Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 28, 2020 | Apr. 23, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | IRIDEX CORP | |
Entity Central Index Key | 0001006045 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 28, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-28 | |
Trading Symbol | IRIX | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-27598 | |
Entity Tax Identification Number | 77-0210467 | |
Entity Address, Address Line One | 1212 Terra Bella Avenue | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043-1824 | |
City Area Code | 650 | |
Local Phone Number | 940-4700 | |
Entity Common Stock, Shares Outstanding | 13,788,160 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 11,139 | $ 12,653 | |
Accounts receivable, net of allowance for doubtful accounts of $229 as of March 28, 2020 and $187 as of December 28, 2019 | 6,987 | 9,323 | |
Inventories | 8,158 | 8,174 | |
Prepaid expenses and other current assets | 691 | 401 | |
Total current assets | 26,975 | 30,551 | |
Property and equipment, net | 707 | 730 | |
Intangible assets, net | 80 | 84 | |
Goodwill | 533 | 533 | |
Operating lease right-of-use assets, net | 2,461 | 2,764 | |
Other long-term assets | 140 | 151 | |
Total assets | 30,896 | 34,813 | |
Current liabilities: | |||
Accounts payable | 1,501 | 2,592 | |
Accrued compensation | 1,716 | 2,398 | |
Accrued expenses | 1,547 | 1,544 | |
Accrued warranty | 259 | 380 | |
Deferred revenue | 1,382 | 1,450 | |
Operating lease liabilities | 1,430 | 1,414 | |
Total current liabilities | 7,835 | 9,778 | |
Long-term liabilities: | |||
Accrued warranty | 137 | 156 | |
Deferred revenue | 320 | 360 | |
Operating lease liabilities | 1,436 | 1,795 | |
Other long-term liabilities | 19 | 19 | |
Total liabilities | 9,747 | 12,108 | |
Commitments and contingencies (Note 6) | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, 2,000,000 shares authorized, no shares issued and outstanding | |||
Common stock, $0.01 par value: Authorized: 30,000,000 shares; Issued and outstanding 13,787,969 and 13,785,233 shares as of March 28, 2020 and December 28, 2019, respectively | 147 | 147 | |
Additional paid-in capital | 73,186 | 73,093 | |
Accumulated other comprehensive income | 82 | 80 | |
Accumulated deficit | (52,266) | (50,615) | |
Total stockholders’ equity | 21,149 | 22,705 | |
Total liabilities and stockholders’ equity | $ 30,896 | $ 34,813 | |
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 229 | $ 187 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 13,787,969 | 13,785,233 |
Common stock, shares outstanding | 13,787,969 | 13,785,233 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||
Total revenues | $ 9,021 | $ 10,595 |
Cost of revenues | 5,105 | 6,338 |
Gross profit | 3,916 | 4,257 |
Operating expenses: | ||
Research and development | 719 | 958 |
Sales and marketing | 3,152 | 4,091 |
General and administrative | 1,698 | 2,244 |
Total operating expenses | 5,569 | 7,293 |
Loss from operations | (1,653) | (3,036) |
Other income (expense), net | 9 | (6) |
Loss from operations before provision for income taxes | (1,644) | (3,042) |
Provision for income taxes | 7 | 6 |
Net loss | $ (1,651) | $ (3,048) |
Net loss per share: | ||
Basic | $ (0.12) | $ (0.22) |
Diluted | $ (0.12) | $ (0.22) |
Weighted average shares used in computing net loss per common share: | ||
Basic | 13,786 | 13,630 |
Diluted | 13,786 | 13,630 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (1,651) | $ (3,048) |
Foreign currency translation adjustments | 2 | 8 |
Comprehensive loss | $ (1,649) | $ (3,040) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | |
Beginning Balance, value at Dec. 29, 2018 | $ 29,961 | $ 145 | $ 71,548 | $ 70 | $ (41,802) | |
Beginning Balance, shares at Dec. 29, 2018 | 13,602,052 | |||||
Issuance of common stock under stock option plan, shares | 208 | |||||
Employee stock-based compensation expense | 615 | 615 | ||||
Release of restricted stock, value net of taxes paid | (93) | (93) | ||||
Release of restricted stock, shares net of taxes paid | 31,379 | |||||
Other comprehensive income | 8 | 8 | ||||
Net income | (3,048) | (3,048) | ||||
Ending Balance, value at Mar. 30, 2019 | 27,443 | $ 145 | 72,070 | 78 | (44,850) | |
Ending Balance, shares at Mar. 30, 2019 | 13,633,639 | |||||
Beginning Balance, value at Dec. 28, 2019 | $ 22,705 | [1] | $ 147 | 73,093 | 80 | (50,615) |
Beginning Balance, shares at Dec. 28, 2019 | 13,785,233 | 13,785,233 | ||||
Employee stock-based compensation expense | $ 95 | 95 | ||||
Release of restricted stock, value net of taxes paid | (2) | (2) | ||||
Release of restricted stock, shares net of taxes paid | 2,736 | |||||
Other comprehensive income | 2 | 2 | ||||
Net income | (1,651) | (1,651) | ||||
Ending Balance, value at Mar. 28, 2020 | $ 21,149 | $ 147 | $ 73,186 | $ 82 | $ (52,266) | |
Ending Balance, shares at Mar. 28, 2020 | 13,787,969 | 13,787,969 | ||||
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Operating activities: | ||
Net loss | $ (1,651) | $ (3,048) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 143 | 186 |
Change in fair value of earn-out liability | 74 | |
Stock-based compensation | 95 | 615 |
Provision for doubtful accounts | 42 | 25 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,292 | 638 |
Inventories | (35) | 66 |
Prepaid expenses and other current assets | (290) | (221) |
Operating lease right-of-use assets | 302 | 307 |
Other long-term assets | 11 | 9 |
Accounts payable | (1,091) | (116) |
Accrued compensation | (681) | (1,417) |
Accrued expenses | 1 | (523) |
Accrued warranty | (140) | (153) |
Deferred revenue | (108) | 43 |
Operating lease liabilities | (343) | (282) |
Net cash used in operating activities | (1,453) | (3,797) |
Investing activities: | ||
Acquisition of property and equipment | (68) | (67) |
Payment on earn-out liability | (96) | |
Net cash used in investing activities | (68) | (163) |
Financing activities: | ||
Taxes paid related to net share settlements of equity awards | (2) | (93) |
Net cash (used in) provided by financing activities | (2) | (93) |
Effect of foreign exchange rate changes | 9 | 34 |
Net (decrease) increase in cash and cash equivalents | (1,514) | (4,019) |
Cash and cash equivalents, beginning of period | 12,653 | 21,194 |
Cash and cash equivalents, end of period | 11,139 | 17,175 |
Supplemental disclosure of non-cash activities: | ||
Transfer of inventory to property and equipment | $ 48 | $ 17 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 28, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of IRIDEX Corporation (“IRIDEX”, the “Company”, “we”, “our”, or “us”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with management’s discussion and analysis of the Company’s financial condition and results of operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019, which was filed with the Securities and Exchange Commission (“SEC”) on March 13, 2020. The results of operations for the three months ended March 28, 2020 and March 30, 2019 are not necessarily indicative of the results for the fiscal year ending January 2, 2021 or any future interim period. The three months ended March 28, 2020 and March 30, 2019, each had 13 weeks. For purposes of reporting the financial results, the Company’s fiscal years end on the Saturday closest to the end of December. Periodically, the Company includes a 53rd week to a year in order to end that year on the Saturday closest to the end of December. Liquidity. We have historically funded our operations primarily through sales of our products to customers, and through common stock and borrowing arrangements. As of March 28, 2020, our principal sources of liquidity consisted of cash and cash equivalents of $11.1 million. We have incurred net losses over the last several years, and as of March 28, 2020 have an accumulated deficit of approximately $52.3 million. We expect to continue to incur operating losses and negative cash flows from operations through March 31, 2021. We believe our existing cash and cash equivalents will be sufficient to meet our anticipated cash needs over the next 12 months. Our future capital requirements will depend on many factors, including our growth rate, the timing and extent of our spending to support research and development activities, the timing and cost of establishing additional sales and marketing capabilities, the introduction of new and enhanced products and our costs to implement new manufacturing technologies. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. Any debt financing obtained by us in the future could also involve restrictive covenants relating to our capital-raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. Additionally, if we raise additional funds through further issuances of equity, our existing stockholders could suffer significant dilution in their percentage ownership of our company, and any new equity securities we issue could have rights, preferences and privileges senior to those of holders of our common stock. If we are unable to obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to continue to grow or support our business and to respond to business challenges could be significantly limited. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 28, 2019, which was filed with the SEC on March 13, 2020. Financial Statement Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. Revenue Recognition. Our revenues arise from the sale of laser consoles, delivery devices, consumables, service, and support activities. We also derive revenue from royalties from third parties which are typically based on licensees’ net sales of products that utilize our technology. Our revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” The Company has the following revenue transaction types: (1) Product Sale Only, (2) Laser Advantage Program (LAP), (3) Extended Warranty, (4) System Repairs (outside of warranty) and (5) Royalty Revenue. (1) Product Sale Only: The Company’s products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes. The Company’s products are currently sold for use by ophthalmologists specializing in the treatment of glaucoma and retinal diseases. Inside the United States and Germany the products are sold directly to the end users. In other countries outside of the United States and Germany, the Company utilizes independent, third-party distributors to market and sell the Company’s products. There is no continuing obligation subsequent to the shipment to the distributors . The Company recognizes revenue from product sale at a point in time. When a system or disposables are sold without any additional deliverables, the Company recognizes revenue using the five-step model: (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining expected transaction price, (4) allocating the transaction price to the distinct performance obligations in the contract, and (5) recognizing revenue when (or as) the performance obligations are satisfied . (2) LAP Program: The Company sometimes enters into LAP contracts with customers. Under the LAP program, the system is given away free of charge and title is transferred after the customer purchases the minimum required number of boxes of probes (classified as disposables). Customers with older machines have the ability to trade in their old machines for the most current laser equipment offered in the program (G6 Laser) and receive a discount on the program’s minimum purchase requirements. Under ASC 606, this non-cash consideration must be included in the transaction price. However, the Company has determined that there is no value associated with the old machine and the trade in is essentially offered to encourage customers to purchase more consumables under the program . The Company recognizes revenue from product sales under the LAP program at a point in time. The Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation . (3) Extended Warranty: The Company offers a standard two-year warranty on all system sales. The Company also offers an extended warranty which is sold to customers in incremental, one-year The Company recognizes revenue from extended warranty ratably over the warranty period. Revenue recognition for the sale of an extended warranty is largely dependent on the timing of the sale as follows: a. Extended Warranty Sale in Conjunction with System Sale: If the customer opts to purchase an extended warranty at the time of the system sale, the Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation . b. Extended Warranty Sale Subsequent to System Sale: If the customer opts to purchase an extended warranty after the initial system sale, the Company determines the amount of time that has elapsed since the initial system sale. If the extended warranty is purchased within 60 days . (4) System Repairs (outside of warranty): Customers will occasionally request repairs from the Company subsequent to the expiration of the standard warranty and outside of an extended warranty contract . The Company recognizes revenue from system repairs (outside of warranty) at a point in time. When the customer requests repairs from the Company subsequent to the expiration of the standard warranty and outside of an extended warranty contracts, these repair contracts are considered separate from the initial sale, and as such, revenue is recognized as the repair services are rendered and the performance obligation satisfied . (5) Royalty Revenue: The Company has royalty agreements with two customers related to sale of the Company’s intellectual property. Under the terms of these agreements, the customer is to remit a percentage of sales to the Company. Since these arrangements are for sales-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, the Company recognizes revenue only as the subsequent sale occurs. However, the Company notes that such sales being reported by the licensee with a quarter in arrear, such revenue is recognized at the time it is reported and paid by the licensee given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals . The Company elected the practical expedient allowing it to not recognize as a contract asset the commission paid to its salesforce on the sale of its products as an incremental cost of obtaining a contract with a customer but rather recognize such commission as expense when incurred as the amortization period of the asset that the Company would have otherwise recognized is one year or less. Leases. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our condensed consolidated balance sheets. As of March 28, 2020 and as of December 28, 2019, the Company was not a party to finance lease arrangements. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term . Under the available practical expedient, we account for the lease and non-lease components as a single lease component. Concentration of Credit Risk. Our cash and cash equivalents are deposited in demand and money market accounts. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and therefore, bear minimal risk. We market our products to distributors and end-users throughout the world. Sales to international distributors are generally made on open credit terms and letters of credit. Management performs ongoing credit evaluations of our customers and maintains an allowance for potential credit losses. Historically, we have not experienced any significant losses related to individual customers or a group of customers in any particular geographic area. For the three months ended March 28, 2020, one customer accounted for over 10% of total revenues, representing 13%. For the three months ended March 30, 2019, no single customer accounted for more than 10% of total revenues. As of March 28, 2020, one customer accounted for over 10% of our accounts receivable, representing 17%. As of December 28, 2019, one customer accounted for more than 10% of our accounts receivable, representing 11%. Taxes Collected from Customers and Remitted to Governmental Authorities. Taxes collected from customers and remitted to governmental authorities are recognized on a net basis in the accompanying condensed consolidated statements of operations. Shipping and Handling Costs. Our shipping and handling costs billed to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. Deferred Revenue. Deferred revenue represents contract liabilities. Revenue related to extended service contracts is deferred and recognized on a straight-line basis over the period of the applicable service contract. Costs associated with these service arrangements are recognized as incurred. A reconciliation of the changes in the Company’s deferred revenue balance for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 1,810 $ 2,225 Additions to deferral 433 575 Revenue recognized (535 ) (532 ) Deductions from reserves (6 ) - Balance, end of period 1,702 2,268 Non-current portion of deferred revenue 320 526 Current portion of deferred revenue $ 1,382 $ 1,742 During both the three months ended March 28, 2020 and March 30, 2019, approximately $0.4 million were recognized pertaining to amounts deferred as of December 28, 2019 and December 29, 2018. Warranty. The Company currently provides a two-year full warranty on its products. The associated costs of these warranties are accrued for upon shipment of the products. The Company’s warranty policy is applicable to products which are considered defective in their performance or fail to meet the product specifications. Warranty costs are reflected in the statement of operations as cost of revenues. A reconciliation of the changes in the Company’s warranty liability for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 536 $ 860 Accruals for product warranties 31 109 Cost of warranty claims (78 ) (111 ) Adjustment to pre-existing warranties (93 ) (151 ) Balance, end of period $ 396 $ 707 Reclassifications. Certain reclassifications have been made to the prior year financial statements included in these condensed consolidated financial statements to conform to the current year presentation. The reclassifications had no impact on previously reported net loss or accumulated deficit. Recent Accounting Standards Not Yet Adopted. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations, if any. |
Inventories
Inventories | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories The components of the Company’s inventories as of March 28, 2020 and December 29, 2018 are as follows: March 28, 2020 December 28, 2019 Raw materials $ 2,600 $ 2,043 Work in process 747 1,111 Finished goods 4,811 5,020 Total inventories $ 8,158 $ 8,174 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Goodwill. The carrying value of goodwill was $0.5 million as of March 28, 2020 and December 28, 2019. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performs an annual impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceed the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of fiscal year 2019 and determined that its goodwill was not impaired. As of March 28, 2020, the Company had not identified any factors that indicated there was an impairment of its goodwill and determined that no additional impairment analysis was then required. Intangible Assets. The following table summarizes the components of gross and net intangible asset balances (in thousands): March 28, 2020 December 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 240 160 80 5.00 Years 240 156 84 For the three months ended March 28, 2020 and March 30, 2019, amortization expense totaled $4 thousand for each period. The amortization of customer relationships was charged to sales and marketing expense. Future estimated amortization expense (in thousands): Fiscal Year: 2020 (nine months) $ 12 2021 16 2022 16 2023 16 2024 16 Thereafter 4 Total $ 80 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. • Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. • Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value. The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses as of March 28, 2020 and December 29, 2018, approximate fair value because of the short maturity of these instruments. As of March 28, 2020 and December 28, 2019, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows: As of March 28, 2020 As of December 28, 2019 Fair Value Measurements Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 9,743 $ — $ — $ 9,743 $ 10,711 $ — $ — $ 10,711 The Company’s Level 1 financial assets are money market funds whose fair values are based on quoted market prices. The Company does not have any Level 2 and Level 3 financial assets or liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies COVID-19. The COVID-19 pandemic has created and may continue to create significant uncertainty in global markets, which has disrupted and harmed, and may continue to disrupt and harm, the Company's business, financial condition, and results of operations. The extent of the impact of COVID-19 on the Company's operational and financial performance will depend on certain developments, including but not limited to the duration and spread of the outbreak, duration of local, state and federal issued public health orders, impact on our customers and our sales cycles, impact on our employees and impact on regional and worldwide economies and markets in general, all of which are uncertain and cannot be predicted. Operating Lease Commitments. Our operating lease commitments consist of facility and office equipment leases. Operating lease expenses for the three months ended March 28, 2020 and March 30, 2019 were approximately $0.3 million. The weighted average discount rate used in calculating the present value of lease payments was 5.4%. As of March 28, 2020, the weighted average remaining lease term for our operating leases was 2.0 years. The following represents maturities of operating lease liabilities as of March 28, 2020 (in thousands): Fiscal Year Operating Lease Payments Remainder of 2020 (9 months) $ 1,169 2021 1,540 2022 318 2023 — 2024 — Total lease payments 3,027 Less: Imputed interest (161 ) Total lease liabilities $ 2,866 Purchase Commitments. Our purchase commitments consist primarily of non-cancellable purchase commitments with vendors to manufacture certain components and ophthalmic instrumentation. As of March 28, 2020, our future minimum payments through fiscal year 2021 for our purchase commitments was approximately $10.5 million. Indemnities. We enter into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified parties (generally our business partners or customers) in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to our products. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments that we could be required to make under these agreements is not determinable. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minima We have entered into indemnification agreements with our directors and officers that may require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature. These agreements also require us to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified and to make good faith determination whether or not it is practicable for us to obtain directors and officers insurance. We currently have directors and officers liability insurance. Legal Proceedings . From time to time, we may be involved in legal proceedings arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 3 Months Ended |
