Six Months Ended June 30, 2021 | ||||||||
Finance lease | ||||||||||
Amortization of right-of-use | COGS and SG&A | $ | 304 | $ | 603 | |||||
Interest on lease liabilities | Interest Expense | 312 | 661 | |||||||
Total Finance lease cost | 616 | 1,264 | ||||||||
Operating lease cost | COGS, R&D, SG&A | 1,735 | 3,015 | |||||||
Short-term lease cost | COGS, R&D, SG&A | 699 | 1,414 | |||||||
Variable lease cost | COGS, R&D, SG&A | 1,086 | 2,449 | |||||||
Total lease cost | $ | 4,136 | $ | 8,142 | ||||||
Classification | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||
Finance lease | ||||||||||||
Amortization of right-of-use | COGS and SG&A | $ | 793 | $ | 1,396 | |||||||
Interest on lease liabilities | Interest Expense | 218 | 879 | |||||||||
Total Finance lease cost | 1,011 | 2,275 | ||||||||||
Operating lease cost | COGS, R&D, SG&A | 1,857 | 4,872 | |||||||||
Short-term lease cost | COGS, R&D, SG&A | 758 | 2,172 | |||||||||
Variable lease cost | COGS, R&D, SG&A | 1,304 | 3,753 | |||||||||
Total lease cost | $ | 4,930 | $ | 13,072 | ||||||||
June 30, 2021 | January 1, 2021 | |||||||
Property and equipment, gross | $ | 22,989 | $ | 22,989 | ||||
Accumulated depreciation | (15,578 | ) | (14,974 | ) | ||||
Property and equipment, net | $ | 7,411 | $ | 8,015 | ||||
Current portion of finance lease obligations | $ | 4,134 | $ | 3,619 | ||||
Finance lease long-term obligations | 9,553 | 11,442 | ||||||
Total finance lease liabilities | $ | 13,687 | $ | 15,061 | ||||
September 30, 2021 | January 1 2021 | |||||||
Property and equipment, gross | $ | 18,670 | $ | 22,989 | ||||
Accumulated depreciation | (16,736 | ) | (19,250 | ) | ||||
Property and equipment, net | $ | 1,934 | $ | 3,739 | ||||
Current portion of finance lease obligations | $ | 8,531 | $ | 3,619 | ||||
Finance lease long-term obligations | 831 | 11,442 | ||||||
Total finance lease liabilities | $ | 9,362 | $ | 15,061 | ||||
Nine Months Ended | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows for operating leases | ||||
Operating cash flows for finance leases | ||||
Financing cash flows for finance leases | ||||
Right-of-use | ||||
Operating leases | 13,525 | |||
Finance leases | — | |||
Right-of-use | ||||
Operating leases | ||||
Finance leases | — |
September 30, 2021 | ||||
Weighted-average remaining lease term | ||||
Finance leases | ||||
Operating leases | ||||
2021 | ||||
Weighted-average discount rate | ||||
Finance leases | % | |||
Operating leases | % |
Operating | Finance leases | Operating leases | Finance leases | |||||||||||||
2021 (remaining 6 months) | $ | 3,319 | $ | 2,390 | ||||||||||||
2021 (remaining 3 months) | $ | 1,975 | $ | 889 | ||||||||||||
2022 | 4,507 | 4,945 | 4,980 | 8,887 | ||||||||||||
2023 | 3,845 | 0 | 4,137 | 0 | ||||||||||||
2024 | 3,177 | 9,782 | 3,345 | 0 | ||||||||||||
2025 | 3,164 | 0 | 3,249 | 0 | ||||||||||||
Thereafter | 16,341 | 0 | 16,644 | 0 | ||||||||||||
Total lease payments | 34,353 | 17,117 | 34,330 | 9,776 | ||||||||||||
Less: interest | (5,625 | ) | (3,430 | ) | (5,459 | ) | (414 | ) | ||||||||
Total lease liabilities | $ | 28,728 | $ | 13,687 | $ | 28,871 | $ | 9,362 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net revenue | $ | 123,196 | $ | 68,960 | $ | 225,748 | $ | 130,692 | $ | 113,753 | $ | 100,799 | $ | 339,501 | $ | 231,491 | ||||||||||||||||
