Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | STIM | |
Entity Registrant Name | NEURONETICS, INC. | |
Entity Central Index Key | 0001227636 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 25,759,895 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38546 | |
Entity Tax Identification Number | 33-1051425 | |
Entity Address, Address Line One | 3222 Phoenixville Pike | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 640-4202 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 121,277 | $ 48,957 |
Accounts receivable, net | 6,964 | 7,166 |
Inventory | 5,401 | 3,720 |
Current portion of net investments in sales-type leases | 1,930 | 1,887 |
Current portion of prepaid commission expense | 1,135 | 1,096 |
Prepaid expenses and other current assets | 2,239 | 2,186 |
Total current assets | 138,946 | 65,012 |
Property and equipment, net | 866 | 730 |
Operating lease right-of-use assets | 3,320 | 3,418 |
Net investments in sales-type leases | 1,958 | 2,331 |
Prepaid commission expense | 5,255 | 5,300 |
Other assets | 1,962 | 1,866 |
Total Assets | 152,307 | 78,657 |
Current liabilities: | ||
Accounts payable | 3,241 | 3,749 |
Accrued expenses | 5,152 | 7,319 |
Deferred revenue | 1,912 | 2,020 |
Current portion of operating lease liabilities | 602 | 594 |
Current portion of long-term debt, net | ||
Total current liabilities | 10,907 | 13,682 |
Long-term debt, net | 34,791 | 34,620 |
Deferred revenue | 1,614 | 1,741 |
Operating lease liabilities | 3,024 | 3,121 |
Total Liabilities | 50,336 | 53,164 |
Commitments and contingencies (Note 16) | ||
Stockholders' Equity: | ||
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding at March 31, 2021 and December 31, 2020 | ||
Common stock, $0.01 par value: 200,000 shares authorized; 25,756 and 19,114 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 258 | 191 |
Additional paid-in capital | 387,134 | 302,842 |
Accumulated deficit | (285,421) | (277,540) |
Total Stockholders' Equity | 101,971 | 25,493 |
Total Liabilities and Stockholders' Equity | $ 152,307 | $ 78,657 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 25,756,000 | 19,114,000 |
Common stock, shares outstanding | 25,756,000 | 19,114,000 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 12,288 | $ 11,476 |
Cost of revenues | 2,221 | 2,811 |
Gross Profit | 10,067 | 8,665 |
Operating expenses: | ||
Sales and marketing | 8,561 | 10,723 |
General and administrative | 6,104 | 5,287 |
Research and development | 2,311 | 3,021 |
Total operating expenses | 16,976 | 19,031 |
Loss from Operations | (6,909) | (10,366) |
Other (income) expense: | ||
Interest expense | 985 | 1,523 |
Loss on extinguishment of debt | 924 | |
Other income, net | (13) | (200) |
Net Loss | $ (7,881) | $ (12,613) |
Net loss per share of common stock outstanding, basic and diluted | $ (0.31) | $ (0.68) |
Weighted-average common shares outstanding, basic and diluted | 25,150 | 18,681 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2019 | $ 186 | $ 297,753 | $ (250,087) | $ 47,852 |
Beginning balance, shares at Dec. 31, 2019 | 18,645 | |||
Share-based awards and options exercises | $ 1 | 75 | 76 | |
Share-based awards and options exercises, shares | 81 | |||
Share-based compensation expense | 1,196 | 1,196 | ||
Net loss | (12,613) | (12,613) | ||
Ending balance at Mar. 31, 2020 | $ 187 | 299,024 | (262,700) | 36,511 |
Ending balance, shares at Mar. 31, 2020 | 18,726 | |||
Beginning balance at Dec. 31, 2020 | $ 191 | 302,842 | (277,540) | 25,493 |
Beginning balance, shares at Dec. 31, 2020 | 19,114 | |||
Share-based awards and options exercises | $ 11 | 1,581 | 1,592 | |
Share-based awards and options exercises, shares | 1,076 | |||
Issuance of common stock, net of issuance costs of $401 | $ 56 | 80,515 | 80,571 | |
Issuance of common stock, net of issuance costs of $401 (in shares) | 5,566 | |||
Share-based compensation expense | 2,196 | 2,196 | ||
Net loss | (7,881) | (7,881) | ||
Ending balance at Mar. 31, 2021 | $ 258 | $ 387,134 | $ (285,421) | $ 101,971 |
Ending balance, shares at Mar. 31, 2021 | 25,756 |
Statement of Changes in Stock_2
Statement of Changes in Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance of common stock, issuance costs | $ 401 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (7,881) | $ (12,613) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 281 | 301 | |
Share-based compensation | 2,196 | 1,196 | |
Non-cash interest expense | 171 | 782 | |
Cost of rental units purchased by customers | 99 | 70 | |
Loss on extinguishment of debt | 622 | ||
Changes in certain assets and liabilities: | |||
Accounts receivable, net | 202 | 383 | |
Inventory | (1,681) | (104) | |
Net investments in sales-type leases | 330 | (368) | |
Leasehold reimbursement | 836 | ||
Prepaid commission expense | 6 | (419) | |
Prepaid expenses and other assets | 206 | 285 | |
Accounts payable | (694) | (1,299) | |
Accrued expenses | (2,168) | (3,227) | |
Deferred revenue | (235) | (95) | |
Net Cash Used in Operating Activities | (9,168) | (13,650) | $ (28,400) |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment and capitalized software | (675) | (266) | |
Net Cash Used in Investing Activities | (675) | (266) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of long-term debt | 35,000 | ||
Repayment of long-term debt | (32,500) | ||
Payments of debt issuance costs | (721) | ||
Proceeds from exercises of stock options | 1,592 | 76 | |
Net proceeds from initial public offering | 80,972 | ||
Payments of common stock offering issuance costs | (401) | ||
Net Cash Provided by Financing Activities | 82,163 | 1,855 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 72,320 | (12,061) | |
Cash and Cash Equivalents, Beginning of Period | 48,957 | 75,708 | 75,708 |
Cash and Cash Equivalents, End of Period | 121,277 | 63,647 | $ 48,957 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 814 | 1,403 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses | $ 186 | $ 94 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTION OF BUSINESS Neuronetics, Inc., or the Company, is a commercial stage medical technology company focused on designing, developing and marketing products that improve the quality of life for patients who suffer from psychiatric disorders. The Company’s first commercial product, the NeuroStar Advanced Therapy System, is a non-invasive and non-systemic office-based treatment that uses transcranial magnetic stimulation, or TMS, to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The system was cleared in 2008 by the United States Food and Drug Administration, or the FDA, to treat adult patients with major depressive disorder, or MDD, who have failed to achieve satisfactory improvement from prior antidepressant medication in the current episode. NeuroStar Advanced Therapy is also available in other parts of the world, including Japan, where it is listed under Japan’s national health insurance. The Company intends to continue to pursue development of its NeuroStar Advanced Therapy System for additional indications. COVID-19 The Company is continuing to monitor the impact of the COVID-19 pandemic on all aspects of its business and geographies, including how it will continue to impact the Company’s customers, supply chain, employees and other business partners. While the Company began to experience significant disruptions in March 2020 through the end of March 2021 from the COVID-19 pandemic, it is unable to predict the full impact that the pandemic may have on its financial condition, results of operations and cash flows due to numerous uncertainties. These uncertainties include the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. The pandemic has significantly adversely impacted global economic activity and has contributed to significant volatility and negative pressure in financial markets, and may contribute to periods of economic uncertainty in the future. The Company applied for and received a $6.4 million loan in April 2020 under the Paycheck Protection Program (the “PPP”) established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) on March 27, 2020. Due to questions concerning the eligibility of public companies similarly situated to the Company, on May 7, 2020, the Company repaid the loan in full, including interest accrued to date. Liquidity As of March 31, 2021, the Company had cash and cash equivalents of $121.3 million and an accumulated deficit of $285.4 million. The Company incurred negative cash flows from operating activities of $28.4 million for the year ended December 31, 2020 and $9.2 million for the three months ended March 31, 2021. The Company has incurred operating losses since its inception, and management anticipates that its operating losses will continue in the near term as the Company continues to invest in sales, marketing and product development activities. The Company’s primary sources of capital to date have been proceeds from its IPO, private placements of its convertible preferred securities, borrowings under its credit facilities, proceeds from its secondary public offering of common stock, revenues from sales of its products and other public offerings of the Company’s common stock. As of March 31, 2021, the Company had $35.0 million of borrowings outstanding under its credit facility, which has a final maturity in February 2025 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification, or ASC, and Accounting Standards Updates, or ASUs, promulgated by the Financial Accounting Standards Board, or FASB. Interim Financial Statements The accompanying unaudited interim financial statements have been prepared from the books and records of the Company in accordance with GAAP for interim financial information and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission, or SEC, which permit reduced disclosures for interim periods. All adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the accompanying balance sheets and statements of operations and stockholders’ deficit and cash flows have been made. Although these interim financial statements do not include all of the information and footnotes required for complete annual financial statements, management believes the disclosures are adequate to make the information presented not misleading. Unaudited interim results of operations and cash flows for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year. Unaudited interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in the Company’s Form 10-K filed with the SEC on March 2, 2021, wherein a more complete discussion of significant accounting policies and certain other information can be found. Use of Estimates The preparation of financial statements in accordance with GAAP and the rules and regulations of the SEC requires the use of estimates and assumptions, based on judgments considered reasonable, which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions, including those related to the COVID-19 pandemic, and given the subjective element of the estimates and assumptions made, actual results may differ materially from estimated results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s complete summary of significant accounting policies can be found in “Note 3. Summary of Significant Accounting Policies” in the audited financial statements included in the Company’s Form 10-K filed with the SEC on March 2, 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 4. RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Not Yet Adopted by the Company In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments “Topic 326” ASU 2019-04, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief the fair value option under ASC 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments ASU 2019-10, Topic 326, Topic 815, and Topic 842 amends the mandatory effective date for Topic 326. These ASUs are effective for fiscal years beginning after December 15, 2022 for entities that are eligible to be defined by the SEC as a smaller reporting company. The Company is a smaller reporting company. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the Company does not anticipate a significant impact on its financial statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable. Other than the items noted above, there have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our unaudited interim financial statements |
Fair Value Measurement and Fina
Fair Value Measurement and Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Financial Instruments | 5. FAIR VALUE MEASUREMENT AND FINANCIAL INSTRUMENTS The carrying values of cash equivalents, accounts receivable, prepaids and other current assets, and accounts payable on the Company’s balance sheets approximated their fair values as of March 31, 2021 and December 31, 2020 due to their short-term nature. The carrying values of the Company’s credit facility approximated its fair value as of March 31, 2021 and December 31, 2020 due to its variable interest rate. Certain of the Company’s financial instruments are measured at fair value using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Inputs are quoted prices for identical instruments in active markets. Level 2 Inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs are unobservable and reflect the Company’s own assumptions, based on the best information available, including the Company’s own data . The following tables set forth the carrying amounts and fair values of the Company’s financial instruments as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Fair Value Measurement Based on Quoted Significant Prices In other Significant Active Observable Unobservable Carrying Markets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Money market funds (cash equivalents) $ 118,121 $ 118,121 $ 118,121 $ — $ — December 31, 2020 Fair Value Measurement Based on Quoted Significant Prices In other Significant Active Observable Unobservable Carrying Markets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Money market funds (cash equivalents) $ 47,117 $ 47,117 $ 47,117 $ — $ — |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | 6. ACCOUNTS RECEIVABLE The following table presents the composition of accounts receivable, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Gross accounts receivable - trade $ 7,713 $ 8,178 Less: Allowances for doubtful accounts (749) (1,012) Accounts receivable, net $ 6,964 $ 7,166 |
Property and Equipment and Capi
Property and Equipment and Capitalized Software | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment and Capitalized Software | 7. PROPERTY AND EQUIPMENT AND CAPITALIZED SOFTWARE The following table presents the composition of property and equipment, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Laboratory equipment $ 150 $ 150 Office equipment 497 487 Computer equipment and software 1,495 1,360 Manufacturing equipment 445 273 Leasehold improvements 459 459 Rental equipment 207 405 Property and equipment, gross 3,253 3,134 Less: Accumulated depreciation (2,387) (2,404) Property and equipment, net $ 866 $ 730 As of March 31, 2021 and December 31, 2020, the Company had capitalized software costs, net of $1.4 million and $1.2 million, respectively, which are included in “Other assets” on the balance sheet. Depreciation and amortization expense was $0.3 million for the three months ended March 31, 2021 and 2020, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 8. LEASES Lessee: The Company has operating leases for its corporate headquarters and office equipment, including copiers. The Company leases approximately 32,000 square foot facility in Malvern, Pennsylvania for its corporate headquarters, which includes office and warehouse space. The Company does not currently have any finance leases or executed leases that have not yet commenced. Operating lease rent expense was $0.2 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the weighted-average remaining lease term of operating leases was 6.9 years and the weighted-average discount rate was 6.5%. In the first quarter of 2020, the Company received a reimbursement of $0.8 million for leasehold expenses previously incurred in connection with the lease agreement for its Malvern facility. The reimbursement was recorded as an offset to the non-current lease liability that was established when the lease agreement was executed. The following table presents the supplemental cash flow information as a lessee related to leases (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 132 $ 126 The following table sets forth by year the required future payments of operating lease liabilities (in thousands): March 31, 2021 Remainder of 2021 $ 472 2022 642 2023 637 2024 646 2025 660 Thereafter 1,487 Total lease payments 4,544 Less imputed interest (918) Present value of operating lease liabilities $ 3,626 Lessor sales-type leases: Certain customers have purchased NeuroStar Advanced Therapy Systems on a rent-to-own basis. The lease term is three years with a customer option to purchase the NeuroStar Advanced Therapy System at the end of the lease or automatic transfer of ownership of the NeuroStar Advanced Therapy System at the end of the lease. The following table sets forth the profit recognized on sales-type leases (in thousands): Three Months Ended March 31, 2021 2020 Profit recognized at commencement, net $ 133 $ 252 Interest income — — Total sales-type lease income $ 133 $ 252 The following table sets forth a maturity analysis of the undiscounted lease receivables related to sales-type leases (in thousands): March 31, 2021 Remainder of 2021 $ 1,576 2022 1,673 2023 599 2024 40 Total sales-type lease receivables $ 3,888 As of March 31, 2021, the carrying amount of the lease receivables is $3.9 million. The Company does not Lessor operating leases: NeuroStar Advanced Therapy Systems sold on a rent-to-own basis prior to January 1, 2019 are accounted for as operating leases. For the three months ended March 31, 2021 and 2020, the Company recognized operating lease income of $0.1 million and $0.1 million, respectively. The following table sets forth a maturity analysis of its undiscounted lease receivables related to operating leases as of March 31, 2021 (in thousands): March 31, 2021 Remainder of 2021 $ 39 Total lease receivables $ 39 The Company maintained Rental Equipment, net of $0.1 million and $0.2 million, as of March 31, 2021 and December 31, 2020, respectively, which are included in “Property and equipment, net” on the balance sheet. Rental equipment depreciation expense was $0.01 million and $0.03 million for the three months ended March 31, 2021 and 2020, respectively. |
Prepaid Commission Expense
Prepaid Commission Expense | 3 Months Ended |
Mar. 31, 2021 | |
Amortization Of Deferred Charges [Abstract] | |
Prepaid Commission Expense | 9. PREPAID COMMISSION EXPENSE The Company pays a commission on both NeuroStar Advanced System sales and Treatment Session sales. Since the commission paid for System sales is not commensurate with the commission paid for Treatment Sessions, the Company capitalizes commission expense associated with NeuroStar Advanced Therapy System sales commissions paid that is incremental to specifically anticipated future Treatment Session orders. In developing this estimate, the Company considered its historical Treatment Session sales and customer retention rates, as well as technology development life cycles and other industry factors. These costs are periodically reviewed for impairment. NeuroStar Advanced Therapy System commissions are deferred and amortized on a straight-line basis over a seven year period equal to the average customer term, which the Company deems to be the expected period of benefit for these costs. On the Company’s balance sheets, the current portion of capitalized contract costs is represented by the current portion of prepaid commission expense, while the long-term portion is included in prepaid commission expense. Amortization expense was $0.3 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 10. ACCRUED EXPENSES The following table presents the composition of accrued expenses as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Compensation and related benefits $ 3,040 $ 5,023 Consulting and professional fees 396 292 Research and development expenses 249 138 Warranty 457 536 Sales and other taxes payable 640 726 Other 370 604 Accrued expenses $ 5,152 $ 7,319 |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Revenue [Abstract] | |
Deferred Revenue | 11. DEFERRED REVENUE Payment terms typically require payment upon shipment or installation of the System and additional payments as access codes for Treatment Sessions are delivered, which can span several years after the System is first delivered and installed. The timing of revenue recognition compared to billings and cash collections typically results in accounts receivable. However, sometimes customer advances and deposits might be required for certain customers and are recorded as deferred revenue. For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual coverage period and recognizes revenue over the term of the coverage period. As of March 31, 2021, the Company expects to recognize approximately the following percentages of deferred revenue by year: Revenue Year: Recognition Remainder of 2021 44 % 2022 18 % 2023 17 % 2024 17 % 2025 4 % Thereafter - % Total 100 % Customers For the three months ended March 31, 2021, one customer accounted for more than 10% of the Company’s revenues. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 12. DEBT The following table presents the composition of debt as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Outstanding principal $ 35,000 $ 35,000 Accrued final payment fees 1,925 1,925 Less debt discounts (2,134) (2,305) Total debt, net 34,791 34,620 Less current portion — — Long-term debt, net $ 34,791 $ 34,620 For the three months ended March 31, 2021, the Company recognized interest expense of $1.0 million, of which $0.8 million was cash and $0.2 million was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of final payment fees. For the three months ended March 31, 2020, the Company recognized interest expense of $1.5 million, of which $1.4 million was cash paid for interest during the period and $0.1 million was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of final payment fees. Solar Credit Facility On March 2, 2020, the “Company entered into a loan and security agreement with Solar Capital Ltd., or Solar, as collateral agent, and other lenders defined in the agreement, for a credit facility, or the Solar Facility, that replaced the Company’s previous $35.0 million credit facility with Oxford Finance LLC, or Oxford, and such facility, the Oxford Facility. The Solar Facility permits the Company to borrow up to an aggregate amount of $50.0 million in two tranches of term loans, a “Term A Loan” and “Term B Loan.” On March 2, 2020, the Company borrowed an aggregate amount of $35.0 million, which was the aggregate amount available under the Term A Loan portion of the Solar Facility. The Term A Loan portion of the Solar Facility matures, and all amounts borrowed thereunder are due, on February 28, 2025. Under the Term B Loan portion of the Solar Facility, the Company is permitted to borrow, at its election, up to an aggregate amount of $15.0 million, (i) upon the Company achieving a specified amount of trailing twelve Each of the Term A Loan and Term B Loan accrue interest from the date of borrowing through the date of repayment at a floating per annum rate of interest, which resets monthly and is equal to 7.65% plus the greater of (a) 1.66% or (b) the rate per annum rate published by the Intercontinental Exchange Benchmark Administration Ltd. The Term A Loan and the Term B Loan both include an interest-only period through March February 2023 In addition to the principal and interest payments due under the Solar Facility, the Company is required to pay a final payment fee to Solar due upon the earlier of prepayment, acceleration or the maturity date of the Term A Loan or Term B Loan portion of the Solar Facility equal to 5.50% of the principal amount of the term loans actually funded. The Company is accruing the final payment fees using the effective interest rate, with a charge to non-cash interest expense, over the term of borrowing. If the Company prepays either the of the Term A Loan or Term B Loan prior to their respective scheduled maturities, the Company will also be required to pay prepayment fees to Solar equal to 3% of the principal amount of such term loan then-prepaid if prepaid on or before the first anniversary of funding, 2% of the principal amount of such term loan then-prepaid if prepaid after the first anniversary and on or before the second anniversary of funding, or 1% of the principal amount of such term loan then-prepaid if prepaid after the second anniversary of funding of the principal amounts borrowed. The Company is also required to pay Solar an exit fee upon the occurrence, prior to March 2, 2030, of (a) any liquidation, dissolution or winding up of the Company, (b) transaction that results in a person obtaining control over the Company, (c) the Company achieving $100 million in trailing twelve month net product revenue or (d) the Company achieving $125 million in trailing twelve month net product revenue. The exit fee for liquidation, dissolution, winding up or change of control of the Company is equal to 4.50% of the principal amount of the term loans actually funded. The exit fee for achieving either $100 million or $125 million in trailing twelve-month net product revenue is equal to 2.25% of the principal amount of the term loans actually funded or, if both net product revenue milestones are achieved, 4.50% of the principal amount of the term loans actually funded. The exit fee is capped at 4.50% of the principal amount of the term loans actually funded. On December 8, 2020, the Company, Solar Capital Ltd., and our other lenders defined in the Solar Facility, executed an amendment to the Solar Facility (the “Solar Amendment”). The Solar Amendment divides the aggregate Term B Loan borrowing amount of $15.0 million allowable upon our achievement of specific trailing twelve-month net product revenue targets into three separate $5.0 million tranches (“Amended Term B Loan”, “Term C Loan” and “Term D Loan”). The three tranches are available through June 20, 2021, December 20, 2021, and June 20, 2022, respectively, based on the achievement of agreed upon trailing twelve-month net product revenue targets for each tranche. The Solar Amendment also reduces the trailing twelve-month net product revenue requirement for the Amended Term B Loan portion of the facility. Subject to certain conditions, the Company has the ability to extend the interest-only period on the initial Term A Loan to 36 months from 24 months upon achieving the revenue targets associated with the Amended Term B Loan. As of March 31, 2021, the Company is in compliance with the required minimum net product revenue covenant and anticipates electing to extend the interest-only period through March 1, 2023 for the Term A Loan, subject to continuing to meet the required conditions through and as of March 1, 2022. The Company is projected to be in compliance with the required covenant. The Company was required to pay an amendment fee of $0.1 million to Solar, which has been recognized as a deferred debt issuance cost as of December 31, 2020 that will be amortized to interest expense using the effective interest method. The Company’s obligations under the Solar Facility are secured by a first priority security interest in substantially all of its assets, including its intellectual property. The loan and security agreement requires the Company to comply with certain financial covenants as well as customary affirmative and negative covenants. The Solar Facility contains events of default, including, without limitation, events of default upon: (i) failure to make payment pursuant to the terms of the agreement; (ii) violation of covenants; (iii) material adverse changes to the Company’s business; (iv) attachment or levy on the Company’s assets or judicial restraint on its business; (v) insolvency; (vi) material cross-defaults; (vii) significant judgments, orders or decrees for payments by the Company not covered by insurance; (viii) incorrectness of representations and warranties; (ix) incurrence of subordinated debt; (x) a termination or breach of a guaranty; (xi) revocation of governmental approvals necessary for the Company to conduct its business; and (xii) failure by the Company to maintain a valid and perfected lien on the collateral securing the borrowing. The Solar Facility includes subjective acceleration clauses which permit the lenders to accelerate the maturity date under certain circumstances, including, but not limited to, material adverse effects on a Company’s financial status or otherwise. The Solar Facility includes a financial covenant requiring the attainment of a minimum trailing net revenue amount beginning on December 31, 2020. The Company and lenders executed the Solar Amendment in December 2020 that reduced the minimum trailing net revenue covenant requirement amounts beginning on December 31, 2020 to allow the Company to maintain compliance with the covenant as of December 31, 2020. As of March 31, 2021, the Company is in compliance with the financial covenant and is projected to be in compliance with the reduced minimum revenue covenant amounts going forward. As of March 31, 2021, the Company is in compliance with all covenants in the Solar Facility. Oxford Credit Facility Prior to March 2020, the Company had a $35.0 million credit facility in place with Oxford, which it entered into in March 2017 and that allowed it to borrow up to $35.0 million in three tranches of term loans: a Term A Loan in the amount of $25 million, which was drawn immediately upon closing in March 2017, a Term B Loan in the amount of $5.0 million, which was drawn down in December 2017, and a Term C Loan in the amount of $5.0 million which was never drawn down. Each term loan accrued interest from the date of borrowing through the date of repayment at a floating per annum rate of interest, which reset monthly and was equal to the greater of (a) 8.15% or (b) the 30 day U.S. LIBOR on the last business day of the month plus 7.38%. This facility featured an interest-only period on all tranches through March 2019. In addition to principal and interest payments due under the $35.0 million Oxford credit facility, the Company was required to make final payment fees to Oxford upon the earlier of prepayment or maturity and equal to 8.5% and 7.5% of the principal amounts of the Term A and Term B Loans, respectively. The Company accrued final payment fees using the effective interest rate, with a charge to non-cash interest expense, over the term of borrowing and until its entry into the Solar credit facility in March 2020, at which time the Company paid Oxford $2.5 million in satisfaction of all final payment fee liabilities due under the Oxford credit facility. The Company evaluated whether the Solar Facility entered into in March 2020 represented a debt modification or extinguishment in accordance with ASC 470-50, Debt—Modifications and Extinguishments and determined that the existing debt was extinguished as a result of the full repayment of the existing facility and concurrent issuance of a new credit facility with a new lender. The unamortized balance of the Company’s combined debt discount and deferred issuance costs of $0.6 million related to the Oxford facility were accounted for as a loss on extinguishment of debt in March 2020. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Common Stock | 13. COMMON STOCK Common Stock Offering On February 2, 2021, we closed on our public offering and sale (the “Offering) of our common stock in which we issued and sold 5,566,000 shares of our common stock, which included shares pursuant to an option granted to underwriters to purchase additional shares, at a public offering price of $15.50 per share. We received net proceeds of $80.6 million after deducting underwriting discounts, commissions and offering expenses. Common Stock The following table summarizes the total number of shares of the Company’s common stock issued and reserved for issuance as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Shares of common stock issued 25,756 19,114 Shares of common stock reserved for issuance for: Common stock warrants outstanding 75 105 Stock options outstanding 1,806 2,365 Restricted stock units and awards outstanding 2,337 1,860 Shares available for grant under stock incentive plan 2,171 1,530 Shares available for sale under employee stock purchase plan 799 608 Total shares of common stock issued and reserved for issuance 32,944 25,582 Common Stock Warrants The following tables summarize the Company’s outstanding common stock warrants as of March 31, 2021, and December 31, 2020: March 31, 2021 Warrants Outstanding (in thousands) Exercise Price Expiration Date 14 $ 19.55 Dec-2022 20 $ 9.73 Aug-2023 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 75 December 31, 2020 Warrants Outstanding (in thousands) Exercise Price Expiration Date 14 $ 19.55 Dec-2022 30 $ 9.73 Feb-2021 20 $ 9.73 Aug-2023 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 105 |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 14. LOSS PER SHARE The Company’s basic loss per common share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. The Company’s restricted stock awards (non-vested shares) are issued and outstanding at the time of grant but are excluded from the Company’s computation of weighted-average shares outstanding in the determination of basic loss per share until vesting occurs. A net loss cannot be diluted, so when the Company is in a net loss position, basic and diluted loss per common share are the same. If in the future the Company achieves profitability, the denominator of a diluted earnings per common share calculation will include both the weighted-average number of shares outstanding and the number of common stock equivalents, if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include warrants, stock options, non-vested restricted stock units and non-vested performance restricted stock units using the treasury stock method, along with the effect, if any, from the potential conversion of outstanding securities, such as convertible preferred stock. The following potentially dilutive securities outstanding as of March 31, 2021 and 2020 have been excluded from the denominator of the diluted loss per share of common stock outstanding calculation (in thousands): March 31, 2021 2020 Stock options 1,806 2,324 Non-vested performance restricted stock units 395 — Non-vested restricted stock units 1,942 1,522 Common stock warrants 75 105 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 15. SHARE-BASED COMPENSATION The amount of share-based compensation expense recognized by the Company by location in its statements of operations for the three months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cost of revenues $ 20 $ 16 Sales and marketing 575 430 General and administrative 1,518 607 Research and development 83 143 Total $ 2,196 $ 1,196 2018 Equity Incentive Plan In June 2018, the Company adopted the 2018 Equity Incentive Plan, or 2018 Plan, which authorized the issuance of up to 1.4 million shares, subject to an annual 4% increase based on the number of shares of common stock outstanding, in the form of restricted stock, stock appreciation rights and stock options to the Company’s directors, employees and consultants. The amount and terms of grants are determined by the Company’s board of directors. All stock options granted to date have had exercise prices equal to the fair value, as determined by the closing price as reported by the Nasdaq Global Market, of the underlying common stock on the date of grant. The contractual term of stock options is up to 10 years, and stock options are exercisable in cash or as otherwise determined by the board of directors. Generally, stock options vest 25% upon the first anniversary of the date of grant and the remainder ratably monthly thereafter for 36 months. Restricted stock units generally vest ratably in three equal installments on the first, second and third anniversaries of the grant date. Performance restricted stock units (“PRSUs”) generally vest based on appreciation of the Company’s common stock to a certain price as determined by the Company’s board of directors measured using a trailing 30-day volume weighted average price of a share of the Company’s common stock. The fair value of the PRSU awards are determined using a risk neutral Monte Carlo simulation valuation model. As of March 31, 2021, there were 2.1 million shares available for future issuance under the 2018 Plan. 2020 Inducement Incentive Plan In December 2020, the Company adopted the 2020 Inducement Incentive Plan, which authorized the issuance of up to 0.4 million shares in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and other stock awards to eligible employees who satisfy the standards for inducement grants under Nasdaq global market rules. An individual who previously served as an employee or director of the Company is not eligible to receive awards under this plan. The amount and terms of grants are determined by the Company’s board of directors. As of March 31, 2021, there were 0.1 million shares available for future issuance under the 2020 Inducement Incentive Plan. Stock Options The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Weighted- Aggregate Number of Weighted- Remaining average Shares under average Contractual Intrinsic Option Exercise Price Life Value (in thousands) per Option (in years) (in thousands) Outstanding at December 31, 2020 2,365 $ 4.62 Granted — $ — Exercised (504) $ 3.67 Forfeited (55) $ 13.65 Outstanding at March 31, 2021 1,806 $ 4.73 7.6 $ 14,544 Exercisable at March 31, 2021 608 $ 7.17 4.6 $ 3,662 Vested and expected to vest at March 31, 2021 1,806 $ 4.73 7.6 $ 14,544 The Company recognized share-based compensation expense related to stock options of $0.2 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was $2.0 million of total unrecognized compensation cost related to non-vested stock options which the Company expects to recognize over a weighted-average period of 2.6 years. The total intrinsic value of stock options exercised during the three months ended March 31, 2021 was $6.5 million. Restricted Stock Units and Performance Restricted Stock Units The following table summarizes the Company’s restricted stock unit and performance restricted stock unit activity for the three months ended March 31, 2021: Non-vested Weighted- Non-vested Weighted- Restricted average Performance Restricted average Stock Units Grant-date Stock Units Grant-date (in thousands) Fair Value (in thousands) Fair Value Non-vested at December 31, 2020 1,860 $ 3.58 500 $ 1.71 Granted 555 $ 13.56 145 $ 15.59 Vested (322) $ 3.89 (250) $ 1.77 Forfeited (151) $ 5.36 — $ — Non-vested at March 31, 2021 1,942 $ 6.24 395 $ 6.77 The Company recognized $1.9 million and $0.6 million in share-based compensation expense related to the restricted stock units and performance restricted stock units for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was $12.4 million of unrecognized compensation cost related to non-vested restricted stock units and performance restricted stock units, which the Company expects to recognize over a weighted-average period of 2.4 years. The total fair value at the vesting date of restricted stock units and performance restricted stock units vested during the three months ended March 31, 2021, was $8.2 million. For the period ended March 31, 2021 and December 31, 2021, the grant-date fair value of the performance restricted stock units was estimated at the time of grant using the following inputs and assumptions in the Monte Carlo simulation valuation model: March 31, 2021 December 31, 2020 Closing price of common stock $ 15.92 $ 1.98 Risk-free interest rate 1.15 % 0.63 % Expected volatility 99.7 % 87.4 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES Legal Matters The Company is subject from time to time to various claims and legal actions arising during the ordinary course of its business. Management believes that there are currently no claims or legal actions that would reasonably be expected to have a material adverse effect on the Company’s results of operations, financial condition, or cash flows. |
Geographical Segment Informatio
Geographical Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segments Geographical Areas [Abstract] | |
Geographical Segment Information | 17. GEOGRAPHICAL SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company currently operates in one business segment as it is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its products or product development. The following geographic data includes revenue generated from the Company’s third-party distributors. The Company’s revenue was generated in the following geographic regions and by product line for the periods indicated (in thousands): Revenues by Geography Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues United States $ 11,802 96% % $ 11,177 97 % International 486 4% % 299 3 % Total revenues $ 12,288 100% % $ 11,476 100 % U.S. Revenues by Product Category Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 1,755 15 % $ 2,594 23 % Treatment sessions 9,629 82 % 8,193 74 % Other 418 3 % 390 3 % Total U.S. revenues $ 11,802 100 % $ 11,177 100 % International Revenues by Product Category Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 207 43 % $ 100 33 % Treatment sessions 131 27 % 77 26 % Other 148 30 % 122 41 % Total International revenues $ 486 100 % $ 299 100 % |
Severance
Severance | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Severance | 18. SEVERANCE The Company entered into transition agreements outlining the separation with its former chief executive officer in March 2020, the vice president of medical operations in September 2020, the chief commercial officer and director of medical operations in December 2020, the VP of sales and five business development managers in January 2021 and the director of strategic clinical development in February 2021. In connection with these agreements the company recorded $0.2 million and $1.1 million of charges in salary, payroll tax and bonus expenses in the three months ended March 31, 2021 and March 31, 2020, respectively. For the three months ended March 31, 2021 and March 31, 2020, $0.5 million and $0.05 million of termination benefits were paid associated with the termination of the employees and charged against this liability. As of March 31, 2021 and December 31, 2020, $0.7 million and $1.0 million, respectively, remain in accrued liabilities for the unpaid portion of the separation benefits. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited interim financial statements have been prepared from the books and records of the Company in accordance with GAAP for interim financial information and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission, or SEC, which permit reduced disclosures for interim periods. All adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the accompanying balance sheets and statements of operations and stockholders’ deficit and cash flows have been made. Although these interim financial statements do not include all of the information and footnotes required for complete annual financial statements, management believes the disclosures are adequate to make the information presented not misleading. Unaudited interim results of operations and cash flows for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year. Unaudited interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in the Company’s Form 10-K filed with the SEC on March 2, 2021, wherein a more complete discussion of significant accounting policies and certain other information can be found. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP and the rules and regulations of the SEC requires the use of estimates and assumptions, based on judgments considered reasonable, which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions, including those related to the COVID-19 pandemic, and given the subjective element of the estimates and assumptions made, actual results may differ materially from estimated results. |
Fair Value Measurement and Fi_2
Fair Value Measurement and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The following tables set forth the carrying amounts and fair values of the Company’s financial instruments as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Fair Value Measurement Based on Quoted Significant Prices In other Significant Active Observable Unobservable Carrying Markets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Money market funds (cash equivalents) $ 118,121 $ 118,121 $ 118,121 $ — $ — December 31, 2020 Fair Value Measurement Based on Quoted Significant Prices In other Significant Active Observable Unobservable Carrying Markets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Money market funds (cash equivalents) $ 47,117 $ 47,117 $ 47,117 $ — $ — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Composition of Accounts Receivable, Net | The following table presents the composition of accounts receivable, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Gross accounts receivable - trade $ 7,713 $ 8,178 Less: Allowances for doubtful accounts (749) (1,012) Accounts receivable, net $ 6,964 $ 7,166 |
Property and Equipment and Ca_2
Property and Equipment and Capitalized Software (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Composition of Property and Equipment, Net | The following table presents the composition of property and equipment, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Laboratory equipment $ 150 $ 150 Office equipment 497 487 Computer equipment and software 1,495 1,360 Manufacturing equipment 445 273 Leasehold improvements 459 459 Rental equipment 207 405 Property and equipment, gross 3,253 3,134 Less: Accumulated depreciation (2,387) (2,404) Property and equipment, net $ 866 $ 730 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information as Lessee Related to Leases | The following table presents the supplemental cash flow information as a lessee related to leases (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 132 $ 126 |
Schedule of Future Payments of Operating Lease Liabilities | The following table sets forth by year the required future payments of operating lease liabilities (in thousands): March 31, 2021 Remainder of 2021 $ 472 2022 642 2023 637 2024 646 2025 660 Thereafter 1,487 Total lease payments 4,544 Less imputed interest (918) Present value of operating lease liabilities $ 3,626 |
Schedule of Profit Recognized on Sales-type Leases | The following table sets forth the profit recognized on sales-type leases (in thousands): Three Months Ended March 31, 2021 2020 Profit recognized at commencement, net $ 133 $ 252 Interest income — — Total sales-type lease income $ 133 $ 252 |
Schedule of Maturity Analysis of Undiscounted Lease Receivables Related to Sales-type Leases | The following table sets forth a maturity analysis of the undiscounted lease receivables related to sales-type leases (in thousands): March 31, 2021 Remainder of 2021 $ 1,576 2022 1,673 2023 599 2024 40 Total sales-type lease receivables $ 3,888 |
Schedule of Maturity Analysis of Undiscounted Lease Receivable Related to Operating Leases | The following table sets forth a maturity analysis of its undiscounted lease receivables related to operating leases as of March 31, 2021 (in thousands): March 31, 2021 Remainder of 2021 $ 39 Total lease receivables $ 39 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Composition of Accrued Expenses | The following table presents the composition of accrued expenses as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Compensation and related benefits $ 3,040 $ 5,023 Consulting and professional fees 396 292 Research and development expenses 249 138 Warranty 457 536 Sales and other taxes payable 640 726 Other 370 604 Accrued expenses $ 5,152 $ 7,319 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Revenue [Abstract] | |
Summary of Percentages of Deferred Revenue by Year | As of March 31, 2021, the Company expects to recognize approximately the following percentages of deferred revenue by year: Revenue Year: Recognition Remainder of 2021 44 % 2022 18 % 2023 17 % 2024 17 % 2025 4 % Thereafter - % Total 100 % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Composition of Debt | The following table presents the composition of debt as of March 31, 2021 and December 31, 2020 (in thousands): March 31, December 31, 2021 2020 Outstanding principal $ 35,000 $ 35,000 Accrued final payment fees 1,925 1,925 Less debt discounts (2,134) (2,305) Total debt, net 34,791 34,620 Less current portion — — Long-term debt, net $ 34,791 $ 34,620 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Common Stock Issued and Reserved for Issuance | The following table summarizes the total number of shares of the Company’s common stock issued and reserved for issuance as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Shares of common stock issued 25,756 19,114 Shares of common stock reserved for issuance for: Common stock warrants outstanding 75 105 Stock options outstanding 1,806 2,365 Restricted stock units and awards outstanding 2,337 1,860 Shares available for grant under stock incentive plan 2,171 1,530 Shares available for sale under employee stock purchase plan 799 608 Total shares of common stock issued and reserved for issuance 32,944 25,582 |
Summary of Outstanding Warrants | The following tables summarize the Company’s outstanding common stock warrants as of March 31, 2021, and December 31, 2020: March 31, 2021 Warrants Outstanding (in thousands) Exercise Price Expiration Date 14 $ 19.55 Dec-2022 20 $ 9.73 Aug-2023 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 75 December 31, 2020 Warrants Outstanding (in thousands) Exercise Price Expiration Date 14 $ 19.55 Dec-2022 30 $ 9.73 Feb-2021 20 $ 9.73 Aug-2023 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 105 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Diluted Loss Per Share Calculation | The following potentially dilutive securities outstanding as of March 31, 2021 and 2020 have been excluded from the denominator of the diluted loss per share of common stock outstanding calculation (in thousands): March 31, 2021 2020 Stock options 1,806 2,324 Non-vested performance restricted stock units 395 — Non-vested restricted stock units 1,942 1,522 Common stock warrants 75 105 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-Based Compensation Expense | The amount of share-based compensation expense recognized by the Company by location in its statements of operations for the three months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cost of revenues $ 20 $ 16 Sales and marketing 575 430 General and administrative 1,518 607 Research and development 83 143 Total $ 2,196 $ 1,196 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Weighted- Aggregate Number of Weighted- Remaining average Shares under average Contractual Intrinsic Option Exercise Price Life Value (in thousands) per Option (in years) (in thousands) Outstanding at December 31, 2020 2,365 $ 4.62 Granted — $ — Exercised (504) $ 3.67 Forfeited (55) $ 13.65 Outstanding at March 31, 2021 1,806 $ 4.73 7.6 $ 14,544 Exercisable at March 31, 2021 608 $ 7.17 4.6 $ 3,662 Vested and expected to vest at March 31, 2021 1,806 $ 4.73 7.6 $ 14,544 |
Summary of Restricted Stock Units and Performance Restricted Stock Units Activity | The following table summarizes the Company’s restricted stock unit and performance restricted stock unit activity for the three months ended March 31, 2021: Non-vested Weighted- Non-vested Weighted- Restricted average Performance Restricted average Stock Units Grant-date Stock Units Grant-date (in thousands) Fair Value (in thousands) Fair Value Non-vested at December 31, 2020 1,860 $ 3.58 500 $ 1.71 Granted 555 $ 13.56 145 $ 15.59 Vested (322) $ 3.89 (250) $ 1.77 Forfeited (151) $ 5.36 — $ — Non-vested at March 31, 2021 1,942 $ 6.24 395 $ 6.77 |
Summary of Inputs and Assumptions used to Estimated Grant-date Fair Value of Performance Restricted Stock Units | For the period ended March 31, 2021 and December 31, 2021, the grant-date fair value of the performance restricted stock units was estimated at the time of grant using the following inputs and assumptions in the Monte Carlo simulation valuation model: March 31, 2021 December 31, 2020 Closing price of common stock $ 15.92 $ 1.98 Risk-free interest rate 1.15 % 0.63 % Expected volatility 99.7 % 87.4 % |
Geographical Segment Informat_2
Geographical Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Revenue Generated in Geographic Regions for Years Indicated | Revenues by Geography Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues United States $ 11,802 96% % $ 11,177 97 % International 486 4% % 299 3 % Total revenues $ 12,288 100% % $ 11,476 100 % |
United States | |
Summary of Revenue Generated in Product Category for Years Indicated | U.S. Revenues by Product Category Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 1,755 15 % $ 2,594 23 % Treatment sessions 9,629 82 % 8,193 74 % Other 418 3 % 390 3 % Total U.S. revenues $ 11,802 100 % $ 11,177 100 % |
International | |
Summary of Revenue Generated in Product Category for Years Indicated | International Revenues by Product Category Three Months Ended March 31, 2021 2020 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 207 43 % $ 100 33 % Treatment sessions 131 27 % 77 26 % Other 148 30 % 122 41 % Total International revenues $ 486 100 % $ 299 100 % |
Description of Business - Addit
Description of Business - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Apr. 30, 2020 | |
Description Of Business [Line Items] | ||||
Cash and cash equivalents | $ 121,277 | $ 48,957 | ||
Accumulated deficit | 285,421 | 277,540 | ||
Cash flows from operating activities | 9,168 | $ 13,650 | $ 28,400 | |
Paycheck Protection Program (the "PPP") | Silicon Valley Bank | ||||
Description Of Business [Line Items] | ||||
Unsecured debt | $ 6,400 | |||
$35.0 Million Credit Facility | Oxford Finance LLC | ||||
Description Of Business [Line Items] | ||||
Borrowings outstanding under credit facility | $ 35,000 | |||
Credit facility maturity date | Feb. 1, 2025 |
Fair Value Measurement and Fi_3
Fair Value Measurement and Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - Money market funds - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Assets | ||
Total assets | $ 118,121 | $ 47,117 |
Fair Value | ||
Assets | ||
Total assets | 118,121 | 47,117 |
Quoted Prices In Active Markets (Level 1) | ||
Assets | ||
Total assets | $ 118,121 | $ 47,117 |
Accounts Receivable - Compositi
Accounts Receivable - Composition of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Gross accounts receivable - trade | $ 7,713 | $ 8,178 |
Less: Allowances for doubtful accounts | (749) | (1,012) |
Accounts receivable, net | $ 6,964 | $ 7,166 |
Property and Equipment and Ca_3
Property and Equipment and Capitalized Software - Summary of Composition of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,253 | $ 3,134 |
Less: Accumulated depreciation | (2,387) | (2,404) |
Property and equipment, net | 866 | 730 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 150 | 150 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 497 | 487 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,495 | 1,360 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 445 | 273 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 459 | 459 |
Rental Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 207 | 405 |
Property and equipment, net | $ 100 | $ 200 |
Property and Equipment and Ca_4
Property and Equipment and Capitalized Software - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 0.3 | $ 0.3 | |
Other Assets [Member] | |||
Property Plant And Equipment [Line Items] | |||
Capitalized software cost, net | $ 1.4 | $ 1.2 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Leases [Line Items] | |||
Lessee, finance lease, lease not yet commenced, description | The Company does not currently have any finance leases or executed leases that have not yet commenced. | ||
Operating lease, rent expense, net | $ 200 | $ 200 | |
Operating lease, weighted-average remaining lease term | 6 years 10 months 24 days | ||
Operating lease, weighted-average discount rate | 6.50% | ||
Reimbursement of leasehold expenses | 800 | ||
Carrying amount of lease receivables | $ 3,900 | ||
Unguaranteed residual assets | 0 | ||
Operating lease income | 100 | 100 | |
Property and equipment, net | $ 866 | $ 730 | |
NeuroStar Advanced Therapy Systems | |||
Leases [Line Items] | |||
Lessor sales-type lease, Term | 3 years | ||
Headquarters and Office Equipment, Including Copiers | |||
Leases [Line Items] | |||
Area of lease facility | ft² | 32,000 | ||
Rental Equipment | |||
Leases [Line Items] | |||
Property and equipment, net | $ 100 | $ 200 | |
Rental equipment depreciation expense | $ 10 | $ 30 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information as Lessee Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 132 | $ 126 |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
Remainder of 2021 | $ 472 |
2022 | 642 |
2023 | 637 |
2024 | 646 |
2025 | 660 |
Thereafter | 1,487 |
Total lease payments | 4,544 |
Less imputed interest | (918) |
Present value of operating lease liabilities | $ 3,626 |
Leases - Schedule of Profit Rec
Leases - Schedule of Profit Recognized on Sales-type Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales Type Lease Lease Income [Abstract] | ||
Profit recognized at commencement, net | $ 133 | $ 252 |
Total sales-type lease income | $ 133 | $ 252 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Undiscounted Lease Receivables Related to Sales-type Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Sales Type And Direct Financing Leases Lease Receivable Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 1,576 |
2022 | 1,673 |
2023 | 599 |
2024 | 40 |
Total sales-type lease receivables | $ 3,888 |
Leases - Schedule of Maturity_2
Leases - Schedule of Maturity Analysis of Undiscounted Lease Receivable Related to Operating Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Lessor Operating Lease Payments Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 39 |
Total lease receivables | $ 39 |
Prepaid Commission Expense - Ad
Prepaid Commission Expense - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Amortization Of Deferred Charges [Abstract] | ||
Amortization period of deferred commissions | 7 years | |
Amortization expense | $ 0.3 | $ 0.2 |
Accrued Expenses - Summary of C
Accrued Expenses - Summary of Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Compensation and related benefits | $ 3,040 | $ 5,023 |
Consulting and professional fees | 396 | 292 |
Research and development expenses | 249 | 138 |
Warranty | 457 | 536 |
Sales and other taxes payable | 640 | 726 |
Other | 370 | 604 |
Accrued expenses | $ 5,152 | $ 7,319 |
Deferred Revenue - Summary of P
Deferred Revenue - Summary of Percentages of Deferred Revenue by Year (Details) | Mar. 31, 2021 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 100.00% |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 44.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 18.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 17.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 17.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 4.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)customer | |
Deferred Revenue [Abstract] | |
Revenue recognized | $ | $ 1.2 |
Number of customer accounted for more than 10% of revenues | customer | 1 |
Debt - Summary of Composition o
Debt - Summary of Composition of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Outstanding principal | $ 35,000 | $ 35,000 |
Accrued final payment fees | 1,925 | 1,925 |
Less debt discounts | (2,134) | (2,305) |
Total debt, net | 34,791 | 34,620 |
Less current portion | ||
Long-term debt, net | $ 34,791 | $ 34,620 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 08, 2020USD ($)tranche | Mar. 02, 2020USD ($)trancheitem | Feb. 29, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Interest expense | $ 1,000,000 | $ 1,500,000 | |||||
Cash interest expense | 800,000 | 1,400,000 | |||||
Non-cash interest expense | $ 200,000 | $ 100,000 | |||||
Solar Capital Ltd | |||||||
Debt Instrument [Line Items] | |||||||
Amendment fee payable | $ 100,000 | ||||||
Solar Capital Ltd | Term A Loan | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Extended period of interest only term loan | 36 months | ||||||
Solar Capital Ltd | Term A Loan | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Extended period of interest only term loan | 24 months | ||||||
Solar Capital Ltd | Term A Loan and Term B Loan | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.66% | ||||||
Interest rate | 7.65% | ||||||
Interest-only period | 2022-03 | ||||||
Interest-only period upon achievement of revenues | 2023-02 | ||||||
Number of default events | item | 0 | ||||||
Line of credit facility, conversion to term loan, conditions | At the Company’s election, the interest only period may be extended through February 2023 if the Company satisfies a minimum net product revenue covenant through March 1, 2022 and no event of default shall have occurred | ||||||
Solar Capital Ltd | $35.0 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Solar Capital Ltd | $35.0 Million Credit Facility | Term A Loan | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under credit facility | $ 35,000,000 | ||||||
Solar Capital Ltd | $50.0 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||
Term loans number of tranches | tranche | 2 | ||||||
Increase in final payment fees percentage upon extension interest only periods | 5.50% | ||||||
Trailing twelve month net product revenue first threshold limit to pay exit fee | $ 100,000,000 | ||||||
Trailing twelve month net product revenue Second threshold limit to pay exit fee | $ 125,000,000 | ||||||
Percentage of exit fee for liquidation, dissolution, winding up or change of control of the Company | 4.50% | ||||||
Percentage of exit fee upon achievement of any trailing twelve month revenues | 2.25% | ||||||
Percentage of exit fee upon achievement of both trailing twelve month revenues | 4.50% | ||||||
Capped exit fee percentage on term loan principal amount | 4.50% | ||||||
Solar Capital Ltd | $50.0 Million Credit Facility | Prepaid on or Before First Anniversary of Funding | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment fees percentage | 3.00% | ||||||
Solar Capital Ltd | $50.0 Million Credit Facility | Prepaid After First and on or Before Second Anniversary of Funding | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment fees percentage | 2.00% | ||||||
Solar Capital Ltd | $50.0 Million Credit Facility | Prepaid After Second Anniversary of Funding | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment fees percentage | 1.00% | ||||||
Solar Capital Ltd | $50.0 Million Credit Facility | Term A Loan | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maturity date | Feb. 28, 2025 | ||||||
Solar Capital Ltd | $15 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||
Solar Capital Ltd | $15 Million Credit Facility | Term B Loan | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||
Line of credit facility, conversion to term loan, conditions | Under the Term B Loan portion of the Solar Facility, the Company is permitted to borrow, at its election, up to an aggregate amount of $15.0 million, (i) upon the Company achieving a specified amount of trailing twelve months net product revenue, and (ii) assuming there has been no event of default under the Solar Facility prior to such election. Once the net product revenue condition has been satisfied, the Company may only make an election to borrow under the Term B Loan portion of the Solar Facility until the earlier of (a) December 15, 2021, (b) 30 days following achievement of the net product revenue condition or (c) the occurrence of an event of default. | ||||||
Solar Capital Ltd | $5.0 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under credit facility | $ 5,000,000 | ||||||
Term loans number of tranches | tranche | 3 | ||||||
Oxford Finance LLC | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Debt instrument, final payment fee | 2,500,000 | ||||||
Combined debt discount and deferred issuance costs | 600,000 | ||||||
Oxford Finance LLC | Term A Loan | |||||||
Debt Instrument [Line Items] | |||||||
Final payment fees percentage | 8.50% | ||||||
Oxford Finance LLC | Term B Loan | |||||||
Debt Instrument [Line Items] | |||||||
Final payment fees percentage | 7.50% | ||||||
Oxford Finance LLC | $35.0 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Borrowings outstanding under credit facility | $ 35,000,000 | ||||||
Credit facility maturity date | Feb. 1, 2025 | ||||||
Debt instrument, interest rate | 8.15% | ||||||
Oxford Finance LLC | $35.0 Million Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 7.38% | ||||||
Debt instrument, description of variable rate basis | 30 day U.S. LIBOR | ||||||
Oxford Finance LLC | $35.0 Million Credit Facility | Term A Loan | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under credit facility | 25,000,000 | ||||||
Oxford Finance LLC | $35.0 Million Credit Facility | Term B Loan | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under credit facility | 5,000,000 | ||||||
Oxford Finance LLC | $35.0 Million Credit Facility | Term C Loan | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, current borrowing capacity | $ 5,000,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 02, 2021 | Mar. 31, 2021 |
Equity [Abstract] | ||
Common stock shares issued and sold | 5,566,000 | |
Public offering price | $ 15.50 | |
Net proceeds from initial public offering | $ 80,600 | $ 80,972 |
Common Stock - Summary of Commo
Common Stock - Summary of Common Stock Issued and Reserved for Issuance (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders Deficit [Line Items] | ||
Shares of common stock issued | 25,756,000 | 19,114,000 |
Shares of common stock reserved for issuance for: | ||
Total shares of common stock issued and reserved for issuance | 32,944,000 | 25,582,000 |
Common Stock Warrants | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 75,000 | 105,000 |
Stock Options Outstanding | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 1,806,000 | 2,365,000 |
Restricted Stock Units and Awards Outstanding | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 2,337,000 | 1,860,000 |
Shares Available for Grant Under Stock Incentive Plan | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 2,171,000 | 1,530,000 |
Shares Available for Sales Under Employee Stock Purchase Plan | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 799,000 | 608,000 |
Common Stock - Summary of Outst
Common Stock - Summary of Outstanding Common Stock Warrants (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 75 | 105 |
Exercise Price $19.55 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 14 | 14 |
Exercise Price | $ 19.55 | $ 19.55 |
Expiration Date | 2022-12 | 2022-12 |
Exercise Price $9.73 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 30 | |
Exercise Price | $ 9.73 | |
Expiration Date | 2021-02 | |
Exercise Price $9.73 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 20 | 20 |
Exercise Price | $ 9.73 | $ 9.73 |
Expiration Date | 2023-08 | 2023-08 |
Exercise Price $9.73 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 20 | 20 |
Exercise Price | $ 9.73 | $ 9.73 |
Expiration Date | 2024-03 | 2024-03 |
Exercise Price $9.73 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 21 | 21 |
Exercise Price | $ 9.73 | $ 9.73 |
Expiration Date | 2024-12 | 2024-12 |
Loss Per Share - Schedule of Po
Loss Per Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from Diluted Loss Per Share Calculation (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Options Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 1,806 | 2,324 |
Non-Vested Performance Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 395 | |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 1,942 | 1,522 |
Common Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 75 | 105 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | $ 2,196 | $ 1,196 |
Cost of Revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 20 | 16 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 575 | 430 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 1,518 | 607 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | $ 83 | $ 143 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ in Thousands, shares in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)installmentshares | Mar. 31, 2020USD ($) | Dec. 31, 2020shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expenses | $ 2,196 | $ 1,196 | |
Intrinsic value of stock options exercised | 6,500 | ||
Stock Options Outstanding | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expenses | 200 | 600 | |
Unrecognized compensation cost related to non-vested stock options | $ 2,000 | ||
Non-vested awards not yet recognized weighted-average period for recognition | 2 years 7 months 6 days | ||
Restricted Stock Awards and Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expenses | $ 1,900 | $ 600 | |
Non-vested awards not yet recognized weighted-average period for recognition | 2 years 4 months 24 days | ||
Unrecognized compensation cost related to non-vested restricted stock | $ 12,400 | ||
Fair value of restricted stock vested | $ 8,200 | ||
2018 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual percentage increase in number of shares authorized for issuance | 4.00% | ||
Vesting terms of stock options | stock options vest 25% upon the first anniversary of the date of grant and the remainder ratably monthly thereafter for 36 months. Restricted stock units generally vest ratably in three equal installments on the first, second and third anniversaries of the grant date. | ||
Number of vesting installments | installment | 3 | ||
Shares available for future issuance | shares | 2.1 | ||
2018 Equity Incentive Plan | PRSUs | Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average price, number of days trailing | 30 days | ||
2018 Equity Incentive Plan | First Anniversary of Date of Grant | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting percentage of stock options | 25.00% | ||
2018 Equity Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for issuance | shares | 1.4 | ||
Maximum contractual term of stock options | 10 years | ||
2020 Inducement Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for future issuance | shares | 0.1 | ||
2020 Inducement Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for issuance | shares | 0.4 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options Outstanding $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares under Option, Outstanding, Beginning balance | shares | 2,365 |
Number of Shares under Option, Exercised | shares | (504) |
Number of Shares under Option, Forfeited | shares | (55) |
Number of Shares under Option, Outstanding, Ending balance | shares | 1,806 |
Number of Shares under Option, Exercisable | shares | 608 |
Number of Shares under Option, Vested and expected to vest | shares | 1,806 |
Weighted-average Exercise Price per Option, Outstanding, Beginning balance | $ / shares | $ 4.62 |
Weighted-average Exercise Price per Option, Exercised | $ / shares | 3.67 |
Weighted-average Exercise Price per Option, Forfeited | $ / shares | 13.65 |
Weighted-average Exercise Price per Option, Outstanding, Ending balance | $ / shares | 4.73 |
Weighted-average Exercise Price per Option, Exercisable | $ / shares | 7.17 |
Weighted-average Exercise Price per Option, Vested and expected to vest | $ / shares | $ 4.73 |
Weighted-average Remaining Contractual Life, Outstanding | 7 years 7 months 6 days |
Weighted-average Remaining Contractual Life, Exercisable | 4 years 7 months 6 days |
Weighted-average Remaining Contractual Life, Vested and expected to vest | 7 years 7 months 6 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 14,544 |
Aggregate Intrinsic Value, Exercisable | $ | 3,662 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 14,544 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Restricted Stock Units and Performance Restricted Stock Unit Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested, Beginning balance | shares | 1,860 |
Granted | shares | 555 |
Vested | shares | (322) |
Forfeited | shares | (151) |
Non-vested, Ending balance | shares | 1,942 |
Weighted-average Grant-date Fair Value, Non-vested, Beginning balance | $ / shares | $ 3.58 |
Weighted-average Grant-date Fair Value, Granted | $ / shares | 13.56 |
Weighted-average Grant-date Fair Value, Vested | $ / shares | 3.89 |
Weighted-average Grant-date Fair Value, Forfeited | $ / shares | 5.36 |
Weighted-average Grant-date Fair Value, Non-vested, Ending balance | $ / shares | $ 6.24 |
Performance Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested, Beginning balance | shares | 500 |
Granted | shares | 145 |
Vested | shares | (250) |
Non-vested, Ending balance | shares | 395 |
Weighted-average Grant-date Fair Value, Non-vested, Beginning balance | $ / shares | $ 1.71 |
Weighted-average Grant-date Fair Value, Granted | $ / shares | 15.59 |
Weighted-average Grant-date Fair Value, Vested | $ / shares | 1.77 |
Weighted-average Grant-date Fair Value, Non-vested, Ending balance | $ / shares | $ 6.77 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Inputs and Assumptions used to Estimated Grant-date Fair Value of Performance Restricted Stock Unit (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Feb. 02, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Closing price of common stock | $ 15.50 | ||
Performance Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Closing price of common stock | $ 15.92 | $ 1.98 | |
Risk-free interest rate | 1.15% | 0.63% | |
Expected volatility | 99.70% | 87.40% |
Geographical Segment Informat_3
Geographical Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segments Geographical Areas [Abstract] | |
Number of operating business segment | 1 |
Geographical Segment Informat_4
Geographical Segment Information - Summary of Revenue Generated in Geographic Regions for Years Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 12,288 | $ 11,476 |
Revenues | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 12,288 | $ 11,476 |
Percentage of Revenues | 100.00% | 100.00% |
Revenues | United States | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 11,802 | $ 11,177 |
Percentage of Revenues | 96.00% | 97.00% |
Revenues | International | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 486 | $ 299 |
Percentage of Revenues | 4.00% | 3.00% |
Geographical Segment Informat_5
Geographical Segment Information - Summary of Revenue Generated in Product Category for Years Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 12,288 | $ 11,476 |
Product Category | United States | Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 11,802 | $ 11,177 |
Percentage of Revenues | 100.00% | 100.00% |
Product Category | United States | Revenues | NeuroStar Advanced Therapy System | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,755 | $ 2,594 |
Percentage of Revenues | 15.00% | 23.00% |
Product Category | United States | Revenues | Treatment Sessions | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 9,629 | $ 8,193 |
Percentage of Revenues | 82.00% | 74.00% |
Product Category | United States | Revenues | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 418 | $ 390 |
Percentage of Revenues | 3.00% | 3.00% |
Product Category | International | Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 486 | $ 299 |
Percentage of Revenues | 100.00% | 100.00% |
Product Category | International | Revenues | NeuroStar Advanced Therapy System | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 207 | $ 100 |
Percentage of Revenues | 43.00% | 33.00% |
Product Category | International | Revenues | Treatment Sessions | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 131 | $ 77 |
Percentage of Revenues | 27.00% | 26.00% |
Product Category | International | Revenues | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 148 | $ 122 |
Percentage of Revenues | 30.00% | 41.00% |
Severance - Additional Informat
Severance - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Accrued liabilities | $ 5,152 | $ 7,319 | |
Transition Separation Agreement | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 200 | $ 1,100 | |
Accrued liabilities | 700 | $ 1,000 | |
Termination Benefits | Transition Separation Agreement | |||
Restructuring Cost And Reserve [Line Items] | |||
Payments for restructuring | $ 500 | $ 50 |