Mar. 28, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholder' Equity and Stock Based Compensation | 7. Stockholders’ Equity and Stock-Based Compensation Stock-Based Compensation The Company accounts for stock-based compensation granted to employees and directors, including employees stock option awards, restricted stock and restricted stock units in accordance with ASC 718 , “Compensation – Stock Compensation” The Company values options using the Black-Scholes option pricing model. Time-based restricted stock units (“RSUs”) are valued at the grant date fair value of the underlying common shares. Performance-based RSUs without market conditions are valued at grant date fair value of the underlying common shares. Performance-based RSUs granted with market conditions and performance-based stock options with market conditions are valued using the Monte Carlo simulation model. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. The Monte Carlo simulation model incorporates assumptions for the holding period, risk-free interest rate, stock price volatility and dividend yield. 2008 Equity Incentive Plan. The terms of awards granted during the three months ended March 28, 2020 were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 28, 2019. The following table shows stock-based compensation expenses included in the condensed consolidated statements of operations for the three months ended March 28, 2020 and March 30, 2019: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Cost of revenues $ 24 $ 19 Research and development (31 ) 103 Sales and marketing 39 163 General and administrative 63 330 $ 95 $ 615 Stock-based compensation expense capitalized to inventory was immaterial for the three months ended March 28, 2020 and March 30, 2019. Occasionally, the Company will grant stock-based instruments to non-employees. During the three months ended March 28, 2020 and March 30, 2019, the amount of stock-based compensation related to non-employee options and RSUs was not material. As of March 28, 2020, there was $2.5 million of total unrecognized compensation cost, net of expected forfeitures, related to non-vested stock-based compensation arrangements. The cost is expected to be recognized over a weighted average period of 2.7 years. Summary of Stock Options. The following table summarizes stock options information during the three months ended March 28, 2020: Number of Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (thousands) Outstanding as of December 28, 2019 1,383,552 $ 6.11 Granted 51,000 $ 2.27 Exercised — $ — Canceled or forfeited (132,102 ) $ 6.76 Outstanding as of March 28, 2020 1,302,450 $ 5.89 $ — The weighted average grant date fair value of the options granted was $1.05 and $1.70 per share for the three months ended March 28, 2020 and March 30, 2019, respectively. The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock-based awards (options) with the following weighted average assumptions: March 28, 2020 March 30, 2019 Average risk free interest rate 0.46 % 2.15 % Expected life (in years) 4.55 years 4.55 years Dividend yield — % — % Average volatility 57 % 44 % Performance stock options granted with market conditions are valued using a Monte Carlo simulation model in combination with a Black-Scholes option pricing model. Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history over a period commensurate with the expected term of the options, trading volume of the Company’s stock, look-back volatilities and Company specific events that affected volatility in a prior period. The expected term of employee stock options represents the weighted average period the stock options are expected to remain outstanding and is based on the history of exercises and cancellations on all past option grants made by the Company, the contractual term, the vesting period and the expected remaining term of the outstanding options. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future. Information regarding stock options outstanding, vested, expected to vest, and exercisable as of March 28, 2020 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic (thousands) Options outstanding 1,302,450 $ 5.89 5.13 $ — Options vested and expected to vest 1,131,040 $ 6.09 4.98 $ — Options exercisable 373,116 $ 8.57 2.78 $ — The aggregate intrinsic value in the table above represents the pre-tax intrinsic value, based on the Company’s closing price as of March 28, 2020, that would have been received by option holders had all option holders exercised their stock options as of that date. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic value of options exercised for the three months ended March 28, 2020 and March 30, 2019 was approximately $0 thousand. Summary of Restricted Stock Units and Awards Information regarding the restricted stock units (“RSUs”) activity for the three months ended March 28, 2020 is summarized below: Number of Shares Outstanding as of December 28, 2019 411,133 Restricted stock units granted — Restricted stock units released (3,499 ) Restricted stock units forfeited (95,785 ) Outstanding as of March 28, 2020 311,849 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Provision for Income Tax. The Company calculates its interim tax provision in accordance with the provisions of ASC 740-270, Income Taxes; Interim Reporting The Company recorded a provision for income tax of $7 thousand and $6 thousand for the three months ended March 28, 2020 and March 30, 2019, respectively. Deferred Income Taxes. The Company accounts for income taxes in accordance with ASC topic 740, Income Taxes As of the fourth quarter of fiscal year 2019, based on the Company’s recent history of losses and its forecasted losses, management believes on the more likely than not basis that a full valuation allowance is required. Accordingly, the Company continues to provide a full valuation allowance on its federal and states deferred tax assets. Uncertain Tax Positions. The Company accounts for its uncertain tax positions in accordance with ASC 740. As of December 28, 2019, the Company had $1.2 million of unrecognized tax benefits, none of the unrecognized tax benefits would result in a change in the Company’s effective tax rate if recognized in future years. The Company is not aware of any other uncertain tax positions that could result in significant additional payments, accruals, or other material deviation in this estimate during the fiscal year. CARES Act. On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” (the “CARES Act”) was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. These provisions are not expected to have a material effect on the Company’s consolidated financial statements. The Company is subject to United States federal income tax as well as to income taxes in state jurisdictions. The Company’s federal and state income tax returns are open to examination by tax authorities for three years and three-to-five years, respectively. |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Loss Per Common Share | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Common Share | 9. Computation of Basic and Diluted Net Loss Per Common Share Basic and diluted net loss per share is based upon the weighted average number of common shares outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of restricted stock units and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested restricted stock units and awards are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive. For the three months ended March 28, 2020 and March 30, 2019, potential shares from stock options and RSUs totaling 1,215,607 and 1,111,010 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows: Three Months Ended (in thousands except per share data) March 28, 2020 March 30, 2019 Numerator: Net loss $ (1,651 ) $ (3,048 ) Denominator: Weighted average shares of common stock (basic) 13,786 13,630 Weighted average shares of common stock (diluted) 13,786 13,630 Per share data: Basic net loss per share $ (0.12 ) $ (0.22 ) Diluted net loss per share $ (0.12 ) $ (0.22 ) |
Business Segments
Business Segments | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | 10. Business Segments The Company operates in one segment, ophthalmology. The Company develops, manufactures and markets medical devices. Our revenues arise from the sale of consoles, delivery devices, consumables, service, and support activities. Revenue information shown by product group is as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 G6 $ 2,923 $ 3,106 Retina 4,134 5,599 Other(1) 1,964 1,890 Total revenues $ 9,021 $ 10,595 (1) Incudes service contract revenues of $315 and $308 recognized during the three months ended March 28, 2020 and March 30, 2019, respectively. Other also includes revenues from paid service, royalty, freight and legacy G probes. Revenue information shown by geographic region, based on the sales destination, is as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 United States $ 4,441 $ 5,202 Europe 1,984 2,477 Rest of Americas 403 618 Asia/Pacific Rim 2,193 2,298 Total revenues $ 9,021 $ 10,595 Revenues are attributed to countries based on the location of end customers. Other than the United States, Japan accounted for more than 10% of the Company’s revenues during the three months ended March 28, 2020, representing 13%. Other than the United States, no individual country accounted for more than 10% of the Company’s revenues during the three months ended March 30, 2019. The United States accounted for 49.2% and 49.1% of revenues for the three months ended March 28, 2020 and March 30, 2019, respectively. International sales accounted for 50.8% and 50.9% of revenues for the three months ended March 28, 2020 and March 30, 2019, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events In April 2020, the Company received a $2.5 million U.S. Small Business Administration Loan (the “SBA Loan”) pursuant to the Payroll Protection Program (“PPP”), established under the CARES Act. Per the terms of the SBA Loan, the Company may apply for forgiveness of the amount due on the loan in an amount equal to the loan proceeds used to cover payroll costs and other specified non-payroll costs (provided any non-payroll costs do not exceed 25% of the forgiven amount) over an eight-week period after the loan is made, subject to certain conditions. The Company fully intends to comply with the above terms in order to qualify for loan forgiveness. However, there is no assurance that the Company will obtain forgiveness of the SBA Loan in whole or in part. In the event the Company is required to repay the loan, all payments are deferred for 6 months with accrued interest over this period. Amounts outstanding under the loan will bear a fixed interest rate of 1.00% per annum with a maturity date of April 22, 2022, two years from commencement date. The U.S. Department of the Treasury has announced that it will conduct audits for PPP loans that exceed $2 million. Should we be audited or reviewed by the U.S. Department of the Treasury or the U.S. Small Business Administration as a result of the SBA Loan or filing an application for forgiveness or otherwise and receive an adverse outcome in such an audit, we could be required to return the full amount of the SBA Loan and may potentially be subject to civil and criminal fines and penalties. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. |
Revenue Recognition | Revenue Recognition. Our revenues arise from the sale of laser consoles, delivery devices, consumables, service, and support activities. We also derive revenue from royalties from third parties which are typically based on licensees’ net sales of products that utilize our technology. Our revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” The Company has the following revenue transaction types: (1) Product Sale Only, (2) Laser Advantage Program (LAP), (3) Extended Warranty, (4) System Repairs (outside of warranty) and (5) Royalty Revenue. (1) Product Sale Only: The Company’s products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes. The Company’s products are currently sold for use by ophthalmologists specializing in the treatment of glaucoma and retinal diseases. Inside the United States and Germany the products are sold directly to the end users. In other countries outside of the United States and Germany, the Company utilizes independent, third-party distributors to market and sell the Company’s products. There is no continuing obligation subsequent to the shipment to the distributors . The Company recognizes revenue from product sale at a point in time. When a system or disposables are sold without any additional deliverables, the Company recognizes revenue using the five-step model: (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining expected transaction price, (4) allocating the transaction price to the distinct performance obligations in the contract, and (5) recognizing revenue when (or as) the performance obligations are satisfied . (2) LAP Program: The Company sometimes enters into LAP contracts with customers. Under the LAP program, the system is given away free of charge and title is transferred after the customer purchases the minimum required number of boxes of probes (classified as disposables). Customers with older machines have the ability to trade in their old machines for the most current laser equipment offered in the program (G6 Laser) and receive a discount on the program’s minimum purchase requirements. Under ASC 606, this non-cash consideration must be included in the transaction price. However, the Company has determined that there is no value associated with the old machine and the trade in is essentially offered to encourage customers to purchase more consumables under the program . The Company recognizes revenue from product sales under the LAP program at a point in time. The Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation . (3) Extended Warranty: The Company offers a standard two-year warranty on all system sales. The Company also offers an extended warranty which is sold to customers in incremental, one-year The Company recognizes revenue from extended warranty ratably over the warranty period. Revenue recognition for the sale of an extended warranty is largely dependent on the timing of the sale as follows: a. Extended Warranty Sale in Conjunction with System Sale: If the customer opts to purchase an extended warranty at the time of the system sale, the Company allocates the transaction price of the distinct performance obligations in the contract by determining stand-alone selling price using historical pricing net of any variable consideration or discounts to specifically allocate to a particular performance obligation . b. Extended Warranty Sale Subsequent to System Sale: If the customer opts to purchase an extended warranty after the initial system sale, the Company determines the amount of time that has elapsed since the initial system sale. If the extended warranty is purchased within 60 days . (4) System Repairs (outside of warranty): Customers will occasionally request repairs from the Company subsequent to the expiration of the standard warranty and outside of an extended warranty contract . The Company recognizes revenue from system repairs (outside of warranty) at a point in time. When the customer requests repairs from the Company subsequent to the expiration of the standard warranty and outside of an extended warranty contracts, these repair contracts are considered separate from the initial sale, and as such, revenue is recognized as the repair services are rendered and the performance obligation satisfied . (5) Royalty Revenue: The Company has royalty agreements with two customers related to sale of the Company’s intellectual property. Under the terms of these agreements, the customer is to remit a percentage of sales to the Company. Since these arrangements are for sales-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, the Company recognizes revenue only as the subsequent sale occurs. However, the Company notes that such sales being reported by the licensee with a quarter in arrear, such revenue is recognized at the time it is reported and paid by the licensee given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals . The Company elected the practical expedient allowing it to not recognize as a contract asset the commission paid to its salesforce on the sale of its products as an incremental cost of obtaining a contract with a customer but rather recognize such commission as expense when incurred as the amortization period of the asset that the Company would have otherwise recognized is one year or less. |
Leases | Leases. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our condensed consolidated balance sheets. As of March 28, 2020 and as of December 28, 2019, the Company was not a party to finance lease arrangements. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term . Under the available practical expedient, we account for the lease and non-lease components as a single lease component. |
Concentration of Credit Risk | Concentration of Credit Risk. Our cash and cash equivalents are deposited in demand and money market accounts. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and therefore, bear minimal risk. We market our products to distributors and end-users throughout the world. Sales to international distributors are generally made on open credit terms and letters of credit. Management performs ongoing credit evaluations of our customers and maintains an allowance for potential credit losses. Historically, we have not experienced any significant losses related to individual customers or a group of customers in any particular geographic area. For the three months ended March 28, 2020, one customer accounted for over 10% of total revenues, representing 13%. For the three months ended March 30, 2019, no single customer accounted for more than 10% of total revenues. As of March 28, 2020, one customer accounted for over 10% of our accounts receivable, representing 17%. As of December 28, 2019, one customer accounted for more than 10% of our accounts receivable, representing 11%. |
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities. Taxes collected from customers and remitted to governmental authorities are recognized on a net basis in the accompanying condensed consolidated statements of operations. |
Shipping and Handling Costs | Shipping and Handling Costs. Our shipping and handling costs billed to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. |
Deferred Revenue | Deferred Revenue. Deferred revenue represents contract liabilities. Revenue related to extended service contracts is deferred and recognized on a straight-line basis over the period of the applicable service contract. Costs associated with these service arrangements are recognized as incurred. A reconciliation of the changes in the Company’s deferred revenue balance for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 1,810 $ 2,225 Additions to deferral 433 575 Revenue recognized (535 ) (532 ) Deductions from reserves (6 ) - Balance, end of period 1,702 2,268 Non-current portion of deferred revenue 320 526 Current portion of deferred revenue $ 1,382 $ 1,742 During both the three months ended March 28, 2020 and March 30, 2019, approximately $0.4 million were recognized pertaining to amounts deferred as of December 28, 2019 and December 29, 2018. |
Warranty | Warranty. The Company currently provides a two-year full warranty on its products. The associated costs of these warranties are accrued for upon shipment of the products. The Company’s warranty policy is applicable to products which are considered defective in their performance or fail to meet the product specifications. Warranty costs are reflected in the statement of operations as cost of revenues. A reconciliation of the changes in the Company’s warranty liability for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 536 $ 860 Accruals for product warranties 31 109 Cost of warranty claims (78 ) (111 ) Adjustment to pre-existing warranties (93 ) (151 ) Balance, end of period $ 396 $ 707 |
Reclassifications | Reclassifications. Certain reclassifications have been made to the prior year financial statements included in these condensed consolidated financial statements to conform to the current year presentation. The reclassifications had no impact on previously reported net loss or accumulated deficit. |
Recent Accounting Standards Not Yet Adopted | Recent Accounting Standards Not Yet Adopted. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its financial position and results of operations, if any. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Changes in Deferred Revenue | A reconciliation of the changes in the Company’s deferred revenue balance for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 1,810 $ 2,225 Additions to deferral 433 575 Revenue recognized (535 ) (532 ) Deductions from reserves (6 ) - Balance, end of period 1,702 2,268 Non-current portion of deferred revenue 320 526 Current portion of deferred revenue $ 1,382 $ 1,742 |
Reconciliation of Changes in Warranty Liability | A reconciliation of the changes in the Company’s warranty liability for the three months ended March 28, 2020 and March 30, 2019 is as follows: Three Months Ended March 28, 2020 March 30, 2019 Balance, beginning of period $ 536 $ 860 Accruals for product warranties 31 109 Cost of warranty claims (78 ) (111 ) Adjustment to pre-existing warranties (93 ) (151 ) Balance, end of period $ 396 $ 707 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of the Company’s inventories as of March 28, 2020 and December 29, 2018 are as follows: March 28, 2020 December 28, 2019 Raw materials $ 2,600 $ 2,043 Work in process 747 1,111 Finished goods 4,811 5,020 Total inventories $ 8,158 $ 8,174 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Components of Gross and Net Intangible Asset | The following table summarizes the components of gross and net intangible asset balances (in thousands): March 28, 2020 December 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 240 160 80 5.00 Years 240 156 84 |
Future Estimated Amortization Expense | Future estimated amortization expense (in thousands): Fiscal Year: 2020 (nine months) $ 12 2021 16 2022 16 2023 16 2024 16 Thereafter 4 Total $ 80 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured and Recognized at Fair Value on a Recurring Basis | As of March 28, 2020 and December 28, 2019, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows: As of March 28, 2020 As of December 28, 2019 Fair Value Measurements Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 9,743 $ — $ — $ 9,743 $ 10,711 $ — $ — $ 10,711 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The following represents maturities of operating lease liabilities as of March 28, 2020 (in thousands): Fiscal Year Operating Lease Payments Remainder of 2020 (9 months) $ 1,169 2021 1,540 2022 318 2023 — 2024 — Total lease payments 3,027 Less: Imputed interest (161 ) Total lease liabilities $ 2,866 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses | The following table shows stock-based compensation expenses included in the condensed consolidated statements of operations for the three months ended March 28, 2020 and March 30, 2019: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Cost of revenues $ 24 $ 19 Research and development (31 ) 103 Sales and marketing 39 163 General and administrative 63 330 $ 95 $ 615 |
Summary of Stock Options | The following table summarizes stock options information during the three months ended March 28, 2020: Number of Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (thousands) Outstanding as of December 28, 2019 1,383,552 $ 6.11 Granted 51,000 $ 2.27 Exercised — $ — Canceled or forfeited (132,102 ) $ 6.76 Outstanding as of March 28, 2020 1,302,450 $ 5.89 $ — |
Weighted Average Assumptions for Fair Value Estimate of Stock-Based Awards (Options) | The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock-based awards (options) with the following weighted average assumptions: March 28, 2020 March 30, 2019 Average risk free interest rate 0.46 % 2.15 % Expected life (in years) 4.55 years 4.55 years Dividend yield — % — % Average volatility 57 % 44 % |
Summary of Stock Options Outstanding, Vested, Expected to Vest and Exercisable | Information regarding stock options outstanding, vested, expected to vest, and exercisable as of March 28, 2020 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic (thousands) Options outstanding 1,302,450 $ 5.89 5.13 $ — Options vested and expected to vest 1,131,040 $ 6.09 4.98 $ — Options exercisable 373,116 $ 8.57 2.78 $ — |
Restricted Stock Units | Information regarding the restricted stock units (“RSUs”) activity for the three months ended March 28, 2020 is summarized below: Number of Shares Outstanding as of December 28, 2019 411,133 Restricted stock units granted — Restricted stock units released (3,499 ) Restricted stock units forfeited (95,785 ) Outstanding as of March 28, 2020 311,849 |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Net Loss Per Common Share | A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows: Three Months Ended (in thousands except per share data) March 28, 2020 March 30, 2019 Numerator: Net loss $ (1,651 ) $ (3,048 ) Denominator: Weighted average shares of common stock (basic) 13,786 13,630 Weighted average shares of common stock (diluted) 13,786 13,630 Per share data: Basic net loss per share $ (0.12 ) $ (0.22 ) Diluted net loss per share $ (0.12 ) $ (0.22 ) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue Information by Product | Revenue information shown by product group is as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 G6 $ 2,923 $ 3,106 Retina 4,134 5,599 Other(1) 1,964 1,890 Total revenues $ 9,021 $ 10,595 (1) Incudes service contract revenues of $315 and $308 recognized during the three months ended March 28, 2020 and March 30, 2019, respectively. Other also includes revenues from paid service, royalty, freight and legacy G probes. |
Revenue Information by Geographic Region | Revenue information shown by geographic region, based on the sales destination, is as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 United States $ 4,441 $ 5,202 Europe 1,984 2,477 Rest of Americas 403 618 Asia/Pacific Rim 2,193 2,298 Total revenues $ 9,021 $ 10,595 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Cash and cash equivalents | $ 11,139 | $ 12,653 | $ 17,175 | $ 21,194 | |
Accumulated deficit | $ 52,266 | $ 50,615 | [1] | ||
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020USD ($)Customer | Mar. 30, 2019USD ($)Customer | Dec. 28, 2019Customer | |
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Extended product warranty period | 1 year | ||
Extended warranty, period to determine nature of sale | 60 days | ||
Deferred revenue recognized | $ | $ 0.4 | $ 0.4 | |
Products warranty period | 2 years | ||
Revenue, Total | Customer Concentration Risk | |||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | 1 | 0 | |
Accounts Receivable | Customer Concentration Risk | |||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% | |
Percentage of accounts receivable accounted | 17.00% | 11.00% | |
Accounts Receivable | Credit Concentration Risk | |||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | 1 | ||
Revenue, Total | Customer Concentration Risk | |||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% | |
Percentage of revenues accounted | 13.00% | ||
Royalty Agreements | |||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | [1] | |
Reconciliation of the changes in the Company's deferred revenue balance | ||||
Balance, beginning of period | $ 1,810 | $ 2,225 | ||
Additions to deferral | 433 | 575 | ||
Revenue recognized | (535) | (532) | ||
Deductions from reserves | (6) | |||
Balance, end of period | 1,702 | 2,268 | ||
Non-current portion of deferred revenue | 320 | 526 | $ 360 | |
Current portion of deferred revenue | $ 1,382 | $ 1,742 | $ 1,450 | |
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Reconciliation of the changes in the Company's warranty liability | ||
Balance, beginning of period | $ 536 | $ 860 |
Accruals for product warranties | 31 | 109 |
Cost of warranty claims | (78) | (111) |
Adjustment to pre-existing warranties | (93) | (151) |
Balance, end of period | $ 396 | $ 707 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 2,600 | $ 2,043 | |
Work in process | 747 | 1,111 | |
Finished goods | 4,811 | 5,020 | |
Total inventories | $ 8,158 | $ 8,174 | [1] |
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | [1] | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Carrying value of goodwill | $ 533,000 | $ 533,000 | ||
Impairment of goodwill | 0 | |||
Amortization expense | $ 4,000 | $ 4,000 | ||
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Components of Gross and Net Intangible Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Dec. 28, 2019 | ||
Schedule of Intangible Assets | |||
Net Carrying Amount | $ 80 | $ 84 | [1] |
Customer relationships | |||
Schedule of Intangible Assets | |||
Gross Carrying Amount | 240 | 240 | |
Accumulated Amortization | 160 | 156 | |
Net Carrying Amount | $ 80 | $ 84 | |
Remaining Amortization Life | 5 years | ||
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | [1] |
Future estimated amortization expense | |||
2020 (nine months) | $ 12 | ||
2021 | 16 | ||
2022 | 16 | ||
2023 | 16 | ||
2024 | 16 | ||
Thereafter | 4 | ||
Net Carrying Amount | $ 80 | $ 84 | |
[1] | Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2019. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured and Recognized at Fair Value on a Recurring Basis (Details) - Fair Value Measurements Recurring - Money Market Funds - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Assets: | ||
Assets, Fair Value Measurements | $ 9,743 | $ 10,711 |
Level 1 | ||
Assets: | ||
Assets, Fair Value Measurements | $ 9,743 | $ 10,711 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease, expenses | $ 0.3 | $ 0.3 |
Operating lease, weighted average discount rate | 5.40% | |
Operating lease, weighted average remaining lease term | 2 years | |
Future minimum purchase commitment payments | $ 10.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
Remainder of 2020 (9 months) | $ 1,169 |
2021 | 1,540 |
2022 | 318 |
Total lease payments | 3,027 |
Less: Imputed interest | (161) |
Total lease liabilities | $ 2,866 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 95 | $ 615 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 24 | 19 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | (31) | 103 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 39 | 163 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 63 | $ 330 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 2,500 | |
Cost is expected to be recognized over a weighted average period | 2 years 8 months 12 days | |
Weighted-average grant date fair value of the options granted | $ 1.05 | $ 1.70 |
Total intrinsic value of options exercised | $ 0 | $ 0 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Options (Details) | 3 Months Ended |
Mar. 28, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |
Outstanding, Number of Shares, Beginning Balance | shares | 1,383,552 |
Number of Shares, Options Granted | shares | 51,000 |
Number of Shares, Options Cancelled or forfeited | shares | (132,102) |
Outstanding, Number of Shares, Ending Balance | shares | 1,302,450 |
Outstanding, Weighted Average Exercise Price Per Share, Beginning Balance | $ / shares | $ 6.11 |
Weighted Average Exercise Price Per Share, Options Granted | $ / shares | 2.27 |
Weighted Average Exercise Price Per Share, Options Cancelled or forfeited | $ / shares | 6.76 |
Outstanding, Weighted Average Exercise Price Per Share, Ending Balance | $ / shares | $ 5.89 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation - Weighted Average Assumptions for Fair Value Stock-Based Awards (Options) (Details) | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Weighted average assumptions for fair value estimate of stock-based awards (options) | ||
Average risk free interest rate | 0.46% | 2.15% |
Expected life (in years) | 4 years 6 months 18 days | 4 years 6 months 18 days |
Average volatility | 57.00% | 44.00% |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Options Outstanding, Vested, Expected to Vest and Exercisable (Details) - $ / shares | 3 Months Ended | |
Mar. 28, 2020 | Dec. 28, 2019 | |
Stock options outstanding, exercisable and expected to vest | ||
Options outstanding, Number of Shares | 1,302,450 | 1,383,552 |
Options vested and expected to vest, Number of Shares | 1,131,040 | |
Options exercisable, Number of Shares | 373,116 | |
Options outstanding, Weighted Average Exercise Price | $ 5.89 | $ 6.11 |
Options vested and expected to vest, Weighted Average Exercise Price | 6.09 | |
Options exercisable, Weighted Average Exercise Price | $ 8.57 | |
Options outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 1 month 17 days | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 23 days | |
Options exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 9 months 10 days |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 28, 2020shares | |
Restricted stock units | |
Outstanding, Number of Shares, Beginning Balance | 411,133 |
Number of Shares, Restricted stock released | (3,499) |
Number of Shares, Restricted stock forfeited | (95,785) |
Outstanding, Number of Shares, Ending Balance | 311,849 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Income Taxes [Line Items] | |||
Provision for income taxes | $ 7,000 | $ 6,000 | |
Unrecognized tax benefits | $ 1,200,000 | ||
Unrecognized tax benefits recognition impact on income tax rate | $ 0 | ||
Federal | |||
Income Taxes [Line Items] | |||
Income tax returns examination period | 3 years | ||
Minimum | State Jurisdictions | |||
Income Taxes [Line Items] | |||
Income tax returns examination period | 3 years | ||
Maximum | State Jurisdictions | |||
Income Taxes [Line Items] | |||
Income tax returns examination period | 5 years |
Computation of Basic and Dilu_3
Computation of Basic and Diluted Net Loss Per Common Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Stock options and RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares that were excluded from the computation of diluted weighted average shares outstanding | 1,215,607 | 1,111,010 |
Computation of Basic and Dilu_4
Computation of Basic and Diluted Net Loss Per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Numerator: | ||
Net loss | $ (1,651) | $ (3,048) |
Denominator: | ||
Weighted average shares of common stock (basic) | 13,786 | 13,630 |
Weighted average shares of common stock (diluted) | 13,786 | 13,630 |
Per share data: | ||
Basic net loss per share | $ (0.12) | $ (0.22) |
Diluted net loss per share | $ (0.12) | $ (0.22) |
Business Segments - Additional
Business Segments - Additional Information (Details) - Segment | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
Geographic Concentration Risk | Revenue, Total | ||
Segment Reporting Information [Line Items] | ||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% |
United States | Geographic Concentration Risk | Revenue, Total | ||
Segment Reporting Information [Line Items] | ||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 49.20% | 49.10% |
Japan | Geographic Concentration Risk | Revenue, Total | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues accounted | 13.00% | |
Other Than United States | Geographic Concentration Risk | Revenue, Total | ||
Segment Reporting Information [Line Items] | ||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 50.80% | 50.90% |
Business Segments - Schedule of
Business Segments - Schedule of Revenue Information by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 9,021 | $ 10,595 |
G6 | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 2,923 | 3,106 |
Retina | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 4,134 | 5,599 |
Other | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 1,964 | $ 1,890 |
Business Segments - Schedule _2
Business Segments - Schedule of Revenue Information by Product (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 9,021 | $ 10,595 |
Service Contract Revenues | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 315 | $ 308 |
Business Segments - Revenue Inf
Business Segments - Revenue Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenues | $ 9,021 | $ 10,595 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenues | 4,441 | 5,202 |
Europe | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenues | 1,984 | 2,477 |
Rest of Americas | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenues | 403 | 618 |
Asia/Pacific Rim | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenues | $ 2,193 | $ 2,298 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2020USD ($) | |
US Treasury Securities [Member] | |
Subsequent Event [Line Items] | |
Loan received | $ 2 |
Small Business Administration (SBA Loan) [Member] | |
Subsequent Event [Line Items] | |
Loan received | $ 2.5 |
Period of loan amount forgiveness | 56 days |
Deferred period for loan payment | 6 months |
Fixed interest rate | 1.00% |
Loan maturity date | Apr. 22, 2022 |
Term of loan | 2 years |
Small Business Administration (SBA Loan) [Member] | Maximum | |
Subsequent Event [Line Items] | |
Non payroll costs, percentage | 25.00% |