☒ | 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 | (I.R.S. Employer | |
Incorporation or Organization) | Identification No.) |
85 Dan Road Canton, MA | ||||
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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Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | ||||||
Item 1A | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | ||||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 89,790 | $ | 84,394 | ||||
Restricted cash | 517 | 412 | ||||||
Accounts receivable, net | 76,767 | 56,804 | ||||||
Inventory | 28,106 | 27,799 | ||||||
Prepaid expenses and other current assets | 6,583 | 4,935 | ||||||
Total current assets | 201,763 | 174,344 | ||||||
Property and equipment, net | 69,739 | 60,068 | ||||||
Intangible assets, net | 28,136 | 30,622 | ||||||
Goodwill | 28,772 | 28,772 | ||||||
Operating lease right-of-use | 26,531 | — | ||||||
Deferred tax asset, net | 18 | 18 | ||||||
Other assets | 605 | 670 | ||||||
Total assets | $ | 355,564 | $ | 294,494 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Deferred acquisition consideration | $ | — | $ | 483 | ||||
Current portion of term loan | 22,500 | 16,666 | ||||||
Current portion of finance lease obligations | 4,134 | 3,619 | ||||||
Current portion of operating lease obligations | 4,504 | — | ||||||
Current portion of deferred rent and lease incentive obligation | — | 95 | ||||||
Accounts payable | 26,789 | 23,381 | ||||||
Accrued expenses and other current liabilities | 26,618 | 23,973 | ||||||
Total current liabilities | 84,545 | 68,217 | ||||||
Line of credit | 10,000 | 10,000 | ||||||
Term loan, net of current portion | 37,290 | 43,044 | ||||||
Deferred acquisition consideration, net of current portion | 1,436 | 1,436 | ||||||
Earnout liability | 927 | 3,985 | ||||||
Deferred rent and lease incentive obligation, net of current portion | — | 2,315 | ||||||
Finance lease obligations, net of current portion | 9,553 | 11,442 | ||||||
Operating lease obligations, net of current portion | 24,224 | — | ||||||
Other liabilities | 8,667 | 7,971 | ||||||
Total liabilities | 176,642 | 148,410 | ||||||
Commitments and contingencies (Note 18) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued | 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 | ||||||
Additional paid-in capital | 299,038 | 296,830 | ||||||
Accumulated deficit | (120,129 | ) | (150,759 | ) | ||||
Total stockholders’ equity | 178,922 | 146,084 | ||||||
Total liabilities and stockholders’ equity | $ | 355,564 | $ | 294,494 | ||||
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 107,897 | $ | 113,929 | ||||
Restricted cash | 605 | 599 | ||||||
Accounts receivable, net | 79,477 | 82,460 | ||||||
Inventory , net | 22,737 | 25,022 | ||||||
Prepaid expenses and other current assets | 7,135 | 4,969 | ||||||
Total current assets | 217,851 | 226,979 | ||||||
Property and equipment, net | 84,268 | 79,160 | ||||||
Intangible assets, net | 24,452 | 25,673 | ||||||
Goodwill | 28,772 | 28,772 | ||||||
Operating lease right-of-use | 47,468 | 49,144 | ||||||
Deferred tax asset, net | 31,994 | 31,994 | ||||||
Other assets | 1,467 | 1,537 | ||||||
Total assets | $ | 436,272 | $ | 443,259 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
D eferred acquisition consideration | $ | 1,436 | $ | 1,436 | ||||
Current portion of term loan | 3,126 | 2,656 | ||||||
F inance lease obligations | 101 | 200 | ||||||
Current portion of operating lease obligations | 11,775 | 11,785 | ||||||
Accounts payable | 27,935 | 29,339 | ||||||
Accrued expenses and other current liabilities | 32,419 | 36,589 | ||||||
Total current liabilities | 76,792 | 82,005 | ||||||
Term loan, net of current portion | 69,869 | 70,769 | ||||||
Operating lease obligations, net of current portion | 45,323 | 46,893 | ||||||
Other liabilities | 1,060 | 1,557 | ||||||
