Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37463 | |
Entity Registrant Name | GLAUKOS Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0945406 | |
Entity Address, Address Line One | One Glaukos Way | |
Entity Address, City or Town | Aliso Viejo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92656 | |
City Area Code | 949 | |
Local Phone Number | 367-9600 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GKOS | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001192448 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 47,703,276 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 104,018 | $ 100,708 |
Short-term investments | 257,600 | 313,343 |
Accounts receivable, net | 34,766 | 33,438 |
Inventory | 34,182 | 23,011 |
Prepaid expenses and other current assets | 18,275 | 15,626 |
Total current assets | 448,841 | 486,126 |
Restricted cash | 9,078 | 9,416 |
Property and equipment, net | 87,307 | 68,969 |
Operating lease right-of-use assets | 26,049 | 28,142 |
Finance lease right-of-use asset | 47,206 | 49,022 |
Intangible assets, net | 314,097 | 332,781 |
Goodwill | 66,134 | 66,134 |
Deposits and other assets | 9,756 | 9,108 |
Total assets | 1,008,468 | 1,049,698 |
Current liabilities: | ||
Accounts payable | 11,465 | 7,333 |
Accrued liabilities | 49,150 | 56,027 |
Total current liabilities | 60,615 | 63,360 |
Convertible senior notes | 281,056 | 280,026 |
Operating lease liability | 29,129 | 29,650 |
Finance lease liability | 72,319 | 72,699 |
Deferred tax liability, net | 7,301 | 7,318 |
Other liabilities | 9,494 | 9,494 |
Total liabilities | 459,914 | 462,547 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.001 par value; 150,000 shares authorized; 47,693 and 46,993 shares issued and 47,665 and 46,965 shares outstanding as of September 30, 2022 and December 31, 2021, respectively | 48 | 47 |
Additional paid-in capital | 985,407 | 952,432 |
Accumulated other comprehensive (loss) income | (3,823) | 15 |
Accumulated deficit | (432,946) | (365,211) |
Less treasury stock (28 shares as of September 30, 2022 and December 31, 2021) | (132) | (132) |
Total stockholders' equity | 548,554 | 587,151 |
Total liabilities and stockholders' equity | $ 1,008,468 | $ 1,049,698 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares shares in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 47,693 | 46,993 |
Common stock, shares outstanding | 47,665 | 46,965 |
Treasury stock, shares | 28 | 28 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 71,269 | $ 74,710 | $ 211,635 | $ 220,771 |
Cost of sales | 16,861 | 15,370 | 51,757 | 49,762 |
Gross profit | 54,408 | 59,340 | 159,878 | 171,009 |
Operating expenses: | ||||
Selling, general and administrative | 47,149 | 44,470 | 140,998 | 131,691 |
Research and development | 28,870 | 28,846 | 87,459 | 74,321 |
In-process research and development | 5,000 | 10,000 | 10,000 | |
Litigation-related settlement | (30,000) | (30,000) | (30,000) | |
Total operating expenses | 76,019 | 48,316 | 208,457 | 186,012 |
(Loss) income from operations | (21,611) | 11,024 | (48,579) | (15,003) |
Non-operating expense: | ||||
Interest income | 744 | 291 | 1,415 | 1,016 |
Interest expense | (3,481) | (3,413) | (10,311) | (9,948) |
Other expense, net | (2,981) | (1,470) | (9,792) | (3,097) |
Total non-operating expense | (5,718) | (4,592) | (18,688) | (12,029) |
(Loss) income before taxes | (27,329) | 6,432 | (67,267) | (27,032) |
Income tax provision | 247 | 202 | 468 | 689 |
Net (loss) income | $ (27,576) | $ 6,230 | $ (67,735) | $ (27,721) |
Basic net (loss) income per share (in dollar per share) | $ (0.58) | $ 0.13 | $ (1.43) | $ (0.60) |
Diluted net (loss) income per share (in dollar per share) | $ (0.58) | $ 0.13 | $ (1.43) | $ (0.60) |
Weighted average shares used to compute basic net (loss) income per share | 47,614 | 46,737 | 47,346 | 46,255 |
Weighted average shares used to compute diluted net (loss) income per share | 47,614 | 49,320 | 47,346 | 46,255 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net (loss) income | $ (27,576) | $ 6,230 | $ (67,735) | $ (27,721) |
Other comprehensive (loss) income | ||||
Foreign currency translation gain | 342 | 369 | 1,500 | 548 |
Unrealized loss on short-term investments | (450) | (34) | (5,338) | (565) |
Other comprehensive (loss) income | (108) | 335 | (3,838) | (17) |
Total comprehensive (loss) income | $ (27,684) | $ 6,565 | $ (71,573) | $ (27,738) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Adjustment Additional Paid-in-Capital | Adjustment Accumulated Deficit | Adjustment | Common Stock | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit | Treasury Stock | Total |
Balance at Dec. 31, 2020 | $ (81,553) | $ (5,560) | $ (87,113) | $ 45 | $ 976,590 | $ 1,004 | $ (310,058) | $ (132) | $ 667,449 |
Balance (in shares) at Dec. 31, 2020 | 45,275 | ||||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2020 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | $ 1 | 17,034 | 17,035 | ||||||
Common stock issued under stock plans (in shares) | 741 | ||||||||
Stock-based compensation | 8,748 | 8,748 | |||||||
Other comprehensive income (loss) | 124 | 124 | |||||||
Net loss | (16,469) | (16,469) | |||||||
Balance at Mar. 31, 2021 | $ 46 | 920,819 | 1,128 | (332,087) | $ (132) | 589,774 | |||
Balance (in shares) at Mar. 31, 2021 | 46,016 | ||||||||
Treasury Stock, Shares, Ending Balance at Mar. 31, 2021 | (28) | ||||||||
Balance at Dec. 31, 2020 | $ (81,553) | $ (5,560) | $ (87,113) | $ 45 | 976,590 | 1,004 | (310,058) | $ (132) | 667,449 |
Balance (in shares) at Dec. 31, 2020 | 45,275 | ||||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2020 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Other comprehensive income (loss) | (17) | ||||||||
Net loss | (27,721) | ||||||||
Balance at Sep. 30, 2021 | $ 47 | 943,486 | 987 | (343,339) | $ (132) | 601,049 | |||
Balance (in shares) at Sep. 30, 2021 | 46,892 | ||||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2021 | (28) | ||||||||
Balance at Mar. 31, 2021 | $ 46 | 920,819 | 1,128 | (332,087) | $ (132) | 589,774 | |||
Balance (in shares) at Mar. 31, 2021 | 46,016 | ||||||||
Treasury Stock, Shares, Beginning Balance at Mar. 31, 2021 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | 4,525 | 4,525 | |||||||
Common stock issued under stock plans (in shares) | 481 | ||||||||
Stock-based compensation | 7,984 | 7,984 | |||||||
Other comprehensive income (loss) | (476) | (476) | |||||||
Net loss | (17,482) | (17,482) | |||||||
Balance at Jun. 30, 2021 | $ 46 | 933,328 | 652 | (349,569) | $ (132) | 584,325 | |||
Balance (in shares) at Jun. 30, 2021 | 46,497 | ||||||||
Treasury Stock, Shares, Ending Balance at Jun. 30, 2021 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | $ 1 | 3,969 | 3,970 | ||||||
Common stock issued under stock plans (in shares) | 395 | ||||||||
Stock-based compensation | 6,189 | 6,189 | |||||||
Other comprehensive income (loss) | 335 | 335 | |||||||
Net loss | 6,230 | 6,230 | |||||||
Balance at Sep. 30, 2021 | $ 47 | 943,486 | 987 | (343,339) | $ (132) | 601,049 | |||
Balance (in shares) at Sep. 30, 2021 | 46,892 | ||||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2021 | (28) | ||||||||
Balance at Dec. 31, 2021 | $ 47 | 952,432 | 15 | (365,211) | $ (132) | $ 587,151 | |||
Balance (in shares) at Dec. 31, 2021 | 46,993 | 46,965 | |||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2021 | (28) | (28) | |||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | 1,515 | $ 1,515 | |||||||
Common stock issued under stock plans (in shares) | 124 | ||||||||
Stock-based compensation | 6,923 | 6,923 | |||||||
Other comprehensive income (loss) | (3,402) | (3,402) | |||||||
Net loss | 5,377 | 5,377 | |||||||
Balance at Mar. 31, 2022 | $ 47 | 960,870 | (3,387) | (359,834) | $ (132) | 597,564 | |||
Balance (in shares) at Mar. 31, 2022 | 47,117 | ||||||||
Treasury Stock, Shares, Ending Balance at Mar. 31, 2022 | (28) | ||||||||
Balance at Dec. 31, 2021 | $ 47 | 952,432 | 15 | (365,211) | $ (132) | $ 587,151 | |||
Balance (in shares) at Dec. 31, 2021 | 46,993 | 46,965 | |||||||
Treasury Stock, Shares, Beginning Balance at Dec. 31, 2021 | (28) | (28) | |||||||
Stockholders' Deficit | |||||||||
Other comprehensive income (loss) | $ (3,838) | ||||||||
Net loss | (67,735) | ||||||||
Balance at Sep. 30, 2022 | $ 48 | 985,407 | (3,823) | (432,946) | $ (132) | $ 548,554 | |||
Balance (in shares) at Sep. 30, 2022 | 47,693 | 47,665 | |||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2022 | (28) | (28) | |||||||
Balance at Mar. 31, 2022 | $ 47 | 960,870 | (3,387) | (359,834) | $ (132) | $ 597,564 | |||
Balance (in shares) at Mar. 31, 2022 | 47,117 | ||||||||
Treasury Stock, Shares, Beginning Balance at Mar. 31, 2022 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | $ 1 | 237 | 238 | ||||||
Common stock issued under stock plans (in shares) | 331 | ||||||||
Stock-based compensation | 10,539 | 10,539 | |||||||
Other comprehensive income (loss) | (328) | (328) | |||||||
Net loss | (45,536) | (45,536) | |||||||
Balance at Jun. 30, 2022 | $ 48 | 971,646 | (3,715) | (405,370) | $ (132) | 562,477 | |||
Balance (in shares) at Jun. 30, 2022 | 47,448 | ||||||||
Treasury Stock, Shares, Ending Balance at Jun. 30, 2022 | (28) | ||||||||
Stockholders' Deficit | |||||||||
Common stock issued under stock plans | 4,350 | 4,350 | |||||||
Common stock issued under stock plans (in shares) | 245 | ||||||||
Stock-based compensation | 9,411 | 9,411 | |||||||
Other comprehensive income (loss) | (108) | (108) | |||||||
Net loss | (27,576) | (27,576) | |||||||
Balance at Sep. 30, 2022 | $ 48 | $ 985,407 | $ (3,823) | $ (432,946) | $ (132) | $ 548,554 | |||
Balance (in shares) at Sep. 30, 2022 | 47,693 | 47,665 | |||||||
Treasury Stock, Shares, Ending Balance at Sep. 30, 2022 | (28) | (28) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net loss | $ (67,735) | $ (27,721) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 4,710 | 3,475 |
Amortization of intangible assets | 18,684 | 18,684 |
Amortization of lease right-of-use assets | 3,378 | 3,519 |
Amortization of debt issuance costs | 1,030 | 1,030 |
Deferred income tax benefit | (17) | (72) |
Gain on disposal of fixed assets | 29 | (3) |
Stock-based compensation | 26,873 | 22,921 |
Unrealized foreign currency losses | 4,219 | 1,836 |
Amortization of premium on short-term investments | 601 | 773 |
Other liabilities | 1,951 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,121) | 494 |
Inventory | (11,881) | (4,257) |
Prepaid expenses and other current assets | (3,355) | (5,039) |
Accounts payable and accrued liabilities | (1,847) | 11,666 |
Other assets | (515) | 102 |
Net cash (used in) provided by operating activities | (28,947) | 29,359 |
Investing activities | ||
Purchases of short-term investments | (47,256) | (191,756) |
Proceeds from sales and maturities of short-term investments | 97,494 | 182,356 |
Purchases of property and equipment | (22,044) | (38,458) |
Proceeds from disposal of property and equipment | 96 | 3 |
Investment in company-owned life insurance | (166) | (1,505) |
Net cash provided by (used in) investing activities | 28,124 | (49,360) |
Financing activities | ||
Proceeds from exercise of stock options | 2,871 | 24,383 |
Proceeds from share purchases under Employee Stock Purchase Plan | 5,630 | 4,817 |
Payment of employee taxes related to vested restricted stock units | (2,399) | (3,670) |
Principal paid on finance lease | (380) | (555) |
Proceeds from tenant improvement allowance | 12,668 | |
Net cash provided by financing activities | 5,722 | 37,643 |
Effect of exchange rate changes on cash and cash equivalents | (1,927) | (1,257) |
Net increase in cash, cash equivalents and restricted cash | 2,972 | 16,385 |
Cash, cash equivalents and restricted cash at beginning of period | 110,124 | 106,162 |
Cash, cash equivalents and restricted cash at end of period | 113,096 | 122,547 |
Supplemental disclosures of cash flow information | ||
Taxes paid | 372 | 307 |
Interest paid on convertible senior notes | 3,953 | 3,953 |
Other interest paid | 3,350 | 2,983 |
Supplemental schedule of noncash investing and financing activities | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | $ 3,258 | $ 2,244 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Organization and business Glaukos Corporation (Glaukos or the Company), incorporated in Delaware on July 14, 1998, is an ophthalmic medical technology and pharmaceutical company focused on developing novel therapies for the treatment of glaucoma, corneal disorders, and retinal disease. The Company developed Micro-Invasive Glaucoma Surgery (MIGS) to serve as an alternative to the traditional glaucoma treatment paradigm and launched its first MIGS device commercially in 2012. The Company also offers commercially a proprietary bio-activated pharmaceutical therapy for the treatment of a rare The accompanying condensed consolidated financial statements include the accounts of Glaukos and its wholly-owned subsidiaries. All significant intercompany balances and transactions among the consolidated entities have been eliminated in consolidation. Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (GAAP) in the U.S. for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements. As permitted under those rules, certain footnotes and other financial information that are normally required by GAAP have been condensed or omitted. In the opinion of management, the unaudited interim financial statements reflect all adjustments necessary for the fair presentation of the Company’s financial information contained herein. All such adjustments are of a normal and recurring nature. The condensed consolidated balance sheet as of December 31, 2021 has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. These interim financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2021, which are contained in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2022. The Company’s results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period. Recent Developments iVeena License Agreement Effective June 9, 2022, the Company entered into an exclusive licensing agreement (iVeena License Agreement) with iVeena Delivery Systems, Inc. (iVeena) under which iVeena granted Glaukos a global exclusive license to iVeena’s proprietary technologies, including certain compositions that may be utilized in the treatment of keratoconus. Under the iVeena License Agreement, the Company has the exclusive global right to manufacture and commercialize products incorporating certain of iVeena’s owned or controlled technologies, including certain chemical compositions, for the treatment of keratoconus. Pursuant to the terms of the iVeena License Agreement, the Company made a one-time upfront payment to iVeena of $10.0 million, which is included in in-process research and development expenses within the condensed consolidated statement of operations. The Company accounted for the transaction as an asset acquisition as the set of acquired assets did not constitute a business. Settlement of Patent Litigation On September 14, 2021, the Company entered into a settlement agreement (Settlement Agreement) with Ivantis, Inc. (Ivantis), pursuant to which the Company and Ivantis agreed to terminate the patent infringement lawsuit the Company had filed against Ivantis on April 14, 2018 in the U.S. District Court for the Central District of California, Southern Division. Pursuant to the terms of the Settlement Agreement, Ivantis was required to pay the Company a cash payment of $60.0 million, $30.0 million of which was paid to the Company during the year ended December 31, 2021, and $30.0 million of which was received by the Company during the quarter ended March 31, 2022 and is included in litigation-related settlement as a reduction of operating expenses on the condensed consolidated statements of operations for the nine months ended September 30, 2022. Additionally, Ivantis began making quarterly royalty payments to the Company in the amount of 10% of Ivantis’ Hydrus Microstent U.S. sales and any international sales supplied out of the U.S. beginning in the fourth quarter of 2021 through April 26, 2025, subject to a per-unit minimum payment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies There have been no significant changes in the Company’s significant accounting policies during the nine months ended September 30, 2022, as compared with those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Management considers many factors in selecting appropriate financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, this process may result in actual results differing materially from those estimated amounts used in the preparation of the condensed consolidated financial statements. The Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2022 reflect the Company’s estimates of the impact of the macroeconomic environment, including the impact of inflation, higher interest rates, foreign exchange rate fluctuations and the COVID-19 pandemic. The duration and scope of these conditions cannot be predicted; therefore, the extent to which these conditions will directly or indirectly impact the Company’s business, results of operations and financial condition is uncertain. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statement of cash flows as of the beginning and end of the nine months ended September 30, 2022 (in thousands): September 30, December 31, 2022 2021 Cash and cash equivalents $ 104,018 $ 100,708 Restricted cash 9,078 9,416 Cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 113,096 $ 110,124 Recently Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Details | |
Balance Sheet Details | Note 3. Balance Sheet Details Short-term Investments Short-term investments consisted of the following (in thousands): At September 30, 2022 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government bonds less than 2 $ 76,785 $ — $ (960) $ 75,825 U.S. government agency bonds less than 3 88,530 7 (2,834) 85,703 Bank certificates of deposit less than 2 5,500 — (22) 5,478 Corporate notes less than 3 48,301 — (1,191) 47,110 Asset-backed securities less than 2 25,980 1 (406) 25,575 Municipal bonds less than 3 18,421 — (512) 17,909 Total $ 263,517 $ 8 $ (5,925) $ 257,600 At December 31, 2021 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds less than 3 123,803 8 (540) 123,271 U.S. government bonds less than 1 $ 76,765 $ — $ (240) $ 76,525 Bank certificates of deposit less than 1 12,500 1 (9) 12,492 Commercial paper less than 1 2,998 — (1) 2,997 Corporate notes less than 3 55,178 37 (183) 55,032 Asset-backed securities less than 2 23,761 44 (31) 23,774 Municipal bonds less than 3 19,350 — (98) 19,252 Total $ 314,355 $ 90 $ (1,102) $ 313,343 As of September 30, 2022 and December 31, 2021, the total amortized cost basis of the Company’s available-for-sale securities exceeded its fair value by $5.9 million and $1.0 million, respectively. Unrealized losses on these investments were primarily due to changes in interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis. Accordingly, no allowance for credit losses was recognized as of September 30, 2022 or December 31, 2021. Accounts Receivable, Net Accounts receivable consisted of the following (in thousands): September 30, December 31, 2022 2021 Accounts receivable $ 35,899 $ 34,805 Allowance for credit losses (1,133) (1,367) $ 34,766 $ 33,438 The Company’s allowance for credit losses represents management’s estimate of current expected credit losses. There were immaterial bad-debt write offs charged during the three and nine months ended September 30, 2022. Additionally, no customers accounted for more than 10% of net accounts receivable as of September 30, 2022 or December 31, 2021. Inventory Inventory consisted of the following (in thousands): September 30, December 31, 2022 2021 Finished goods $ 14,547 $ 6,495 Work in process 9,051 7,010 Raw material 10,584 9,506 $ 34,182 $ 23,011 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued bonuses $ 11,901 $ 17,015 Accrued vacation benefits 4,419 4,196 Other accrued liabilities 32,830 34,816 $ 49,150 $ 56,027 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4. Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying amounts of cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. The valuation of assets and liabilities is subject to fair value measurements using a three-tiered approach and fair value measurements are classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): At September 30, 2022 Quoted prices Significant in active other Significant markets for observable unobservable September 30, identical assets inputs inputs 2022 (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds (i) $ 46,243 $ 46,243 $ - $ - Available for sale securities: U.S. government agency bonds (ii) $ 85,703 $ - $ 85,703 $ - U.S. government bonds (ii) 75,825 - 75,825 - Bank certificates of deposit (ii) 5,478 - 5,478 - Corporate notes (ii) 47,110 - 47,110 - Asset-backed securities (ii) 25,575 - 25,575 - Municipal bonds (ii) 17,909 - 17,909 - Investments held for deferred compensation plans 7,578 - 7,578 - Total Assets $ 311,421 $ 46,243 $ 265,178 $ - Liabilities Deferred compensation plans $ 7,444 $ - $ 7,444 $ - Total Liabilities $ 7,444 $ - $ 7,444 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed consolidated balance sheets. At December 31, 2021 Quoted prices Significant in active other Significant markets for observable unobservable December 31, identical assets inputs inputs 2021 (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds (i) $ 4,212 $ 4,212 $ - $ - Available for sale securities: U.S. government agency bonds (ii) $ 123,271 $ - $ 123,271 $ - U.S. government bonds (ii) 76,525 - 76,525 - Bank certificates of deposit (ii) 12,492 - 12,492 - Commercial paper (ii) 2,997 - 2,997 - Corporate notes (ii) 55,032 - 55,032 - Asset-backed securities (ii) 23,774 - 23,774 - Municipal bonds (ii) 19,252 - 19,252 - Investments held for deferred compensation plans 7,412 7,412 - Total Assets $ 324,967 $ 4,212 $ 320,755 $ - Liabilities Deferred compensation plans $ 7,302 $ - $ 7,302 $ - Total Liabilities $ 7,302 $ - $ 7,302 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed consolidated balance sheets. Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. U.S. government agency bonds, U.S. government bonds, bank certificates of deposit, commercial paper, municipal bonds, corporate notes and asset-backed securities are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. Pursuant to the Company’s deferred compensation plan (the Deferred Compensation Plan), the Company has also established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The investments of the rabbi trust and Deferred Compensation Plan liability consist of company-owned life insurance policies (COLIs) and the pricing on these investments can be independently evaluated. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from third party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. There were no transfers between levels within the fair value hierarchy during the periods presented. The Company did not have any assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of September 30, 2022 and December 31, 2021. Convertible Senior Notes As of September 30, 2022 and December 31, 2021, the fair value of the Company’s 2.75% convertible notes due 2027 (Convertible Notes) was $377.9 million and $341.8 million, respectively. The fair value was determined on the basis of the market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. See Note 9, Convertible Senior Notes |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Leases | Note 5. Leases The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company’s leases have remaining non-cancelable lease terms of approximately one year to thirteen years, some of which include options to extend the leases for up to ten years. The exercise of lease renewal options is at the Company’s sole discretion. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, landlord incentives and/or inflation. The Company’s office building lease in Aliso Viejo, California (Aliso Facility) is one property containing three existing office buildings, comprising approximately 160,000 rentable square feet of space, which was accounted for as a finance lease. The term of the Aliso Facility commenced on April 1, 2019 for expense recognition and continues for thirteen years. The lease agreement contains an option to extend the lease for two additional five year periods at market rates. The Company relocated its corporate administrative headquarters, along with certain laboratory, research and development and warehouse space, to the Aliso Facility in the second quarter of 2022. The Company also leases two adjacent facilities located in San Clemente, California and a facility in Burlington, Massachusetts. The total leased square footage of the San Clemente facilities equals approximately 98,000 and the leases expire on May 31, 2030. Each San Clemente facility lease contains an option to extend the lease for one additional five-year period at market rates. The total leased square footage of the Burlington facility is approximately 60,000 square feet, and the lease expires on July 31, 2033. The Burlington facility lease contains an option to extend the lease for one additional five-year period at market rates. The Company terminated its lease in Waltham, Massachusetts pursuant to a termination agreement during the first quarter of 2022. The Company’s remaining U.S.-based and foreign subsidiaries’ leased office space totals less than 14,000 square feet. The following table presents the maturity of the Company’s operating and finance lease liabilities as of September 30, 2022: Maturity of Lease Liabilities Operating Finance (in thousands) Leases (a) Leases (b) Remainder of 2022 $ 527 $ — 2023 2,864 6,264 2024 3,335 5,184 2025 3,291 5,340 2026 3,362 5,500 2027 3,467 5,665 Thereafter 33,759 101,880 Total lease payments $ 50,605 $ 129,833 Less: imputed interest 21,307 57,514 Total lease liabilities $ 29,298 $ 72,319 (a) Operating lease payments include $ 20.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $75.8 million related to options to extend lease terms that are reasonably certain of being exercised. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
Intangible Assets and Goodwill | |
Intangible Assets and Goodwill | Note 6. Intangible Assets and Goodwill Intangible assets For the three months ended September 30, 2022 and September 30, 2021, amortization expense related to finite-lived intangible assets was approximately $5.5 million and $0.7 million, respectively, recorded in cost of sales and selling, general and administrative expenses, in the condensed consolidated statement of operations. For the nine months ended September 30, 2022 and September 30, 2021, amortization expense related to the above finite-lived intangible assets was approximately $16.6 million and $2.1 million, respectively, recorded in cost of sales and selling, general and administrative expenses, in the condensed consolidated statements of operations. The Company evaluated its indefinite-lived intangible assets for impairment utilizing the methodology pursuant to the adoption of ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) Goodwill The assessment of goodwill by reporting unit is performed annually, in the fourth quarter, or more frequently if events or circumstances indicate the carrying value may no longer be recoverable and that an impairment loss may have occurred. The Company considered the current and expected future economic and market conditions and its impact on the Company’s reporting unit. The following table presents the composition of the Company’s intangible assets and goodwill (in thousands): Estimated As of September 30, 2022 As of December 31, 2021 Useful Gross Gross Life Carrying Accumulated Net Carrying Accumulated Net (in years) Amount Amortization Amount Amount Amortization Amount Developed technology 11.4 $ 252,200 (63,055) 189,145 252,200 (46,485) 205,715 Customer relationships 5.0 14,100 (8,048) 6,052 14,100 (5,934) 8,166 Intangible assets subject to amortization 266,300 (71,103) 195,197 266,300 (52,419) 213,881 In-process research and development Indefinite $ 118,900 — 118,900 118,900 — 118,900 Goodwill Indefinite $ 66,134 — 66,134 66,134 — 66,134 Total $ 451,334 $ (71,103) $ 380,231 $ 451,334 $ (52,419) $ 398,915 As of September 30, 2022, expected amortization expense for unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands): Amortization Expense Remainder of 2022 $ 6,228 2023 24,912 2024 24,619 2025 22,092 2026 22,092 Thereafter 95,254 Total amortization $ 195,197 Actual amortization expense to be reported in future periods could differ from these estimates as a result of asset impairments, acquisitions, or other facts and circumstances. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 7. Revenue from Contracts with Customers The Company’s net sales are generated primarily from sales of iStent Photrexa Revenue is recognized at an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services, and substantially all of the Company’s net sales for the three and nine months ended September 30, 2022 are considered revenue from contracts with customers. Disaggregation of Revenue The Company’s revenues disaggregated by product category and geography for the three and nine months ended September 30, 2022 and September 30, 2021 were as follows (in thousands): Three Months Ended September 30, United States International Total 2022 2021 2022 2021 2022 2021 Glaucoma $ 37,214 $ 43,381 $ 16,532 $ 15,099 $ 53,746 $ 58,480 Corneal Health 14,992 13,381 2,531 2,849 17,523 16,230 Total $ 52,206 $ 56,762 $ 19,063 $ 17,948 $ 71,269 $ 74,710 Nine Months Ended September 30, United States International Total 2022 2021 2022 2021 2022 2021 Glaucoma $ 109,312 $ 129,583 $ 52,047 $ 45,320 $ 161,359 $ 174,903 Corneal Health 42,643 38,654 7,633 7,214 50,276 45,868 Total $ 151,955 $ 168,237 $ 59,680 $ 52,534 $ 211,635 $ 220,771 Contract Balances Contract Assets Amounts are recorded as accounts receivable when the Company’s right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days for glaucoma and corneal health products, though extended payment terms on corneal health products may be offered. However, the Company does not consider any significant financing components in customer contracts given the expected time between transfer of the promised products and the payment of the associated consideration is less than one year. As of September 30, 2022 and December 31, 2021, all amounts included in accounts receivable, net on the condensed consolidated balance sheets are related to contracts with customers. Aside from the aforementioned contract assets, the Company does not have any contract assets given that the Company does not have any unbilled receivables and sales commissions on other products are expensed within selling, general and administrative expenses within the condensed consolidated statement of operations when incurred as any incremental cost of obtaining contracts with customers would have an amortization period of less than one year. Contract Liabilities Contract liabilities reflect consideration received from customers’ purchases allocated to the Company’s future performance obligations. The Company has a performance obligation to issue a rebate to customers who may be eligible for a rebate at the conclusion of their contract term. This performance obligation is transferred over time and the Company’s method of measuring progress is the output method, whereby the progress is measured by the estimated rebate earned to date over the total rebate estimated to be earned over the contract period. The Company’s rebate allowance is included in accrued liabilities in the condensed consolidated balance sheets and estimated rebates accrued were not material during the periods presented. During the three and nine months ended September 30, 2022 and September 30, 2021, the Company did not recognize any revenue related to material changes in transaction prices regarding its contracts with customers and did not recognize any material changes in revenue related to amounts included in contract liabilities at the beginning of the period. The Company’s net sales within a fiscal year may be impacted seasonally, as |
Net (Loss) Income per Share
Net (Loss) Income per Share | 9 Months Ended |
Sep. 30, 2022 | |
Net (Loss) Income per Share | |
Net (Loss) Income per Share | Note 8. Net (Loss) Income per Share Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. For periods when the Company realizes a net loss, no common stock equivalents are included in the calculation of weighted average number of dilutive common stock equivalents as the effect of applying the treasury stock method is considered anti-dilutive. For periods when the Company realizes net income, diluted net income per share is calculated by dividing the net income by the weighted average number of common shares plus the sum of the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury stock method. Common stock equivalents are comprised of stock options outstanding and unvested restricted stock units (RSUs) under the Company’s incentive compensation plans and shares issuable under the Company’s Employee Stock Purchase Plan (ESPP). The Company’s computation of net (loss) income per share is as follows (in thousands except for per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Numerator: Net loss – basic and diluted $ (27,576) $ 6,230 $ (67,735) $ (27,721) Denominator: Weighted average number of common shares outstanding - basic 47,614 46,737 47,346 46,255 Common stock equivalents from outstanding common stock options - 2,210 - - Common stock equivalents from unvested restricted stock units - 365 - - Common stock equivalents for ESPP - 8 - - Weighted average number of common shares outstanding - diluted 47,614 49,320 47,346 46,255 Basic net income (loss) per share $ (0.58) $ 0.13 $ (1.43) $ (0.60) Diluted net income (loss) per share $ (0.58) $ 0.13 $ (1.43) $ (0.60) The following potentially dilutive securities were not included in the calculation of diluted net (loss) income per share because to do so would be anti-dilutive (in common stock equivalent shares, in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Convertible senior notes 5,125 5,125 5,125 5,125 Stock options outstanding 1,677 218 2,158 3,222 Unvested restricted stock units 765 456 917 752 Employee stock purchase plan 12 - 11 5 7,579 5,799 8,211 9,104 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Senior Notes | |
Convertible Senior Notes | Note 9. Convertible Senior Notes In June 2020, the Company issued $287.5 million in aggregate principal amount of Convertible Notes pursuant to an indenture dated June 11, 2020, between the Company and Wells Fargo Bank, National Association, as trustee (the Indenture), in a private offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 2.75% per year, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The Convertible Notes will mature on June 15, 2027, unless earlier converted, redeemed or repurchased in accordance with their terms. In connection with issuing the Convertible Notes, the Company received $242.2 million in proceeds, after deducting fees and offering expenses and paying the cost of the capped call transactions described below. The Convertible Notes may be converted at the option of the holders at any time prior to the close of business on the business day immediately preceding March 15, 2027, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ended on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period immediately after any ten consecutive trading day period (the Measurement Period) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of (i) the last reported sale price of the Company’s common stock and (ii) the conversion rate in effect on each such trading day; (3) with respect to any Convertible Notes the Company calls for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date, even if the Convertible Notes are not otherwise convertible at such time; or (4) upon the occurrence of specified corporate events. On or after March 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. As of September 30, 2022, none of the conditions allowing holders of the Convertible Notes to convert had been met. Interest expense relating to the Convertible Notes in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, is summarized as follows (in thousands): Three months ended Nine Months Ended September 30, September 30, 2022 2022 Contractual interest expense $ 1,977 $ 5,930 Amortization of debt issuance costs 343 1,030 Total interest expense $ 2,320 $ 6,960 Three months ended Nine Months Ended September 30, September 30, 2021 2021 Contractual interest expense $ 1,977 $ 5,930 Amortization of debt issuance costs 343 1,030 Total interest expense $ 2,320 $ 6,960 The effective interest rate on the Convertible Notes for the three and nine months ended September 30, 2022 was 3.2% . As of September 30, 2022 and December 31, 2021, the Convertible Notes on the condensed consolidated balance sheets represented the carrying amount of the Convertible Notes, net of unamortized debt issuance costs, which are summarized as follows (in thousands): As of As of September 30, December 31, 2022 2021 Convertible Notes $ 287,500 $ 287,500 Less: Unamortized debt issuance costs (6,444) (7,474) Carrying amount of Convertible Notes $ 281,056 $ 280,026 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation. | |
Stock-Based Compensation | Note 10. Stock-Based Compensation The following table summarizes the allocation of stock-based compensation related to stock options and RSUs in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Cost of sales $ 492 $ 469 $ 1,419 $ 1,341 Selling, general and administrative 6,443 4,135 18,699 16,527 Research and development 2,476 1,585 6,755 5,053 Total $ 9,411 $ 6,189 $ 26,873 $ 22,921 At September 30, 2022, the total unamortized stock-based compensation expense was approximately $69.8 million, of which $8.1 million was attributable to stock options and is to be recognized over the stock options’ remaining vesting terms of approximately 4.0 years (1.9 years on a weighted average basis). The remaining $61.7 million was attributable to RSUs and is to be recognized over the RSUs’ vesting terms of approximately 4.0 years (2.8 years on a weighted-average basis). The total stock-based compensation cost capitalized in inventory was not material for the three and nine month periods ended September 30, 2022 and September 30, 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes | |
Income Taxes | Note 11. Income Taxes The provision for income taxes is determined using an effective tax rate. For the three and nine months ended September 30, 2022, the Company’s estimated effective tax rate of (0.90)% and (0.70)%, respectively, was lower than the U.S. federal statutory rate primarily due to the generation of U.S. net operating loss (NOL) and R&D tax credit carryforwards partially offset by a valuation allowance as well as state and foreign income taxes. The effective tax rate may be subject to fluctuations during the year as new information is obtained that may affect the assumptions used to estimate the effective tax rate, including factors such as expected utilization of NOL carryforwards, changes in or the interpretation of tax laws in jurisdictions where the Company conducts business, the Company’s expansion into new states or foreign countries, and the amount of valuation allowances against deferred tax assets. For the three and nine months ended September 30, 2022, the Company recorded a provision for income taxes of $0.2 million and $0.5 million, respectively, which was primarily comprised of current state and foreign income tax expense and deferred federal and state income tax benefits. For the three and nine months ended September 30, 2021, the Company recorded a provision for income taxes of $0.2 million and $0.7 million, respectively, which was primarily comprised of state and foreign income taxes. Additionally, the Company follows an accounting standard addressing the accounting for uncertainty in income taxes that prescribes rules for recognition, measurement and classification in the financial statements of tax positions taken or expected to be taken in a tax return. As of September 30, 2022 and December 31, 2021, the Company had gross unrecognized tax benefits of $27.6 million and $25.8 million, respectively. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, which includes a 15% minimum tax on the adjusted financial statement income of corporations with a three taxable year average annual adjusted financial statement income in excess of $1 billion, a 1% excise tax on net stock repurchases made by publicly traded US corporations and several tax incentives to promote clean energy. The alternative minimum tax and the excise tax are effective in taxable years beginning after December 31, 2022. These tax law changes are not expected to significantly impact the Company's consolidated financial statements. The Company will continue to evaluate its impact as further information becomes available. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Secured Letters of Credit The Company has a letter of credit in the amount of $8.8 million that is related to its Aliso Facility. The letter of credit is secured with an amount of cash held in a restricted account of approximately $8.8 million as of September 30, 2022 and December 31, 2021. Beginning as of the first day of the thirty-seventh month of the lease term, and on each twelve-month anniversary thereafter, the letter of credit may be reduced by 20% until the letter of credit amount has been reduced to $2.0 million. The Company has one other irrevocable standby letters of credit secured with approximately $0.3 million of cash in a restricted account related to its office lease agreements. Regents of the University of California On December 30, 2014, the Company executed an agreement (the UC Agreement) with the Regents of the University of California (the University) to correct inventorship in connection with a group of the Company’s U.S. patents (the Patent Rights) and to obtain from the University a covenant that it did not and would not claim any right or title to the Patent Rights and will not challenge or assist any others in challenging the Patent Rights. In connection with the UC Agreement, Glaukos agreed to pay to the University a low single-digit percentage of worldwide net sales of certain current and future products, including the Company’s iStent fourth quarter of 2022. For the three months ended September 30, 2022 and September 30, 2021, the Company recorded approximately $0.8 million and $1.1 million, respectively, in cost of sales in connection with the product payment. For the nine months ended September 30, 2022 and September 30, 2021, the Company recorded approximately $2.3 million and $3.2 million, respectively, in cost of sales in connection with the product payment. Executive Deferred Compensation Plan Pursuant to the Company’s Deferred Compensation Plan, eligible senior level employees are permitted to make elective deferrals of compensation to which he or she will become entitled in the future. The Company has also established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The investments of the rabbi trust consist of COLIs. The fair value of the Deferred Compensation Plan liability, included in other liabilities on the condensed consolidated balance sheets, was approximately $7.4 million and $7.3 million as of September 30, 2022 and December 31, 2021, respectively, and the cash surrender value of the COLIs, included in deposits and other assets on the condensed consolidated balance sheets, which reflects the underlying assets at fair value, was approximately $7.6 million and $7.4 million as of September 30, 2022 and December 31, 2021, respectively. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Business Segment Information | |
Business Segment Information | Note 13. Business Segment Information The Company has one business activity: the development and commercialization of therapies designed to treat glaucoma, corneal disorders and retinal diseases, and operates as one operating segment. The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company’s revenues disaggregated by revenue and product category are included in Note 7, Revenue from Contracts with Customers |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (GAAP) in the U.S. for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements. As permitted under those rules, certain footnotes and other financial information that are normally required by GAAP have been condensed or omitted. In the opinion of management, the unaudited interim financial statements reflect all adjustments necessary for the fair presentation of the Company’s financial information contained herein. All such adjustments are of a normal and recurring nature. The condensed consolidated balance sheet as of December 31, 2021 has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. These interim financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2021, which are contained in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2022. The Company’s results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Management considers many factors in selecting appropriate financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, this process may result in actual results differing materially from those estimated amounts used in the preparation of the condensed consolidated financial statements. The Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2022 reflect the Company’s estimates of the impact of the macroeconomic environment, including the impact of inflation, higher interest rates, foreign exchange rate fluctuations and the COVID-19 pandemic. The duration and scope of these conditions cannot be predicted; therefore, the extent to which these conditions will directly or indirectly impact the Company’s business, results of operations and financial condition is uncertain. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statement of cash flows as of the beginning and end of the nine months ended September 30, 2022 (in thousands): September 30, December 31, 2022 2021 Cash and cash equivalents $ 104,018 $ 100,708 Restricted cash 9,078 9,416 Cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 113,096 $ 110,124 |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of cash and cash equivalents and restricted cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statement of cash flows as of the beginning and end of the nine months ended September 30, 2022 (in thousands): September 30, December 31, 2022 2021 Cash and cash equivalents $ 104,018 $ 100,708 Restricted cash 9,078 9,416 Cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 113,096 $ 110,124 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Details | |
Schedule of short-term investments | Short-term investments consisted of the following (in thousands): At September 30, 2022 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government bonds less than 2 $ 76,785 $ — $ (960) $ 75,825 U.S. government agency bonds less than 3 88,530 7 (2,834) 85,703 Bank certificates of deposit less than 2 5,500 — (22) 5,478 Corporate notes less than 3 48,301 — (1,191) 47,110 Asset-backed securities less than 2 25,980 1 (406) 25,575 Municipal bonds less than 3 18,421 — (512) 17,909 Total $ 263,517 $ 8 $ (5,925) $ 257,600 At December 31, 2021 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds less than 3 123,803 8 (540) 123,271 U.S. government bonds less than 1 $ 76,765 $ — $ (240) $ 76,525 Bank certificates of deposit less than 1 12,500 1 (9) 12,492 Commercial paper less than 1 2,998 — (1) 2,997 Corporate notes less than 3 55,178 37 (183) 55,032 Asset-backed securities less than 2 23,761 44 (31) 23,774 Municipal bonds less than 3 19,350 — (98) 19,252 Total $ 314,355 $ 90 $ (1,102) $ 313,343 |
Schedule of accounts receivable, net | Accounts receivable consisted of the following (in thousands): September 30, December 31, 2022 2021 Accounts receivable $ 35,899 $ 34,805 Allowance for credit losses (1,133) (1,367) $ 34,766 $ 33,438 |
Schedule of inventory | Inventory consisted of the following (in thousands): September 30, December 31, 2022 2021 Finished goods $ 14,547 $ 6,495 Work in process 9,051 7,010 Raw material 10,584 9,506 $ 34,182 $ 23,011 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued bonuses $ 11,901 $ 17,015 Accrued vacation benefits 4,419 4,196 Other accrued liabilities 32,830 34,816 $ 49,150 $ 56,027 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Schedule of the Company's financial assets and financial liabilities measured at fair value on a recurring basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): At September 30, 2022 Quoted prices Significant in active other Significant markets for observable unobservable September 30, identical assets inputs inputs 2022 (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds (i) $ 46,243 $ 46,243 $ - $ - Available for sale securities: U.S. government agency bonds (ii) $ 85,703 $ - $ 85,703 $ - U.S. government bonds (ii) 75,825 - 75,825 - Bank certificates of deposit (ii) 5,478 - 5,478 - Corporate notes (ii) 47,110 - 47,110 - Asset-backed securities (ii) 25,575 - 25,575 - Municipal bonds (ii) 17,909 - 17,909 - Investments held for deferred compensation plans 7,578 - 7,578 - Total Assets $ 311,421 $ 46,243 $ 265,178 $ - Liabilities Deferred compensation plans $ 7,444 $ - $ 7,444 $ - Total Liabilities $ 7,444 $ - $ 7,444 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed consolidated balance sheets. At December 31, 2021 Quoted prices Significant in active other Significant markets for observable unobservable December 31, identical assets inputs inputs 2021 (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds (i) $ 4,212 $ 4,212 $ - $ - Available for sale securities: U.S. government agency bonds (ii) $ 123,271 $ - $ 123,271 $ - U.S. government bonds (ii) 76,525 - 76,525 - Bank certificates of deposit (ii) 12,492 - 12,492 - Commercial paper (ii) 2,997 - 2,997 - Corporate notes (ii) 55,032 - 55,032 - Asset-backed securities (ii) 23,774 - 23,774 - Municipal bonds (ii) 19,252 - 19,252 - Investments held for deferred compensation plans 7,412 7,412 - Total Assets $ 324,967 $ 4,212 $ 320,755 $ - Liabilities Deferred compensation plans $ 7,302 $ - $ 7,302 $ - Total Liabilities $ 7,302 $ - $ 7,302 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Schedule of maturity of lease liability | Maturity of Lease Liabilities Operating Finance (in thousands) Leases (a) Leases (b) Remainder of 2022 $ 527 $ — 2023 2,864 6,264 2024 3,335 5,184 2025 3,291 5,340 2026 3,362 5,500 2027 3,467 5,665 Thereafter 33,759 101,880 Total lease payments $ 50,605 $ 129,833 Less: imputed interest 21,307 57,514 Total lease liabilities $ 29,298 $ 72,319 (a) Operating lease payments include $ 20.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $75.8 million related to options to extend lease terms that are reasonably certain of being exercised. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Intangible Assets and Goodwill | |
Schedule reflecting the composition of intangible assets and goodwill | The following table presents the composition of the Company’s intangible assets and goodwill (in thousands): Estimated As of September 30, 2022 As of December 31, 2021 Useful Gross Gross Life Carrying Accumulated Net Carrying Accumulated Net (in years) Amount Amortization Amount Amount Amortization Amount Developed technology 11.4 $ 252,200 (63,055) 189,145 252,200 (46,485) 205,715 Customer relationships 5.0 14,100 (8,048) 6,052 14,100 (5,934) 8,166 Intangible assets subject to amortization 266,300 (71,103) 195,197 266,300 (52,419) 213,881 In-process research and development Indefinite $ 118,900 — 118,900 118,900 — 118,900 Goodwill Indefinite $ 66,134 — 66,134 66,134 — 66,134 Total $ 451,334 $ (71,103) $ 380,231 $ 451,334 $ (52,419) $ 398,915 |
Schedule of expected amortization of finite-lived intangible assets | As of September 30, 2022, expected amortization expense for unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands): Amortization Expense Remainder of 2022 $ 6,228 2023 24,912 2024 24,619 2025 22,092 2026 22,092 Thereafter 95,254 Total amortization $ 195,197 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Schedule of disaggregation of revenue | The Company’s revenues disaggregated by product category and geography for the three and nine months ended September 30, 2022 and September 30, 2021 were as follows (in thousands): Three Months Ended September 30, United States International Total 2022 2021 2022 2021 2022 2021 Glaucoma $ 37,214 $ 43,381 $ 16,532 $ 15,099 $ 53,746 $ 58,480 Corneal Health 14,992 13,381 2,531 2,849 17,523 16,230 Total $ 52,206 $ 56,762 $ 19,063 $ 17,948 $ 71,269 $ 74,710 Nine Months Ended September 30, United States International Total 2022 2021 2022 2021 2022 2021 Glaucoma $ 109,312 $ 129,583 $ 52,047 $ 45,320 $ 161,359 $ 174,903 Corneal Health 42,643 38,654 7,633 7,214 50,276 45,868 Total $ 151,955 $ 168,237 $ 59,680 $ 52,534 $ 211,635 $ 220,771 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Net (Loss) Income per Share | |
Schedule of the Company's net income (loss) per share | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Numerator: Net loss – basic and diluted $ (27,576) $ 6,230 $ (67,735) $ (27,721) Denominator: Weighted average number of common shares outstanding - basic 47,614 46,737 47,346 46,255 Common stock equivalents from outstanding common stock options - 2,210 - - Common stock equivalents from unvested restricted stock units - 365 - - Common stock equivalents for ESPP - 8 - - Weighted average number of common shares outstanding - diluted 47,614 49,320 47,346 46,255 Basic net income (loss) per share $ (0.58) $ 0.13 $ (1.43) $ (0.60) Diluted net income (loss) per share $ (0.58) $ 0.13 $ (1.43) $ (0.60) |
Schedule of potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Convertible senior notes 5,125 5,125 5,125 5,125 Stock options outstanding 1,677 218 2,158 3,222 Unvested restricted stock units 765 456 917 752 Employee stock purchase plan 12 - 11 5 7,579 5,799 8,211 9,104 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Senior Notes | |
Schedule of interest expense relating to the Convertible Notes | Interest expense relating to the Convertible Notes in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, is summarized as follows (in thousands): Three months ended Nine Months Ended September 30, September 30, 2022 2022 Contractual interest expense $ 1,977 $ 5,930 Amortization of debt issuance costs 343 1,030 Total interest expense $ 2,320 $ 6,960 Three months ended Nine Months Ended September 30, September 30, 2021 2021 Contractual interest expense $ 1,977 $ 5,930 Amortization of debt issuance costs 343 1,030 Total interest expense $ 2,320 $ 6,960 |
Schedule of convertible senior notes | As of September 30, 2022 and December 31, 2021, the Convertible Notes on the condensed consolidated balance sheets represented the carrying amount of the Convertible Notes, net of unamortized debt issuance costs, which are summarized as follows (in thousands): As of As of September 30, December 31, 2022 2021 Convertible Notes $ 287,500 $ 287,500 Less: Unamortized debt issuance costs (6,444) (7,474) Carrying amount of Convertible Notes $ 281,056 $ 280,026 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation. | |
Schedule summarizing the allocation of stock-based compensation | The following table summarizes the allocation of stock-based compensation related to stock options and RSUs in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Cost of sales $ 492 $ 469 $ 1,419 $ 1,341 Selling, general and administrative 6,443 4,135 18,699 16,527 Research and development 2,476 1,585 6,755 5,053 Total $ 9,411 $ 6,189 $ 26,873 $ 22,921 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Settlement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 09, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 14, 2021 | |
Other commitments | |||||||
Litigation-related settlement | $ 30,000 | $ 30,000 | $ 30,000 | ||||
Patent Litigation | Settled Litigation | |||||||
Other commitments | |||||||
Total agreed settlement amount | $ 60,000 | ||||||
Litigation-related settlement | $ 30,000 | $ 30,000 | |||||
Royalty fee (as a percent) | 10% | ||||||
iVeena License Agreement | |||||||
Other commitments | |||||||
Commitment obligation payments | $ 10,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted cash | ||||
Cash and cash equivalents | $ 104,018 | $ 100,708 | ||
Restricted cash | 9,078 | 9,416 | ||
cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows | $ 113,096 | $ 110,124 | $ 122,547 | $ 106,162 |
Balance Sheet Details - Short-T
Balance Sheet Details - Short-Term Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Short-term investments | ||
Amortized cost | $ 263,517 | $ 314,355 |
Unrealized gains | 8 | 90 |
Unrealized losses | (5,925) | (1,102) |
Estimated fair value | 257,600 | 313,343 |
Unrecognized impairment of available-for sale securities | 5,900 | 1,000 |
Available-for-sale securities allowance for credit losses | 0 | 0 |
U.S. Government bonds | ||
Short-term investments | ||
Amortized cost | 76,785 | 76,765 |
Unrealized losses | (960) | (240) |
Estimated fair value | $ 75,825 | $ 76,525 |
U.S. Government bonds | Maximum | ||
Short-term investments | ||
Maturity | 2 years | 1 year |
U.S. Government agency bonds | ||
Short-term investments | ||
Amortized cost | $ 88,530 | $ 123,803 |
Unrealized gains | 7 | 8 |
Unrealized losses | (2,834) | (540) |
Estimated fair value | $ 85,703 | $ 123,271 |
U.S. Government agency bonds | Maximum | ||
Short-term investments | ||
Maturity | 3 years | 3 years |
Bank certificates of deposit | ||
Short-term investments | ||
Amortized cost | $ 5,500 | $ 12,500 |
Unrealized gains | 1 | |
Unrealized losses | (22) | (9) |
Estimated fair value | $ 5,478 | $ 12,492 |
Bank certificates of deposit | Maximum | ||
Short-term investments | ||
Maturity | 2 years | 1 year |
Commercial paper | ||
Short-term investments | ||
Amortized cost | $ 2,998 | |
Unrealized losses | (1) | |
Estimated fair value | $ 2,997 | |
Commercial paper | Maximum | ||
Short-term investments | ||
Maturity | 1 year | |
Corporate notes | ||
Short-term investments | ||
Amortized cost | $ 48,301 | $ 55,178 |
Unrealized gains | 37 | |
Unrealized losses | (1,191) | (183) |
Estimated fair value | $ 47,110 | $ 55,032 |
Corporate notes | Maximum | ||
Short-term investments | ||
Maturity | 3 years | 3 years |
Asset-backed securities | ||
Short-term investments | ||
Amortized cost | $ 25,980 | $ 23,761 |
Unrealized gains | 1 | 44 |
Unrealized losses | (406) | (31) |
Estimated fair value | $ 25,575 | $ 23,774 |
Asset-backed securities | Maximum | ||
Short-term investments | ||
Maturity | 2 years | 2 years |
Municipal bonds | ||
Short-term investments | ||
Amortized cost | $ 18,421 | $ 19,350 |
Unrealized losses | (512) | (98) |
Estimated fair value | $ 17,909 | $ 19,252 |
Municipal bonds | Maximum | ||
Short-term investments | ||
Maturity | 3 years | 3 years |
Balance Sheet Details - Other (
Balance Sheet Details - Other (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Receivable, Net | ||
Accounts receivable | $ 35,899 | $ 34,805 |
Allowance for credit losses | (1,133) | (1,367) |
Accounts receivable, net | 34,766 | 33,438 |
Inventory | ||
Finished goods | 14,547 | 6,495 |
Work in process | 9,051 | 7,010 |
Raw materials | 10,584 | 9,506 |
Total inventory | 34,182 | 23,011 |
Accrued Liabilities | ||
Accrued bonuses | 11,901 | 17,015 |
Accrued vacation benefits | 4,419 | 4,196 |
Other accrued liabilities | 32,830 | 34,816 |
Total accrued liabilities | $ 49,150 | $ 56,027 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets | $ 311,421,000 | $ 324,967,000 |
Liabilities | ||
Total liabilities | 7,444,000 | 7,302,000 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Total assets | 46,243,000 | 4,212,000 |
Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 265,178,000 | 320,755,000 |
Liabilities | ||
Total liabilities | 7,444,000 | 7,302,000 |
Fair Value, Inputs, Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Money market funds | ||
Assets | ||
Total assets | 46,243,000 | 4,212,000 |
Money market funds | Fair Value, Inputs, Level 1 | ||
Assets | ||
Total assets | 46,243,000 | 4,212,000 |
U.S. Government agency bonds | ||
Assets | ||
Total assets | 85,703,000 | 123,271,000 |
U.S. Government agency bonds | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 85,703,000 | 123,271,000 |
U.S. Government bonds | ||
Assets | ||
Total assets | 75,825,000 | 76,525,000 |
U.S. Government bonds | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 75,825,000 | 76,525,000 |
Bank certificates of deposit | ||
Assets | ||
Total assets | 5,478,000 | 12,492,000 |
Bank certificates of deposit | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 5,478,000 | 12,492,000 |
Commercial paper. | ||
Assets | ||
Total assets | 2,997,000 | |
Commercial paper. | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 2,997,000 | |
Corporate notes | ||
Assets | ||
Total assets | 47,110,000 | 55,032,000 |
Corporate notes | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 47,110,000 | 55,032,000 |
Asset-backed securities | ||
Assets | ||
Total assets | 25,575,000 | 23,774,000 |
Asset-backed securities | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 25,575,000 | 23,774,000 |
Municipal bonds | ||
Assets | ||
Total assets | 17,909,000 | 19,252,000 |
Municipal bonds | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 17,909,000 | 19,252,000 |
Investments held for deferred compensation plans | ||
Assets | ||
Total assets | 7,578,000 | 7,412,000 |
Liabilities | ||
Total liabilities | 7,444,000 | 7,302,000 |
Investments held for deferred compensation plans | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets | 7,578,000 | 7,412,000 |
Liabilities | ||
Total liabilities | $ 7,444,000 | $ 7,302,000 |
Fair Value Measurements - Trans
Fair Value Measurements - Transfers (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 11, 2020 |
Fair Value Measurements, Valuation | |||
Amount of transfers of assets and liabilities measured on a recurring basis between Levels 1, 2 and 3 of the fair value hierarchy | $ 0 | $ 0 | |
2.75% Convertible Senior Notes due 2027 | |||
Fair Value Measurements, Valuation | |||
Fair value of convertible senior notes | $ 377,900 | $ 341,800 | |
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% |
Leases - Terms (Details)
Leases - Terms (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Operating Lease Existence of Option to Extend | true |
Minimum | |
Leases | |
Operating lease remaining lease term | 1 year |
Maximum | |
Leases | |
Operating lease remaining lease term | 13 years |
Optional lease extension term | 10 years |
Leases - Leases Details (Detail
Leases - Leases Details (Details) | 1 Months Ended | 9 Months Ended | |
Nov. 14, 2020 ft² property item | Jul. 31, 2020 ft² item | Sep. 30, 2022 ft² item | |
Maximum | |||
Operating Leases | |||
Optional lease extension term | 10 years | ||
Domestic Office Leases | |||
Operating Leases | |||
The number of adjacent facilities rented | 2 | ||
Number of lease renewal periods | 1 | ||
Optional lease extension term | 5 years | ||
Area of leased space | ft² | 98,000 | ||
Foreign Subsidiaries Office Leases | Maximum | |||
Operating Leases | |||
Area of leased space | ft² | 14,000 | ||
Aliso Facility | |||
Operating Leases | |||
Number of properties leased | property | 1 | ||
Number of buildings leased | 3 | ||
Number of lease renewal periods | 2 | ||
Optional lease extension term | 5 years | ||
Area of leased space | ft² | 160,000 | ||
Term of lease | 13 years | ||
Burlington Massachusetts Facility | |||
Operating Leases | |||
Number of lease renewal periods | 1 | ||
Optional lease extension term | 5 years | ||
Area of leased space | ft² | 60,000 |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Operating Leases | |
Remainder of 2022 | $ 527 |
2023 | 2,864 |
2024 | 3,335 |
2025 | 3,291 |
2026 | 3,362 |
2027 | 3,467 |
Thereafter | 33,759 |
Total Operating lease payments | 50,605 |
Less: imputed interest | 21,307 |
Total Operating lease liabilities | 29,298 |
Amount of operating leases with option to extend commitment | 20,600 |
Finance Leases | |
2023 | 6,264 |
2024 | 5,184 |
2025 | 5,340 |
2026 | 5,500 |
2027 | 5,665 |
Thereafter | 101,880 |
Total Finance lease payments | 129,833 |
Less: imputed interest | 57,514 |
Total Finance lease liabilities | 72,319 |
Amount of financing leases with option to extend commitment | $ 75,800 |
Existence of option to extend | true |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Intangible Assets and Goodwill | |||||
Amortization of intangible assets | $ 18,684 | $ 18,684 | |||
Finite Lived - Gross Amount | $ 266,300 | 266,300 | $ 266,300 | ||
Finite Lived - Accumulated Amortization | (71,103) | (71,103) | (52,419) | ||
Finite Lived - Net Amount | 195,197 | 195,197 | 213,881 | ||
Goodwill | 66,134 | 66,134 | 66,134 | ||
Intangible Assets, Gross | 451,334 | 451,334 | 451,334 | ||
Intangible Assets, Net | 380,231 | 380,231 | 398,915 | ||
In-Process Research and Development (IPR&D) | |||||
Intangible Assets and Goodwill | |||||
Indefinite Lived assets | 118,900 | $ 118,900 | 118,900 | ||
Developed Technology | |||||
Intangible Assets and Goodwill | |||||
Useful life/amortization period | 11 years 4 months 24 days | ||||
Finite Lived - Gross Amount | 252,200 | $ 252,200 | 252,200 | ||
Finite Lived - Accumulated Amortization | (63,055) | (63,055) | (46,485) | ||
Finite Lived - Net Amount | 189,145 | $ 189,145 | 205,715 | ||
Customer Relationships | |||||
Intangible Assets and Goodwill | |||||
Useful life/amortization period | 5 years | ||||
Finite Lived - Gross Amount | 14,100 | $ 14,100 | 14,100 | ||
Finite Lived - Accumulated Amortization | (8,048) | (8,048) | (5,934) | ||
Finite Lived - Net Amount | 6,052 | 6,052 | $ 8,166 | ||
Cost of sales | |||||
Intangible Assets and Goodwill | |||||
Amortization of intangible assets | 5,500 | $ 5,500 | 16,600 | 16,600 | |
Selling, general and administrative | |||||
Intangible Assets and Goodwill | |||||
Amortization of intangible assets | $ 700 | $ 700 | $ 2,100 | $ 2,100 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Estimated amortization expense | ||
Remainder of 2022 | $ 6,228 | |
2023 | 24,912 | |
2024 | 24,619 | |
2025 | 22,092 | |
2026 | 22,092 | |
Thereafter | 95,254 | |
Finite Lived - Net Amount | $ 195,197 | $ 213,881 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Total net sales | $ 71,269 | $ 74,710 | $ 211,635 | $ 220,771 |
United States | ||||
Revenues | ||||
Total net sales | 52,206 | 56,762 | 151,955 | 168,237 |
International | ||||
Revenues | ||||
Total net sales | 19,063 | 17,948 | 59,680 | 52,534 |
Glaucoma | ||||
Revenues | ||||
Total net sales | 53,746 | 58,480 | 161,359 | 174,903 |
Glaucoma | United States | ||||
Revenues | ||||
Total net sales | 37,214 | 43,381 | 109,312 | 129,583 |
Glaucoma | International | ||||
Revenues | ||||
Total net sales | 16,532 | 15,099 | 52,047 | 45,320 |
Corneal Health | ||||
Revenues | ||||
Total net sales | 17,523 | 16,230 | 50,276 | 45,868 |
Corneal Health | United States | ||||
Revenues | ||||
Total net sales | 14,992 | 13,381 | 42,643 | 38,654 |
Corneal Health | International | ||||
Revenues | ||||
Total net sales | $ 2,531 | $ 2,849 | $ 7,633 | $ 7,214 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Other (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Typical payment terms on invoiced amounts | 30 days |
Practical expedient financing component | true |
Practical expedient cost of obtaining contract | true |
Net Loss per Share - Computatio
Net Loss per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net income (loss) - basic and diluted | $ (27,576) | $ 6,230 | $ (67,735) | $ (27,721) |
Denominator: | ||||
Weighted average number of common shares outstanding - basic | 47,614 | 46,737 | 47,346 | 46,255 |
Common stock equivalents from outstanding common stock options | 2,210 | |||
Common stock equivalents from unvested restricted stock units | 365 | |||
Common stock equivalents for ESPP | 8 | |||
Weighted average number of common shares outstanding - diluted | 47,614 | 49,320 | 47,346 | 46,255 |
Basic net (loss) income per share (in dollar per share) | $ (0.58) | $ 0.13 | $ (1.43) | $ (0.60) |
Diluted net (loss) income per share (in dollar per share) | $ (0.58) | $ 0.13 | $ (1.43) | $ (0.60) |
Net (Loss) Income per Share - D
Net (Loss) Income per Share - Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from computation of earnings per share | 7,579 | 5,799 | 8,211 | 9,104 |
Common stock equivalents from outstanding common stock options | 2,210 | |||
Common stock equivalents from unvested restricted stock units | 365 | |||
Common stock equivalents for ESPP | 8 | |||
Convertible senior note | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from computation of earnings per share | 5,125 | 5,125 | 5,125 | 5,125 |
Stock options | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from computation of earnings per share | 1,677 | 218 | 2,158 | 3,222 |
Restricted Stock Units (RSUs) [Member] | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from computation of earnings per share | 765 | 456 | 917 | 752 |
ESPP | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from computation of earnings per share | 12 | 11 | 5 |
Convertible Senior Notes - Gene
Convertible Senior Notes - General (Details) - 2.75% Convertible Senior Notes due 2027 | Jun. 11, 2020 USD ($) D | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Long-Term Debt | |||
Convertible Notes | $ | $ 287,500,000 | $ 287,500,000 | $ 287,500,000 |
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% |
Net proceeds from the debt | $ | $ 242,200,000 | ||
Threshold trading days | D | 20 | ||
Threshold consecutive trading days | D | 30 | ||
Premium percentage on conversion price | 130% | ||
Number of business days | D | 5 | ||
Measurement period | 10 days | ||
Denomination for conversion of debt | $ | $ 1,000 | ||
Product of sale price and conversion rate (as a percent) | 98% |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest expense (Details) - 2.75% Convertible Senior Notes due 2027 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Long-Term Debt | ||||
Contractual interest expense | $ 1,977 | $ 1,977 | $ 5,930 | $ 5,930 |
Amortization of debt issuance costs | 343 | 343 | 1,030 | 1,030 |
Total interest expense | $ 2,320 | $ 2,320 | $ 6,960 | $ 6,960 |
Interest rate at period end | 3.20% | 3.20% |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Amount (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 11, 2020 |
Long-Term Debt | |||
Carrying amount of Convertible Notes | $ 281,056 | $ 280,026 | |
2.75% Convertible Senior Notes due 2027 | |||
Long-Term Debt | |||
Convertible Notes | 287,500 | 287,500 | $ 287,500 |
Less: Unamortized debt issuance costs | (6,444) | (7,474) | |
Carrying amount of Convertible Notes | $ 281,056 | $ 280,026 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allocation of stock-based compensation | ||||
Stock-based compensation expense | $ 9,411 | $ 6,189 | $ 26,873 | $ 22,921 |
Cost of sales | ||||
Allocation of stock-based compensation | ||||
Stock-based compensation expense | 492 | 469 | 1,419 | 1,341 |
Selling, general and administrative | ||||
Allocation of stock-based compensation | ||||
Stock-based compensation expense | 6,443 | 4,135 | 18,699 | 16,527 |
Research and development | ||||
Allocation of stock-based compensation | ||||
Stock-based compensation expense | $ 2,476 | $ 1,585 | $ 6,755 | $ 5,053 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Stock-based compensation | |
Unamortized stock-based compensation expense not yet recognized | $ 69.8 |
Restricted Stock Units (RSUs) [Member] | |
Stock-based compensation | |
Unamortized stock-based compensation expense not yet recognized | $ 61.7 |
Options remaining vesting period | 4 years |
Weighted average period of recognition | 2 years 9 months 18 days |
Stock options | |
Stock-based compensation | |
Unamortized stock-based compensation expense not yet recognized | $ 8.1 |
Options remaining vesting period | 4 years |
Weighted average period of recognition | 1 year 10 months 24 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Taxes | |||||
Effective tax rate (as a percent) | (0.90%) | (0.70%) | |||
Provision for income taxes | $ 247 | $ 202 | $ 468 | $ 689 | |
Unrecognized tax benefits | $ 27,600 | $ 27,600 | $ 25,800 |
Commitments and Contingencies -
Commitments and Contingencies - Other (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Sep. 14, 2021 USD ($) | Dec. 30, 2014 USD ($) | |
Other commitments | |||||||
Letter of Credit outstanding | $ 8.8 | $ 8.8 | |||||
Restricted cash pledged for letter of credit | $ 8.8 | $ 8.8 | $ 8.8 | ||||
Number of Months from start of lease for adjustments to Letter of Credit | item | 37 | 37 | |||||
Adjustment rate of Letter of Credit (as a percent) | 20% | ||||||
Amount of Letter of Credit outstanding after adjustments | $ 2 | $ 2 | |||||
Number of other irrevocable letters of credit outstanding | item | 1 | 1 | |||||
Restricted cash pledged for office lease agreement | $ 0.3 | $ 0.3 | |||||
Deferred compensation plan liability | 7.4 | 7.4 | 7.3 | ||||
Deferred Compensation Plan Assets | 7.6 | 7.6 | $ 7.4 | ||||
Agreement with the Regents | |||||||
Other commitments | |||||||
Minimum required annual payment of the commitment obligation, based on net sales of current and future products | $ 0.5 | ||||||
Cost of sales | Agreement with the Regents | |||||||
Other commitments | |||||||
Commitment obligation payments | $ 0.8 | $ 1.1 | $ 2.3 | $ 3.2 | |||
Patent Litigation | Settled Litigation | |||||||
Other commitments | |||||||
Total agreed settlement amount | $ 60 |
Business Segment Information (D
Business Segment Information (Details) | 9 Months Ended |
Sep. 30, 2022 segment item | |
Business Segment Information | |
Number Of Business Activities | item | 1 |
Number of Operating Segments | segment | 1 |