☒ | 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 | 02021 | |
(Address of principal executive offices) | (Zip Code) |
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. | ||||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 102,237 | $ | 84,394 | ||||
Restricted cash | 487 | 412 | ||||||
Accounts receivable, net | 74,583 | 56,804 | ||||||
Inventory | 29,495 | 27,799 | ||||||
Prepaid expenses and other current assets | 5,033 | 4,935 | ||||||
Total current assets | 211,835 | 174,344 | ||||||
Property and equipment, net | 74,774 | 55,792 | ||||||
Intangible assets, net | 26,896 | 30,622 | ||||||
Goodwill | 28,772 | 28,772 | ||||||
Operating lease right-of-use | 26,522 | — | ||||||
Deferred tax asset, net | 18 | 18 | ||||||
Other assets | 1,606 | 670 | ||||||
Total assets | $ | 370,423 | $ | 290,218 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Deferred acquisition consideration | $ | — | $ | 483 | ||||
Current portion of term loan | 2,186 | 16,666 | ||||||
Current portion of finance lease obligations | 8,531 | 3,619 | ||||||
Current portion of operating lease obligations | 4,667 | — | ||||||
Current portion of deferred rent and lease incentive obligation | — | 95 | ||||||
Accounts payable | 28,488 | 23,381 | ||||||
Accrued expenses and other current liabilities | 37,128 | 23,973 | ||||||
Total current liabilities | 81,000 | 68,217 | ||||||
Line of credit | 0 | 10,000 | ||||||
Term loan, net of current portion | 71,667 | 43,044 | ||||||
Deferred acquisition consideration, net of current portion | 1,436 | 1,436 | ||||||
Earnout liability | 0 | 3,985 | ||||||
Deferred rent and lease incentive obligation, net of current portion | — | 2,315 | ||||||
Finance lease obligations, net of current portion | 831 | 11,442 | ||||||
Operating lease obligations, net of current portion | 24,204 | — | ||||||
Other liabilities | 2,111 | 7,971 | ||||||
Total liabilities | 181,249 | 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; 129,365,209 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 | 300,989 | 296,830 | ||||||
Accumulated deficit | (111,828 | ) | (155,035 | ) | ||||
Total stockholders’ equity | 189,174 | 141,808 | ||||||
Total liabilities and stockholders’ equity | $ | 370,423 | $ | 290,218 | ||||
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 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 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 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 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 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 | ||||||||||
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 | ||||||||||
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 | $ | — |
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 |
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 September 30, | ||||||||
2021 | 2020 | |||||||
Advanced Wound Care | $ | 107,341 | $ | 89,990 | ||||
Surgical & Sports Medicine | 6,412 | 10,809 | ||||||
Total net revenue | $ | 113,753 | $ | 100,799 | ||||
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Advanced Wound Care | $ | 309,485 | $ | 201,009 | $ | 90,950 | $ | 90,708 | ||||||||
Surgical & Sports Medicine | 30,016 | 30,482 | 7,167 | 11,844 | ||||||||||||
Total net revenue | $ | 339,501 | $ | 231,491 | $ | 98,117 | $ | 102,552 | ||||||||
Fair Value Measurements | ||||||||||||||||
as of September 30, 2021 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Earnout liability | $ | — | $ | — | $ | 0 | $ | 0 | ||||||||
$ | — | $ | — | $ | 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 | |||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Beginning balance | $ | 0 | $ | 3,985 | ||||
Change in fair value | 0 | (296 | ) | |||||
Ending balance | $ | 0 | $ | 3,689 | ||||
Earnout liability | ||||
Balance as of December 31, 2020 | $ | 3,985 | ||
Change in fair value | (3,985 | ) | ||
Balance as of September 30, 2021 | $ | 0 | ||
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 | |||||
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 September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Balance at beginning of period | $ | 7,113 | $ | 3,928 | $ | 4,988 | $ | 3,049 | $ | 5,153 | $ | 2,669 | ||||||||||||
Additions | 704 | 1,589 | 2,862 | 2,559 | 40 | 921 | ||||||||||||||||||
Write-offs | (475 | ) | (392 | ) | (508 | ) | (483 | ) | (66 | ) | (14 | ) | ||||||||||||
Balance at end of period | $ | 7,342 | $ | 5,125 | $ | 7,342 | $ | 5,125 | $ | 5,127 | $ | 3,576 | ||||||||||||
September 30, | December 31, | March 31, | December 31, | |||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Raw materials | $ | 8,761 | $ | 10,075 | $ | 9,524 | $ | 9,023 | ||||||||
Work in process | 2,144 | 1,305 | 995 | 991 | ||||||||||||
Finished goods | 18,590 | 16,419 | 12,218 | 15,008 | ||||||||||||
$ | 29,495 | $ | 27,799 | $ | 22,737 | $ | 25,022 | |||||||||
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 | |||||
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 | |||||
September 30, | December 31, | |||||||||||||||
2021 | 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Leasehold improvements | $ | 45,050 | $ | 39,574 | $ | 33,973 | $ | 30,531 | ||||||||
Building | 4,943 | $ | — | |||||||||||||
Buildings | 4,943 | 4,943 | ||||||||||||||
Furniture, computers and equipment | 52,696 | 48,236 | 54,822 | 53,959 | ||||||||||||
102,689 | 87,810 | 93,738 | 89,433 | |||||||||||||
Accumulated depreciation and amortization | (73,894 | ) | (73,797 | ) | (59,075 | ) | (57,729 | ) | ||||||||
Construction in progress | 45,979 | 41,779 | 49,605 | 47,456 | ||||||||||||
$ | 74,774 | $ | 55,792 | $ | 84,268 | $ | 79,160 | |||||||||
Original | Accumulated | Net Book | ||||||||||||||||||||||
Cost | Amortization | Value | Original Cost | Accumulated Amortization | Net Book Value | |||||||||||||||||||
Developed technology | $ | 32,620 | $ | (16,864 | ) | $ | 15,756 | $ | 32,620 | $ | (18,573 | ) | $ | 14,047 | ||||||||||
Trade names and trademarks | 2,080 | (1,128 | ) | 952 | 2,080 | (1,236 | ) | 844 | ||||||||||||||||
Customer relationships | 10,690 | (1,114 | ) | 9,576 | 10,690 | (1,648 | ) | 9,042 | ||||||||||||||||
Independent sales agency network | 4,500 | (4,500 | ) | — | ||||||||||||||||||||
Patent | 7,623 | (7,623 | ) | — | ||||||||||||||||||||
Non-compete agreements | 1,010 | (398 | ) | 612 | 1,010 | (491 | ) | 519 | ||||||||||||||||
Total | $ | 46,400 | $ | (19,504 | ) | $ | 26,896 | $ | 58,523 | $ | (34,071 | ) | $ | 24,452 | ||||||||||
Original | Accumulated | Net Book | ||||||||||||||||||||||
Cost | Amortization | Value | Original Cost | Accumulated Amortization | Net Book Value | |||||||||||||||||||
Developed technology | $ | 32,620 | $ | (14,330 | ) | $ | 18,290 | $ | 32,620 | $ | (17,709 | ) | $ | 14,911 | ||||||||||
Trade names and trademarks | 2,080 | (906 | ) | 1,174 | 2,080 | (1,183 | ) | 897 | ||||||||||||||||
Customer relationship | 10,690 | (312 | ) | 10,378 | 10,690 | (1,381 | ) | 9,309 | ||||||||||||||||
Independent sales agency network | 4,500 | (4,500 | ) | — | ||||||||||||||||||||
Patent | 7,623 | (7,623 | ) | — | ||||||||||||||||||||
Non-compete agreements | 1,010 | (230 | ) | 780 | 1,010 | (454 | ) | 556 | ||||||||||||||||
Total | $ | 46,400 | $ | (15,778 | ) | $ | 30,622 | $ | 58,523 | $ | (32,850 | ) | $ | 25,673 | ||||||||||
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 | |||||
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 | |||||
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 December 31, 2020 | $ | 618 | $ | 0 | ||||
Expenses | 2,617 | 259 | ||||||
Payments | (26 | ) | (234 | ) | ||||
Liability balance as of September 30, 2021 | $ | 3,209 | $ | 25 | ||||
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 | ||||||
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 | ||||
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 | 469 | |||
2022 | 2,812 | |||
2023 | 4,687 | |||
2024 | 5,625 | |||
2025 and beyond | 60,938 | |||
Total | $ | 74,531 | ||
2022 | $ | 2,343 | ||
2023 | 4,687 | |||
2024 | 5,625 | |||
2025 | 6,563 | |||
2026 | 54,375 | |||
Total | $ | 73,593 | ||
September 30, | December 31, | |||||||||||||||
2021 | 2020 | March 31 2022 | December 31, 2021 | |||||||||||||
Shares reserved for issuance for outstanding options | 6,724,574 | 6,425,040 | 7,924,792 | 6,596,969 | ||||||||||||
Shares reserved for issuance for outstanding restricted stock units | 768,203 | 806,048 | 1,496,853 | 764,871 | ||||||||||||
Shares reserved for issuance for future grants | 5,635,822 | 6,832,649 | 3,373,334 | 5,644,691 | ||||||||||||
Total shares of authorized common stock reserved for future issuance | 13,128,599 | 14,063,737 | 12,794,979 | 13,006,531 | ||||||||||||
Weighted Average | Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||||
Number | Grant Date | |||||||||||||||
of Shares | Fair Value | |||||||||||||||
Unvested at December 31, 2020 | 787,923 | $ | 3.81 | |||||||||||||
Unvested at December 31, 2021 | 764,871 | $ | 7.52 | |||||||||||||
Granted | 299,352 | 14.46 | 931,431 | 7.59 | ||||||||||||
Vested | (248,305 | ) | 4.20 | (179,714 | ) | 7.81 | ||||||||||
Canceled/Forfeited | (70,767 | ) | 8.01 | (19,735 | ) | 6.83 | ||||||||||
Unvested at September 30, 2021 | 768,203 | $ | 7.45 | |||||||||||||
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 |
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 |
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 | ||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net Income (loss) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 128,546,301 | 105,040,035 | 128,219,674 | 104,748,297 | ||||||||||||
Dilutive effect of restricted stock units | 458,642 | 134,759 | 498,105 | — | ||||||||||||
Dilutive effect of options | 4,845,273 | 3,314,974 | 5,048,225 | — | ||||||||||||
Weighted-average common shares outstanding—diluted | 133,850,216 | 108,489,768 | 133,766,004 | 104,748,297 | ||||||||||||
Earnings (loss) per share—basic | $ | 0.10 | $ | 0.20 | $ | 0.34 | $ | (0.01 | ) | |||||||
Earnings (loss) per share—diluted | $ | 0.09 | $ | 0.19 | $ | 0.32 | $ | (0.01 | ) | |||||||
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 |
Three Months Ended March 31, | ||||||||||||||||||||||
Classification | 2022 | 2021 | ||||||||||||||||||||
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 | COGS and SG&A | $ | 107 | $ | 299 | ||||||||||||
Interest on lease liabilities | Interest Expense | 218 | 879 | Interest Expense | 5 | 349 | ||||||||||||||||
Total Finance lease cost | 1,011 | 2,275 | 112 | 648 | ||||||||||||||||||
Operating lease cost | COGS, R&D, SG&A | 1,857 | 4,872 | COGS, R&D, SG&A | 2,434 | 1,280 | ||||||||||||||||
Short-term lease cost | COGS, R&D, SG&A | 758 | 2,172 | COGS, R&D, SG&A | 669 | 715 | ||||||||||||||||
Variable lease cost | COGS, R&D, SG&A | 1,304 | 3,753 | COGS, R&D, SG&A | 918 | 1,363 | ||||||||||||||||
Total lease cost | $ | 4,930 | $ | 13,072 | $ | 4,133 | $ | 4,006 | ||||||||||||||
September 30, 2021 | January 1 2021 | March 31, 2022 | December 31, 2021 | |||||||||||||
Property and equipment, gross | $ | 18,670 | $ | 22,989 | $ | 1,174 | $ | 1,174 | ||||||||
Accumulated depreciation | (16,736 | ) | (19,250 | ) | (1,067 | ) | (961 | ) | ||||||||
Property and equipment, net | $ | 1,934 | $ | 3,739 | $ | 107 | $ | 213 | ||||||||
Finance lease obligations | $ | 101 | $ | 200 | ||||||||||||
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 | ||||||||||||
Ended | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 2,337 | $ | 1,362 | ||||
Operating cash flows for finance leases | $ | 5 | $ | 523 | ||||
Financing cash flows for finance leases | $ | 99 | $ | 675 | ||||
Right-of-use | ||||||||
Operating leases | $ | 171 | $ | 310 | ||||
Finance leases | $ | — | $ | — |
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 | % |
2021 | ||||
Operating leases | Finance leases | |||||||
2021 (remaining 3 months) | $ | 1,975 | $ | 889 | ||||
2022 | 4,980 | 8,887 | ||||||
2023 | 4,137 | 0 | ||||||
2024 | 3,345 | 0 | ||||||
2025 | 3,249 | 0 | ||||||
Thereafter | 16,644 | 0 | ||||||
Total lease payments | 34,330 | 9,776 | ||||||
Less: interest | (5,459 | ) | (414 | ) | ||||
Total lease liabilities | $ | 28,871 | $ | 9,362 | ||||
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 September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Net revenue | $ | 113,753 | $ | 100,799 | $ | 339,501 | $ | 231,491 | $ | 98,117 | $ | 102,552 | ||||||||||||
Cost of goods sold | 26,167 | 22,964 | 81,602 | 61,799 | 25,080 | 25,495 | ||||||||||||||||||
Gross profit | 87,586 | 77,835 | 257,899 | 169,692 | 73,037 | 77,057 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 62,369 | 51,325 | 182,950 | 150,797 | 63,578 | 58,232 | ||||||||||||||||||
Research and development | 8,953 | 3,709 | 22,482 | 13,787 | 8,587 | 6,209 | ||||||||||||||||||
Total operating expenses | 71,322 | 55,034 | 205,432 | 164,584 | 72,165 | 64,441 | ||||||||||||||||||
Income from operations | 16,264 | 22,801 | 52,467 | 5,108 | 872 | 12,616 | ||||||||||||||||||
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 | ||||||||||||||||||
Interest expense | (737 | ) | (2,470 | ) | ||||||||||||||||||||
Other expense, net | (3 | ) | (3 | ) | ||||||||||||||||||||
Total other expense, net | (3,384 | ) | (1,974 | ) | (8,270 | ) | (6,055 | ) | (740 | ) | (2,473 | ) | ||||||||||||
Net income (loss) before income taxes | 12,880 | 20,827 | 44,197 | (947 | ) | |||||||||||||||||||
Net income before income taxes | 132 | 10,143 | ||||||||||||||||||||||
Income tax expense | (303 | ) | (72 | ) | (990 | ) | (134 | ) | (45 | ) | (200 | ) | ||||||||||||
Net income (loss) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||||||||||
Net income | $ | 87 | $ | 9,943 | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net income (loss) | $ | 12,577 | $ | 20,755 | $ | 43,207 | $ | (1,081 | ) | |||||||
Interest expense, net | 1,482 | 2,969 | 6,383 | 8,391 | ||||||||||||
Income tax expense | 303 | 72 | 990 | 134 | ||||||||||||
Depreciation | 1,937 | 1,135 | 4,010 | 3,285 | ||||||||||||
Amortization | 1,240 | 885 | 3,726 | 2,518 | ||||||||||||
EBITDA | 17,539 | 25,816 | 58,316 | 13,247 | ||||||||||||
Stock-based compensation expense | 1,041 | 486 | 2,781 | 1,164 | ||||||||||||
Gain on settlement of deferred acquisition consideration (1) | — | (951 | ) | — | (2,246 | ) | ||||||||||
Recovery of certain notes receivable from related parties (2) | — | (1,111 | ) | (179 | ) | (1,111 | ) | |||||||||
Change in fair value of Earnout (3) | (927 | ) | — | (3,985 | ) | — | ||||||||||
Restructuring charge (4) | 1,010 | — | 2,876 | — | ||||||||||||
Transaction cost (5) | — | 361 | — | 929 | ||||||||||||
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 | $ | 21,650 | $ | 24,601 | $ | 62,796 | $ | 13,933 | ||||||||
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) |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Advanced Wound Care | $ | 107,341 | $ | 89,990 | $ | 17,351 | 19 | % | ||||||||
Surgical & Sports Medicine | 6,412 | 10,809 | (4,397 | ) | (41 | %) | ||||||||||
Net revenue | $ | 113,753 | $ | 100,799 | $ | 12,954 | 13 | % | ||||||||
Nine Months Ended September 30, | Change | Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||
Advanced Wound Care | $ | 309,485 | $ | 201,009 | $ | 108,476 | 54 | % | $ | 90,950 | $ | 90,708 | $ | 242 | 0 | % | ||||||||||||||||
Surgical & Sports Medicine | 30,016 | 30,482 | (466 | ) | (2 | %) | 7,167 | 11,844 | (4,677 | ) | (39 | %) | ||||||||||||||||||||
Net revenue | $ | 339,501 | $ | 231,491 | $ | 108,010 | 47 | % | $ | 98,117 | $ | 102,552 | $ | (4,435 | ) | (4 | %) | |||||||||||||||
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Cost of goods sold | $ | 26,167 | $ | 22,964 | $ | 3,203 | 14 | % | ||||||||
Gross profit | $ | 87,586 | $ | 77,835 | $ | 9,751 | 13 | % | ||||||||
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 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 September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Research and development | $ | 8,953 | $ | 3,709 | $ | 5,244 | 141 | % | ||||||||
Research and development as a percentage of net revenue | 8 | % | 4 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Research and development | $ | 22,482 | $ | 13,787 | $ | 8,695 | 63 | % | ||||||||
Research and development as a percentage of net revenue | 7 | % | 6 | % |
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 September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Selling, general and administrative | $ | 62,369 | $ | 51,325 | $ | 11,044 | 22 | % | ||||||||
Selling, general and administrative as a percentage of net revenue | 55 | % | 51 | % |
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 March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Selling, general and administrative | $ | 63,578 | $ | 58,232 | $ | 5,346 | 9 | % | ||||||||
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Interest expense, net | $ | (1,482 | ) | $ | (2,969 | ) | $ | 1,487 | (50 | %) | ||||||
Loss on extinguishment of debt | (1,883 | ) | — | (1,883 | ) | 100 | % | |||||||||
Gain on settlement of deferred acquisition consideration | — | 951 | (951 | ) | (100 | %) | ||||||||||
Other income (expense), net | (19 | ) | 44 | (63 | ) | (143 | %) | |||||||||
Total other expense, net | $ | (3,384 | ) | $ | (1,974 | ) | $ | (1,410 | ) | 71 | % | |||||
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Interest expense, net | $ | (737 | ) | $ | (2,470 | ) | $ | 1,733 | (70 | %) | ||||||
Other expense, net | (3 | ) | (3 | ) | — | ** | ||||||||||
Total other expense, net | $ | (740 | ) | $ | (2,473 | ) | $ | 1,733 | (70 | %) | ||||||
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 | % | |||||
** | not meaningful |
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
(in thousands, except for percentages) | ||||||||||||||||
Income tax expense | $ | (45 | ) | $ | (200 | ) | $ | 155 | (78 | %) | ||||||
Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 44,030 | $ | (17,749 | ) | $ | 1,411 | $ | (1,300 | ) | ||||||
Net cash used in investing activities | (25,993 | ) | (18,080 | ) | (6,672 | ) | (4,957 | ) | ||||||||
Net cash provided by (used in) financing activities | (119 | ) | 12,345 | |||||||||||||
Net cash used in financing activities | (765 | ) | (591 | ) | ||||||||||||
Net change in cash and restricted cash | $ | 17,918 | $ | (23,484 | ) | |||||||||||
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) |