Total liabilities | 193,044 | 201,224 | ||||||
Commitments and contingencies (Note 18) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued | 0— | 0— | ||||||
Common stock, $0.0001 par value; 400,000,000 shares authorized; 129,615,732 and 129,408,740 shares issued; 128,887,184 and 128,680,192 shares outstanding at March 31, 2022 and December 31, 2021, respectively. | 13 | 13 | ||||||
Additional paid-in capital | 303,261 | 302,155 | ||||||
Accumulated deficit | (60,046 | ) | (60,133 | ) | ||||
Total stockholders’ equity | 243,228 | 242,035 | ||||||
Total liabilities and stockholders’ equity | $ | 436,272 | $ | 443,259 | ||||
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 March 31, | ||||||||
2022 | 2021 | |||||||
Net revenue | $ | 98,117 | $ | 102,552 | ||||
Cost of goods sold | 25,080 | 25,495 | ||||||
Gross profit | 73,037 | 77,057 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 63,578 | 58,232 | ||||||
Research and development | 8,587 | 6,209 | ||||||
Total operating expenses | 72,165 | 64,441 | ||||||
Income from operations | 872 | 12,616 | ||||||
Other expense, net: | ||||||||
Interest expense | (737 | ) | (2,470 | ) | ||||
Other expense, net | (3 | ) | (3 | ) | ||||
Total other expense, net | (740 | ) | (2,473 | ) | ||||
Net income before income taxes | 132 | 10,143 | ||||||
Income tax expense | (45 | ) | (200 | ) | ||||
Net income | $ | 87 | $ | 9,943 | ||||
Net income, per share: | ||||||||
Basic | $ | 0.00 | $ | 0.08 | ||||
Diluted | $ | 0.00 | $ | 0.07 | ||||
Weighted-average common shares outstanding | ||||||||
Basic | 128,788,721 | 127,870,065 | ||||||
Diluted | 132,805,154 | 133,451,950 | ||||||
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 Months Ended March 31, 2022 | ||||||||||||||||||||
Additional | ||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | ||||||||||||||||
Balance as of December 31, 2021 | 128,680,192 | $ | 13 | $ | 302,155 | $ | (60,133 | ) | $ | 242,035 | ||||||||||
Exercise of stock options | 86,121 | — | 291 | — | 291 | |||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes | 120,871 | — | (488 | ) | — | (488 | ) | |||||||||||||
Stock-based compensation expense | — | — | 1,303 | — | 1,303 | |||||||||||||||
Net income | — | — | — | 87 | 87 | |||||||||||||||
Balance as of March 31, 2022 | 128,887,184 | 13 | 303,261 | (60,046 | ) | 243,228 | ||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Additional | ||||||||||||||||||||
Common Stock | Paid-in | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Stockholders’ Equity | ||||||||||||||||
Balance as of December 31, 2020 | 127,731,833 | 13 | 296,830 | (155,035 | ) | 141,808 | ||||||||||||||
Exercise of stock options | 285,344 | — | 984 | — | 984 | |||||||||||||||
Vesting of RSUs, net of shares surrendered to pay taxes | 85,078 | — | (417 | ) | — | (417 | ) | |||||||||||||
Stock-based compensation expense | — | — | 698 | — | 698 | |||||||||||||||
Net income | — | — | — | 9,943 | 9,943 | |||||||||||||||
Balance as of March 31, 2021 | 128,102,255 | $ | 13 | $ | 298,095 | $ | (145,092 | ) | $ | 153,016 | ||||||||||
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 | $ | — |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 87 | $ | 9,943 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 1,347 | 1,010 | ||||||
Amortization of intangible assets | 1,221 | 1,243 | ||||||
Amortization of operating lease right-of-use | 1,847 | 1,129 | ||||||
Non-cash interest expense | 108 | 72 | ||||||
Deferred interest expense | 151 | 525 | ||||||
Provision recorded for doubtful accounts | 40 | 921 | ||||||
Loss on disposal of property and equipment | 0 | 239 | ||||||
Adjustment for excess and obsolete inventories | 2,205 | 2,290 | ||||||
Stock-based compensation | 1,303 | 698 | ||||||
Change in fair value of Earnout liability | 0 | (296 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 2,942 | (16,119 | ) | |||||
Inventory | 80 | (4,212 | ) | |||||
Prepaid expenses and other current assets | (2,165 | ) | (622 | ) | ||||
Operating leases | (1,751 | ) | (1,210 | ) | ||||
Accounts payable | (1,186 | ) | 1,842 | |||||
Accrued expenses and other current liabilities | (4,828 | ) | 1,411 | |||||
Other liabilities | 10 | (164 | ) | |||||
Net cash provided by (used in) operating activities | 1,411 | (1,300 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (6,672 | ) | (4,957 | ) | ||||
Net cash used in investing activities | (6,672 | ) | (4,957 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments of term loan | (469 | ) | 0 | |||||
Payments of withholding taxes in connection with RSUs vesting | (488 | ) | (417 | ) | ||||
Proceeds from the exercise of stock options | 291 | 984 | ||||||
Principal repayments of finance lease obligations | (99 | ) | (675 | ) | ||||
Payment of deferred acquisition consideration | 0 | (483 | ) | |||||
Net cash used in financing activities | (765 | ) | (591 | ) | ||||
Change in cash , cash equivalents, and restricted cash | (6,026 | ) | (6,848 | ) | ||||
Cash , cash equivalents, and restricted cash, beginning of period | 114,528 | 84,806 | ||||||
Cash , cash equivalents, and restricted cash, end of period | $ | 108,502 | $ | 77,958 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 627 | $ | 1,937 | ||||
Cash paid for income taxes | $ | 4 | $ | 0 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 1,869 | $ | 306 | ||||
Right-of-use | $ | 171 | $ | 310 |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Advanced Wound Care | $ | 111,436 | $ | 59,731 | ||||
Surgical & Sports Medicine | 11,760 | 9,229 | ||||||
Total net revenue | $ | 123,196 | $ | 68,960 | ||||
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 | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Advanced Wound Care | $ | 90,950 | $ | 90,708 | ||||
Surgical & Sports Medicine | 7,167 | 11,844 | ||||||
Total net revenue | $ | 98,117 | $ | 102,552 | ||||
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 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 | ||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Beginning balance | $ | 0 | $ | 3,985 | ||||
Change in fair value | 0 | (296 | ) | |||||
Ending balance | $ | 0 | $ | 3,689 | ||||
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 | |||||
March 31 | December 31, | |||||||
2022 | 2021 | |||||||
Accounts receivable | $ | 84,604 | $ | 87,613 | ||||
Less — allowance for doubtful accounts | (5,127 | ) | (5,153 | ) | ||||
$ | 79,477 | $ | 82,460 | |||||
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 March 31, | ||||||||
2022 | 2021 | |||||||
Balance at beginning of period | $ | 5,153 | $ | 2,669 | ||||
Additions | 40 | 921 | ||||||
Write-offs | (66 | ) | (14 | ) | ||||
Balance at end of period | $ | 5,127 | $ | 3,576 | ||||
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 | |||||
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
Raw materials | $ | 9,524 | $ | 9,023 | ||||
Work in process | 995 | 991 | ||||||
Finished goods | 12,218 | 15,008 | ||||||
$ | 22,737 | $ | 25,022 | |||||
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 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Subscriptions | $ | 2,685 | $ | 2,745 | ||||
Conferences and marketing expenses | 2,060 | 538 | ||||||
Deposits | 1,344 | 1,216 | ||||||
Insurance | 1,001 | 358 | ||||||
Other | 45 | 112 | ||||||
$ | 7,135 | $ | 4,969 | |||||
June 30, | December 31, | |||||||||||||||
2021 | 2020 | |||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Leasehold improvements | $ | 48,503 | $ | 39,574 | $ | 33,973 | $ | 30,531 | ||||||||
Buildings | 4,943 | 4,943 | ||||||||||||||
Furniture, computers and equipment | 50,221 | 48,236 | 54,822 | 53,959 | ||||||||||||
98,724 | 87,810 | 93,738 | 89,433 | |||||||||||||
