Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 02, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | IRIDEX CORP | |
Entity Central Index Key | 0001006045 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 2, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-01 | |
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 | 15,865,734 | |
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 | Oct. 02, 2021 | Jan. 02, 2021 | ||
Current assets: | ||||
Cash and cash equivalents | $ 25,568 | $ 11,626 | [1] | |
Accounts receivable, net of allowance for doubtful accounts of $233 as of October 2, 2021 and $244 as of January 2, 2021 | 8,522 | 7,289 | [1] | |
Inventories | 8,791 | 5,714 | [1] | |
Prepaid expenses and other current assets | 1,025 | 730 | [1] | |
Total current assets | 43,906 | 25,359 | [1] | |
Property and equipment, net | 567 | 449 | [1] | |
Intangible assets, net | 2,253 | 68 | [1] | |
Goodwill | 965 | 533 | [1] | |
Operating lease right-of-use assets, net | 2,794 | 1,428 | [1] | |
Other long-term assets | 57 | 132 | [1] | |
Total assets | 50,542 | 27,969 | [1] | |
Current liabilities: | ||||
Accounts payable | 3,208 | 1,148 | [1] | |
Accrued compensation | 2,683 | 1,965 | [1] | |
Accrued expenses | 1,551 | 990 | [1] | |
Other current liabilities | 2,256 | 816 | [1] | |
Current portion of PPP loan | [1] | 1,249 | ||
Accrued warranty | 99 | 166 | [1] | |
Deferred revenue | 2,250 | 938 | [1] | |
Operating lease liabilities | 920 | 1,409 | [1] | |
Total current liabilities | 12,967 | 8,681 | [1] | |
Long-term liabilities: | ||||
PPP loan | [1] | 1,248 | ||
Accrued warranty | 60 | 81 | [1] | |
Deferred revenue | 10,199 | 289 | [1] | |
Operating lease liabilities | 1,972 | 282 | [1] | |
Other long-term liabilities | 22 | 22 | [1] | |
Total liabilities | 25,220 | 10,603 | [1] | |
Commitments and contingencies (Note 8) | [1] | |||
Stockholders’ equity: | ||||
Preferred stock, $0.01 par value, 2,000,000 shares authorized, no shares issued and outstanding | [1] | |||
Common stock, $0.01 par value: Authorized: 30,000,000 shares: Issued and outstanding 15,862,523 and 13,899,683 shares as of October 2, 2021 and January 2, 2021, respectively | 168 | 148 | [1] | |
Additional paid-in capital | 84,851 | 74,181 | [1] | |
Accumulated other comprehensive income (loss) | 29 | (19) | [1] | |
Accumulated deficit | (59,726) | (56,944) | [1] | |
Total stockholders’ equity | 25,322 | 17,366 | [1] | |
Total liabilities and stockholders’ equity | $ 50,542 | $ 27,969 | [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 January 2, 2021. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 233 | $ 244 |
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 | 15,862,523 | 13,899,683 |
Common stock, shares outstanding | 15,862,523 | 13,899,683 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Statement [Abstract] | ||||
Total revenues | $ 13,264 | $ 8,803 | $ 38,649 | $ 24,043 |
Cost of revenues | 7,482 | 5,149 | 21,820 | 14,067 |
Gross profit | 5,782 | 3,654 | 16,829 | 9,976 |
Operating expenses: | ||||
Research and development | 1,788 | 869 | 4,625 | 2,395 |
Sales and marketing | 3,914 | 2,959 | 10,542 | 8,804 |
General and administrative | 2,237 | 1,672 | 6,798 | 5,060 |
Total operating expenses | 7,939 | 5,500 | 21,965 | 16,259 |
Loss from operations | (2,157) | (1,846) | (5,136) | (6,283) |
Other income, net | 135 | 2,378 | 153 | |
Loss from operations before provision for income taxes | (2,157) | (1,711) | (2,758) | (6,130) |
Provision for income taxes | 8 | 8 | 24 | 20 |
Net loss | $ (2,165) | $ (1,719) | $ (2,782) | $ (6,150) |
Net loss per share: | ||||
Basic | $ (0.14) | $ (0.12) | $ (0.18) | $ (0.44) |
Diluted | $ (0.14) | $ (0.12) | $ (0.18) | $ (0.44) |
Weighted average shares used in computing net loss per common share: | ||||
Basic | 15,824 | 13,893 | 15,272 | 13,824 |
Diluted | 15,824 | 13,893 | 15,272 | 13,824 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (2,165) | $ (1,719) | $ (2,782) | $ (6,150) |
Foreign currency translation adjustments | 20 | (41) | 48 | (48) |
Comprehensive loss | $ (2,145) | $ (1,760) | $ (2,734) | $ (6,198) |
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 (Loss) | Accumulated Deficit | |
Beginning Balance, value at Dec. 28, 2019 | $ 22,705 | $ 147 | $ 73,093 | $ 80 | $ (50,615) | |
Beginning Balance, shares at Dec. 28, 2019 | 13,785,233 | |||||
Stock-based compensation expense | 774 | 774 | ||||
Release of restricted stock, net of taxes paid | (29) | $ (1) | (30) | |||
Release of restricted stock, shares net of taxes paid | 112,120 | |||||
Other comprehensive income (loss) | (48) | (48) | ||||
Net loss | (6,150) | (6,150) | ||||
Ending Balance, value at Sep. 26, 2020 | 17,252 | $ 148 | 73,837 | 32 | (56,765) | |
Ending Balance, shares at Sep. 26, 2020 | 13,897,353 | |||||
Beginning Balance, value at Jun. 27, 2020 | 18,794 | $ 148 | 73,619 | 73 | (55,046) | |
Beginning Balance, shares at Jun. 27, 2020 | 13,856,969 | |||||
Stock-based compensation expense | 243 | 243 | ||||
Release of restricted stock, net of taxes paid | (25) | (25) | ||||
Release of restricted stock, shares net of taxes paid | 40,384 | |||||
Other comprehensive income (loss) | (41) | (41) | ||||
Net loss | (1,719) | (1,719) | ||||
Ending Balance, value at Sep. 26, 2020 | 17,252 | $ 148 | 73,837 | 32 | (56,765) | |
Ending Balance, shares at Sep. 26, 2020 | 13,897,353 | |||||
Beginning Balance, value at Jan. 02, 2021 | $ 17,366 | [1] | $ 148 | 74,181 | (19) | (56,944) |
Beginning Balance, shares at Jan. 02, 2021 | 13,899,683 | 13,899,683 | ||||
Issuance of common stock, net of issuance costs | $ 9,878 | $ 16 | 9,862 | |||
Issuance of common stock, net of issuance costs, shares | 1,618,122 | |||||
Issuance of common stock under stock option plan | $ 175 | $ 1 | 174 | |||
Issuance of common stock under stock option plan, shares | 53,220 | 53,220 | ||||
Stock-based compensation expense | $ 1,263 | 1,263 | ||||
Release of restricted stock, net of taxes paid | (626) | $ (3) | (629) | |||
Release of restricted stock, shares net of taxes paid | 291,498 | |||||
Other comprehensive income (loss) | 48 | 48 | ||||
Net loss | (2,782) | (2,782) | ||||
Ending Balance, value at Oct. 02, 2021 | $ 25,322 | $ 168 | 84,851 | 29 | (59,726) | |
Ending Balance, shares at Oct. 02, 2021 | 15,862,523 | 15,862,523 | ||||
Beginning Balance, value at Jul. 03, 2021 | $ 26,880 | $ 167 | 84,265 | 9 | (57,561) | |
Beginning Balance, shares at Jul. 03, 2021 | 15,783,704 | |||||
Issuance of common stock under stock option plan | 78 | 78 | ||||
Issuance of common stock under stock option plan, shares | 29,916 | |||||
Stock-based compensation expense | 617 | 617 | ||||
Release of restricted stock, net of taxes paid | (108) | $ (1) | (109) | |||
Release of restricted stock, shares net of taxes paid | 48,903 | |||||
Other comprehensive income (loss) | 20 | 20 | ||||
Net loss | (2,165) | (2,165) | ||||
Ending Balance, value at Oct. 02, 2021 | $ 25,322 | $ 168 | $ 84,851 | $ 29 | $ (59,726) | |
Ending Balance, shares at Oct. 02, 2021 | 15,862,523 | 15,862,523 | ||||
[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 January 2, 2021. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Operating activities: | ||
Net loss | $ (2,782) | $ (6,150) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Gain on PPP loan forgiveness | (2,497) | |
Depreciation and amortization | 587 | 399 |
Stock-based compensation | 1,263 | 774 |
Provision for doubtful accounts | 138 | |
Loss on sale of property and equipment | 13 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,240) | 3,110 |
Inventories | (907) | 1,155 |
Prepaid expenses and other current assets | (295) | (141) |
Operating lease right-of-use assets | 676 | 1,073 |
Other long-term assets | 73 | 5 |
Accounts payable | 2,061 | (1,117) |
Accrued compensation | 719 | (510) |
Accrued expenses | 563 | 61 |
Accrued warranty | (88) | (252) |
Deferred revenue | 11,222 | (452) |
Operating lease liabilities | (840) | (1,209) |
Other liabilities | 1,440 | 74 |
Net cash provided by (used in) operating activities | 9,955 | (3,029) |
Investing activities: | ||
Acquisition of property and equipment | (176) | (87) |
Cash paid for business combination, net | (5,343) | |
Proceeds from sale of property and equipment | 3 | |
Net cash used in investing activities | (5,519) | (84) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 9,878 | |
Proceeds from stock option exercise | 175 | |
Taxes paid related to net share settlements of equity awards | (626) | (29) |
Proceeds from PPP loan | 2,497 | |
Net cash provided by financing activities | 9,427 | 2,468 |
Effect of foreign exchange rate changes | 79 | (76) |
Net increase (decrease) in cash and cash equivalents | 13,942 | (721) |
Cash and cash equivalents, beginning of period | 11,626 | 12,653 |
Cash and cash equivalents, end of period | 25,568 | 11,932 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for income taxes | 23 | (25) |
Supplemental disclosure of non-cash activities: | ||
Transfer of inventory to property and equipment | 123 | $ 36 |
ROU assets obtained with the modification of operating lease | $ 2,042 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 02, 2021 | |
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 January 2, 2021, which was filed with the Securities and Exchange Commission (“SEC”) on March 23, 2021. The results of operations for the three and nine months ended October 2, 2021 and September 26, 2020 are not necessarily indicative of the results for the fiscal year ending January 1, 2022 or any future interim period. The three and nine months ended October 2, 2021 and September 26, 2020, each had 13 weeks and 39 weeks, respectively. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2021 | |
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 January 2, 2021, which was filed with the SEC on March 23, 2021. 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) Service Contracts, (4) System Repairs (outside of warranty), (5) Royalty Revenue and (6) Exclusive Distribution Rights. (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 after shipment is made to these 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 ( Cyclo 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 s 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) The Company offers a standard two-year warranty on all system sales. The Company also offers a service contract which is sold to customers in incremental, one-year The Company recognizes revenue from service contracts ratably over the service period. Revenue recognition for the sale of a service contract is largely dependent on the timing of the sale as follows: a. Service Contract Sale in Conjunction with System Sale: If the customer opts to purchase a service contract 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. Service Contract Sale Subsequent to System Sale: If the customer opts to purchase a service contract after the initial system sale, the Company determines the amount of time that has elapsed since the initial system sale. If the service contract is purchased within 60 days of the initial sale, the Company considers this sale to be an additional element of the original sale and 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. If the service contract is purchased subsequent to 60 days after the initial sale, the sale of the service contract is deemed a separate contract and is deferred at the selling price and recognized ratably over the extended warranty period as the performance obligation is satisfied . (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 a service 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 a service contract, 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 . (6) Exclusive Distribution Rights: In March 2021, Company entered into a distribution agreement with Topcon Corporation (“Topcon”), pursuant to which the Company granted Topcon the exclusive right to distribute the Company’s retina and glaucoma products in certain geographies outside the United States. The exclusivity arrangement with Topcon obligates the Company to provide training, customer support, and exclusive territorial rights to Topcon for certain international regions, for a period of 10 years, commencing upon regulatory approval to transfer existing (non-exclusive) distribution rights from the current distributors in those regions to Topcon. The agreement further stipulates that $2.0 million of arrangement fee is held back and will not be paid in the event that regulatory approval for the Japan region is not obtained within nine months from the date of execution of the agreement. The Company has the right to terminate the exclusive distribution rights granted to Topcon for any of the regions at any point in time during the 10-year exclusivity term for a termination fee that is based on a multiple of 1.2 times the revenue generated by the Company in 2019 for the respective region. Management has determined that the exclusivity rights, training, and customer support represents a single combined performance obligation for each region, to be recognized as exclusivity fee revenue on a straight-line basis over the 10-year period for each region, commencing on the date that regulatory approval is obtained for each region, based on the Standalone Selling Price ( " SSP ” ) for such combined performance obligation for each region. The estimated fair value of the exclusive distribution rights for all regions combined totaled approximately $ 14.8 million. Of this amount, management has fully-constrained the arrangement fee allocated to Japan and Belarus (totaling approximately $ million, of which $ million was recorded as customer deposit under other current liabilities ) because of significant uncertainty regarding obtaining the necessary regulatory approvals and termination of existing distributor relationships in those regions. As of October 2 , 2021, $ million and $ 0.3 million in revenue related to the exclusive distribution rights was recorded for the three and nine months then ended . 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 October 2, 2021 and as of January 2, 2021, 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 and nine months ended October 2, 2021, one customer, Topcon, accounted for more than 10% of total revenues, representing 21% and 15%, respectively. For the three and nine months ended September 26, 2020, no single customer accounted for more than 10% of total revenues. As of October 2, 2021, one customer, Topcon, accounted for over 10% of our accounts receivable, representing 23%. As of January 2, 2021, one customer accounted for more than 10% of our accounts receivable, representing 13%. 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 and exclusivity fees. Revenue related to 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. Revenue related to exclusivity fees is deferred and recognized over the related exclusivity period. A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 1,227 $ 1,810 Additions to deferral 12,884 1,067 Revenue recognized (1,662 ) (1,516 ) Deductions from reserves - (3 ) Balance, end of period 12,449 1,358 Non-current portion of deferred revenue 10,199 286 Current portion of deferred revenue $ 2,250 $ 1,072 During the nine months ended October 2, 2021 and September 26, 2020, approximately $0.8 million and $1.0 million were recognized pertaining to amounts deferred as of January 2, 2021 and December 28, 2019, respectively. As of October 2, 2021, approximately $9.9 million and $1.1 million of the non-current portion of deferred revenue and current portion of deferred revenue, respectively, pertains to exclusivity fee deferred revenue. Warranty. The Company currently provides a two-year A reconciliation of the changes in the Company’s warranty liability for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 247 $ 536 Accruals for product warranties 70 85 Cost of warranty claims (106 ) (108 ) Adjustment to pre-existing warranties (52 ) (229 ) Balance, end of period $ 159 $ 284 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 total assets, total liabilities and net loss or accumulated deficit. Recently Adopted Accounting Standards. 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 Company adopted ASU 2019-12 in fiscal year 2021 and the standard did not have a material impact on its condensed consolidated financial statements. |
Significant Transactions
Significant Transactions | 9 Months Ended |
Oct. 02, 2021 | |
Business Combinations [Abstract] | |
Significant Transactions | 3. Significant Transactions On March 2, 2021, the Company entered into a series of strategic transactions with Topcon, headquartered in Tokyo Japan, pursuant to which (i) the Company purchased substantially all of the tangible and intangible assets of Topcon Medical Laser Systems, Inc. (“TMLS”) related to laser products previously manufactured and sold by TMLS, including the Pattern Scanning Laser (PASCAL) products, under the tradename “PASCAL” altogether, the “PASCAL Business”, (ii) Topcon acquired an equity interest in the Company, comprised of the issuance of 1,618,122 shares of the Company’s common stock at $6.18 per share (as determined based on the average of the Nasdaq Official Closing Price of the Company’s common stock for the five trading days immediately preceding March 2, 2021), and (iii) the Company granted Topcon the exclusive right to distribute certain of its products (including the PASCAL laser products) in certain international regions (the “Exclusive Distribution Rights”) and (iv) Topcon and the Company entered into the Manufacturing Services Agreement regarding transition of regulatory authorizations relating to, and manufacturing and supply of, the PASCAL products for a specified post-closing transition period. The transaction is expected to result in net proceeds to the Company of approximately $ 19.5 million (of which $17.5 million was received on March 10, 2021 with the remaining $2.0 million expected to be received later only if, as of the exclusive distribution rights start date, the Company has (A) begun the process of transferring to Topcon the exclusive distribution right in Japan, which process shall be evidenced by a copy of a written notice or letter sent by the Company to the existing distributor in Japan under which it has exercised its right of termination or non-renewal in accordance with the terms of the applicable existing distributor agreement and (B) used its commercially reasonable efforts to obtain a written acknowledgement by such existing distributor to assign and transfer all supporting documents in such existing distributor’s possession that are necessary for Topcon to effectuate the transfer of exclusive distribution rights to Topcon in Japan. ). The net proceeds have been allocated on a fair value basis as follows (in thousands): 1) Sale of equity interest (before issuance costs) $ 10,000 2) Grant of exclusive distribution rights 14,800 3) Purchase of tangible and intangible assets (5,343 ) Net Proceeds $ 19,457 The purchase of tangible and intangible assets has been recognized as an acquisition of a business with the relative fair value of the net consideration allocated to the tangible and intangible assets based on their preliminary estimated fair values as of the acquisition date. Refer to Note 2. Summary of Significant Accounting Policies for the recognition of revenue under ASC 606 for the grant of exclusive distribution rights. Acquisition of substantially all of TMLS’ assets including the rights to the PASCAL product . On March 10, 2021, the Company completed the purchase of substantially all of the tangible and intangible assets of TMLS, which was an established leader in manufacturing and selling laser products under the tradename “PASCAL”. The acquisition has been recognized as an acquisition of a business and the purchase price (approximately $5.3 million) has been preliminarily allocated to tangible and identified intangible assets acquired based on their estimated fair values. As additional information becomes available, the Company may further revise the preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from March 10, 2021). Any such revisions or changes may be material The following table presents the preliminary allocation of the total purchase price: Estimated Fair Value (in thousands) Inventory $ 2,319 Computers and Software 102 Manufacturing and Office Equipment 112 Other tangible assets 78 Developed Technology 900 In-process Research and Development (IPR&D) 1,000 Trade names and Trademarks 300 Customer Relationships 100 Goodwill 432 Total $ 5,343 Developed technology relates to PASCAL products, a pattern scanning laser used for retinal treatments, and was valued using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life is estimated to be seven years, as determined based on the technology cycle related to the developed technology, and the estimated cash flows over the forecast period. IPR&D pertains to an upcoming release of PASCAL products and has been valued using the multi-period excess earnings method under the income approach. Trade names and Trademarks pertain to the “PASCAL” trade name, and the fair value was determined by applying the relief-from-royalty method under the income approach. The economic useful life is estimated to be nine years, based on the expected life of the trade name and the cash flows anticipated over the forecast period. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of the TMLS Business, with an estimated useful life of seven years. Goodwill is primarily attributable to the assembled workforce and anticipated synergies and economies of scale expected from the integration of the TMLS Business. Substantially all goodwill is deductible for tax purposes. |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The components of the Company’s inventories as of October 2, 2021 and January 2, 2021 are as follows: October 2, 2021 January 2, 2021 Raw materials $ 3,831 $ 2,236 Work in process 415 548 Finished goods 4,545 2,930 Total inventories $ 8,791 $ 5,714 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill. The carrying value of goodwill was $1.0 million and $0.5 million as of October 2, 2021 and January 2, 2021, respectively. 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 2021 and determined that its goodwill was not impaired. In March 2021, the Company recorded approximately $0.4 million goodwill in connection with its purchase of the PASCAL Business. As of October 2, 2021, 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): October 2, 2021 January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 340 $ 192 $ 148 5.31 Years $ 240 $ 172 $ 68 Developed technology 900 75 825 6.42 Years Trade names 300 20 280 8.42 Years In-process R&D 1,000 — 1,000 Not applicable $ 2,540 $ 287 $ 2,253 $ 240 $ 172 $ 68 For the nine months ended October 2, 2021 and September 26, 2020, amortization expense totaled $115 thousand and $12 thousand, respectively. The amortizations of customer relationships and trade names were charged to sales and marketing expense. The amortization for developed technology was charged to research and development expense. Future estimated amortization expense excluding in-process R&D (in thousands): Fiscal Year: 2021 (three months) $ 48 2022 192 2023 192 2024 192 2025 180 Thereafter 449 Total $ 1,253 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. 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 and 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 October 2, 2021 and January 2, 2021, approximate fair value because of the short maturity of these instruments. As of October 2, 2021 and January 2, 2021, 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 October 2, 2021 As of January 2, 2021 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 $ 24,496 $ — $ — $ 24,496 $ 11,051 $ — $ — $ 11,051 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. |
PPP Loan
PPP Loan | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
PPP Loan | 7. PPP Loan On April 23, 2020, the Company qualified for and received a loan pursuant to the Paycheck Protection Program, a program implemented by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, from a qualified lender (the “PPP Lender”), for an aggregate principal amount of approximately $ million (the "PPP Loan"). The PPP Loan bears interest at a fixed rate of 1.0% per annum, with the first six months of interest deferred, has a term of two years, and is unsecured and guaranteed by the U.S. Small Business Administration (the “SBA”). The principal amount of the PPP Loan is subject to forgiveness under the Paycheck Protection Program upon the Company’s request to the extent that the PPP Loan proceeds are used to pay expenses permitted by the Paycheck Protection Program, including payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company. On September 22, 2020, the Company submitted the PPP Loan forgiveness application for the entire amount of approximately $2.5 million. To the extent that all or part of the PPP Loan was not forgiven, the Company would have been required to pay interest on the PPP Loan at a rate of 1.0% per annum. The terms of the PPP Loan provide for customary events of default including, among other things, payment defaults, breach of representations, and insolvency events. In June 2021, the Company was notified by Silicon Valley Bank that its PPP loan, including accrued interest, has been fully forgiven by the SBA. We recognized a $2.5 million gain on PPP Loan forgiveness, included in Other income, net in the condensed consolidated statements of operations for the nine months ended October 2, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. 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 nine months ended October 2, 2021 and September 26, 2020 were approximately $0.9 million and $1.0 million, respectively. The weighted average discount rate used in calculating the present value of lease payments was 4.8%. As of October 2, 2021, the weighted average remaining lease term for our operating leases was 2.9 years. The following represents maturities of operating lease liabilities as of October 2, 2021 (in thousands): Fiscal Year Operating Lease Payments Remainder of 2021 (3 months) $ 269 2022 1,031 2023 1,084 2024 711 2025 — Total lease payments 3,095 Less: Imputed interest (203 ) Total lease liabilities $ 2,892 On April 30, 2021, the First Amendment to that certain Triple Net Lease dated April 26, 2017 between the Company and ZIC 1212 Terra Bella LLC (“First Amendment”) was executed, among other things, to reduce the portion of premises leased by the Company and extend the lease term through August 31, 2024. Pursuant to the First Amendment, the base monthly rent for the reduced premises of approximately 29,830 square feet, ranges from $84,121 to $93,070, for the period May 1, 2021 to August 31, 2024. The Company is also responsible for the payment of certain operating expenses and taxes during the term. The Lease provides the landlord with a termination right, which can be exercised by the landlord by giving written notice to the Company at least thirty (30) months prior to the effective date of the termination. Purchase Commitments. Our purchase commitments consist primarily of non-cancellable purchase commitments with vendors to manufacture certain components and ophthalmic instrumentation. As of October 2, 2021, our future minimum payments through fiscal year 2022 for our purchase commitments were approximately $16.1 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 | 9 Months Ended |
Oct. 02, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholder' Equity and Stock Based Compensation | 9. 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 (“RSUs”) in accordance with ASC 718 , “Compensation – Stock Compensation” The Company values options using the Black-Scholes option pricing model. Time-based 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 nine months ended October 2, 2021 were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 2, 2021. The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cost of revenues $ 180 $ 46 $ 273 $ 105 Research and development (2 ) (27 ) 48 (34 ) Sales and marketing 273 149 412 322 General and administrative 166 75 530 381 $ 617 $ 243 $ 1,263 $ 774 Stock-based compensation expense capitalized to inventory was immaterial for the nine months ended October 2, 2021 and September 26, 2020. As of October 2, 2021, there was $3.0 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 2.21 years. Summary of Stock Options. The following table summarizes stock options information during the nine months ended October 2, 2021: Number of Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (thousands) Outstanding as of January 2, 2021 1,649,540 $ 4.67 Granted 331,663 6.62 Exercised (53,220 ) 3.29 Canceled or forfeited (132,023 ) 4.47 Outstanding as of October 2, 2021 1,795,960 $ 5.09 $ 4,920 The weighted average grant date fair value of the options granted was $3.79 and $1.06 per share for the nine months ended October 2, 2021 and September 26, 2020, 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: Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Average risk free interest rate 0.89 % 0.22 % 0.87 % 0.25 % Expected life (in years) 4.45 years 4.55 years 4.45 years 4.55 years Dividend yield — % — % — % — % Average volatility 74 % 63 % 74 % 62 % 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 October 2, 2021 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic (thousands) Options outstanding 1,795,960 $ 5.09 5.61 $ 4,920 Options vested and expected to vest 1,602,919 $ 5.12 5.48 $ 4,405 Options exercisable 699,535 $ 5.80 4.34 $ 1,751 The aggregate intrinsic value in the table above represents the pre-tax intrinsic value, based on the Company’s closing price as of October 2, 2021, 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 nine months ended October 2, 2021 and September 26, 2020 was approximately $207 thousand and $0 thousand, respectively. Summary of RSUs and Awards Information regarding RSUs activity for the nine months ended October 2, 2021 is summarized below: Number of Shares Outstanding as of January 2, 2021 524,851 RSUs granted 166,598 RSUs released (381,036 ) RSUs forfeited (60,164 ) Outstanding as of October 2, 2021 250,249 During the three months ended October 2, 2021, 56,900 stock awards were modified to clarify the performance condition. The total incremental expense for these modifications resulted in an additional stock-based compensation expense of $0.4 million recorded within cost of sales and operating expenses on the condensed consolidated statement of operations for the three months ended October 2, 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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 $24 thousand and $20 thousand for the nine months ended October 2, 2021 and September 26, 2020, respectively. Deferred Income Taxes. The Company accounts for income taxes in accordance with ASC topic 740, Income Taxes As of the third quarter of fiscal year 2021, 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 January 2, 2021, 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 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 obtained a PPP Loan in April 2020. The PPP Loan and interest was fully forgiven in June 2021. The Company may qualify to not include the debt forgiveness income as taxable income. Given the Company has a full valuation allowance, the impact of the PPP Loan was not material. 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 Income (Loss) Per Common Share | 9 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | 11. Computation of Basic and Diluted Net Income (Loss) Per Common Share Basic and diluted net income (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 RSUs and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested RSU s 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 October 2, 2021 and September 26, 2020, potential shares from stock options and RSUs totaling 1,620,634 and 1,392,132 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the nine months ended October 2, 2021 and September 26, 2020, potential shares from stock options and RSUs totaling 1,624,167 and 1,292,871 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 Nine Months Ended (in thousands except per share data) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Numerator: Net loss $ (2,165 ) $ (1,719 ) $ (2,782 ) $ (6,150 ) Denominator: Weighted average shares of common stock (basic) 15,824 13,893 15,272 13,824 Weighted average shares of common stock (diluted) 15,824 13,893 15,272 13,824 Per share data: Basic net loss per share $ (0.14 ) $ (0.12 ) $ (0.18 ) $ (0.44 ) Diluted net loss per share $ (0.14 ) $ (0.12 ) $ (0.18 ) $ (0.44 ) |
Business Segments
Business Segments | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | 12. 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 Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cyclo G6 $ 3,145 $ 2,776 $ 10,093 $ 7,812 Retina 7,777 4,429 22,012 11,171 Other(1) 2,342 1,598 6,544 5,060 Total revenues $ 13,264 $ 8,803 $ 38,649 $ 24,043 (1) Includes service contract revenues of $387 and $302 and $1,061 and $929 recognized during the three and nine months ended October 2, 2021 and September 26, 2020, respectively. Includes $228 and $339 recognized revenue related to the exclusive distribution rights during the three and nine months ended October 2, 2021, 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 Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 United States $ 6,901 $ 5,269 $ 18,973 $ 12,881 Europe 3,025 1,913 8,685 5,316 Asia/Pacific Rim 2,825 1,022 9,279 4,625 Rest of Americas 513 599 1,712 1,221 Total revenues $ 13,264 $ 8,803 $ 38,649 $ 24,043 Revenues are attributed to countries based on the location of end customers. Other than the United States, the Netherlands accounted for at least 10% of the Company’s revenues during the three months ended October 2, 2021, representing 10%. Other than the United States, Japan accounted for more than 10% of the Company’s revenues during the nine months ended October 2, 2021, representing 13%. Other than the United States, no individual country accounted for more than 10% of the Company’s revenues during the three and nine months ended September 26, 2020. The United States accounted for 52.0% and 59.9% of revenues for the three months ended October 2, 2021 and September 26, 2020, respectively, and for 49.1% and 53.6% of revenues for the nine months ended October 2, 2021 and September 26, 2020, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2021 | |
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) Service Contracts, (4) System Repairs (outside of warranty), (5) Royalty Revenue and (6) Exclusive Distribution Rights. (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 after shipment is made to these 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 ( Cyclo 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 s 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) The Company offers a standard two-year warranty on all system sales. The Company also offers a service contract which is sold to customers in incremental, one-year The Company recognizes revenue from service contracts ratably over the service period. Revenue recognition for the sale of a service contract is largely dependent on the timing of the sale as follows: a. Service Contract Sale in Conjunction with System Sale: If the customer opts to purchase a service contract 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. Service Contract Sale Subsequent to System Sale: If the customer opts to purchase a service contract after the initial system sale, the Company determines the amount of time that has elapsed since the initial system sale. If the service contract is purchased within 60 days of the initial sale, the Company considers this sale to be an additional element of the original sale and 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. If the service contract is purchased subsequent to 60 days after the initial sale, the sale of the service contract is deemed a separate contract and is deferred at the selling price and recognized ratably over the extended warranty period as the performance obligation is satisfied . (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 a service 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 a service contract, 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 . (6) Exclusive Distribution Rights: In March 2021, Company entered into a distribution agreement with Topcon Corporation (“Topcon”), pursuant to which the Company granted Topcon the exclusive right to distribute the Company’s retina and glaucoma products in certain geographies outside the United States. The exclusivity arrangement with Topcon obligates the Company to provide training, customer support, and exclusive territorial rights to Topcon for certain international regions, for a period of 10 years, commencing upon regulatory approval to transfer existing (non-exclusive) distribution rights from the current distributors in those regions to Topcon. The agreement further stipulates that $2.0 million of arrangement fee is held back and will not be paid in the event that regulatory approval for the Japan region is not obtained within nine months from the date of execution of the agreement. The Company has the right to terminate the exclusive distribution rights granted to Topcon for any of the regions at any point in time during the 10-year exclusivity term for a termination fee that is based on a multiple of 1.2 times the revenue generated by the Company in 2019 for the respective region. Management has determined that the exclusivity rights, training, and customer support represents a single combined performance obligation for each region, to be recognized as exclusivity fee revenue on a straight-line basis over the 10-year period for each region, commencing on the date that regulatory approval is obtained for each region, based on the Standalone Selling Price ( " SSP ” ) for such combined performance obligation for each region. The estimated fair value of the exclusive distribution rights for all regions combined totaled approximately $ 14.8 million. Of this amount, management has fully-constrained the arrangement fee allocated to Japan and Belarus (totaling approximately $ million, of which $ million was recorded as customer deposit under other current liabilities ) because of significant uncertainty regarding obtaining the necessary regulatory approvals and termination of existing distributor relationships in those regions. As of October 2 , 2021, $ million and $ 0.3 million in revenue related to the exclusive distribution rights was recorded for the three and nine months then ended . 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 October 2, 2021 and as of January 2, 2021, 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 and nine months ended October 2, 2021, one customer, Topcon, accounted for more than 10% of total revenues, representing 21% and 15%, respectively. For the three and nine months ended September 26, 2020, no single customer accounted for more than 10% of total revenues. As of October 2, 2021, one customer, Topcon, accounted for over 10% of our accounts receivable, representing 23%. As of January 2, 2021, one customer accounted for more than 10% of our accounts receivable, representing 13%. |
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 and exclusivity fees. Revenue related to 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. Revenue related to exclusivity fees is deferred and recognized over the related exclusivity period. A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 1,227 $ 1,810 Additions to deferral 12,884 1,067 Revenue recognized (1,662 ) (1,516 ) Deductions from reserves - (3 ) Balance, end of period 12,449 1,358 Non-current portion of deferred revenue 10,199 286 Current portion of deferred revenue $ 2,250 $ 1,072 During the nine months ended October 2, 2021 and September 26, 2020, approximately $0.8 million and $1.0 million were recognized pertaining to amounts deferred as of January 2, 2021 and December 28, 2019, respectively. As of October 2, 2021, approximately $9.9 million and $1.1 million of the non-current portion of deferred revenue and current portion of deferred revenue, respectively, pertains to exclusivity fee deferred revenue. |
Warranty | Warranty. The Company currently provides a two-year A reconciliation of the changes in the Company’s warranty liability for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 247 $ 536 Accruals for product warranties 70 85 Cost of warranty claims (106 ) (108 ) Adjustment to pre-existing warranties (52 ) (229 ) Balance, end of period $ 159 $ 284 |
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 total assets, total liabilities and net loss or accumulated deficit. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards. 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 Company adopted ASU 2019-12 in fiscal year 2021 and the standard did not have a material impact on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Changes in Deferred Revenue | A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 1,227 $ 1,810 Additions to deferral 12,884 1,067 Revenue recognized (1,662 ) (1,516 ) Deductions from reserves - (3 ) Balance, end of period 12,449 1,358 Non-current portion of deferred revenue 10,199 286 Current portion of deferred revenue $ 2,250 $ 1,072 |
Reconciliation of Changes in Warranty Liability | A reconciliation of the changes in the Company’s warranty liability for the nine months ended October 2, 2021 and September 26, 2020 is as follows: Nine Months Ended October 2, 2021 September 26, 2020 Balance, beginning of period $ 247 $ 536 Accruals for product warranties 70 85 Cost of warranty claims (106 ) (108 ) Adjustment to pre-existing warranties (52 ) (229 ) Balance, end of period $ 159 $ 284 |
Significant Transactions (Table
Significant Transactions (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Net Proceeds on Fair Value Basis | The net proceeds have been allocated on a fair value basis as follows (in thousands): 1) Sale of equity interest (before issuance costs) $ 10,000 2) Grant of exclusive distribution rights 14,800 3) Purchase of tangible and intangible assets (5,343 ) Net Proceeds $ 19,457 |
Schedule of Preliminary Allocation of Purchase Price | The following table presents the preliminary allocation of the total purchase price: Estimated Fair Value (in thousands) Inventory $ 2,319 Computers and Software 102 Manufacturing and Office Equipment 112 Other tangible assets 78 Developed Technology 900 In-process Research and Development (IPR&D) 1,000 Trade names and Trademarks 300 Customer Relationships 100 Goodwill 432 Total $ 5,343 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of the Company’s inventories as of October 2, 2021 and January 2, 2021 are as follows: October 2, 2021 January 2, 2021 Raw materials $ 3,831 $ 2,236 Work in process 415 548 Finished goods 4,545 2,930 Total inventories $ 8,791 $ 5,714 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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): October 2, 2021 January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 340 $ 192 $ 148 5.31 Years $ 240 $ 172 $ 68 Developed technology 900 75 825 6.42 Years Trade names 300 20 280 8.42 Years In-process R&D 1,000 — 1,000 Not applicable $ 2,540 $ 287 $ 2,253 $ 240 $ 172 $ 68 |
Future Estimated Amortization Expense | Future estimated amortization expense excluding in-process R&D (in thousands): Fiscal Year: 2021 (three months) $ 48 2022 192 2023 192 2024 192 2025 180 Thereafter 449 Total $ 1,253 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured and Recognized at Fair Value on a Recurring Basis | As of October 2, 2021 and January 2, 2021, 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 October 2, 2021 As of January 2, 2021 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 $ 24,496 $ — $ — $ 24,496 $ 11,051 $ — $ — $ 11,051 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The following represents maturities of operating lease liabilities as of October 2, 2021 (in thousands): Fiscal Year Operating Lease Payments Remainder of 2021 (3 months) $ 269 2022 1,031 2023 1,084 2024 711 2025 — Total lease payments 3,095 Less: Imputed interest (203 ) Total lease liabilities $ 2,892 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses | The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended October 2, 2021 and September 26, 2020: Three Months Ended Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cost of revenues $ 180 $ 46 $ 273 $ 105 Research and development (2 ) (27 ) 48 (34 ) Sales and marketing 273 149 412 322 General and administrative 166 75 530 381 $ 617 $ 243 $ 1,263 $ 774 |
Summary of Stock Options | The following table summarizes stock options information during the nine months ended October 2, 2021: Number of Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (thousands) Outstanding as of January 2, 2021 1,649,540 $ 4.67 Granted 331,663 6.62 Exercised (53,220 ) 3.29 Canceled or forfeited (132,023 ) 4.47 Outstanding as of October 2, 2021 1,795,960 $ 5.09 $ 4,920 |
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: Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Average risk free interest rate 0.89 % 0.22 % 0.87 % 0.25 % Expected life (in years) 4.45 years 4.55 years 4.45 years 4.55 years Dividend yield — % — % — % — % Average volatility 74 % 63 % 74 % 62 % |
Summary of Stock Options Outstanding, Vested, Expected to Vest and Exercisable | Information regarding stock options outstanding, vested, expected to vest, and exercisable as of October 2, 2021 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic (thousands) Options outstanding 1,795,960 $ 5.09 5.61 $ 4,920 Options vested and expected to vest 1,602,919 $ 5.12 5.48 $ 4,405 Options exercisable 699,535 $ 5.80 4.34 $ 1,751 |
Restricted Stock Units | Information regarding RSUs activity for the nine months ended October 2, 2021 is summarized below: Number of Shares Outstanding as of January 2, 2021 524,851 RSUs granted 166,598 RSUs released (381,036 ) RSUs forfeited (60,164 ) Outstanding as of October 2, 2021 250,249 |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 Nine Months Ended (in thousands except per share data) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Numerator: Net loss $ (2,165 ) $ (1,719 ) $ (2,782 ) $ (6,150 ) Denominator: Weighted average shares of common stock (basic) 15,824 13,893 15,272 13,824 Weighted average shares of common stock (diluted) 15,824 13,893 15,272 13,824 Per share data: Basic net loss per share $ (0.14 ) $ (0.12 ) $ (0.18 ) $ (0.44 ) Diluted net loss per share $ (0.14 ) $ (0.12 ) $ (0.18 ) $ (0.44 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue Information by Product | Revenue information shown by product group is as follows: Three Months Ended Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cyclo G6 $ 3,145 $ 2,776 $ 10,093 $ 7,812 Retina 7,777 4,429 22,012 11,171 Other(1) 2,342 1,598 6,544 5,060 Total revenues $ 13,264 $ 8,803 $ 38,649 $ 24,043 (1) Includes service contract revenues of $387 and $302 and $1,061 and $929 recognized during the three and nine months ended October 2, 2021 and September 26, 2020, respectively. Includes $228 and $339 recognized revenue related to the exclusive distribution rights during the three and nine months ended October 2, 2021, 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 Nine Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 United States $ 6,901 $ 5,269 $ 18,973 $ 12,881 Europe 3,025 1,913 8,685 5,316 Asia/Pacific Rim 2,825 1,022 9,279 4,625 Rest of Americas 513 599 1,712 1,221 Total revenues $ 13,264 $ 8,803 $ 38,649 $ 24,043 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 02, 2021USD ($)Customer | Sep. 26, 2020Customer | Oct. 02, 2021USD ($)Customer | Sep. 26, 2020USD ($)Customer | Jan. 02, 2021Customer | |
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Service contract warranty period | 1 year | ||||
Service contract, period to determine nature of sale | 60 days | ||||
Arrangement fee | $ 2 | ||||
Arrangement expiration period | 9 months | ||||
Fair value of distribution right | $ 14.8 | ||||
Arrangement fee | 3.4 | ||||
Customer deposit | 1.4 | ||||
Deferred revenue recognized | 0.8 | $ 1 | |||
Non-current portion of deferred revenue pertains to exclusivity fee deferred revenue | $ 9.9 | 9.9 | |||
Current portion of deferred revenue pertains to exclusivity fee deferred revenue | $ 1.1 | $ 1.1 | |||
Products warranty period | 2 years | ||||
Revenue, Total | Customer Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 0 | 0 | |||
Revenue, Total | Topcon [Member] | Customer Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 1 | 1 | |||
Accounts Receivable | Customer Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of accounts receivable accounted | 13.00% | ||||
Accounts Receivable | Customer Concentration Risk | One Customer | Minimum | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | ||||
Accounts Receivable | Credit Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 1 | ||||
Accounts Receivable | Topcon [Member] | Customer Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of accounts receivable accounted | 23.00% | ||||
Accounts Receivable | Topcon [Member] | Customer Concentration Risk | One Customer | Minimum | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | ||||
Accounts Receivable | Topcon [Member] | Credit Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 1 | ||||
Revenue, Total | Customer Concentration Risk | No Customer | Minimum | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% | |||
Revenue, Total | Topcon [Member] | Customer Concentration Risk | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of accounts receivable accounted | 21.00% | 15.00% | |||
Revenue, Total | Topcon [Member] | Customer Concentration Risk | One Customer | Minimum | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% | |||
Distribution Rights [Member] | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue Recognized | $ 0.2 | $ 0.3 | |||
Royalty Agreements | |||||
Disclosure Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | [1] | |
Reconciliation of the changes in the Company's deferred revenue balance | ||||
Balance, beginning of period | $ 1,227 | $ 1,810 | ||
Additions to deferral | 12,884 | 1,067 | ||
Revenue recognized | (1,662) | (1,516) | ||
Deductions from reserves | (3) | |||
Balance, end of period | 12,449 | 1,358 | ||
Non-current portion of deferred revenue | 10,199 | 286 | $ 289 | |
Current portion of deferred revenue | $ 2,250 | $ 1,072 | $ 938 | |
[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 January 2, 2021. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Reconciliation of the changes in the Company's warranty liability | ||
Balance, beginning of period | $ 247 | $ 536 |
Accruals for product warranties | 70 | 85 |
Cost of warranty claims | (106) | (108) |
Adjustment to pre-existing warranties | (52) | (229) |
Balance, end of period | $ 159 | $ 284 |
Significant Transactions - Addi
Significant Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 10, 2021 | Mar. 02, 2021 | Oct. 02, 2021 | Jan. 02, 2021 |
Business Acquisition [Line Items] | ||||
Common stock, shares issued | 15,862,523 | 13,899,683 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Proceeds from issuance of common stock, net of issuance costs | $ 9,878 | |||
Topcon [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued | 1,618,122 | |||
Common stock, par value | $ 6.18 | |||
Proceeds from issuance of common stock, net of issuance costs | $ 19,500 | |||
TMLS | ||||
Business Acquisition [Line Items] | ||||
Acquisition of a business and the purchase price | $ 5,300 |
Significant Transactions - Sche
Significant Transactions - Schedule of Allocation of Net Proceeds on Fair Value Basis (Details) $ in Thousands | Mar. 10, 2021USD ($) |
Business Combinations [Abstract] | |
Sale of equity interest (before issuance costs) | $ 10,000 |
Grant of exclusive distribution rights | 14,800 |
Purchase of tangible and intangible assets | (5,343) |
Net Proceeds | $ 19,457 |
Significant Transactions - Sc_2
Significant Transactions - Schedule of Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Mar. 31, 2021 | Mar. 10, 2021 | Jan. 02, 2021 | [1] |
Business Acquisition [Line Items] | |||||
Goodwill | $ 965 | $ 400 | $ 533 | ||
TMLS | |||||
Business Acquisition [Line Items] | |||||
Inventory | $ 2,319 | ||||
Manufacturing and Office Equipment | 112 | ||||
Other tangible assets | 78 | ||||
Goodwill | 432 | ||||
Total | 5,343 | ||||
Computer and Software [Member] | TMLS | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets | 102 | ||||
Developed Technology [Member] | TMLS | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets | 900 | ||||
In Process Research and Development [Member] | TMLS | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets | 1,000 | ||||
Trademarks and Trade Names [Member] | TMLS | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets | 300 | ||||
Customer Relationships [Member] | TMLS | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets | $ 100 | ||||
[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 January 2, 2021. |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 3,831 | $ 2,236 | |
Work in process | 415 | 548 | |
Finished goods | 4,545 | 2,930 | |
Total inventories | $ 8,791 | $ 5,714 | [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 January 2, 2021. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | Oct. 02, 2021 | Oct. 02, 2021 | Sep. 26, 2020 | Mar. 31, 2021 | Jan. 02, 2021 | [1] |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Carrying value of goodwill | $ 965,000 | $ 965,000 | $ 400,000 | $ 533,000 | ||
Impairment of goodwill | $ 0 | |||||
Amortization expense | $ 115,000 | $ 12,000 | ||||
[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 January 2, 2021. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Components of Gross and Net Intangible Asset (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 02, 2021 | Jan. 02, 2021 | ||
Schedule of Intangible Assets | |||
Gross Carrying Amount | $ 2,540 | $ 240 | |
Accumulated Amortization | 287 | 172 | |
Net Carrying Amount | 2,253 | 68 | [1] |
Customer relationships | |||
Schedule of Intangible Assets | |||
Gross Carrying Amount | 340 | 240 | |
Accumulated Amortization | 192 | 172 | |
Net Carrying Amount | $ 148 | $ 68 | |
Remaining Amortization Life | 5 years 3 months 21 days | ||
Developed technology | |||
Schedule of Intangible Assets | |||
Gross Carrying Amount | $ 900 | ||
Accumulated Amortization | 75 | ||
Net Carrying Amount | $ 825 | ||
Remaining Amortization Life | 6 years 5 months 1 day | ||
Trade names | |||
Schedule of Intangible Assets | |||
Gross Carrying Amount | $ 300 | ||
Accumulated Amortization | 20 | ||
Net Carrying Amount | $ 280 | ||
Remaining Amortization Life | 8 years 5 months 1 day | ||
In-process R&D | |||
Schedule of Intangible Assets | |||
Gross Carrying Amount | $ 1,000 | ||
Net Carrying Amount | $ 1,000 | ||
[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 January 2, 2021. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Estimated Amortization Expense (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Future estimated amortization expense | |
2021 (three months) | $ 48 |
2022 | 192 |
2023 | 192 |
2024 | 192 |
2025 | 180 |
Thereafter | 449 |
Net Carrying Amount | $ 1,253 |
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 | Oct. 02, 2021 | Jan. 02, 2021 |
Assets: | ||
Assets, Fair Value Measurements | $ 24,496 | $ 11,051 |
Level 1 | ||
Assets: | ||
Assets, Fair Value Measurements | $ 24,496 | $ 11,051 |
PPP Loan - Additional Informati
PPP Loan - Additional Information (Details) - Small Business Administration (SBA Loan) [Member] - PPP Loan [Member] - USD ($) $ in Millions | Sep. 22, 2020 | Apr. 23, 2020 | Oct. 02, 2021 |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 2.5 | ||
Fixed interest rate | 1.00% | ||
Interest rate on outstanding principal amount | 1.00% | ||
Term of loan | 2 years | ||
Loan forgiveness amount | $ 2.5 | $ 2.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Apr. 30, 2021USD ($)ft² | Oct. 02, 2021USD ($) | Sep. 26, 2020USD ($) |
Commitments And Contingencies [Line Items] | |||
Operating lease, expenses | $ 900 | $ 1,000 | |
Operating lease, weighted average discount rate | 4.80% | ||
Operating lease, weighted average remaining lease term | 2 years 10 months 24 days | ||
Area of Premises | ft² | 29,830 | ||
Lease expiration date | Aug. 31, 2024 | ||
Future minimum purchase commitment payments | $ 16,100 | ||
Minimum | |||
Commitments And Contingencies [Line Items] | |||
Base monthly rent | $ 84,121 | ||
Maximum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Base monthly rent | $ 93,070 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
Remainder of 2021 (3 months) | $ 269 |
2022 | 1,031 |
2023 | 1,084 |
2024 | 711 |
Total lease payments | 3,095 |
Less: Imputed interest | (203) |
Total lease liabilities | $ 2,892 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 617 | $ 243 | $ 1,263 | $ 774 |
Cost of revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 180 | 46 | 273 | 105 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | (2) | (27) | 48 | (34) |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 273 | 149 | 412 | 322 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 166 | $ 75 | $ 530 | $ 381 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2021 | Oct. 02, 2021 | Oct. 02, 2021 | Sep. 26, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 3,000 | $ 3,000 | $ 3,000 | |
Cost is expected to be recognized over a weighted average period | 2 years 2 months 15 days | |||
Weighted-average grant date fair value of the options granted | $ 3.79 | $ 1.06 | ||
Total intrinsic value of options exercised | $ 207 | $ 0 | ||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock awards modified to clarify the performance condition | 56,900 | |||
Additional stock-based compensation expense | $ 400 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Options (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Oct. 02, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |
Outstanding, Number of Shares, Beginning Balance | shares | 1,649,540 |
Number of Shares, Options Granted | shares | 331,663 |
Number of Shares, Options Exercised | shares | (53,220) |
Number of Shares, Options Cancelled or forfeited | shares | (132,023) |
Outstanding, Number of Shares, Ending Balance | shares | 1,795,960 |
Outstanding, Weighted Average Exercise Price Per Share, Beginning Balance | $ / shares | $ 4.67 |
Weighted Average Exercise Price Per Share, Options Granted | $ / shares | 6.62 |
Weighted Average Exercise Price Per Share, Options Exercised | $ / shares | 3.29 |
Weighted Average Exercise Price Per Share, Options Cancelled or forfeited | $ / shares | 4.47 |
Outstanding, Weighted Average Exercise Price Per Share, Ending Balance | $ / shares | $ 5.09 |
Aggregate Intrinsic Value, Ending Balance | $ | $ 4,920 |
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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Weighted average assumptions for fair value estimate of stock-based awards (options) | ||||
Average risk free interest rate | 0.89% | 0.22% | 0.87% | 0.25% |
Expected life (in years) | 4 years 5 months 12 days | 4 years 6 months 18 days | 4 years 5 months 12 days | 4 years 6 months 18 days |
Average volatility | 74.00% | 63.00% | 74.00% | 62.00% |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Options Outstanding, Vested, Expected to Vest and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Stock options outstanding, exercisable and expected to vest | ||
Options outstanding, Number of Shares | 1,795,960 | 1,649,540 |
Options vested and expected to vest, Number of Shares | 1,602,919 | |
Options exercisable, Number of Shares | 699,535 | |
Options outstanding, Weighted Average Exercise Price | $ 5.09 | $ 4.67 |
Options vested and expected to vest, Weighted Average Exercise Price | 5.12 | |
Options exercisable, Weighted Average Exercise Price | $ 5.80 | |
Options outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 7 months 9 days | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 5 years 5 months 23 days | |
Options exercisable, Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 2 days | |
Options outstanding, Aggregate Intrinsic Value | $ 4,920 | |
Options vested and expected to vest, Aggregate Intrinsic Value | 4,405 | |
Options exercisable, Aggregate Intrinsic Value | $ 1,751 |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Oct. 02, 2021shares | |
Restricted stock units | |
Outstanding, Number of Shares, Beginning Balance | 524,851 |
Number of Shares, RSUs granted | 166,598 |
Number of Shares, RSUs released | (381,036) |
Number of Shares, RSUs forfeited | (60,164) |
Outstanding, Number of Shares, Ending Balance | 250,249 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Income Taxes [Line Items] | |||||
Provision for income taxes | $ 8,000 | $ 8,000 | $ 24,000 | $ 20,000 | |
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 Income (Loss) Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
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 | 1,620,634 | 1,392,132 | 1,624,167 | 1,292,871 |
Computation of Basic and Dilu_4
Computation of Basic and Diluted Net Income (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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Numerator: | ||||
Net loss | $ (2,165) | $ (1,719) | $ (2,782) | $ (6,150) |
Denominator: | ||||
Weighted average shares of common stock (basic) | 15,824 | 13,893 | 15,272 | 13,824 |
Weighted average shares of common stock (diluted) | 15,824 | 13,893 | 15,272 | 13,824 |
Per share data: | ||||
Basic net loss per share | $ (0.14) | $ (0.12) | $ (0.18) | $ (0.44) |
Diluted net loss per share | $ (0.14) | $ (0.12) | $ (0.18) | $ (0.44) |
Business Segments - Additional
Business Segments - Additional Information (Details) - Segment | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 1 | |||
Geographic Concentration Risk | Revenue, Total | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% | 10.00% | ||
JAPAN | Geographic Concentration Risk | Revenue, Total | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of accounts receivable accounted | 13.00% | |||
JAPAN | Geographic Concentration Risk | Revenue, Total | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 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 | 52.00% | 59.90% | 49.10% | 53.60% |
N L | Geographic Concentration Risk | Revenue, Total | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of accounts receivable accounted | 10.00% | |||
N L | Geographic Concentration Risk | Revenue, Total | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Customer and supplier accounted percentage of total revenues, accounts receivable and purchases | 10.00% |
Business Segments - Schedule of
Business Segments - Schedule of Revenue Information by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | ||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Total revenues | $ 13,264 | $ 8,803 | $ 38,649 | $ 24,043 | |
Cyclo G6 | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Total revenues | 3,145 | 2,776 | 10,093 | 7,812 | |
Retina | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Total revenues | 7,777 | 4,429 | 22,012 | 11,171 | |
Other | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Total revenues | [1] | $ 2,342 | $ 1,598 | $ 6,544 | $ 5,060 |
[1] | Includes service contract revenues of $387 and $302 and $1,061 and $929 recognized during the three and nine months ended October 2, 2021 and September 26, 2020, respectively. Includes $228 and $339 recognized revenue related to the exclusive distribution rights during the three and nine months ended October 2, 2021, respectively. Other also includes revenues from paid service, royalty, freight and legacy G probes. |
Business Segments - Schedule _2
Business Segments - Schedule of Revenue Information by Product (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total revenues | $ 13,264 | $ 8,803 | $ 38,649 | $ 24,043 |
Distribution Rights [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Revenue Recognized | 200 | 300 | ||
Service Contract Revenues | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Total revenues | 387 | $ 1,061 | 302 | $ 929 |
Service Contract Revenues | Distribution Rights [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Revenue Recognized | $ 228 | $ 339 |
Business Segments - Revenue Inf
Business Segments - Revenue Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | $ 13,264 | $ 8,803 | $ 38,649 | $ 24,043 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 6,901 | 5,269 | 18,973 | 12,881 |
Asia/Pacific Rim | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 2,825 | 1,022 | 9,279 | 4,625 |
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 3,025 | 1,913 | 8,685 | 5,316 |
Rest of Americas | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | $ 513 | $ 599 | $ 1,712 | $ 1,221 |