Cost of goods sold | 29,940 | 20,042 | 55,435 | 38,835 | 26,167 | 22,964 | 81,602 | 61,799 | ||||||||||||||||||||||||
Gross profit | 93,256 | 48,918 | 170,313 | 91,857 | 87,586 | 77,835 | 257,899 | 169,692 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 62,349 | 46,502 | 120,581 | 99,115 | 62,369 | 51,325 | 182,950 | 150,797 | ||||||||||||||||||||||||
Research and development | 7,320 | 4,668 | 13,529 | 10,078 | 8,953 | 3,709 | 22,482 | 13,787 | ||||||||||||||||||||||||
Total operating expenses | 69,669 | 51,170 | 134,110 | 109,193 | 71,322 | 55,034 | 205,432 | 164,584 | ||||||||||||||||||||||||
Income (loss) from operations | 23,587 | (2,252 | ) | 36,203 | (17,336 | ) | ||||||||||||||||||||||||||
Income from operations | 16,264 | 22,801 | 52,467 | 5,108 | ||||||||||||||||||||||||||||
Other expense, net: | ||||||||||||||||||||||||||||||||
Interest expense, net | (2,431 | ) | (2,912 | ) | (4,901 | ) | (5,422 | ) | (1,482 | ) | (2,969 | ) | (6,383 | ) | (8,391 | ) | ||||||||||||||||
Loss on extinguishment of debt | (1,883 | ) | — | (1,883 | ) | — | ||||||||||||||||||||||||||
Gain on settlement of deferred acquisition consideration | — | — | — | 1,295 | — | 951 | — | 2,246 | ||||||||||||||||||||||||
Other income, net | 18 | 25 | 15 | 46 | (19 | ) | 44 | (4 | ) | 90 | ||||||||||||||||||||||
Total other expense, net | (2,413 | ) | (2,887 | ) | (4,886 | ) | (4,081 | ) | (3,384 | ) | (1,974 | ) | (8,270 | ) | (6,055 | ) | ||||||||||||||||
Net income (loss) before income taxes | 21,174 | (5,139 | ) | 31,317 | (21,417 | ) | 12,880 | 20,827 | 44,197 | (947 | ) | |||||||||||||||||||||
Income tax expense | (487 | ) | (27 | ) | (687 | ) | (62 | ) | (303 | ) | (72 | ) | (990 | ) | (134 | ) | ||||||||||||||||
Net income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||||||||
Interest expense, net | 2,431 | 2,912 | 4,901 | 5,422 | 1,482 | 2,969 | 6,383 | 8,391 | ||||||||||||||||||||||||
Income tax expense | 487 | 27 | 687 | 62 | 303 | 72 | 990 | 134 | ||||||||||||||||||||||||
Depreciation | 1,063 | 891 | 2,073 | 1,793 | 1,937 | 1,135 | 4,010 | 3,285 | ||||||||||||||||||||||||
Amortization | 1,243 | 816 | 2,486 | 1,633 | 1,240 | 885 | 3,726 | 2,518 | ||||||||||||||||||||||||
EBITDA | 25,911 | (520 | ) | 40,777 | (12,569 | ) | 17,539 | 25,816 | 58,316 | 13,247 | ||||||||||||||||||||||
Stock-based compensation expense | 1,042 | 469 | 1,740 | 678 | 1,041 | 486 | 2,781 | 1,164 | ||||||||||||||||||||||||
Gain on settlement of deferred acquisition consideration (1) | — | — | — | (1,295 | ) | — | (951 | ) | — | (2,246 | ) | |||||||||||||||||||||
Recovery of certain notes receivable from related parties (2) | — | — | (179 | ) | — | — | (1,111 | ) | (179 | ) | (1,111 | ) | ||||||||||||||||||||
Change in fair value of Earnout (3) | (2,762 | ) | — | (3,058 | ) | — | (927 | ) | — | (3,985 | ) | — | ||||||||||||||||||||
Restructuring charge (4) | 939 | — | 1,866 | — | 1,010 | — | 2,876 | — | ||||||||||||||||||||||||
Transaction cost (5) | — | 325 | — | 568 | — | 361 | — | 929 | ||||||||||||||||||||||||
Cancellation fee (6) | — | — | — | 1,950 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt (6) | 1,883 | — | 1,883 | — | ||||||||||||||||||||||||||||
Write-off of a fixed asset (7) | 1,104 | — | 1,104 | — | ||||||||||||||||||||||||||||
Cancellation fee (8) | — | — | — | 1,950 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 25,130 | $ | 274 | $ | 41,146 | $ | (10,668 | ) | $ | 21,650 | $ | 24,601 | $ | 62,796 | $ | 13,933 | |||||||||||||||
(1) |
(2) |
(3) | Amounts reflect the change in the fair value of the Earnout liability in connection with the CPN acquisition. See Note “3. Acquisition”. |
(4) | Amounts reflect employee retention and benefits as well as the facility-related cost associated with the Company’s restructuring activities. See Note “12. Restructuring”. |
(5) | Amounts reflect |
(6) | Amounts reflect the loss recognized on the extinguishment of the 2019 Credit Agreement upon repayment. See Note “13. Long-Term Debt Obligations”. |
(7) | Amounts reflect the write-off of certain design and consulting fees previously capitalized related to the unfinished construction work on the 275 Dan Road Building. |
(8) | Amount reflects the cancellation fee for terminating certain product development and consulting agreements the Company inherited from NuTech Medical. See Note “18. Commitments and Contingencies”. |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Advanced Wound Care | $ | 111,436 | $ | 59,731 | $ | 51,705 | 87 | % | $ | 107,341 | $ | 89,990 | $ | 17,351 | 19 | % | ||||||||||||||||
Surgical & Sports Medicine | 11,760 | 9,229 | 2,531 | 27 | % | 6,412 | 10,809 | (4,397 | ) | (41 | %) | |||||||||||||||||||||
Net revenue | $ | 123,196 | $ | 68,960 | $ | 54,236 | 79 | % | $ | 113,753 | $ | 100,799 | $ | 12,954 | 13 | % | ||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||||||
Advanced Wound Care | $ | 202,144 | $ | 111,019 | $ | 91,125 | 82 | % | ||||||||||||||||||||||||
Surgical & Sports Medicine | 23,604 | 19,673 | 3,931 | 20 | % | |||||||||||||||||||||||||||
Net revenue | $ | 225,748 | $ | 130,692 | $ | 95,056 | 73 | % | ||||||||||||||||||||||||
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Advanced Wound Care | $ | 309,485 | $ | 201,009 | $ | 108,476 | 54 | % | ||||||||
Surgical & Sports Medicine | 30,016 | 30,482 | (466 | ) | (2 | %) | ||||||||||
Net revenue | $ | 339,501 | $ | 231,491 | $ | 108,010 | 47 | % | ||||||||
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Cost of goods sold | $ | 29,940 | $ | 20,042 | $ | 9,898 | 49 | % | $ | 26,167 | $ | 22,964 | $ | 3,203 | 14 | % | ||||||||||||||||
Gross profit | $ | 93,256 | $ | 48,918 | $ | 44,338 | 91 | % | $ | 87,586 | $ | 77,835 | $ | 9,751 | 13 | % | ||||||||||||||||
Gross profit% | 76 | % | 71 | % | ||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||||||
Cost of goods sold | $ | 55,435 | $ | 38,835 | $ | 16,600 | 43 | % | ||||||||||||||||||||||||
Gross profit | $ | 170,313 | $ | 91,857 | $ | 78,456 | 85 | % | ||||||||||||||||||||||||
Gross profit% | 75 | % | 70 | % | ||||||||||||||||||||||||||||
Gross profit % | 77 | % | 77 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Cost of goods sold | $ | 81,602 | $ | 61,799 | $ | 19,803 | 32 | % | ||||||||
Gross profit | $ | 257,899 | $ | 169,692 | $ | 88,207 | 52 | % | ||||||||
Gross profit % | 76 | % | 73 | % |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Research and development | $ | 7,320 | $ | 4,668 | $ | 2,652 | 57 | % | $ | 8,953 | $ | 3,709 | $ | 5,244 | 141 | % | ||||||||||||||||
Research and development as a percentage of net revenue | 6 | % | 7 | % | 8 | % | 4 | % |
Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Research and development | $ | 13,529 | $ | 10,078 | $ | 3,451 | 34 | % | $ | 22,482 | $ | 13,787 | $ | 8,695 | 63 | % | ||||||||||||||||
Research and development as a percentage of net revenue | 6 | % | 8 | % | 7 | % | 6 | % |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 62,349 | $ | 46,502 | $ | 15,847 | 34 | % | $ | 62,369 | $ | 51,325 | $ | 11,044 | 22 | % | ||||||||||||||||
Selling, general and administrative as a percentage of net revenue | 51 | % | 67 | % | 55 | % | 51 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 120,581 | $ | 99,115 | $ | 21,466 | 22 | % | ||||||||||||||||||||||||
Selling, general and administrative as a percentage of net revenue | 53 | % | 76 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Selling, general and administrative | $ | 182,950 | $ | 150,797 | $ | 32,153 | 21 | % | ||||||||
Selling, general and administrative as a percentage of net revenue | 54 | % | 65 | % |
Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||||||
Interest expense, net | $ | (2,431 | ) | $ | (2,912 | ) | $ | 481 | (17 | %) | ||||||||||||||||||||||
Other income (expense), net | 18 | 25 | (7 | ) | (28 | %) | ||||||||||||||||||||||||||
Total other expense, net | $ | (2,413 | ) | $ | (2,887 | ) | $ | 474 | (16 | %) | ||||||||||||||||||||||
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Interest expense, net | $ | (4,901 | ) | $ | (5,422 | ) | $ | 521 | (10 | %) | $ | (1,482 | ) | $ | (2,969 | ) | $ | 1,487 | (50 | %) | ||||||||||||
Loss on extinguishment of debt | (1,883 | ) | — | (1,883 | ) | 100 | % | |||||||||||||||||||||||||
Gain on settlement of deferred acquisition consideration | — | 1,295 | (1,295 | ) | (100 | %) | — | 951 | (951 | ) | (100 | %) | ||||||||||||||||||||
Other income, net | 15 | 46 | (31 | ) | (67 | %) | ||||||||||||||||||||||||||
Other income (expense), net | (19 | ) | 44 | (63 | ) | (143 | %) | |||||||||||||||||||||||||
Total other expense, net | $ | (4,886 | ) | $ | (4,081 | ) | $ | (805 | ) | 20 | % | $ | (3,384 | ) | $ | (1,974 | ) | $ | (1,410 | ) | 71 | % | ||||||||||
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Interest expense, net | $ | (6,383 | ) | $ | (8,391 | ) | $ | 2,008 | (24 | %) | ||||||
Loss on extinguishment of debt | (1,883 | ) | — | (1,883 | ) | 100 | % | |||||||||
Gain on settlement of deferred acquisition consideration | — | 2,246 | (2,246 | ) | (100 | %) | ||||||||||
Other income, net | (4 | ) | 90 | (94 | ) | (104 | %) | |||||||||
Total other expense, net | $ | (8,270 | ) | $ | (6,055 | ) | $ | (2,215 | ) | 37 | % | |||||
Nine Months Ended September 30, | ||||||||||||||||
Six Months Ended June 30, | 2021 | 2020 | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 16,180 | $ | (26,618 | ) | $ | 44,030 | $ | (17,749 | ) | ||||||
Net cash used in investing activities | (9,290 | ) | (6,118 | ) | (25,993 | ) | (18,080 | ) | ||||||||
Net cash used in (provided by) financing activities | (1,389 | ) | 13,120 | |||||||||||||
Net cash provided by (used in) financing activities | (119 | ) | 12,345 | |||||||||||||
Net change in cash and restricted cash | $ | 5,501 | $ | (19,616 | ) | $ | 17,918 | $ | (23,484 | ) | ||||||
† | Filed herewith |
Dated: | Organogenesis Holdings Inc. | |||||
(Registrant) | ||||||
/s/ David Francisco | ||||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |