Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38546 | |
Entity Registrant Name | NEURONETICS, INC. | |
Entity Incorporation, State or Country Code | DE | |
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 ($0.01 par value) | |
Trading Symbol | STIM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,997,563 | |
Entity Central Index Key | 0001227636 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 47,730 | $ 59,677 |
Accounts receivable, net | 17,504 | 15,782 |
Inventory | 6,694 | 8,093 |
Current portion of net investments in sales-type leases | 816 | 905 |
Current portion of prepaid commission expense | 2,630 | 2,514 |
Current portion of notes receivable | 2,121 | 2,056 |
Prepaid expenses and other current assets | 4,370 | 4,766 |
Total current assets | 81,865 | 93,793 |
Property and equipment, net | 1,847 | 2,009 |
Operating lease right-of-use assets | 2,628 | 2,773 |
Net investments in sales-type leases | 517 | 661 |
Prepaid commission expense | 8,408 | 8,370 |
Long-term notes receivable | 3,663 | 3,795 |
Other assets | 4,883 | 4,430 |
Total assets | 103,811 | 115,831 |
Current liabilities: | ||
Accounts payable | 2,979 | 4,752 |
Accrued expenses | 9,045 | 12,595 |
Deferred revenue | 1,623 | 1,620 |
Current portion of operating lease liabilities | 851 | 845 |
Total current liabilities | 14,498 | 19,812 |
Long-term debt, net | 59,444 | 59,283 |
Deferred revenue | 35 | 200 |
Operating lease liabilities | 2,179 | 2,346 |
Total liabilities | 76,156 | 81,641 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding on March 31, 2024 and December 31, 2023 | ||
Common stock, $0.01 par value: 200,000 shares authorized; 29,975 and 29,092 shares issued and outstanding on March 31, 2024 and December 31, 2023, respectively | 300 | 291 |
Additional paid-in capital | 411,309 | 409,980 |
Accumulated deficit | (383,954) | (376,081) |
Total Stockholders' equity | 27,655 | 34,190 |
Total Liabilities and Stockholders' equity | $ 103,811 | $ 115,831 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 29,975 | 29,092 |
Common stock, shares outstanding (in shares) | 29,975 | 29,092 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statements of Operations | ||
Revenues | $ 17,417 | $ 15,540 |
Cost of revenues | 4,329 | 4,144 |
Gross profit | 13,088 | 11,396 |
Operating expenses: | ||
Sales and marketing | 11,641 | 11,902 |
General and administrative | 5,957 | 6,611 |
Research and development | 2,349 | 2,790 |
Total operating expenses | 19,947 | 21,303 |
Loss from operations | (6,859) | (9,907) |
Other (income) expense: | ||
Interest expense | 1,826 | 1,253 |
Other income, net | (812) | (640) |
Net loss | $ (7,873) | $ (10,520) |
Net loss per share of common stock outstanding, basic | $ (0.27) | $ (0.38) |
Net loss per share of common stock outstanding, diluted | $ (0.27) | $ (0.38) |
Weighted-average common shares outstanding, basic | 29,472 | 28,034 |
Weighted-average common shares outstanding, diluted | 29,472 | 28,034 |
Statements of Changes in Stockh
Statements 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, 2022 | $ 273 | $ 402,679 | $ (345,892) | $ 57,060 |
Beginning balance, shares at Dec. 31, 2022 | 27,268 | |||
Share-based awards and options exercises | $ 12 | (12) | ||
Share-based awards and options exercises (in shares) | 1,197 | |||
Share-based compensation expense | 1,805 | 1,805 | ||
Net Loss | (10,520) | (10,520) | ||
Ending balance at Mar. 31, 2023 | $ 285 | 404,472 | (356,412) | 48,345 |
Ending balance, shares at Mar. 31, 2023 | 28,465 | |||
Beginning balance at Dec. 31, 2023 | $ 291 | 409,980 | (376,081) | 34,190 |
Beginning balance, shares at Dec. 31, 2023 | 29,092 | |||
Share-based awards and options exercises | $ 9 | (9) | ||
Share-based awards and options exercises (in shares) | 883 | |||
Share-based compensation expense | 1,338 | 1,338 | ||
Net Loss | (7,873) | (7,873) | ||
Ending balance at Mar. 31, 2024 | $ 300 | $ 411,309 | $ (383,954) | $ 27,655 |
Ending balance, shares at Mar. 31, 2024 | 29,975 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash flows from Operating activities: | |||
Net loss | $ (7,873) | $ (10,520) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 560 | 516 | |
Allowance for credit losses | 566 | 330 | |
Inventory impairment | 71 | ||
Share-based compensation | 1,338 | 1,805 | |
Non-cash interest expense | 161 | 188 | |
Changes in certain assets and liabilities: | |||
Accounts receivable, net | (2,667) | (2,337) | |
Inventory | 1,328 | (243) | |
Net investments in sales-type leases | 234 | 535 | |
Prepaid commission expense | (154) | (175) | |
Prepaid expenses and other assets | 116 | 131 | |
Accounts payable | (1,983) | 2,484 | |
Accrued expenses | (3,549) | (7,680) | |
Deferred revenue | (163) | (247) | |
Net Cash used in Operating activities | (12,015) | (15,213) | $ (32,000) |
Cash flows from Investing activities: | |||
Purchases of property and equipment and capitalized software | (375) | (234) | |
Repayment of notes receivable | 443 | 51 | |
Net Cash provided by (used in) Investing activities | 68 | (183) | |
Cash flows from Financing activities: | |||
Payments of debt issuance costs | (801) | ||
Proceeds from issuance of long-term debt | 2,500 | ||
Repayment of long-term debt | (1,200) | ||
Net Cash provided by Financing activities | 499 | ||
Net decrease in Cash and Cash equivalents | (11,947) | (14,897) | |
Cash and Cash equivalents, Beginning of Period | 59,677 | 70,340 | 70,340 |
Cash and Cash equivalents, End of Period | 47,730 | 55,443 | $ 59,677 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,666 | 1,064 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses | 210 | 52 | |
Reduction of accounts receivable in current and long-term notes receivable | $ 381 | $ 6,146 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTION OF BUSINESS Neuronetics, Inc. (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 neurohealth 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 (“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 NeuroStar Advanced Therapy System was cleared in 2008 by the United States (“U.S.”) Food and Drug Administration (the “FDA”) to treat adult patients with major depressive disorder (“MDD”) who have failed to achieve satisfactory improvement from prior antidepressant medication in the current MDD episode. It is also cleared by the FDA as an adjunct for adults with obsessive-compulsive disorder (“OCD”), and to decrease anxiety symptoms in adult patients with MDD that may exhibit comorbid anxiety symptoms (anxious depression), and as an adjunct for the treatment of MDD in adolescent patients aged 15-21. The NeuroStar Advanced Therapy System 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. Liquidity As of March 31, 2024, the Company had cash and cash equivalents of $47.7 million and an accumulated deficit of $384.0 million. The Company incurred negative cash flows from operating activities of $12.0 million for the three months ended March 31, 2024 and $32.0 million for the year ended December 31, 2023. 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 initial public offering (“IPO”), private placements of its convertible preferred securities, borrowings under its credit facility, proceeds from its secondary public offering of common stock and revenues from sales of its products. As of March 31, 2024, the Company had $60.0 million of borrowings outstanding under its credit facility, which has a final maturity in March 2028 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification and Accounting Standards Updates (“ASUs”) promulgated by the Financial Accounting Standards Board (the “FASB”). Interim Financial Statements The accompanying unaudited interim financial statements have been prepared from the books and records of the Company in accordance with U.S. GAAP for interim financial information and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “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’ equity 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, 2024 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 Annual Report on Form 10-K filed with the SEC on March 8, 2024, 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 U.S. 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, 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, 2024 | |
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 “Summary of Significant Accounting Policies” in the audited financial statements included in the Company’s Annual Report on Form 10-K filed with the SEC on March 8, 2024. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 4. RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Adopted by the Company In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”) 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, 2024 | |
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, 2024 and December 31, 2023 due to their short-term nature. The carrying values of the Company’s credit facility approximated its fair value as of March 31, 2024 and December 31, 2023 due to its variable interest rate. The carrying value of the Company’s notes receivable approximated its fair value as of March 31, 2024 and December 31, 2023 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, 2024 and December 31, 2023 (in thousands): March 31, 2024 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) $ 27,855 $ 27,855 $ 27,855 $ — $ — December 31, 2023 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) $ 27,507 $ 27,507 $ 27,507 $ — $ — |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Accounts Receivable | 6. ACCOUNTS RECEIVABLE The following table presents the composition of accounts receivable, net, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Gross accounts receivable - trade $ 18,756 $ 16,577 Less: Allowances for credit losses (1,252) (795) Accounts receivable, net $ 17,504 $ 15,782 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | 7. INVENTORY Inventory is stated at the lower of cost and net realizable value, with cost being determined on a first in, first out basis. The Company’s inventory is primarily comprised of finished goods and work-in-process. |
PROPERTY AND EQUIPMENT AND CAPI
PROPERTY AND EQUIPMENT AND CAPITALIZED SOFTWARE | 3 Months Ended |
Mar. 31, 2024 | |
Property Plant And Equipment Abstract [Abstract] | |
Property and Equipment and Capitalized Software | 8. PROPERTY AND EQUIPMENT AND CAPITALIZED SOFTWARE The following table presents the composition of property and equipment, net, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Laboratory equipment $ 702 $ 702 Office equipment 495 495 Auto 23 23 Computer equipment and software 1,105 1,082 Manufacturing equipment 551 551 Leasehold improvements 1,436 1,436 Rental equipment 542 542 Property and equipment, gross 4,854 4,831 Less: Accumulated depreciation (3,007) (2,822) Property and equipment, net $ 1,847 $ 2,009 As of March 31, 2024 and December 31, 2023, the Company had capitalized software costs, net, of $4.4 million and $4.2 million, respectively, which are included in “Prepaid expenses and other current assets” and “Other assets” on the balance sheets. Depreciation and amortization expense was $0.6 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended |
Mar. 31, 2024 | |
Notes Receivable | |
Notes Receivable | 9. NOTES RECEIVABLE Greenbrook TMS Inc. On March 31, 2023, the Company entered into a Secured Promissory Note and Guaranty Agreement (the “Promissory Note”) with TMS Neurohealth Centers Inc. (the “Maker”) and Greenbrook TMS Inc. and its subsidiaries, excluding the Maker (the “Guarantors”), in the principal amount of $6.0 million for a period of four years. Notes receivable outstanding was $4.8 million and $5.2 million as of March 31, 2024 and December 31, 2023, respectively. The Promissory Note bears interest at a rate equal to the sum of (a) the floating interest rate of daily secured overnight financing rate as administered by the Federal Reserve Bank of New York on its website (“SOFR”) plus (b) 7.65%. Pursuant to the terms of the Promissory Note, in the event of an event of default thereunder, the Maker will be required to issue common share purchase warrants to the Company equal to (i) 200% of the unpaid amount of any delinquent amount or payment due and payable under the Promissory Note, together with all outstanding and unpaid accrued interest, fees, charges and costs, divided by (ii) the exercise price of the warrants, which will represent (i) if the Maker’s common shares are traded on the Nasdaq Stock Market (“Nasdaq”), a 20% discount to the 30-day volume weighted average closing price of Greenbrook TMS Inc.’s common shares traded on the Nasdaq prior to the date of issuance (subject to any limitations that may be required by Nasdaq), (ii) if the Maker’s common shares are not then traded on Nasdaq, but are traded on the Toronto Stock Exchange (“TSX”) or another nationally recognized U.S. or Canadian securities exchange, inter-dealer quotation system or over-the-counter market (an “Other Market”), a 20% discount to the 30-day volume weighted average closing of Greenbrook TMS Inc’s common shares traded on the TSX or Other Market, as elected by the Company, or (iii) if the Maker’s common shares are not traded on any of the above trading markets, a 20% discount to the fair market value of a common share as determined pursuant to the Promissory Note. Under the Promissory Note and related loan documents, the Maker and the Guarantors have granted to the Company a security interest in substantially all of the Maker’s and the Guarantors’ assets and the Guarantors have guaranteed the Maker’s obligations under the Promissory Note. The Company’s security interest pursuant to the Promissory Note and related loan documents ranks pari passu Interest income recognized by the Company related to notes receivable was |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 10. LEASES Lessee: The Company has operating leases for its corporate headquarters, a training facility and office equipment, including copiers. The Company leases an approximately 32,000 square foot facility in Malvern, Pennsylvania for its corporate headquarters, which includes office and warehouse space. The Company leases an approximately 9,600 square foot facility in Charlotte, North Carolina as a training facility for its NeuroStar Advanced Therapy Systems. 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 for the three months ended March 31, 2024 and 2023. As of March 31, 2024, the weighted average remaining lease term of operating leases was 3.8 years and the weighted average discount rate was 7.2%. The following table presents the supplemental cash flow information as a lessee related to leases (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 275 $ 267 The following table sets forth by year the required future payments of operating lease liabilities (in thousands): Year ended March 31, 2024 Remainder of 2024 $ 659 2025 898 2026 921 2027 882 2028 116 Total lease payments 3,476 Less imputed interest (446) Present value of operating lease liabilities $ 3,030 Lessor sales-type leases: Certain customers have purchased NeuroStar Advanced Therapy Systems on a rent-to-own basis. The lease term is three The following table sets forth a maturity analysis of the undiscounted lease receivables related to sales-type leases (in thousands): March 31, 2024 Remainder of 2024 $ 692 2025 431 2026 118 2027 92 Total sales-type lease receivables $ 1,333 As of March 31, 2024, the carrying amount of the lease receivables was $1.3 million. The Company does not have any unguaranteed residual assets. Lessor operating leases: NeuroStar Advanced Therapy Systems sold for which collection is not probable are accounted for as operating leases. For the three months ended March 31, 2024 and 2023, the Company recognized operating lease income of $0.02 million and $0.04 million, respectively. The Company maintained rental equipment, net, of $0.3 million as of March 31, 2024 and December 31, 2023, respectively, which are included in “Property and equipment, net” on the balance sheets. Rental equipment depreciation expense was $0.02 million for the three months ended March 31, 2024 and 2023, respectively. |
PREPAID COMMISSION EXPENSE
PREPAID COMMISSION EXPENSE | 3 Months Ended |
Mar. 31, 2024 | |
Amortization Of Deferred Charges [Abstract] | |
Prepaid Commission Expense | 11. PREPAID COMMISSION EXPENSE The Company pays a commission on both NeuroStar Advanced Therapy 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 $0.7 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2024 | |
Payable And Accruals [Abstract] | |
Accrued Expenses | 12. ACCRUED EXPENSES The following table presents the composition of accrued expenses as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Compensation and related benefits $ 4,032 $ 8,003 Consulting and professional fees 614 488 Research and development expenses 285 260 Sales and marketing expenses 1,689 1,760 Warranty 239 213 Sales and other taxes payable 742 818 Interest payable 567 — Other 877 1,053 Accrued expenses $ 9,045 $ 12,595 |
REVENUE AND DEFERRED REVENUE
REVENUE AND DEFERRED REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE AND DEFERRED REVENUE [Abstract] | |
Revenue and Deferred revenue | 13. REVENUE AND DEFERRED REVENUE Payment terms typically require payment upon shipment or installation of the NeuroStar Advanced Therapy System and additional payments as access codes for treatment sessions are delivered, which can span several years after the NeuroStar Advanced Therapy 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 may be required for certain customers and are recorded as contract liabilities (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, 2024, the Company expects to recognize approximately the following percentages of deferred revenue by year: Revenue Year: Recognition Remainder of 2024 78 % 2025 19 % 2026 2 % 2027 1 % Total 100 % Customers Significant customers are those that represent more than 10% of the Company’s total revenue. For the period ended March 31, 2024 and 2023, one customer accounted for 17% and 18%, respectively, of the Company’s revenue. Accounts receivable outstanding related to that customer was $2.4 million and $1.9 million as of March 31, 2024 and December 31, 2023, respectively. Notes receivable outstanding related to that customer was $4.8 million and $5.2 million as of March 31, 2024 and December 31, 2023, respectively. Geographical information 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, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) U.S. $ 16,793 96 % $ 14,964 96 % International 624 4 % 576 4 % Total revenues $ 17,417 100 % $ 15,540 100 % U.S. Revenues by Product Category Three Months Ended March 31, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 3,310 20 % $ 3,850 26 % Treatment sessions 12,988 77 % 10,643 71 % Other 495 3 % 471 3 % Total U.S. revenues $ 16,793 100 % $ 14,964 100 % International Revenues by Product Category Three Months Ended March 31, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 258 41 % $ 259 45% % Treatment sessions 172 28 % 184 32% % Other 194 31 % 133 23% % Total international revenues $ 624 100 % $ 576 100% % |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 14. DEBT The following table presents the composition of debt as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Outstanding principal $ 60,000 $ 60,000 Accrued final payment fees 1,856 1,856 Less debt discounts (2,412) (2,573) Total debt, net 59,444 59,283 Less current portion — — Long-term debt, net $ 59,444 $ 59,283 For the three months ended March 31, 2024 the Company recognized interest expense of $1.8 million, of which $1.7 million was cash and $0.1 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, 2023, the Company recognized interest expense of $1.3 million, of which $1.1 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. Solar Credit Facility On March 2, 2020 the Company entered into a Loan and Security Agreement with Solar Capital Ltd as collateral agent and other lenders as defined in the agreement (such agreement, as amended, the “Solar Facility”). On March 7, 2024, the Company entered into a sixth amendment (the “Solar Sixth Amendment”) to the Solar Facility. Under the Solar Sixth Amendment, Solar: (a) waived the specified events with respect to the Company’s non-compliance with the required revenue under the net product revenue covenant; and (b) amended the financial covenants by increasing the amount of the liquidity covenant and temporarily decreasing the net product revenue covenant to reflect current projections. On September 29, 2023, the Company entered into a fifth amendment (the “Solar Fifth Amendment”) to the Solar Facility. The Solar Fifth Amendment allowed the Company to draw on the $22.5 million Term C Loan portion of the Solar Facility and revise the required testing levels of the net product revenue and minimum liquidity covenants for certain testing periods. On October 3, 2023, the Company borrowed $22.5 million under the Term C Loan portion of the Solar Facility, resulting in total borrowing of $60 million. On March 29, 2023, the Company entered into a fourth amendment (the “Solar Fourth Amendment”) to the Loan and Security Agreement dated March 2, 2020 with SLR Investment Corp. (formerly known as Solar Capital Ltd.). The Solar Fourth Amendment increased the borrowings by $2.5 million, extended the interest only period from March 2023 to March 2026, and extended the maturity date from February 2025 to March 2028. In addition, the Solar Fourth Amendment changed the basis of the interest expense from LIBOR to SOFR. The Solar Facility accrues 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 the greater of 5.65% plus (a) 3.95% or (b) daily simple SOFR for a term of one month. Only interest is required to be paid on the Solar Facility until March 1, 2026. Prior to the effectiveness of the Solar Fourth Amendment, the interest only period with respect to the Term A Loan expired on March 1, 2023. Commencing April 1, 2026, the Company will be required to make monthly payments of principal and interest on the Solar Facility. 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 upon the earlier of prepayment, acceleration or the maturity date of the Solar Facility equal to 4.95% of the principal amount of the term loans actually funded. If the Company prepays the Solar Facility 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 the Term C Funding Date, 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 the Term C Funding Date, or 1% of the principal amount of such term loan then-prepaid if prepaid after the second anniversary of the Term C Funding Date. The Company is also required to pay Solar an exit fee upon the occurrence of (a) any liquidation, dissolution or winding up of the Company, (b) any 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 2% 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 1% of the principal amount of the term loans actually funded or, if both net product revenue milestones are achieved, 2% of the principal amount of the term loans actually funded. The exit fee is capped at 2% of the principal amount of the term loans actually funded. On January 31, 2024 and February 29, 2024, the Company was not in compliance with its minimum net product revenue covenant under the Solar Facility. The Company was granted a waiver from Solar in the Solar Sixth Amendment for the covenant violations. The amount of borrowings affected by this noncompliance was $60 million. As of March 31, 2024, the Company is in compliance with all covenants in the Solar Facility and is projected to be in compliance with the covenants going forward. |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Common Stock | 15. COMMON STOCK 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, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Shares of common stock issued 29,975 29,092 Shares of common stock reserved for issuance for: Common stock warrants outstanding 21 41 Stock options outstanding 1,270 1,270 Restricted stock units outstanding 3,299 3,360 Shares available for grant under stock incentive plans 1,320 978 Shares available for sale under employee stock purchase plan 1,624 1,335 Total shares of common stock issued and reserved for issuance 37,509 36,076 Common Stock Warrants The following table summarize the Company’s outstanding common stock warrants as of March 31, 2024, and December 31, 2023: March 31, 2024 Warrants Outstanding (in thousands) Exercise Price Expiration Date 21 $ 9.73 Dec-2024 21 December 31, 2023 Warrants Outstanding (in thousands) Exercise Price Expiration Date 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 41 |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
LOSS PER SHARE | |
LOSS PER SHARE | 16. 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 the Company achieves profitability in the future, 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 (“PRSUs”) 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, 2024 and 2023 have been excluded from the denominator of the diluted loss per share of common stock outstanding calculation (in thousands): March 31, 2024 2023 Stock options 1,270 1,291 Non-vested PRSUs 395 395 Non-vested restricted stock units 2,904 3,253 Common stock warrants 21 61 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Of Compensation Related Costs Share-based Payments [Abstract] | |
Share-Based Compensation | 17. 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, 2024 and 2023 is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenues $ 34 $ 37 Sales and marketing 350 642 General and administrative 777 967 Research and development 177 159 Total $ 1,338 $ 1,805 2018 Equity Incentive Plan In June 2018, the Company adopted the 2018 Equity Incentive Plan, ( the “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 30-day 2020 Inducement Incentive Plan In December 2020, the Company adopted the 2020 Inducement Incentive Plan (the “2020 Plan”), which authorized the issuance of up to 0.4 million shares, subject to increase by approval of the Company’s board of directors, 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. In March 2022, the Company’s board of directors approved an additional 0.5 million shares for the issuance under the 2020 Plan. An individual who previously served as an employee or director of the Company is not eligible to receive awards under the 2020 Plan. The amount and terms of grants are determined by the Company’s board of directors. As of March 31, 2024, there were 0.2 million shares available for future issuance under the 2020 Plan. Stock Options The following table summarizes the Company’s stock option activity for the three months ended March 31, 2024: Weighted Aggregate Number of Weighted average average Shares under average Remaining Intrinsic Option Exercise Price Contractual Value (in thousands) per Option Life (in years) (in thousands) Outstanding at December 31, 2023 1,270 $ 3.90 Granted — $ — Exercised — $ — Forfeited — $ — Outstanding at March 31, 2024 1,270 $ 3.90 5.8 $ 2,727 Exercisable at March 31, 2024 1,187 $ 4.03 5.7 $ 2,495 Vested and expected to vest at March 31, 2024 1,270 $ 3.90 5.8 $ 2,727 The Company recognized share-based compensation expense related to stock options of $0.1 million for the three months ended March 31, 2024 and 2023. As of March 31, 2024, there was $0.1 million of total unrecognized compensation cost related to non-vested stock options, which the Company expects to recognize over a weighted average period of 0.3 years. For the three months ended March 31, 2024, the Company did not grant stock options. Restricted Stock Units and PRSUs The following table summarizes the Company’s restricted stock unit and PRSU activity for March 31, 2024: Non-vested Weighted Non-vested Weighted Restricted average PRSUs average Stock Units Grant-date Grant-date (in thousands) Fair Value (in thousands) Fair Value Non-vested at December 31, 2023 2,965 $ 4.37 395 $ 6.77 Granted 990 $ 3.24 — $ — Vested (883) $ 5.21 — $ — Forfeited (168) $ 4.58 — $ — Non-vested at March 31, 2024 2,904 $ 3.71 395 $ 6.77 The Company recognized $1.3 million and $1.7 million in share-based compensation expense related to the restricted stock units and PRSUs for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $8.9 million of unrecognized compensation cost related to non-vested restricted stock units and PRSUs, which the Company expects to recognize over a weighted average period of 2.0 years. The total fair value at the vesting date of restricted stock units and PRSUs vested during the three months ended March 31, 2024 was $3.1 million. The Company did no t grant PRSUs during the three months ended March 31, 2024. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments And Contingencies Disclosure[Abstract] | |
Commitments and Contingencies | 18. 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segments Geographical Areas [Abstract] | |
Segment Information | 19. 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. |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 3 Months Ended |
Mar. 31, 2024 | |
Government Assistance [Abstract] | |
Government Assistance | 20. GOVERNMENT ASSISTANCE Employee Retention Credit The Coronavirus Aid, Relief and Economic Security Act provided an Employee Retention Credit (the “ERC”), which was a refundable tax credit related to certain payroll taxes. The Company applied the grant model and determined that the criteria for recognition of the ERC was met during the year ended December 31, 2023 based on the Company’s determination of eligibility and filing of the ERC claim. As of March 31, 2024, the $2.9 million ERC receivable is reported within prepaid expenses and other current assets on the Company’s balance sheets. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 U.S. GAAP for interim financial information and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “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’ equity 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, 2024 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 Annual Report on Form 10-K filed with the SEC on March 8, 2024, 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 U.S. 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, 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, 2024 | |
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, 2024 and December 31, 2023 (in thousands): March 31, 2024 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) $ 27,855 $ 27,855 $ 27,855 $ — $ — December 31, 2023 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) $ 27,507 $ 27,507 $ 27,507 $ — $ — |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Composition of Accounts Receivable, Net | The following table presents the composition of accounts receivable, net, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Gross accounts receivable - trade $ 18,756 $ 16,577 Less: Allowances for credit losses (1,252) (795) Accounts receivable, net $ 17,504 $ 15,782 |
PROPERTY AND EQUIPMENT AND CA_2
PROPERTY AND EQUIPMENT AND CAPITALIZED SOFTWARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property Plant And Equipment Abstract [Abstract] | |
Summary of Composition of Property and Equipment, Net | The following table presents the composition of property and equipment, net, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Laboratory equipment $ 702 $ 702 Office equipment 495 495 Auto 23 23 Computer equipment and software 1,105 1,082 Manufacturing equipment 551 551 Leasehold improvements 1,436 1,436 Rental equipment 542 542 Property and equipment, gross 4,854 4,831 Less: Accumulated depreciation (3,007) (2,822) Property and equipment, net $ 1,847 $ 2,009 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 275 $ 267 |
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): Year ended March 31, 2024 Remainder of 2024 $ 659 2025 898 2026 921 2027 882 2028 116 Total lease payments 3,476 Less imputed interest (446) Present value of operating lease liabilities $ 3,030 |
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, 2024 Remainder of 2024 $ 692 2025 431 2026 118 2027 92 Total sales-type lease receivables $ 1,333 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payable And Accruals [Abstract] | |
Summary of Composition of Accrued Expenses | The following table presents the composition of accrued expenses as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Compensation and related benefits $ 4,032 $ 8,003 Consulting and professional fees 614 488 Research and development expenses 285 260 Sales and marketing expenses 1,689 1,760 Warranty 239 213 Sales and other taxes payable 742 818 Interest payable 567 — Other 877 1,053 Accrued expenses $ 9,045 $ 12,595 |
REVENUE AND DEFERRED REVENUE (T
REVENUE AND DEFERRED REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Percentages of Deferred Revenue by Year | As of March 31, 2024, the Company expects to recognize approximately the following percentages of deferred revenue by year: Revenue Year: Recognition Remainder of 2024 78 % 2025 19 % 2026 2 % 2027 1 % Total 100 % |
Summary of Revenue Generated in Geographic Regions for Years Indicated | Revenues by Geography Three Months Ended March 31, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) U.S. $ 16,793 96 % $ 14,964 96 % International 624 4 % 576 4 % Total revenues $ 17,417 100 % $ 15,540 100 % |
U.S. | |
Summary of Revenue Generated in Product Category for Years Indicated | U.S. Revenues by Product Category Three Months Ended March 31, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 3,310 20 % $ 3,850 26 % Treatment sessions 12,988 77 % 10,643 71 % Other 495 3 % 471 3 % Total U.S. revenues $ 16,793 100 % $ 14,964 100 % |
International | |
Summary of Revenue Generated in Product Category for Years Indicated | International Revenues by Product Category Three Months Ended March 31, 2024 2023 % of % of Amount Revenues Amount Revenues (in thousands, except percentages) NeuroStar Advanced Therapy System $ 258 41 % $ 259 45% % Treatment sessions 172 28 % 184 32% % Other 194 31 % 133 23% % Total international revenues $ 624 100 % $ 576 100% % |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Composition of Debt | The following table presents the composition of debt as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Outstanding principal $ 60,000 $ 60,000 Accrued final payment fees 1,856 1,856 Less debt discounts (2,412) (2,573) Total debt, net 59,444 59,283 Less current portion — — Long-term debt, net $ 59,444 $ 59,283 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Shares of common stock issued 29,975 29,092 Shares of common stock reserved for issuance for: Common stock warrants outstanding 21 41 Stock options outstanding 1,270 1,270 Restricted stock units outstanding 3,299 3,360 Shares available for grant under stock incentive plans 1,320 978 Shares available for sale under employee stock purchase plan 1,624 1,335 Total shares of common stock issued and reserved for issuance 37,509 36,076 |
Summary of Outstanding Warrants | The following table summarize the Company’s outstanding common stock warrants as of March 31, 2024, and December 31, 2023: March 31, 2024 Warrants Outstanding (in thousands) Exercise Price Expiration Date 21 $ 9.73 Dec-2024 21 December 31, 2023 Warrants Outstanding (in thousands) Exercise Price Expiration Date 20 $ 9.73 Mar-2024 21 $ 9.73 Dec-2024 41 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LOSS PER SHARE | |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Diluted Loss Per Share Calculation | The following potentially dilutive securities outstanding as of March 31, 2024 and 2023 have been excluded from the denominator of the diluted loss per share of common stock outstanding calculation (in thousands): March 31, 2024 2023 Stock options 1,270 1,291 Non-vested PRSUs 395 395 Non-vested restricted stock units 2,904 3,253 Common stock warrants 21 61 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disclosure Of Compensation Related Costs Share-based 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, 2024 and 2023 is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenues $ 34 $ 37 Sales and marketing 350 642 General and administrative 777 967 Research and development 177 159 Total $ 1,338 $ 1,805 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2024: Weighted Aggregate Number of Weighted average average Shares under average Remaining Intrinsic Option Exercise Price Contractual Value (in thousands) per Option Life (in years) (in thousands) Outstanding at December 31, 2023 1,270 $ 3.90 Granted — $ — Exercised — $ — Forfeited — $ — Outstanding at March 31, 2024 1,270 $ 3.90 5.8 $ 2,727 Exercisable at March 31, 2024 1,187 $ 4.03 5.7 $ 2,495 Vested and expected to vest at March 31, 2024 1,270 $ 3.90 5.8 $ 2,727 |
Summary of Restricted Stock Units and Performance Restricted Stock Units Activity | The following table summarizes the Company’s restricted stock unit and PRSU activity for March 31, 2024: Non-vested Weighted Non-vested Weighted Restricted average PRSUs average Stock Units Grant-date Grant-date (in thousands) Fair Value (in thousands) Fair Value Non-vested at December 31, 2023 2,965 $ 4.37 395 $ 6.77 Granted 990 $ 3.24 — $ — Vested (883) $ 5.21 — $ — Forfeited (168) $ 4.58 — $ — Non-vested at March 31, 2024 2,904 $ 3.71 395 $ 6.77 |
DESCRIPTION OF BUSINESS - Addit
DESCRIPTION OF BUSINESS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
DESCRIPTION OF BUSINESS [Line Items] | |||
Cash and cash equivalents | $ 47,730 | $ 59,677 | |
Accumulated deficit | 383,954 | 376,081 | |
Cash flows from operating activities | 12,015 | $ 15,213 | $ 32,000 |
$60.0 Million Credit Facility | Oxford Finance LLC | |||
DESCRIPTION OF BUSINESS [Line Items] | |||
Borrowings outstanding under credit facility | $ 60,000 | ||
Credit facility maturity date | Mar. 31, 2028 |
FAIR VALUE MEASUREMENT AND FI_3
FAIR VALUE MEASUREMENT AND FINANCIAL INSTRUMENTS - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Investment, Type [Extensible Enumeration] | us-gaap:MoneyMarketFundsMember | us-gaap:MoneyMarketFundsMember |
Carrying Amount | ||
Assets | ||
Total assets | $ 27,855 | $ 27,507 |
Fair Value | ||
Assets | ||
Total assets | 27,855 | 27,507 |
Quoted Prices In Active Markets (Level 1) | ||
Assets | ||
Total assets | $ 27,855 | $ 27,507 |
ACCOUNTS RECEIVABLE - Compositi
ACCOUNTS RECEIVABLE - Composition of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Gross accounts receivable - trade | $ 18,756 | $ 16,577 |
Less: Allowances for credit losses | (1,252) | (795) |
Accounts receivable, net | $ 17,504 | $ 15,782 |
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, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,854 | $ 4,831 |
Less: Accumulated depreciation | (3,007) | (2,822) |
Property and equipment, net | 1,847 | 2,009 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 702 | 702 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 495 | 495 |
Auto | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 23 | 23 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,105 | 1,082 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 551 | 551 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,436 | 1,436 |
Rental Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 542 | 542 |
Property and equipment, net | $ 300 | $ 300 |
PROPERTY AND EQUIPMENT AND CA_4
PROPERTY AND EQUIPMENT AND CAPITALIZED SOFTWARE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property Plant And Equipment Abstract [Abstract] | |||
Capitalized software cost, net | $ 4.4 | $ 4.2 | |
Depreciation and amortization expense | $ 0.6 | $ 0.5 |
NOTES RECEIVABLE - Additional I
NOTES RECEIVABLE - Additional Information (Details) - Secured Promissory Note $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) D | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
If Maker's Common Shares Are Not Traded On Any Stock Markets | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Discount rate | 20% | ||
Greenbrook TMS Inc | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal amount of notes receivable | $ 6 | ||
Term of notes receivable | 4 years | ||
Notes receivable outstanding | $ 4.8 | $ 5.2 | |
Percentage of unpaid amount | 200% | ||
Greenbrook TMS Inc | If Maker's Common Shares Are Traded On Nasdaq Stock Market | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Discount rate | 20% | ||
Number of day volume-weighted average closing price | D | 30 | ||
Greenbrook TMS Inc | If Maker's Common Shares Are Traded On Stock Markets Other Than Nasdaq | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Discount rate | 20% | ||
Number of day volume-weighted average closing price | D | 30 | ||
Greenbrook TMS Inc | Secured Overnight Financing Rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest rate (as a percent) | 7.65% | ||
Success TMS | Other income, net | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income recognized | $ 0.2 | $ 0 |
LEASES- Additional Information
LEASES- Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) ft² | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
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 | 3 years 9 months 18 days | ||
Operating lease, weighted-average discount rate | 7.20% | ||
Carrying amount of lease receivables | $ 1,300 | ||
Unguaranteed residual assets | 0 | ||
Operating lease income | $ 20 | $ 40 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue From Contract With Customer Excluding Assessed Tax | Revenue From Contract With Customer Excluding Assessed Tax | |
Property and equipment, net | $ 1,847 | $ 2,009 | |
NeuroStar Advanced Therapy Systems | Minimum | |||
Leases [Line Items] | |||
Lessor sales-type lease, Term | 3 years | ||
NeuroStar Advanced Therapy Systems | Maximum | |||
Leases [Line Items] | |||
Lessor sales-type lease, Term | 4 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 | $ 300 | $ 300 | |
Rental equipment depreciation expense | $ 20 | $ 20 | |
Charlotte, North Carolina | |||
Leases [Line Items] | |||
Area of lease facility | ft² | 9,600 |
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, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 275 | $ 267 |
LEASES - Schedule of Future Pay
LEASES - Schedule of Future Payments of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Lease Liabilities [Abstract] | |
Remainder of 2024 | $ 659 |
2025 | 898 |
2026 | 921 |
2027 | 882 |
2028 | 116 |
Total lease payments | 3,476 |
Less imputed interest | (446) |
Present value of operating lease liabilities | $ 3,030 |
LEASES - Schedule of Maturity A
LEASES - Schedule of Maturity Analysis of Undiscounted Lease Receivables Related to Sales-type Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Sales Type And Direct Financing Leases Lease Receivable Fiscal Year Maturity [Abstract] | |
Remainder of 2024 | $ 692 |
2025 | 431 |
2026 | 118 |
2027 | 92 |
Total sales-type lease receivables | $ 1,333 |
PREPAID COMMISSION EXPENSE - Ad
PREPAID COMMISSION EXPENSE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amortization Of Deferred Charges [Abstract] | ||
Amortization period of deferred commissions | 7 years | |
Amortization expense | $ 0.7 | $ 0.5 |
ACCRUED EXPENSES - Summary of C
ACCRUED EXPENSES - Summary of Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payable And Accruals [Abstract] | ||
Compensation and related benefits | $ 4,032 | $ 8,003 |
Consulting and professional fees | 614 | 488 |
Research and development expenses | 285 | 260 |
Sales and marketing expenses | 1,689 | 1,760 |
Warranty | 239 | 213 |
Sales and other taxes payable | 742 | 818 |
Interest payable | 567 | |
Other | 877 | 1,053 |
Accrued expenses | $ 9,045 | $ 12,595 |
REVENUE AND DEFERRED REVENUE -
REVENUE AND DEFERRED REVENUE - Summary of Percentages of Deferred Revenue by Year (Details) | Mar. 31, 2024 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 100% |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2024-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 78% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
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 | 19% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 2% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 1% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
REVENUE AND DEFERRED REVENUE _2
REVENUE AND DEFERRED REVENUE - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) customer | Mar. 31, 2023 USD ($) customer | Dec. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 600 | $ 900 | |
Number of customer accounted for more than 10% of revenues | customer | 1 | 1 | |
Accounts receivable | $ 17,504 | $ 15,782 | |
Customer 1 | |||
Disaggregation of Revenue [Line Items] | |||
Notes receivable | 4,800 | 5,200 | |
Credit concentration risk | Customer 1 | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable | $ 2,400 | $ 1,900 | |
Revenue | Customer concentration risk | Customer 1 | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenues | 17% | 18% |
REVENUE AND DEFERRED REVENUE _3
REVENUE AND DEFERRED REVENUE - Summary of Revenue Generated in Geographic Regions for Years Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 17,417 | $ 15,540 |
Revenue | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 17,417 | $ 15,540 |
Percentage of Revenues | 100% | 100% |
Revenue | U.S. | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 16,793 | $ 14,964 |
Percentage of Revenues | 96% | 96% |
Revenue | International | Geographic Concentration | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 624 | $ 576 |
Percentage of Revenues | 4% | 4% |
REVENUE AND DEFERRED REVENUE _4
REVENUE AND DEFERRED REVENUE - Summary of Revenue Generated in Product Category for Years Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 17,417 | $ 15,540 |
Product Category | U.S. | Revenue | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 16,793 | $ 14,964 |
Percentage of Revenues | 100% | 100% |
Product Category | U.S. | Revenue | NeuroStar Advanced Therapy System | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 3,310 | $ 3,850 |
Percentage of Revenues | 20% | 26% |
Product Category | U.S. | Revenue | Treatment Sessions | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 12,988 | $ 10,643 |
Percentage of Revenues | 77% | 71% |
Product Category | U.S. | Revenue | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 495 | $ 471 |
Percentage of Revenues | 3% | 3% |
Product Category | International | Revenue | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 624 | $ 576 |
Percentage of Revenues | 100% | 100% |
Product Category | International | Revenue | NeuroStar Advanced Therapy System | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 258 | $ 259 |
Percentage of Revenues | 41% | 45% |
Product Category | International | Revenue | Treatment Sessions | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 172 | $ 184 |
Percentage of Revenues | 28% | 32% |
Product Category | International | Revenue | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 194 | $ 133 |
Percentage of Revenues | 31% | 23% |
DEBT - Summary of Composition o
DEBT - Summary of Composition of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Feb. 29, 2024 | Jan. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||||
Outstanding principal | $ 60,000 | $ 60,000 | $ 60,000 | $ 60,000 |
Accrued final payment fees | 1,856 | 1,856 | ||
Less debt discounts | (2,412) | (2,573) | ||
Total debt, net | 59,444 | 59,283 | ||
Long-term debt, net | $ 59,444 | $ 59,283 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Mar. 29, 2023 | Feb. 29, 2024 | Jan. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Oct. 03, 2023 | Sep. 29, 2023 | |
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 1,800 | $ 1,300 | ||||||
Cash interest expense | 1,700 | 1,100 | ||||||
Non-cash interest expense | 100 | $ 200 | ||||||
Total borrowing amount | $ 60,000 | $ 60,000 | $ 60,000 | $ 60,000 | ||||
Debt Instrument, Covenant Compliance | On January 31, 2024 and February 29, 2024, the Company was not in compliance with its minimum net product revenue covenant under the Solar Facility. The Company was granted a waiver from Solar in the Solar Sixth Amendment for the covenant violations. The amount of borrowings affected by this noncompliance was $60 million. | On January 31, 2024 and February 29, 2024, the Company was not in compliance with its minimum net product revenue covenant under the Solar Facility. The Company was granted a waiver from Solar in the Solar Sixth Amendment for the covenant violations. The amount of borrowings affected by this noncompliance was $60 million. | ||||||
Solar Capital Ltd | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fees percentage | 2% | |||||||
Trailing twelve month net product revenue first threshold limit to pay exit fee | $ 100,000 | |||||||
Trailing twelve month net product revenue Second threshold limit to pay exit fee | $ 125,000 | |||||||
Percentage of exit fee for liquidation, dissolution, winding up or change of control of the Company | 4.95% | |||||||
Percentage of exit fee upon achievement of any trailing twelve month revenues | 1% | |||||||
Percentage of exit fee upon achievement of both trailing twelve month revenues | 2% | |||||||
Capped exit fee percentage on term loan principal amount | 2% | |||||||
Solar Capital Ltd | Prepaid on or Before First Anniversary of Funding | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fees percentage | 3% | |||||||
Solar Capital Ltd | Prepaid After First and on or Before Second Anniversary of Funding | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fees percentage | 2% | |||||||
Solar Capital Ltd | Prepaid After Second Anniversary of Funding | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fees percentage | 1% | |||||||
Solar Capital Ltd | Term A Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate during the period | 3.95% | |||||||
Solar Capital Ltd | Term A Loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate during the period | 5.65% | |||||||
Solar Capital Ltd | Term C Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total borrowing amount | $ 60,000 | |||||||
Solar Capital Ltd | $22.5 Million Credit Facility | Term B Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding under credit facility | $ 2,500 | |||||||
Solar Capital Ltd | $22.5 Million Credit Facility | Term C Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 22,500 | |||||||
Borrowings outstanding under credit facility | $ 22,500 |
COMMON STOCK - Summary of Commo
COMMON STOCK - Summary of Common Stock Issued and Reserved for Issuance (Details) - shares shares in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Stockholders Deficit [Line Items] | ||
Shares of common stock issued | 29,975 | 29,092 |
Shares of common stock reserved for issuance for: | ||
Total shares of common stock issued and reserved for issuance | 37,509 | 36,076 |
Common stock warrants | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 21 | 41 |
Stock Options Outstanding | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 1,270 | 1,270 |
Restricted stock units outstanding | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 3,299 | 3,360 |
Shares available for grant under stock incentive plans | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 1,320 | 978 |
Shares available for sale under employee stock purchase plan | ||
Shares of common stock reserved for issuance for: | ||
Shares of common stock reserved for issuance | 1,624 | 1,335 |
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, 2024 | Dec. 31, 2023 | |
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 21 | 41 |
Exercise Price $9.73 | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding | 20 | |
Exercise Price | $ 9.73 | |
Expiration Date | 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, 2024 | Mar. 31, 2023 | |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 1,270 | 1,291 |
Non-vested PRSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 395 | 395 |
Non-vested restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 2,904 | 3,253 |
Common stock warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities outstanding excluded from diluted loss per share | 21 | 61 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | $ 1,338 | $ 1,805 |
Cost of Revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 34 | 37 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 350 | 642 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | 777 | 967 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total | $ 177 | $ 159 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2022 shares | Mar. 31, 2024 USD ($) installment shares | Mar. 31, 2023 USD ($) | Dec. 31, 2020 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ 1,338 | $ 1,805 | ||
Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expenses | 100 | 100 | ||
Unrecognized compensation cost related to non-vested stock options | $ 100 | |||
Non-vested awards not yet recognized weighted-average period for recognition | 3 months 18 days | |||
Restricted Stock Units and PRSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ 1,300 | $ 1,700 | ||
Non-vested awards not yet recognized weighted-average period for recognition | 2 years | |||
Unrecognized compensation cost related to non-vested restricted stock | $ 8,900 | |||
Fair value of restricted stock vested | $ 3,100 | |||
2018 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Annual percentage increase in number of shares authorized for issuance | 4% | |||
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 | 1.1 | |||
2018 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 Plan | First Anniversary of Date of Grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage of stock options | 25% | |||
2018 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 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of additional shares authorized for issuance | shares | 0.5 | |||
Shares available for future issuance | shares | 0.2 | |||
2020 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 $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares under Option, Outstanding, Beginning balance | shares | 1,270 |
Number of Shares under Option, Outstanding, Ending balance | shares | 1,270 |
Number of Shares under Option, Exercisable | shares | 1,187 |
Number of Shares under Option, Vested and expected to vest | shares | 1,270 |
Weighted-average Exercise Price per Option, Outstanding, Beginning balance | $ / shares | $ 3.90 |
Weighted-average Exercise Price per Option, Outstanding, Ending balance | $ / shares | 3.90 |
Weighted-average Exercise Price per Option, Exercisable | $ / shares | 4.03 |
Weighted-average Exercise Price per Option, Vested and expected to vest | $ / shares | $ 3.90 |
Weighted-average Remaining Contractual Life, Outstanding | 5 years 9 months 18 days |
Weighted-average Remaining Contractual Life, Exercisable | 5 years 8 months 12 days |
Weighted-average Remaining Contractual Life, Vested and expected to vest | 5 years 9 months 18 days |
Aggregate average Intrinsic Value, Outstanding | $ | $ 2,727 |
Aggregate average Intrinsic Value, Exercisable | $ | 2,495 |
Aggregate average Intrinsic Value, Vested and expected to vest | $ | $ 2,727 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of Restricted Stock Units and PRSUs Activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted stock units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested, Beginning balance | 2,965,000 |
Granted | 990,000 |
Vested | (883,000) |
Forfeited | (168,000) |
Non-vested, Ending balance | 2,904,000 |
Weighted-average Grant-date Fair Value, Non-vested, Beginning balance | $ / shares | $ 4.37 |
Weighted-average Grant-date Fair Value, Granted | $ / shares | 3.24 |
Weighted-average Grant-date Fair Value, Vested | $ / shares | 5.21 |
Weighted-average Grant-date Fair Value, Forfeited | $ / shares | 4.58 |
Weighted-average Grant-date Fair Value, Non-vested, Ending balance | $ / shares | $ 3.71 |
PRSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested, Beginning balance | 395,000 |
Granted | 0 |
Non-vested, Ending balance | 395,000 |
Weighted-average Grant-date Fair Value, Non-vested, Beginning balance | $ / shares | $ 6.77 |
Weighted-average Grant-date Fair Value, Non-vested, Ending balance | $ / shares | $ 6.77 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segments Geographical Areas [Abstract] | |
Number of operating business segment | 1 |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Employee Retention Credit | |
Government Assistance [Line Items] | |
Government assistance amount recognized in income statement | $ 2.9 |