Accumulated depreciation and amortization | (71,593 | ) | (69,521 | ) | (59,075 | ) | (57,729 | ) | ||||||||
Construction in progress | 42,608 | 41,779 | 49,605 | 47,456 | ||||||||||||
$ | 69,739 | $ | 60,068 | $ | 84,268 | $ | 79,160 | |||||||||
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 Cost | Accumulated Amortization | Net Book Value | ||||||||||
Developed technology | $ | 32,620 | $ | (18,573 | ) | $ | 14,047 | |||||
Trade names and trademarks | 2,080 | (1,236 | ) | 844 | ||||||||
Customer relationships | 10,690 | (1,648 | ) | 9,042 | ||||||||
Independent sales agency network | 4,500 | (4,500 | ) | — | ||||||||
Patent | 7,623 | (7,623 | ) | — | ||||||||
Non-compete agreements | 1,010 | (491 | ) | 519 | ||||||||
Total | $ | 58,523 | $ | (34,071 | ) | $ | 24,452 | |||||
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 | |||||
Original Cost | Accumulated Amortization | Net Book Value | ||||||||||
Developed technology | $ | 32,620 | $ | (17,709 | ) | $ | 14,911 | |||||
Trade names and trademarks | 2,080 | (1,183 | ) | 897 | ||||||||
Customer relationship | 10,690 | (1,381 | ) | 9,309 | ||||||||
Independent sales agency network | 4,500 | (4,500 | ) | — | ||||||||
Patent | 7,623 | (7,623 | ) | — | ||||||||
Non-compete agreements | 1,010 | (454 | ) | 556 | ||||||||
Total | $ | 58,523 | $ | (32,850 | ) | $ | 25,673 | |||||
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 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Personnel costs | $ | 23,060 | $ | 26,865 | ||||
Royalties | 3,190 | 3,458 | ||||||
Accrued but unpaid lease obligations and interest | 3,981 | 3,963 | ||||||
Other | 2,188 | 2,303 | ||||||
$ | 32,419 | $ | 36,589 | |||||
Employee | Other | Total | ||||||||||
Liability balance as of December 31, 2021 | $ | 2,517 | $ | 651 | $ | |||||||
Expenses | 115 | 149 | 264 | |||||||||
Payments | (2,517 | ) | (783 | ) | (3,300 | ) | ||||||
Liability balance as of March 31, 2022 | $ | 115 | $ | 17 | $ | 132 | ||||||
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 | |||||||
Liability balance as of December 31, 2020 | $ | 618 | $ | 0 | ||||
Expenses | 1,763 | 103 | ||||||
Payments | 0 | (74 | ) | |||||
Liability balance as of June 30, 2021 | $ | 2,381 | $ | 29 | ||||
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 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Line of credit | $ | 0 | $ | 0 | ||||
Term loan | 73,593 | 74,062 | ||||||
Less debt discount and debt issuance cost | (598 | ) | (637 | ) | ||||
Term loan, net of debt discount, debt issuance cost | $ | 72,995 | $ | 73,425 | ||||
2021 | $ | 11,250 | ||
2022 | 22,500 | |||
2023 | 22,500 | |||
2024 | 13,750 | |||
Total | $ | 70,000 | ||
2022 | $ | 2,343 | ||
2023 | 4,687 | |||
2024 | 5,625 | |||
2025 | 6,563 | |||
2026 | 54,375 | |||
Total | $ | 73,593 | ||
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 | ||||||
March 31 2022 | December 31, 2021 | |||||||
Shares reserved for issuance for outstanding options | 7,924,792 | 6,596,969 | ||||||
Shares reserved for issuance for outstanding restricted stock units | 1,496,853 | 764,871 | ||||||
Shares reserved for issuance for future grants | 3,373,334 | 5,644,691 | ||||||
Total shares of authorized common stock reserved for future issuance | 12,794,979 | 13,006,531 | ||||||
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 | |||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2021 | 764,871 | $ | 7.52 | |||||
Granted | 931,431 | 7.59 | ||||||
Vested | (179,714 | ) | 7.81 | |||||
Canceled/Forfeited | (19,735 | ) | 6.83 | |||||
Unvested at March 31, 2022 | 1,496,853 | $ | 7.54 | |||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Risk-free interest rate | 1.92 | % | 0.82 | % | ||||
Expected term (in years) | 6.25 | 6.21 | ||||||
Expected volatility | 50.66 | % | 39.30 | % | ||||
Expected dividend yield | 0.0 | % | 0.0 | % | ||||
Exercise price | $ | 8.03 | $ | 13.54 | ||||
Underlying stock price | $ | 7.87 | $ | 13.54 |
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 |
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 | ||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding as of December 31, 2021 | 6,596,969 | $ | 4.10 | 5.20 | $ | 38,524 | ||||||||||
Granted | 1,418,224 | 8.03 | ||||||||||||||
Exercised | (86,121 | ) | 3.38 | 441 | ||||||||||||
Canceled / forfeited | (4,280 | ) | 2.69 | |||||||||||||
Outstanding as of March 31, 2022 | 7,924,792 | 4.82 | 5.83 | 29,053 | ||||||||||||
Options exercisable as of March 31, 2022 | 4,600,567 | 2.52 | 3.57 | 25,113 | ||||||||||||
Options vested or expected to vest as of March 31, 2022 | 7,215,073 | $ | 4.44 | 5.50 | $ | 28,567 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net Income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic | 128,235,224 | 104,714,725 | 128,053,654 | 104,600,825 | ||||||||||||
Dilutive effect of restricted stock units | 508,015 | — | 517,837 | — | ||||||||||||
Dilutive effect of options | 5,245,174 | — | 5,149,700 | — | ||||||||||||
Weighted-average common shares outstanding—diluted | 133,988,413 | 104,714,725 | 133,721,191 | 104,600,825 | ||||||||||||
Earnings (loss) per share—basic | $ | 0.16 | $ | (0.05 | ) | $ | 0.24 | $ | (0.21 | ) | ||||||
Earnings (loss) per share—diluted | $ | 0.15 | $ | (0.05 | ) | $ | 0.23 | $ | (0.21 | ) | ||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Numerator: | ||||||||
Net Income | $ | 87 | $ | 9,943 | ||||
Denominator: | ||||||||
Weighted average common shares outstanding —basic | 128,788,721 | 127,870,065 | ||||||
Dilutive effect of restricted stock units | 264,075 | 527,658 | ||||||
Dilutive effect of options | 3,752,358 | 5,054,227 | ||||||
Weighted-average common shares outstanding—diluted | 132,805,154 | 133,451,950 | ||||||
Earnings per share—basic | $ | 0.00 | $ | 0.08 | ||||
Earnings per share—diluted | $ | 0.00 | $ | 0.07 | ||||
March 31 | December 31, | |||||||
2022 | 2021 | |||||||
Principal portion of rent in arrears | 7,246 | 7,246 | ||||||
Unpaid operating and common area maintenance costs | 52 | 558 | ||||||
Total accrued but unpaid lease obligations | 7,298 | 7,804 | ||||||
Accrued interest on accrued but unpaid lease obligations | 1,956 | 1,938 |
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 | ||||||
Three Months Ended March 31, | ||||||||||
Classification | 2022 | 2021 | ||||||||
Finance lease | ||||||||||
Amortization of right-of-use | COGS and SG&A | $ | 107 | $ | 299 | |||||
Interest on lease liabilities | Interest Expense | 5 | 349 | |||||||
Total Finance lease cost | 112 | 648 | ||||||||
Operating lease cost | COGS, R&D, SG&A | 2,434 | 1,280 | |||||||
Short-term lease cost | COGS, R&D, SG&A | 669 | 715 | |||||||
Variable lease cost | COGS, R&D, SG&A | 918 | 1,363 | |||||||
Total lease cost | $ | 4,133 | $ | 4,006 | ||||||
June 30, 2021 | January 1, 2021 | |||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Property and equipment, gross | $ | 22,989 | $ | 22,989 | $ | 1,174 | $ | 1,174 | ||||||||
Accumulated depreciation | (15,578 | ) | (14,974 | ) | (1,067 | ) | (961 | ) | ||||||||
Property and equipment, net | $ | 7,411 | $ | 8,015 | $ | 107 | $ | 213 | ||||||||
Finance lease obligations | $ | 101 | $ | 200 | ||||||||||||
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 | ||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||
Weighted-average remaining lease term | ||||||||
Finance leases | 0.21 | 0.45 | ||||||
Operating leases | 8.04 | 8.22 | ||||||
March 31, 2022 | December 31, 2021 | |||||||
Weighted-average discount rate | ||||||||
Finance leases | 11.30 | % | 11.30 | % | ||||
Operating leases | 4.53 | % | 4.51 | % |
Operating | Finance leases | |||||||
2021 (remaining 6 months) | $ | 3,319 | $ | 2,390 | ||||
2022 | 4,507 | 4,945 | ||||||
2023 | 3,845 | 0 | ||||||
2024 | 3,177 | 9,782 | ||||||
2025 | 3,164 | 0 | ||||||
Thereafter | 16,341 | 0 | ||||||
Total lease payments | 34,353 | 17,117 | ||||||
Less: interest | (5,625 | ) | (3,430 | ) | ||||
Total lease liabilities | $ | 28,728 | $ | 13,687 | ||||
Operating leases | Finance leases | |||||||
2022 | $ | 11,873 | $ | 103 | ||||
2023 | 8,104 | 0 | ||||||
2024 | 7,315 | 0 | ||||||
2025 | 7,526 | 0 | ||||||
2026 | 7,435 | 0 | ||||||
Thereafter | 25,966 | 0 | ||||||
Total lease payments | 68,219 | 103 | ||||||
Less: interest | (11,121 | ) | (2 | ) | ||||
Total lease liabilities | $ | 57,098 | $ | 101 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Net revenue | $ | 123,196 | $ | 68,960 | $ | 225,748 | $ | 130,692 | $ | 98,117 | $ | 102,552 | ||||||||||||
Cost of goods sold | 29,940 | 20,042 | 55,435 | 38,835 | 25,080 | 25,495 | ||||||||||||||||||
Gross profit | 93,256 | 48,918 | 170,313 | 91,857 | 73,037 | 77,057 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 62,349 | 46,502 | 120,581 | 99,115 | 63,578 | 58,232 | ||||||||||||||||||
Research and development | 7,320 | 4,668 | 13,529 | 10,078 | 8,587 | 6,209 | ||||||||||||||||||
Total operating expenses | 69,669 | 51,170 | 134,110 | 109,193 | 72,165 | 64,441 | ||||||||||||||||||
Income (loss) from operations | 23,587 | (2,252 | ) | 36,203 | (17,336 | ) | ||||||||||||||||||
Income from operations | 872 | 12,616 | ||||||||||||||||||||||
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 | ||||||||||||||||||||
Interest expense | (737 | ) | (2,470 | ) | ||||||||||||||||||||
Other expense, net | (3 | ) | (3 | ) | ||||||||||||||||||||
Total other expense, net | (2,413 | ) | (2,887 | ) | (4,886 | ) | (4,081 | ) | (740 | ) | (2,473 | ) | ||||||||||||
Net income (loss) before income taxes | 21,174 | (5,139 | ) | 31,317 | (21,417 | ) | ||||||||||||||||||
Net income before income taxes | 132 | 10,143 | ||||||||||||||||||||||
Income tax expense | (487 | ) | (27 | ) | (687 | ) | (62 | ) | (45 | ) | (200 | ) | ||||||||||||
Net income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | ||||||||||||||
Net income | $ | 87 | $ | 9,943 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net income (loss) | $ | 20,687 | $ | (5,166 | ) | $ | 30,630 | $ | (21,479 | ) | ||||||
Interest expense, net | 2,431 | 2,912 | 4,901 | 5,422 | ||||||||||||
Income tax expense | 487 | 27 | 687 | 62 | ||||||||||||
Depreciation | 1,063 | 891 | 2,073 | 1,793 | ||||||||||||
Amortization | 1,243 | 816 | 2,486 | 1,633 | ||||||||||||
EBITDA | 25,911 | (520 | ) | 40,777 | (12,569 | ) | ||||||||||
Stock-based compensation expense | 1,042 | 469 | 1,740 | 678 | ||||||||||||
Gain on settlement of deferred acquisition consideration (1) | — | — | — | (1,295 | ) | |||||||||||
Recovery of certain notes receivable from related parties (2) | — | — | (179 | ) | — | |||||||||||
Change in fair value of Earnout (3) | (2,762 | ) | — | (3,058 | ) | — | ||||||||||
Restructuring charge (4) | 939 | — | 1,866 | — | ||||||||||||
Transaction cost (5) | — | 325 | — | 568 | ||||||||||||
Cancellation fee (6) | — | — | — | 1,950 | ||||||||||||
Adjusted EBITDA | $ | 25,130 | $ | 274 | $ | 41,146 | $ | (10,668 | ) | |||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net income | $ | 87 | $ | 9,943 | ||||
Interest expense | 737 | 2,470 | ||||||
Income tax expense | 45 | 200 | ||||||
Depreciation | 1,347 | 1,010 | ||||||
Amortization | 1,221 | 1,243 | ||||||
EBITDA | 3,437 | 14,866 | ||||||
Stock-based compensation expense | 1,303 | 698 | ||||||
Recovery of certain notes receivable from related parties (1) | — | (179 | ) | |||||
Change in fair value of Earnout (2) | — | (296 | ) | |||||
Restructuring charge (3) | 264 | 927 | ||||||
Adjusted EBITDA | $ | 5,004 | $ | 16,016 | ||||
(1) |
Amount reflects the collection of certain notes receivable from related parties previously reserved. See Note “19. Related Party Transactions”. |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Advanced Wound Care | $ | 111,436 | $ | 59,731 | $ | 51,705 | 87 | % | $ | 90,950 | $ | 90,708 | $ | 242 | 0 | % | ||||||||||||||||
Surgical & Sports Medicine | 11,760 | 9,229 | 2,531 | 27 | % | 7,167 | 11,844 | (4,677 | ) | (39 | %) | |||||||||||||||||||||
Net revenue | $ | 123,196 | $ | 68,960 | $ | 54,236 | 79 | % | $ | 98,117 | $ | 102,552 | $ | (4,435 | ) | (4 | %) | |||||||||||||||
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 | % | ||||||||||||||||||||||||
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Cost of goods sold | $ | 25,080 | $ | 25,495 | $ | (415 | ) | (2 | %) | |||||||
Gross profit | $ | 73,037 | $ | 77,057 | $ | (4,020 | ) | (5 | %) | |||||||
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Cost of goods sold | $ | 29,940 | $ | 20,042 | $ | 9,898 | 49 | % | ||||||||
Gross profit | $ | 93,256 | $ | 48,918 | $ | 44,338 | 91 | % | ||||||||
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 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Research and development | $ | 7,320 | $ | 4,668 | $ | 2,652 | 57 | % | ||||||||
Research and development as a percentage of net revenue | 6 | % | 7 | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Research and development | $ | 13,529 | $ | 10,078 | $ | 3,451 | 34 | % | ||||||||
Research and development as a percentage of net revenue | 6 | % | 8 | % |
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Research and development | $ | 8,587 | $ | 6,209 | $ | 2,378 | 38 | % | ||||||||
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Selling, general and administrative | $ | 62,349 | $ | 46,502 | $ | 15,847 | 34 | % | ||||||||
Selling, general and administrative as a percentage of net revenue | 51 | % | 67 | % | ||||||||||||
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 | % |
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Selling, general and administrative | $ | 63,578 | $ | 58,232 | $ | 5,346 | 9 | % | ||||||||
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 March 31, | Change | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Change | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Interest expense, net | $ | (4,901 | ) | $ | (5,422 | ) | $ | 521 | (10 | %) | $ | (737 | ) | $ | (2,470 | ) | $ | 1,733 | (70 | %) | ||||||||||||
Gain on settlement of deferred acquisition consideration | — | 1,295 | (1,295 | ) | (100 | %) | ||||||||||||||||||||||||||
Other income, net | 15 | 46 | (31 | ) | (67 | %) | ||||||||||||||||||||||||||
Other expense, net | (3 | ) | (3 | ) | — | ** | ||||||||||||||||||||||||||
Total other expense, net | $ | (4,886 | ) | $ | (4,081 | ) | $ | (805 | ) | 20 | % | $ | (740 | ) | $ | (2,473 | ) | $ | 1,733 | (70 | %) | |||||||||||
** | not meaningful |
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Income tax expense | $ | (45 | ) | $ | (200 | ) | $ | 155 | (78 | %) | ||||||
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 16,180 | $ | (26,618 | ) | $ | 1,411 | $ | (1,300 | ) | ||||||
Net cash used in investing activities | (9,290 | ) | (6,118 | ) | (6,672 | ) | (4,957 | ) | ||||||||
Net cash used in (provided by) financing activities | (1,389 | ) | 13,120 | |||||||||||||
Net cash used in financing activities | (765 | ) | (591 | ) | ||||||||||||
Net change in cash and restricted cash | $ | 5,501 | $ | (19,616 | ) | |||||||||||
Net change in cash, cash equivalents, and restricted cash | $ | (6,026 | ) | $ | (6,848 | ) | ||||||||||
† | Filed herewith |
†† | Furnished herewith |
* | Management contract or compensatory plan or arrangement |
Dated: | ||||||
Organogenesis Holdings Inc. | ||||||
(Registrant) | ||||||
/s/ David Francisco | ||||||
David Francisco | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |