Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35706 | ||
Entity Registrant Name | APOLLO ENDOSURGERY, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-1630142 | ||
Entity Address, Address Line One | 1120 S. Capital of Texas Highway | ||
Entity Address, Address Line Two | Building 1, Suite #300 | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78746 | ||
City Area Code | 512 | ||
Local Phone Number | 279-5100 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | APEN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 131,397,602 | ||
Entity Common Stock, Shares Outstanding | 57,971,919 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001251769 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 659 |
Auditor Name | Moss Adams LLP |
Auditor Location | Denver, Colorado |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 57,002 | $ 90,691 |
Accounts receivable, net of allowance for doubtful accounts of $785 and $330, respectively | 14,991 | 10,078 |
Inventory | 18,246 | 11,966 |
Prepaid expenses and other current assets | 2,639 | 1,965 |
Total current assets | 92,878 | 114,700 |
Restricted cash | 1,010 | 1,121 |
Property, equipment and right-of-use assets, net | 7,507 | 5,593 |
Goodwill | 5,290 | 5,290 |
Intangible assets, net of accumulated amortization of $16,248 and $14,814, respectively | 3,121 | 4,400 |
Other assets | 425 | 424 |
Total assets | 110,231 | 131,528 |
Current liabilities: | ||
Accounts payable | 7,419 | 4,584 |
Accrued expenses | 12,404 | 9,902 |
Convertible debt (Note 8) | 19,713 | 0 |
Total current liabilities | 39,536 | 14,486 |
Long-term debt | 33,963 | 33,473 |
Convertible debt | 0 | 19,513 |
Long-term liabilities | 4,138 | 2,819 |
Total liabilities | 77,637 | 70,291 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock; $0.001 par value; 100,000,000 shares authorized; 41,983,708 and 39,546,323 shares issued and outstanding at December 31, 2022 and 2021, respectively | 42 | 40 |
Additional paid-in capital | 364,872 | 356,516 |
Accumulated other comprehensive income | 4,974 | 2,136 |
Accumulated deficit | (337,294) | (297,455) |
Total stockholders’ equity | 32,594 | 61,237 |
Total liabilities and stockholders’ equity | $ 110,231 | $ 131,528 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 785 | $ 330 |
Accumulated amortization | $ 16,248 | $ 14,814 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 41,983,708 | 39,546,323 |
Common stock, shares outstanding (in shares) | 41,983,708 | 39,546,323 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 76,856 | $ 62,989 |
Cost of sales | 34,429 | 28,030 |
Gross margin | 42,427 | 34,959 |
Operating expenses: | ||
Sales and marketing | 36,009 | 24,311 |
General and administrative | 20,582 | 18,448 |
Research and development | 11,908 | 9,524 |
Amortization of intangible assets | 1,750 | 1,875 |
Merger-related expense | 3,600 | 0 |
Total operating expenses | 73,849 | 54,158 |
Loss from operations | (31,422) | (19,199) |
Other (income) expenses: | ||
Interest expense, net | 4,671 | 8,318 |
Gain on forgiveness of PPP loan | 0 | (2,852) |
Other expense (income), net | 3,162 | (139) |
Net loss before income taxes | (39,255) | (24,526) |
Income tax expense | 584 | 156 |
Net loss | (39,839) | (24,682) |
Other comprehensive (loss)/income: | ||
Foreign currency translation | 2,838 | (793) |
Comprehensive loss | $ (37,001) | $ (25,475) |
Net loss per share, basic (USD per share) | $ (0.98) | $ (0.82) |
Net loss per share, diluted (USD per share) | $ (0.98) | $ (0.82) |
Shares used in computing net loss per share, basic (shares) | 40,650,039 | 30,243,264 |
Shares used in computing net loss per share, diluted (shares) | 40,650,039 | 30,243,264 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 25,819,329 | ||||
Beginning balance at Dec. 31, 2020 | $ 6,751 | $ 26 | $ 276,569 | $ 2,929 | $ (272,773) |
Stockholders' Equity: | |||||
Exercise of common stock options (shares) | 698,070 | ||||
Exercise of common stock options | 2,488 | $ 1 | 2,487 | ||
Exercise of common stock warrants (in shares) | 2,668,247 | ||||
Exercise of common stock warrants | 2 | $ 3 | (1) | ||
Issuance of restricted stock and performance stock units (in shares) | 433,172 | ||||
Issuance of common stock for convertible debt interest (in shares) | 244,861 | ||||
Issuance of common stock for convertible debt interest | 1,229 | 1,229 | |||
Issuance of common stock, net of issuance costs(in shares) | 9,660,000 | ||||
Issuance of common stock, net of issuance costs | 69,782 | $ 10 | 69,772 | ||
Conversion of convertible debt (in shares) | 22,644 | ||||
Conversion of convertible debt | 74 | 74 | |||
Stock-based compensation | 6,386 | 6,386 | |||
Foreign currency translation | (793) | (793) | |||
Net loss | $ (24,682) | (24,682) | |||
Ending balance (in shares) at Dec. 31, 2021 | 39,546,323 | 39,546,323 | |||
Ending balance at Dec. 31, 2021 | $ 61,237 | $ 40 | 356,516 | 2,136 | (297,455) |
Stockholders' Equity: | |||||
Exercise of common stock options (shares) | 233,931 | ||||
Exercise of common stock options | $ 830 | $ 0 | 830 | ||
Exercise of common stock warrants (in shares) | 1,633,526 | 1,633,526 | |||
Exercise of common stock warrants | $ 0 | $ 2 | (2) | ||
Issuance of restricted stock and performance stock units (in shares) | 414,803 | ||||
Shares held back for tax obligation in connection with restricted stock units (in shares) | (87,803) | ||||
Shares forfeited for tax obligation in connection with restricted stock units | (481) | (481) | |||
Issuance of common stock for convertible debt interest (in shares) | 242,928 | ||||
Issuance of common stock for convertible debt interest | 1,226 | 1,226 | |||
Conversion of convertible debt | 0 | ||||
Stock-based compensation | 6,783 | 6,783 | |||
Foreign currency translation | 2,838 | 2,838 | |||
Net loss | $ (39,839) | (39,839) | |||
Ending balance (in shares) at Dec. 31, 2022 | 41,983,708 | 41,983,708 | |||
Ending balance at Dec. 31, 2022 | $ 32,594 | $ 42 | $ 364,872 | $ 4,974 | $ (337,294) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 5,083 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (39,839) | $ (24,682) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,966 | 3,232 |
Gain on forgiveness of PPP loan | 0 | (2,852) |
Amortization of deferred financing costs | 456 | 1,419 |
Non-cash interest | 1,929 | 1,575 |
Provision for doubtful accounts receivable | 505 | 152 |
Inventory impairment | 97 | 50 |
Stock-based compensation | 6,783 | 6,386 |
Unrealized foreign exchange on intercompany payables | 2,779 | (444) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,589) | (2,332) |
Inventory | (6,437) | (1,740) |
Prepaid expenses and other assets | (686) | (1,251) |
Accounts payable and accrued expenses | 5,774 | 6,033 |
Net cash used in operating activities | (31,262) | (14,454) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,268) | (1,195) |
Purchases of intangibles and other assets | (477) | (261) |
Proceeds from sale of equipment | 0 | 17 |
Divestiture of Surgical product line | 0 | 3,000 |
Net cash (used in)/provided by investing activities | (2,745) | 1,561 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 830 | 2,488 |
Proceeds from exercise of warrants | 0 | 2 |
Proceeds from issuance of common stock | 0 | 69,782 |
Proceeds from senior secured term loans | 0 | 35,000 |
Shares forfeited for tax obligation in connection with restricted stock units | (481) | 0 |
Payments of deferred financing costs | 0 | (1,540) |
Repayments of senior secured notes | 0 | (38,150) |
Net cash provided by financing activities | 349 | 67,582 |
Effect of exchange rate changes on cash | (142) | (77) |
Net increase in cash, cash equivalents and restricted cash | (33,800) | 54,612 |
Cash, cash equivalents and restricted cash at beginning of year | 91,812 | 37,200 |
Cash, cash equivalents and restricted cash at end of year | 58,012 | 91,812 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,767 | 6,550 |
Cash paid for income taxes | 343 | 272 |
Right-of-use assets recognized in exchange for lease obligations (non-cash) | 709 | (556) |
Gain on forgiveness of PPP loan (non-cash) | 0 | 2,852 |
Issuance of common stock for convertible debt interest (non-cash) | 1,226 | 1,229 |
Issuance of common stock for conversion of convertible debt (non-cash) | $ 0 | $ 74 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Description | Organization and Business Description Apollo Endosurgery, Inc. is a Delaware corporation with both domestic and foreign wholly-owned subsidiaries. Throughout these Notes “Apollo” and the “Company” refer to Apollo Endosurgery, Inc. and its consolidated subsidiaries. Apollo is a medical technology company primarily focused on the development of next-generation, minimally invasive medical devices to advance gastrointestinal therapeutic endoscopy. The Company develops and distributes devices that are used by surgeons and gastroenterologists for a variety of procedures related to gastrointestinal conditions including closure of gastrointestinal defects, managing gastrointestinal complications and weight loss as a treatment of obesity. The Company’s core products include the OverStitch® Endoscopic Suturing System, the OverStitch Sx ™ Endoscopic Suturing System, X-Tack® Endoscopic HeliX Tacking System (collectively “ESS”) and the Orbera® Intragastric Balloon System (“IGB”). All devices are regulated by the U.S. Food and Drug Administration (the “FDA”) or an equivalent regulatory body outside the U.S. In July 2022, the Company received FDA authorization for Apollo ESG ™ , Apollo REVISE ™ and Apollo REVISE Sx ™ . To date, these are the first and only devices authorized by the FDA for endoscopic sleeve gastroplasty (“ESG”) and endoscopic bariatric revision. In November 2022, the Company entered into a definitive merger agreement to be acquired by Boston Scientific Corporation (“Boston Scientific”), a global medical technology leader, in an all-cash transaction with an enterprise value of approximately $615,000. The Merger was approved by the Company’s stockholders on February 9, 2023. The consummation of the Merger is subject to a number of closing conditions, including, among others, the receipt of certain regulatory approvals, as well as other customary closing conditions. Upon the completion of the transaction, Apollo will become a wholly-owned subsidiary of Boston Scientific. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. (b) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the consolidated financial statements. Significant items subject to such estimates and assumptions include revenue recognition, going concern assessment, useful lives of intangibles and long-lived assets, long-lived asset and goodwill impairment, allowance for doubtful accounts, and valuation of inventory. (c) Cash and Cash Equivalents The Company considers all highly liquid investments with a remaining maturity at date of purchase of three months or less to be cash equivalents. (d) Restricted Cash The Company entered into irrevocable letters of credit with four banks to secure obligations under lease agreements and performance based obligations. These letters of credit are secured by cash balances totaling $1,010 and $1,121 which are recorded in restricted cash on the consolidated balance sheet as of December 31, 2022 and 2021, respectively. (e) Accounts Receivable The Company generally extends credit to certain customers without requiring collateral. The Company provides an allowance for doubtful accounts based on management’s evaluation of the collectability of accounts receivable. Accounts receivable are written off when it is deemed uncollectible. Accounts receivable of $32 and $454 were written off during the years ended December 31, 2022 and 2021, respectively. (f) Inventory Inventory is stated at the lower of cost or net realizable value. Inventory costs include raw materials, inbound freight charges, warehousing costs, labor, and overhead expenses related to the Company’s manufacturing and processing facilities. Charges for excess and obsolete inventory are based on specific identification of obsolete inventory items and an analysis of inventory items approaching expiration date. The Company records estimated excess and obsolescence charges to cost of sales. The Company’s inventories are stated using the weighted average cost approach, which approximates actual costs. (g) Fair Value Measurements The carrying amounts of the Company’s financial instruments, which primarily include cash and cash equivalents, and restricted cash, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. The fair value of the Company’s long-term debt is estimated by management to approximate $35,000 for both December 31, 2022 and 2021. The Company’s convertible debt is estimated by management to approximate $18,200 and $20,500 at December 31, 2022 and 2021, respectively. Management’s estimates are based on comparisons of the characteristics of the Company’s obligations, comparable ranges of interest rates on recently issued debt, and maturity. Such valuation inputs are considered a Level 3 measurement in the fair value valuation hierarchy. The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. (h) Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are depreciated straight-line over the shorter of the estimated useful life or the life of the lease. Major renewals and betterments are capitalized. Validation costs (including materials and labor) that are required to bring machinery to working condition are capitalized. Expenditures for repairs and maintenance and minor replacements are charged to expense as incurred. (i) Leases Lease arrangements are generally recognized at lease commitment. Operating lease right-of-use assets and liabilities are recognized at commencement based on the present value of lease payments over the lease term, except for leases with an initial term of 12 months or less, for which lease expense is recognized as incurred over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease terms may include options to extend or terminate the lease when its reasonably certain that the Company will exercise that option. The Company primarily uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease right-of-use assets include any lease payments related to initial direct costs and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. (j) Goodwill and Other Intangible Assets Goodwill is not amortized but is tested annually for impairment or more frequently if impairment indicators exist. For annual and interim goodwill impairment tests, the Company first assesses qualitative factors before performing a quantitative assessment of the fair value of a reporting unit. If it is determined on the basis of qualitative factors that the fair value of the reporting unit is more likely than not less than the carrying amount, a quantitative impairment test is required. The Company’s evaluation of goodwill completed on December 31, 2022 and 2021 resulted in no impairment losses. Definite-lived intangible assets consist of customer relationships, product technology, trade names, patents and trademarks and capitalized software which are amortized over their estimated useful lives. Costs to extend the lives of and renew patents and trademarks are capitalized when incurred. (k) Valuation of Long-Lived Assets Long-lived assets, including definite-lived intangible assets, are monitored and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of undiscounted cash flows is based upon, among other things, certain assumptions about expected future operating performance. The Company’s estimates of undiscounted cash flows may differ from actual cash flows. If the sum of the undiscounted cash flows is less than the carrying value of the asset, an impairment charge is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. The Company’s evaluation of long-lived assets for the years ended December 31, 2022 and 2021 resulted in no impairment losses. (l) Revenue Recognition The Company’s principal source of revenues is from the sale of its products. Revenue is recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration expected to be entitled to in an exchange for those goods. Generally, these are met under the Company’s agreements with most customers upon product shipment. This includes sales to distributors, who sell the products to their customers, take title to the products and assume all risks of ownership at the time of shipment. The Company’s distributors are obligated to pay within specified terms regardless of when, if ever, they sell the products. Customers and distributors generally have the right to return or exchange products purchased from the Company for up to thirty days from the date of product shipment. At the end of each period, the Company determines the extent to which its revenues need to be reduced to account for expected returns and exchanges. Certain customers may receive volume rebates or discounts, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and reduces recognized revenues. The Company records deferred revenues when cash payments are received in advance of the transfer of goods. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis. Accordingly, such amounts are excluded from revenues. Amounts billed to customers related to shipping and handling are included in revenues. Shipping and handling costs related to revenue producing activities are included in cost of sales. (m) Research and Development Research and development costs are expensed as incurred. (n) Stock-based Compensation Plans The Company recognizes compensation costs for all stock-based awards based upon each award’s estimated fair value as determined on the date of grant. The Company utilizes the Black-Scholes option-pricing model to determine the fair value of stock option awards. The assumptions used in estimating the fair value of stock-based compensation awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgement. Compensation cost is recognized on a straight-line basis over the respective vesting period of the award. Adjustments for actual forfeitures are made in the period which they occur. (o) Advertising The Company expenses advertising costs as incurred. The Company incurred approximately $632 and $244 in advertising costs during the years ended December 31, 2022 and 2021, respectively. (p) Income Taxes The Company accounts for deferred income taxes using the asset and liability method. Under this method, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Temporary differences are then measured using the enacted tax rates and laws. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more-likely than-not to be realized. Determining the appropriate amount of valuation allowance requires management to exercise judgment about future operations. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain. The Company regularly assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related consolidated financial statement implications. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense. (q) Foreign Currency The Company translates foreign assets and liabilities at exchange rates in effect at the balance sheet dates, and the revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Exchange rate fluctuations on short-term intercompany loans are included in other expense in the consolidated statement of operations and comprehensive loss. (r) Recent Accounting Pronouncements In August 2020, Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity was issued, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This ASU will become effective for the Company on January 1, 2024 and is not expected to have a material impact on the consolidated financial statements. In May 2021, ASU No. 2021-04, Issuer’s Accounting for Certain Modifications of Exchanges of Freestanding Equity-Classified Written Call Options was issued to clarify the accounting for modifications or exchanges of freestanding equity-classified written call options, such was warrants, that remain equity classified after modification or exchange. This ASU became effective for the Company on January 1, 2022 and did not have a material impact on the consolidated financial statements. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Consolidated financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and accounts receivable. At December 31, 2022, the Company’s cash and cash equivalents and restricted cash are held in deposit accounts at four different banks totaling $58,012. The Company has not experienced any losses in such accounts, and management does not believe the Company is exposed to any significant credit risk. Management further believes that credit risk in the Company’s accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms, and the high level of creditworthiness of its customers. The Company continually monitors the compliance of its customers with the Company’s payment terms, but generally requires no collateral. The Company had no concentrations greater than 10% of the Company’s net accounts receivable balance as of December 31, 2022 or 2021. The Company had no single customer that comprised more than 10% of the Company’s total revenues for the years ended December 31, 2022 and 2021. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following as of December 31: 2022 2021 Raw materials $ 7,602 $ 3,442 Work in progress 1,862 965 Finished goods 8,782 7,559 Total inventory $ 18,246 $ 11,966 The Company recorded an inventory impairment charge of $97 and $50 for the years ended December 31, 2022 and 2021, respectively. Finished goods included $55 and $120 of inventory on consignment at customer locations at December 31, 2022 and 2021, respectively. |
Property, Equipment and Right-o
Property, Equipment and Right-of-Use Assets | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Right-of-Use Assets | Property, Equipment and Right-of-Use Assets Property and equipment consists of the following as of December 31: Depreciable Lives 2022 2021 Equipment 5 years $ 8,634 $ 7,472 Right-of-use assets 1 - 8 years 4,101 3,459 Furniture, fixtures and tooling 4 - 8 years 2,014 1,855 Computer hardware 3 - 5 years 1,931 1,444 Leasehold improvements 3 - 7 years 2,098 2,059 Construction in process 973 483 19,751 16,772 Less accumulated depreciation (12,244) (11,179) Property, equipment and right-of-use assets $ 7,507 $ 5,593 The Company recorded depreciation expense of $1,209 and $1,355 for the years ended December 31, 2022 and 2021, respectively. There were no impairment charges for the years ended December 31, 2022 or 2021. The Company has operating leases for office space in Texas, the United Kingdom, and Italy, and for the manufacturing facility in Costa Rica. The Company also has various operating lease agreements for vehicles. As of December 31, 2022, the maturities of the Company’s operating lease liabilities are as follows: 2023 $ 917 2024 1,022 2025 998 2026 585 2027 428 Thereafter 328 Total lease payments 4,278 Less imputed interest (889) Total operating lease liabilities $ 3,389 accrued expenses long-term liabilities |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following as of December 31: Useful Life 2022 2021 Customer relationships 9 years $ 8,301 $ 8,301 Orbera technology 12 years 4,600 4,600 Trade names 10 years 1,700 1,700 Patents and trademarks 5 years 3,127 2,852 Capitalized software 1 - 5 years 1,641 1,438 19,369 18,891 Less accumulated amortization (16,248) (14,491) Intangible assets, net $ 3,121 $ 4,400 The Company recorded amortization expense of $1,757 and $1,877 during 2022 and 2021, respectively. Additionally, $275 and $256 related to the extension and renewal of patents and trademarks was capitalized during 2022 and 2021, respectively. Amortization for the next five years is as follows: 2023 $ 1,158 2024 755 2025 684 2026 288 2027 236 Total $ 3,121 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses 2022 2021 Accrued employee compensation and expenses $ 5,682 $ 6,569 Accrued professional service fees 3,229 656 Accrued taxes 875 437 Accrued interest 607 613 Lease liability 543 587 Accrued returns and rebates 305 106 Other 1,163 934 Total accrued expenses $ 12,404 $ 9,902 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of December 31: 2022 2021 Term loan facility $ 35,000 $ 35,000 Deferred interest 240 6 Deferred financing costs (1,277) (1,533) Long-term debt $ 33,963 $ 33,473 Term Loan Facility In December 2021, the Company entered into a term loan facility agreement with Innovatus Capital Partners, LLC (“Innovatus”) to borrow up to $100,000 (the “Term Loans”) and drew the Term A Loan of $35,000. The Company is eligible to draw the Term B Loan of $15,000 between July 1, 2023 and December 31, 2023 and the Term C Loan of $25,000 between July 1, 2024 and December 31, 2024, in each case upon the achievement of certain minimum revenue thresholds. The Company is eligible to draw the Term D Loan of $25,000 to finance certain approved acquisitions between June 30, 2022 and June 30, 2024. The Term Loans mature on December 21, 2027, with principal payments beginning February 1, 2027, and bear interest at the greater of the Wall Street Journal Prime Rate or 3.25%, plus 4.0%. Principal payments are due on a straight-line basis after the interest-only period concludes. An additional 4.0% of the outstanding amount will be due at the end of the loan term. Prior to December 21, 2025, Innovatus will have the right to make a one-time election to convert up to 10.0% of the outstanding aggregate principal amount of the term loans into shares of common stock of the Company at a price per share equal to $11.50. The Term Loans include customary affirmative covenants and negative covenants. Additionally, it contains a minimum liquidity covenant, tested on a maintenance basis, and a minimum revenue covenant tested quarterly commencing the earlier of December 31, 2023 or the funding date of the Term B loan. The Company used $35,000 of the proceeds of the Term A Loan to repay the previous senior secured credit agreement in full, including interest. Interest expense on the Company’s long-term debt was $3,592 and $7,137, including $2,044 of additional interest related to the prepayment and final fees repaid to the previous lender in 2021, for the years ended December 31, 2022 and 2021, respectively. Principal payments of the Company’s long-term debt are as follows: 2023 - 2026 $ — 2027 35,000 Total $ 35,000 |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Debt | Convertible Debt Convertible debt consists of the following as of December 31: 2022 2021 Convertible debt principal $ 20,446 $ 20,446 Deferred financing costs (733) (933) Convertible debt $ 19,713 $ 19,513 In August 2019, the Company issued $20,000 aggregate principal amount of 6.0% convertible senior debentures (the “Convertible Debt”), primarily to existing stockholders and officers of the Company. Interest on the Convertible Debt is payable semi-annually in shares of the Company’s common stock on January 1 and July 1 of each year, at a rate of 6.0% per year. The number of shares of common stock required to settle the amount of interest payable will be based on the volume-weighted average price (“VWAP”) of the Company’s common stock for the 10 consecutive trading days immediately preceding the applicable interest payment date. However, in the event that the trailing 10-trading day VWAP of the Company’s common stock is less than $2.50 per share, interest accrued and payable for the applicable interest payment period will accrete to the principal amount then outstanding. The Convertible Debt converts, at the option of the holders, into shares of the Company’s common stock at an initial conversion price of $3.25 per share, subject to adjustment. If the VWAP of the Company’s common stock has been at least $9.75 (subject to adjustment) for at least 20 trading days during any 30 consecutive trading day period, the Company may force the conversion of all or any part of the outstanding principal amount of the Convertible Debt, accrued and unpaid interest and any other amounts then owing, subject to certain conditions. On December 28, 2022, the forced conversion requirements were met and the Company notified the holders it was electing this conversion. In connection with this forced conversion, the Company converted $17,914 of the outstanding principal amount into 5,565,457 shares of the Company’s common stock in January 2023. Following this forced conversion, $2,531 of the principal amount remained outstanding due to beneficial ownership limitations contained in the debenture agreement at the time of forced conversion. However, the remaining principal amount was subsequently converted into 778,909 shares of the Company’s stock in January 2023 due to changes in the holder’s beneficial ownership at the time. Upon conversion in January 2023, the deferred financing costs were written off and included in additional paid-in capital. Convertible debt was reclassified to current liabilities in December of 2022. In January 2023, the Company issued 61,061 shares of the Company’s common stock to holders of the Convertible Debt in fulfillment of $607 of accrued interest as of December 31, 2022. The Company issued 75,780 shares of the Company’s common stock to holders of the Convertible Debt in January 2022 in fulfillment of $613 of accrued interest as of December 31, 2021. In July 2022, the Company issued 167,148 additional shares of common stock for accrued interest of $613 as of June 30, 2022. Interest expense on the Convertible Debt was $1,421 and $1,427 for the years ended December 31, 2022 and 2021, respectively. |
Long-Term Liabilities
Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities | Long-Term LiabilitiesIncluded in other long-term liabilities as of December 31, 2022 and 2021 was $1,292 and $816, respectively, for the estimated non-current portion of the exit fee obligation to Solar Capital Ltd, which was reclassified from long-term debt in December 2021. The Company remains obligated to pay $1,925 upon the earlier to occur of (i) certain exit events specified in the Solar Term Loan Facility, including the proposed merger with Boston Scientific, or (ii) the Company’s achievement of trailing twelve-month revenue of $100,000. Interest expense accreted on this long-term liability was $475 for the year ended December 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity (a) Authorized Stock The Company’s amended and restated certificate of incorporation, authorizes the Company to issue 115,000,000 shares of common and preferred stock, consisting of 100,000,000 shares of common stock with $0.001 par value and 15,000,000 shares of preferred stock with $0.001 par value. The Company has reserved common shares for issuance upon the exercise of the authorized and issued common stock options and warrants. (b) Warrants Warrants consist of the following as of December 31, 2022: Warrant Expiration Date Number of shares Exercise price per share Pre-funded - no expiration 12,110,710 $0.001 |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Plans | Stock Option Plans Plans 2017 Plan The Company’s 2017 Equity Incentive Plan (the “2017 Plan”) was approved in June 2017 by the Company’s stockholders. The 2017 plan covers employees, consultants, and nonemployee directors of the Company and provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock awards, performance cash awards, and other stock awards to purchase shares of the Company’s common stock. Options to date have been granted to employees at 100% of the fair value at the date of the grant. The fair value, vesting period, and expiration dates of the options granted are determined by the Board of Directors at the time of grant. The maximum term of options granted under the 2017 Plan is 10 years from the date of grant. Options generally vest over a period of time, typically not more than 5 years. The plan’s reserve is automatically increased by 4% of the total number of shares outstanding at the prior year end for a period of ten years. Shares subject to awards granted under the 2017 Plan which expire, are repurchased, or are canceled or forfeited will again become available for issuance under the 2017 Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise will be deducted from the shares available under the 2017 Plan. Certain of the outstanding options were granted under prior equity incentive plans which are no longer in effect. As of December 31, 2022, the Company has 219,379 shares of common stock reserved for issuance under the 2017 Plan. During 2022, the Company transitioned to issuing majority of employees restricted stock units rather than stock options. Stock Option Activity A summary of the stock option activity under the Company’s 2017 Plan and Prior Plans (collectively, the “Equity Plans”) as of December 31, 2022 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding, December 31, 2021 3,482,883 $5.04 8.0 years $12,307 Options granted 921,063 $4.29 Options exercised (233,931) $3.54 Options forfeited (140,458) $4.59 Options outstanding, vested and expected to vest, December 31, 2022 4,029,557 $4.97 7.6 years $20,386 Options exercisable 2,165,916 $4.88 6.7 years $11,280 The fair value for options under the Equity Plans was estimated at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model requires estimating dividend yield, volatility, risk-free rate of return during the service period and the expected term of the award. The expected dividend yield assumption is based on the Company’s expectation of zero future dividend payouts. The volatility assumption is based on the historical volatilities of the Company’s common stock and of comparable public companies. The risk free rate of return assumption utilizes yields on U.S. treasury zero-coupon bonds with maturity that is commensurate with the expected term for awards issued to employees and the contractual term for awards issued to non-employees. The expected term is derived using the simplified method and represents the weighted average period that the stock awards are expected to remain outstanding. The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for the years ended December 31: 2022 2021 Risk free interest rate 3.3% 1.0% Expected dividend yield —% —% Estimated volatility 82.8% 81.1% Expected life 6.0 years 6.1 years Additional information regarding options is as follows: 2022 2021 Stock-based compensation cost $6,783 $6,386 Weighted-average grant date fair value of options granted during the period $3.07 $4.40 Aggregate intrinsic value of options exercised during the period $964 $3,494 The aggregate intrinsic value in the table above represents the total pre-tax value of the options shown, calculated as the difference between the Company’s closing stock price on December 31, 2022 and the exercise prices of the options shown, multiplied by the number of in-the money options. This is the aggregate amount that would have been received by the option holders if they had all exercised their options on December 31, 2022 and sold the shares thereby received at the closing price of the Company’s stock on that date. This amount changes based on the closing price of the Company’s stock. Unrecognized compensation expense related to unvested options was approximately $5,874 at December 31, 2022, with a weighted-average remaining amortization period of less than 2.5 years. A summary of the restricted stock unit activity, including performance-based stock units, under the Company’s Equity Plans as of December 31, 2022 is presented below: Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Restricted stock units outstanding, December 31, 2021 1,194,432 $5.67 $10,069 Restricted stock units granted 1,587,540 $5.32 Restricted stock units released (414,803) $5.48 Restricted stock units forfeited (128,601) $4.48 Restricted stock units outstanding, December 31, 2022 2,238,568 $5.52 $22,319 In March 2021, the Company awarded 707,278 performance-based restricted stock units to the Company’s chief executive officer in connection with the commencement of his employment. The performance-based restricted stock units vest in four equal tranches upon the achievement of revenue for the trailing four quarters equal to $50,000, $65,000, $80,000, and $95,000. The revenue milestone for the first and second tranche was achieved as of June 30, 2021 and March 31, 2022, respectively. In August 2021, the Company awarded 80,000 time-based restricted stock units and 120,000 performance-based restricted stock units to the Company’s chief financial officer in connection with the commencement of his employment. The time-based restricted stock units vest in four equal tranches upon completion of each year of employment. The performance-based restricted stock units vest in three equal tranches upon the achievement of revenue for the trailing four quarters equal to $70,000, $90,000, and $110,000. The revenue milestone for the first tranche was achieved as of September 30, 2022. In May 2022, shares of performance-based restricted stock units for the Company’s chief executive officer that vested were subject to statutory tax withholdings and the compensation committee of the Company’s board of directors authorized the Company to withhold share of common stock to settle the tax obligation, which resulted in a forfeiture of 66,553 shares of performance-based restricted stock units and 110,267 net shares of performance-based restricted stock units being issued during the year ended December 31, 2022. In August 2022, shares of time-based restricted stock units for the Company’s chief financial officer that vested were subject to statutory tax withholdings and the compensation committee of the Company’s board of directors authorized the Company to withhold shares of common stock to settle the tax obligation, which resulted in a forfeiture of 6,190 shares of time-based restricted stock units and 13,810 net shares of time-based restricted stock units being issued during the year ended December 31, 2022. In November 2022, shares of performance-based restricted stock units for the Company’s chief financial officer that vested were subject to statutory tax withholdings and the compensation committee of the Company’s board of directors authorized the Company to withhold share of common stock to settle the tax obligation, which resulted in a forfeiture of 15,060 shares of performance-based restricted stock units and 24,940 net shares of performance-based restricted stock units being issued during the year ended December 31, 2022. Unrecognized compensation expense related to unvested restricted stock units and performance-based stock units was approximately $7,474 and $657, respectively, at December 31, 2022, with a remaining weighted-average amortization period of 2.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Risk Management The Company maintains various forms of insurance that the Company’s management believes are adequate to reduce the exposure to these risks to an acceptable level. (b) Employment Agreements Certain executive officers are entitled to payments if they are terminated without cause or as a result of a change in control. Upon termination without cause, and not as a result of death or disability, each of such officers is entitled to receive a payment of base salary for three three (c) Litigation Management believes there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material impact on the Company’s consolidated financial position, results of operations or cash flows. (d) Purchase Commitment During 2022, the Company entered into various one year noncancellable purchase agreements with our largest supplier to purchase raw materials in the normal course of business. As of December 31, 2022, the total outstanding purchase commitment was $2,885. Subsequently, in the first quarter of 2023, we entered into additional one year noncancellable purchase agreements with this same supplier for an additional $575 of raw materials. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution PlanThe Company sponsors defined contribution plans for employees in the U.S. and Europe. The cost of these plans, including employer contributions, was $993 and $729 for the years ended December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense of $584 and $156 for the years ended December 31, 2022 and 2021, respectively, is composed of foreign income taxes on earnings generated by foreign subsidiaries. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes at December 31 are as follows: 2022 2021 Deferred tax assets: Capitalized transaction costs $ 212 $ 250 Intangible assets 1,342 1,205 Inventory valuation 58 43 Research and development credit 4,005 4,005 Interest expense carryforward 5,810 4,980 Foreign timing differences 633 624 Depreciable assets 38 53 Other 3,000 1,871 Net operating loss carryforwards 62,314 57,739 77,412 70,770 Deferred tax liabilities: Unremitted foreign earnings (426) (448) (426) (448) Total net deferred tax assets 76,986 70,322 Less valuation allowance (76,727) (70,055) Net deferred tax assets (included in other assets) $ 259 $ 267 The Company has established a valuation allowance due to uncertainties regarding the realization of deferred tax assets based on the Company’s lack of earnings history and potential limitations pursuant to changes in ownership under Internal Revenue Code Section 382. The valuation allowance increased by $6,672 during the year ended December 31, 2022, primarily as a result of changes in net operating loss. As of December 31, 2022, the Company has no unrecognized tax benefits or accrued interest or penalties associated with uncertain tax positions. The Company’s provision for income taxes differs from the expected tax expense amount computed by applying the statutory federal income tax rate of 21% to income before income taxes as a result of the following: 2022 2021 Tax at U.S. statutory rate $ (8,244) $ (5,150) State taxes, net of deferred benefit (1,192) (783) Foreign tax rate differential (206) (260) Foreign taxes 179 (169) Permanent differences 2,400 (231) Transaction costs 859 — Other 41 (124) Deferred tax adjustment 117 (43) Unremitted foreign earnings 20 27 Valuation allowance - current year 6,610 6,889 Income tax expense $ 584 $ 156 Income tax expense consists of the following: 2022 2021 Current taxes: U.S. state $ 3 $ 2 International 580 239 Total current income tax expense 583 241 Deferred taxes: International 1 (85) Total deferred income tax expense 1 (85) Income tax expense $ 584 $ 156 As of December 31, 2022, the Company had U.S. federal net operating loss carryforwards of approximately $259,638, of which $115,800 has an unlimited life and the remaining amount will expire in varying amounts beginning in 2025 if not utilized. The Company’s July 2017 stock offering qualified as an ownership change under section 382 which resulted in a reduction of $100,825 in the Company’s U.S. federal net operating losses that will not be utilizable in the future, thus federal net operating loss carryforwards available to the Company as of December 31, 2022 were $158,813. However, the Company’s deferred tax asset value for this section 382 reduction is not reflected in the table above until written off in a future tax return. There have been no additional section 382 reductions through December 31, 2022. The deferred tax asset associated with net operating loss carryforwards has been offset by a valuation allowance due to the uncertainty that the Company will achieve taxable income necessary to utilize the net operating loss carryforward in the future. The Company had state net operating loss carryforwards of approximately $132,987 which will begin to expire in varying amounts beginning in 2023, if not utilized. The Company had foreign net operating losses of approximately $2,455 which do not expire. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | The basic and diluted net loss per common share presented in the consolidated statement of operations and comprehensive loss is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Potentially dilutive shares, which include warrants for the purchase of common stock, convertible debt, restricted stock units, including performance-based stock units, and options outstanding under the Company’s equity incentive plans, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted average basis): Year Ended December 31 2022 2021 Warrants for common stock 12,110,710 13,908,419 Convertible debt 6,306,134 6,310,235 Common stock options 3,675,760 3,094,197 Restricted stock units 1,796,208 920,066 23,888,812 24,232,917 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company globally manages the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Product sales by product group and geographic market, based on the location of the customer, whether the U.S. or outside the U.S. (“OUS”) for the periods shown were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues ESS $ 35,519 $ 18,333 $ 53,852 70.1 % $ 25,917 $ 14,048 $ 39,965 63.4 % IGB 7,707 14,549 22,256 29.0 % 7,193 14,904 22,097 35.1 % Other 735 13 748 0.9 % 894 33 927 1.5 % Total revenues $ 43,961 $ 32,895 $ 76,856 100.0 % $ 34,004 $ 28,985 $ 62,989 100.0 % % Total revenues 57.2 % 42.8 % 54.0 % 46.0 % Total distributor sales were 51.4% and 44.3% of total OUS revenues for the years ended December 31, 2022 and 2021, respectively. Sales in the next largest individual country outside the U.S. were 4.8% and 6.3% for the years ended December 31, 2022 and 2021, respectively. The following table represents property, equipment and right-of-use assets based on the physical location of the asset: 2022 2021 U.S. $ 4,158 $ 1,855 Costa Rica 3,159 3,436 Other 190 302 Total property, equipment and right-of-use assets, net $ 7,507 $ 5,593 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of EstimatesThe preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the consolidated financial statements. Significant items subject to such estimates and assumptions include revenue recognition, going concern assessment, useful lives of intangibles and long-lived assets, long-lived asset and goodwill impairment, allowance for doubtful accounts, and valuation of inventory. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers all highly liquid investments with a remaining maturity at date of purchase of three months or less to be cash equivalents. |
Restricted Cash | Restricted CashThe Company entered into irrevocable letters of credit with four banks to secure obligations under lease agreements and performance based obligations. |
Accounts Receivable | Accounts ReceivableThe Company generally extends credit to certain customers without requiring collateral. The Company provides an allowance for doubtful accounts based on management’s evaluation of the collectability of accounts receivable. Accounts receivable are written off when it is deemed uncollectible. |
Inventory | InventoryInventory is stated at the lower of cost or net realizable value. Inventory costs include raw materials, inbound freight charges, warehousing costs, labor, and overhead expenses related to the Company’s manufacturing and processing facilities. Charges for excess and obsolete inventory are based on specific identification of obsolete inventory items and an analysis of inventory items approaching expiration date. The Company records estimated excess and obsolescence charges to cost of sales. The Company’s inventories are stated using the weighted average cost approach, which approximates actual costs. |
Fair Value Measurements | Fair Value Measurements The carrying amounts of the Company’s financial instruments, which primarily include cash and cash equivalents, and restricted cash, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. The fair value of the Company’s long-term debt is estimated by management to approximate $35,000 for both December 31, 2022 and 2021. The Company’s convertible debt is estimated by management to approximate $18,200 and $20,500 at December 31, 2022 and 2021, respectively. Management’s estimates are based on comparisons of the characteristics of the Company’s obligations, comparable ranges of interest rates on recently issued debt, and maturity. Such valuation inputs are considered a Level 3 measurement in the fair value valuation hierarchy. The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Property and Equipment | Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are depreciated straight-line over the shorter of the estimated useful life or the life of the lease. Major renewals and betterments are capitalized. Validation costs (including materials and labor) that are required to bring machinery to working condition are capitalized. Expenditures for repairs and maintenance and minor replacements are charged to expense as incurred. |
Leases | LeasesLease arrangements are generally recognized at lease commitment. Operating lease right-of-use assets and liabilities are recognized at commencement based on the present value of lease payments over the lease term, except for leases with an initial term of 12 months or less, for which lease expense is recognized as incurred over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease terms may include options to extend or terminate the lease when its reasonably certain that the Company will exercise that option. The Company primarily uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease right-of-use assets include any lease payments related to initial direct costs and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is not amortized but is tested annually for impairment or more frequently if impairment indicators exist. For annual and interim goodwill impairment tests, the Company first assesses qualitative factors before performing a quantitative assessment of the fair value of a reporting unit. If it is determined on the basis of qualitative factors that the fair value of the reporting unit is more likely than not less than the carrying amount, a quantitative impairment test is required. The Company’s evaluation of goodwill completed on December 31, 2022 and 2021 resulted in no impairment losses. Definite-lived intangible assets consist of customer relationships, product technology, trade names, patents and trademarks and capitalized software which are amortized over their estimated useful lives. Costs to extend the lives of and renew patents and trademarks are capitalized when incurred. |
Valuation of Long-Lived Assets | Valuation of Long-Lived AssetsLong-lived assets, including definite-lived intangible assets, are monitored and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of undiscounted cash flows is based upon, among other things, certain assumptions about expected future operating performance. The Company’s estimates of undiscounted cash flows may differ from actual cash flows. If the sum of the undiscounted cash flows is less than the carrying value of the asset, an impairment charge is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. |
Revenue Recognition | Revenue Recognition The Company’s principal source of revenues is from the sale of its products. Revenue is recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration expected to be entitled to in an exchange for those goods. Generally, these are met under the Company’s agreements with most customers upon product shipment. This includes sales to distributors, who sell the products to their customers, take title to the products and assume all risks of ownership at the time of shipment. The Company’s distributors are obligated to pay within specified terms regardless of when, if ever, they sell the products. Customers and distributors generally have the right to return or exchange products purchased from the Company for up to thirty days from the date of product shipment. At the end of each period, the Company determines the extent to which its revenues need to be reduced to account for expected returns and exchanges. Certain customers may receive volume rebates or discounts, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and reduces recognized revenues. The Company records deferred revenues when cash payments are received in advance of the transfer of goods. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis. Accordingly, such amounts are excluded from revenues. Amounts billed to customers related to shipping and handling are included in revenues. Shipping and handling costs related to revenue producing activities are included in cost of sales. |
Research and Development | Research and DevelopmentResearch and development costs are expensed as incurred. |
Stock-based Compensation Plans | Stock-based Compensation PlansThe Company recognizes compensation costs for all stock-based awards based upon each award’s estimated fair value as determined on the date of grant. The Company utilizes the Black-Scholes option-pricing model to determine the fair value of stock option awards. The assumptions used in estimating the fair value of stock-based compensation awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgement. Compensation cost is recognized on a straight-line basis over the respective vesting period of the award. Adjustments for actual forfeitures are made in the period which they occur. |
Advertising | AdvertisingThe Company expenses advertising costs as incurred. |
Income Taxes | Income Taxes The Company accounts for deferred income taxes using the asset and liability method. Under this method, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Temporary differences are then measured using the enacted tax rates and laws. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more-likely than-not to be realized. Determining the appropriate amount of valuation allowance requires management to exercise judgment about future operations. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain. The Company regularly assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related consolidated financial statement implications. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense. |
Foreign Currency | Foreign CurrencyThe Company translates foreign assets and liabilities at exchange rates in effect at the balance sheet dates, and the revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Exchange rate fluctuations on short-term intercompany loans are included in other expense in the consolidated statement of operations and comprehensive loss. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity was issued, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This ASU will become effective for the Company on January 1, 2024 and is not expected to have a material impact on the consolidated financial statements. In May 2021, ASU No. 2021-04, Issuer’s Accounting for Certain Modifications of Exchanges of Freestanding Equity-Classified Written Call Options was issued to clarify the accounting for modifications or exchanges of freestanding equity-classified written call options, such was warrants, that remain equity classified after modification or exchange. This ASU became effective for the Company on January 1, 2022 and did not have a material impact on the consolidated financial statements. |
Net Loss Per Share | Net Loss Per ShareThe basic and diluted net loss per common share presented in the consolidated statement of operations and comprehensive loss is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Potentially dilutive shares, which include warrants for the purchase of common stock, convertible debt, restricted stock units, including performance-based stock units, and options outstanding under the Company’s equity incentive plans, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted average basis): Year Ended December 31 2022 2021 Warrants for common stock 12,110,710 13,908,419 Convertible debt 6,306,134 6,310,235 Common stock options 3,675,760 3,094,197 Restricted stock units 1,796,208 920,066 23,888,812 24,232,917 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following as of December 31: 2022 2021 Raw materials $ 7,602 $ 3,442 Work in progress 1,862 965 Finished goods 8,782 7,559 Total inventory $ 18,246 $ 11,966 |
Property, Equipment and Right_2
Property, Equipment and Right-of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following as of December 31: Depreciable Lives 2022 2021 Equipment 5 years $ 8,634 $ 7,472 Right-of-use assets 1 - 8 years 4,101 3,459 Furniture, fixtures and tooling 4 - 8 years 2,014 1,855 Computer hardware 3 - 5 years 1,931 1,444 Leasehold improvements 3 - 7 years 2,098 2,059 Construction in process 973 483 19,751 16,772 Less accumulated depreciation (12,244) (11,179) Property, equipment and right-of-use assets $ 7,507 $ 5,593 |
Schedule of Lease Maturity | As of December 31, 2022, the maturities of the Company’s operating lease liabilities are as follows: 2023 $ 917 2024 1,022 2025 998 2026 585 2027 428 Thereafter 328 Total lease payments 4,278 Less imputed interest (889) Total operating lease liabilities $ 3,389 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following as of December 31: Useful Life 2022 2021 Customer relationships 9 years $ 8,301 $ 8,301 Orbera technology 12 years 4,600 4,600 Trade names 10 years 1,700 1,700 Patents and trademarks 5 years 3,127 2,852 Capitalized software 1 - 5 years 1,641 1,438 19,369 18,891 Less accumulated amortization (16,248) (14,491) Intangible assets, net $ 3,121 $ 4,400 |
Schedule of Amortization Expense | Amortization for the next five years is as follows: 2023 $ 1,158 2024 755 2025 684 2026 288 2027 236 Total $ 3,121 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses 2022 2021 Accrued employee compensation and expenses $ 5,682 $ 6,569 Accrued professional service fees 3,229 656 Accrued taxes 875 437 Accrued interest 607 613 Lease liability 543 587 Accrued returns and rebates 305 106 Other 1,163 934 Total accrued expenses $ 12,404 $ 9,902 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following as of December 31: 2022 2021 Term loan facility $ 35,000 $ 35,000 Deferred interest 240 6 Deferred financing costs (1,277) (1,533) Long-term debt $ 33,963 $ 33,473 |
Schedule of Maturities of Long-term Debt | Principal payments of the Company’s long-term debt are as follows: 2023 - 2026 $ — 2027 35,000 Total $ 35,000 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | Convertible debt consists of the following as of December 31: 2022 2021 Convertible debt principal $ 20,446 $ 20,446 Deferred financing costs (733) (933) Convertible debt $ 19,713 $ 19,513 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Warrants | Warrants consist of the following as of December 31, 2022: Warrant Expiration Date Number of shares Exercise price per share Pre-funded - no expiration 12,110,710 $0.001 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity under the Company’s 2017 Plan and Prior Plans (collectively, the “Equity Plans”) as of December 31, 2022 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding, December 31, 2021 3,482,883 $5.04 8.0 years $12,307 Options granted 921,063 $4.29 Options exercised (233,931) $3.54 Options forfeited (140,458) $4.59 Options outstanding, vested and expected to vest, December 31, 2022 4,029,557 $4.97 7.6 years $20,386 Options exercisable 2,165,916 $4.88 6.7 years $11,280 |
Schedule of Fair Value of Stock Options | The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for the years ended December 31: 2022 2021 Risk free interest rate 3.3% 1.0% Expected dividend yield —% —% Estimated volatility 82.8% 81.1% Expected life 6.0 years 6.1 years |
Schedule of Other Stock Option Information | Additional information regarding options is as follows: 2022 2021 Stock-based compensation cost $6,783 $6,386 Weighted-average grant date fair value of options granted during the period $3.07 $4.40 Aggregate intrinsic value of options exercised during the period $964 $3,494 |
Schedule of Restricted Stock Unit Activity | A summary of the restricted stock unit activity, including performance-based stock units, under the Company’s Equity Plans as of December 31, 2022 is presented below: Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Restricted stock units outstanding, December 31, 2021 1,194,432 $5.67 $10,069 Restricted stock units granted 1,587,540 $5.32 Restricted stock units released (414,803) $5.48 Restricted stock units forfeited (128,601) $4.48 Restricted stock units outstanding, December 31, 2022 2,238,568 $5.52 $22,319 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred taxes at December 31 are as follows: 2022 2021 Deferred tax assets: Capitalized transaction costs $ 212 $ 250 Intangible assets 1,342 1,205 Inventory valuation 58 43 Research and development credit 4,005 4,005 Interest expense carryforward 5,810 4,980 Foreign timing differences 633 624 Depreciable assets 38 53 Other 3,000 1,871 Net operating loss carryforwards 62,314 57,739 77,412 70,770 Deferred tax liabilities: Unremitted foreign earnings (426) (448) (426) (448) Total net deferred tax assets 76,986 70,322 Less valuation allowance (76,727) (70,055) Net deferred tax assets (included in other assets) $ 259 $ 267 |
Schedule of Effective Income Tax Rate | The Company’s provision for income taxes differs from the expected tax expense amount computed by applying the statutory federal income tax rate of 21% to income before income taxes as a result of the following: 2022 2021 Tax at U.S. statutory rate $ (8,244) $ (5,150) State taxes, net of deferred benefit (1,192) (783) Foreign tax rate differential (206) (260) Foreign taxes 179 (169) Permanent differences 2,400 (231) Transaction costs 859 — Other 41 (124) Deferred tax adjustment 117 (43) Unremitted foreign earnings 20 27 Valuation allowance - current year 6,610 6,889 Income tax expense $ 584 $ 156 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following: 2022 2021 Current taxes: U.S. state $ 3 $ 2 International 580 239 Total current income tax expense 583 241 Deferred taxes: International 1 (85) Total deferred income tax expense 1 (85) Income tax expense $ 584 $ 156 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Loss Per Share | Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted average basis): Year Ended December 31 2022 2021 Warrants for common stock 12,110,710 13,908,419 Convertible debt 6,306,134 6,310,235 Common stock options 3,675,760 3,094,197 Restricted stock units 1,796,208 920,066 23,888,812 24,232,917 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Product Sales by Product Group and Geographic Market | Product sales by product group and geographic market, based on the location of the customer, whether the U.S. or outside the U.S. (“OUS”) for the periods shown were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues ESS $ 35,519 $ 18,333 $ 53,852 70.1 % $ 25,917 $ 14,048 $ 39,965 63.4 % IGB 7,707 14,549 22,256 29.0 % 7,193 14,904 22,097 35.1 % Other 735 13 748 0.9 % 894 33 927 1.5 % Total revenues $ 43,961 $ 32,895 $ 76,856 100.0 % $ 34,004 $ 28,985 $ 62,989 100.0 % % Total revenues 57.2 % 42.8 % 54.0 % 46.0 % |
Schedule of Long-Lived Assets by Geographic Area | The following table represents property, equipment and right-of-use assets based on the physical location of the asset: 2022 2021 U.S. $ 4,158 $ 1,855 Costa Rica 3,159 3,436 Other 190 302 Total property, equipment and right-of-use assets, net $ 7,507 $ 5,593 |
Organization and Business Des_2
Organization and Business Description (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
All-cash transaction with an enterprise value of approximately | $ 615 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) bank | Dec. 31, 2021 USD ($) | |
Restricted Cash | ||
Number of banks | bank | 4 | |
Restricted cash | $ 1,010,000 | $ 1,121,000 |
Accounts Receivable | ||
Accounts receivable write-offs | 32,000 | 454,000 |
Fair Value Measurements | ||
Long-term debt, fair value | 35,000,000 | 35,000,000 |
Goodwill and Other Intangible Assets | ||
Goodwill impairment loss | 0 | 0 |
Valuation of Long-Lived Assets | ||
Impairment of long-lived assets | $ 0 | 0 |
Advertising Expense | ||
Return period | 30 days | |
Advertising costs | $ 632,000 | 244,000 |
Convertible debt | ||
Fair Value Measurements | ||
Convertible debt, fair value | $ 18,200,000 | $ 20,500,000 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | Dec. 31, 2022 USD ($) bank | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Risks and Uncertainties [Abstract] | |||
Number of banks | bank | 4 | ||
Cash and cash equivalents and restricted cash | $ | $ 58,012 | $ 91,812 | $ 37,200 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,602 | $ 3,442 |
Work in progress | 1,862 | 965 |
Finished goods | 8,782 | 7,559 |
Total inventory, net | 18,246 | 11,966 |
Inventory impairment | 97 | 50 |
Consigned inventory | $ 55 | $ 120 |
Property, Equipment and Right_3
Property, Equipment and Right-of-Use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets | $ 4,101 | $ 3,459 |
Property and equipment, gross | 19,751 | 16,772 |
Less accumulated depreciation | (12,244) | (11,179) |
Property, equipment and right-of-use assets | $ 7,507 | 5,593 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable lives, right of use assets | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable lives, right of use assets | 8 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,634 | 7,472 |
Depreciable Lives | 5 years | |
Furniture, fixtures and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,014 | 1,855 |
Furniture, fixtures and tooling | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 4 years | |
Furniture, fixtures and tooling | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 8 years | |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,931 | 1,444 |
Computer hardware | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 3 years | |
Computer hardware | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,098 | 2,059 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives | 7 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 973 | $ 483 |
Property, Equipment and Right_4
Property, Equipment and Right-of-Use Assets - Lease Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,209,000 | $ 1,355,000 |
Impairment charges | 0 | 0 |
Operating lease, current | 543,000 | $ 587,000 |
Operating lease, noncurrent | $ 2,846,000 | |
Operating lease, current, financial statement location | Accrued expenses | Accrued expenses |
Operating lease, noncurrent, financial statement location | Liabilities, Other than Long-Term Debt, Noncurrent | |
Cash paid within operating cash flows for operating leases | $ 1,019,000 | $ 1,109,000 |
Weighted average remaining lease term | 4 years 6 months | |
Weighted average discount rate, percent | 10.90% |
Property, Equipment and Right_5
Property, Equipment and Right-of-Use Assets - Lease Maturity (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Property, Plant and Equipment [Abstract] | |
2023 | $ 917 |
2024 | 1,022 |
2025 | 998 |
2026 | 585 |
2027 | 428 |
Thereafter | 328 |
Total lease payments | 4,278 |
Less imputed interest | (889) |
Total operating lease liabilities | $ 3,389 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 19,369 | $ 18,891 |
Less accumulated amortization | (16,248) | (14,491) |
Total | 3,121 | 4,400 |
Amortization of intangible assets | $ 1,757 | 1,877 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 9 years | |
Intangible assets, gross | $ 8,301 | 8,301 |
Orbera technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 12 years | |
Intangible assets, gross | $ 4,600 | 4,600 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Intangible assets, gross | $ 1,700 | 1,700 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Intangible assets, gross | $ 3,127 | 2,852 |
Cost incurred to extend and renew patents and trademarks | 275 | 256 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,641 | $ 1,438 |
Capitalized software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 1 year | |
Capitalized software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,158 | |
2024 | 755 | |
2025 | 684 | |
2026 | 288 | |
2027 | 236 | |
Total | $ 3,121 | $ 4,400 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and expenses | $ 5,682 | $ 6,569 |
Accrued professional service fees | 3,229 | 656 |
Accrued taxes | 875 | 437 |
Accrued interest | 607 | 613 |
Lease liability | $ 543 | $ 587 |
Operating lease, current, financial statement location | Total accrued expenses | Total accrued expenses |
Accrued returns and rebates | $ 305 | $ 106 |
Other | 1,163 | 934 |
Total accrued expenses | $ 12,404 | $ 9,902 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (1,277) | $ (1,533) |
Long-term debt | 33,963 | 33,473 |
Deferred interest | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 240 | 6 |
Term loan facility | Term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 35,000 | $ 35,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Line of credit | $ 35,000 | ||
Interest expense | 3,592 | $ 7,137 | |
Prepayment and final fees | $ 2,044 | $ 2,044 | |
Term loan facility | |||
Debt Instrument [Line Items] | |||
Percent of instrument converted | 10% | 10% | |
Conversion price (USD per share) | $ 11.50 | $ 11.50 | |
Term loan facility | Term loan facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000 | $ 100,000 | |
Interest rate | 3.25% | 3.25% | |
Percent of outstanding amount due | 4% | ||
Long-term debt, gross | $ 35,000 | $ 35,000 | $ 35,000 |
Term loan facility | Term loan facility | Prime Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4% | ||
Term loan facility | Term A Loan | |||
Debt Instrument [Line Items] | |||
Proceeds from term loan | 35,000 | ||
Term loan facility | Term B Loan | |||
Debt Instrument [Line Items] | |||
Line of credit | 15,000 | 15,000 | |
Term loan facility | Term C Loan | |||
Debt Instrument [Line Items] | |||
Line of credit | 25,000 | 25,000 | |
Term loan facility | Term D Loan | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 25 | $ 25 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturity of Long-term Debt (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 35,000 |
Total | $ 35,000 |
Convertible Debt - Schedule of
Convertible Debt - Schedule of Convertible Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Deferred financing costs | $ (1,277) | $ (1,533) |
Convertible debt | ||
Short-Term Debt [Line Items] | ||
Convertible debt principal | 20,446 | 20,446 |
Deferred financing costs | (733) | (933) |
Convertible debt | $ 19,713 | $ 19,513 |
Convertible Debt - Narrative (D
Convertible Debt - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2023 USD ($) shares | Jul. 31, 2022 shares | Jan. 31, 2022 shares | Aug. 31, 2019 USD ($) d $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Jun. 30, 2022 USD ($) | |
Short-Term Debt [Line Items] | |||||||
Proceeds from senior secured term loans | $ 0 | $ 35,000 | |||||
Conversion of convertible debt | 0 | 74 | |||||
Accrued interest | 607 | 613 | |||||
Interest expense | 3,592 | 7,137 | |||||
Convertible debt | |||||||
Short-Term Debt [Line Items] | |||||||
Proceeds from senior secured term loans | $ 20,000 | ||||||
Interest rate | 6% | ||||||
Stock price (USD per share) | $ / shares | $ 2.50 | ||||||
Convertible debt principal | 19,713 | 19,513 | |||||
Conversion of convertible debt (in shares) | shares | 75,780 | ||||||
Accrued interest | 613 | $ 613 | |||||
Conversion of accrued interest on convertible debt (in shares) | shares | 167,148 | ||||||
Interest expense | 1,421 | $ 1,427 | |||||
Subsequent Event | Tranche 2 | |||||||
Short-Term Debt [Line Items] | |||||||
Convertible debt principal | $ 2,531 | ||||||
Common Stock | |||||||
Short-Term Debt [Line Items] | |||||||
Conversion of convertible debt (in shares) | shares | 22,644 | ||||||
Common Stock | Convertible debt | |||||||
Short-Term Debt [Line Items] | |||||||
Accrued interest | $ 607 | ||||||
Common Stock | Subsequent Event | |||||||
Short-Term Debt [Line Items] | |||||||
Conversion of convertible debt (in shares) | shares | 61,061 | ||||||
Common Stock | Subsequent Event | Tranche 1 | |||||||
Short-Term Debt [Line Items] | |||||||
Debt instrument convertible number of equity instruments | shares | 5,565,457 | ||||||
Common Stock | Subsequent Event | Tranche 1 | Convertible debt | |||||||
Short-Term Debt [Line Items] | |||||||
Conversion of convertible debt | $ 17,914 | ||||||
Common Stock | Subsequent Event | Tranche 2 | |||||||
Short-Term Debt [Line Items] | |||||||
Debt instrument convertible number of equity instruments | shares | 778,909 | ||||||
Conversion Ratio Less Than 2.50 | Convertible debt | |||||||
Short-Term Debt [Line Items] | |||||||
Consecutive trading days (in days) | d | 10 | ||||||
Conversion Ratio Of 3.25 | Convertible debt | |||||||
Short-Term Debt [Line Items] | |||||||
Consecutive trading days (in days) | d | 30 | ||||||
Conversion price (USD per share) | $ / shares | $ 3.25 | ||||||
Stock price trigger (USD per share) | $ / shares | $ 9.75 | ||||||
Trading days (in days) | d | 20 |
Long-Term Liabilities (Details)
Long-Term Liabilities (Details) - Solar Term Loan Facility - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Exit fee liability, noncurrent | $ 1,292 | $ 816 |
Liabilities, noncurrent | 1,925 | |
Trailing twelve month revenue | 100,000 | |
Accretion Expense | $ 475 |
Stockholders' Equity - Authoriz
Stockholders' Equity - Authorized Stock Narrative (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Preferred and common stock, shares authorized (in shares) | 115,000,000 | |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | |
Preferred stock, par value (USD per share) | $ 0.001 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 30, 2023 | Dec. 31, 2022 | |
Class of Warrant or Right [Line Items] | ||
Expired warrants (in shares) | 1,633,794 | |
Exchange for warrants (in shares) | 1,633,526 | |
Expired (in shares) | 163,915 | |
Subsequent Event | ||
Class of Warrant or Right [Line Items] | ||
Expired warrants (in shares) | 9,424,504 | |
Exchange for warrants (in shares) | 9,423,565 | |
Pre-funded - no expiration | ||
Class of Warrant or Right [Line Items] | ||
Total number of warrants outstanding (in shares) | 12,110,710 | |
Exercise price (USD per share) | $ 0.001 |
Stock Option Plans - Plans Narr
Stock Option Plans - Plans Narrative (Details) - 2017 Plan | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of fair value | 100% |
Maximum term of options granted | 10 years |
Vesting period | 5 years |
Percentage of outstanding stock | 4% |
Annual increase in reserve, active term | 10 years |
Common stock reserved for issuance (in shares) | 219,379 |
Stock Option Plans - Stock Opti
Stock Option Plans - Stock Option Activity (Details) - Equity Plans - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options | ||
Options outstanding, beginning balance (in shares) | 3,482,883 | |
Options granted (in shares) | 921,063 | |
Options exercised (in shares) | (233,931) | |
Options forfeited (in shares) | (140,458) | |
Options vested and expected to vest (in shares) | 4,029,557 | 3,482,883 |
Options exercisable (in shares) | 2,165,916 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in USD per share) | $ 5.04 | |
Options granted (in USD per share) | 4.29 | |
Options exercised (in USD per share) | 3.54 | |
Options forfeited (in USD per share) | 4.59 | |
Weighted average exercise price, ending balance (in USD per share) | 4.97 | $ 5.04 |
Options exercisable (in USD per share) | $ 4.88 | |
Weighted Average Remaining Contractual Term | ||
Weighted average remaining contractual term | 7 years 7 months 6 days | 8 years |
Options exercisable | 6 years 8 months 12 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ 20,386 | $ 12,307 |
Options exercisable | $ 11,280 |
Stock Option Plans - Fair Value
Stock Option Plans - Fair Value of Stock Options (Details) - Stock Option | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 3.30% | 1% |
Expected dividend yield | 0% | 0% |
Estimated volatility | 82.80% | 81.10% |
Expected life | 6 years | 6 years 1 month 6 days |
Stock Option Plans - Narrative
Stock Option Plans - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 USD ($) tranche shares | Mar. 31, 2021 USD ($) tranche shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 6,783 | $ 6,386 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 6,783 | $ 6,386 | ||
Weighted-average grant date fair value of options granted during the period (USD per share) | $ / shares | $ 3.07 | $ 4.40 | ||
Aggregate intrinsic value of options exercised during the period | $ 964 | $ 3,494 | ||
Unrecognized compensation expense related to unvested options | $ 5,874 | |||
Remaining amortization period, less then | 2 years 6 months | |||
Stock Option | Chief Financial Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 25% | |||
Restricted Stock Units (RSUs) And Time-based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture of performance-based restricted stock units (in shares) | shares | 6,190 | |||
Issuance of performance-based restricted stock units (in shares) | shares | 13,810 | |||
Restricted Stock Units (RSUs) And Time-based Shares | Chief Financial Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | shares | 80,000 | |||
Number of tranches | tranche | 4 | |||
Restricted Stock Units (RSUs) And Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture of performance-based restricted stock units (in shares) | shares | 15,060 | |||
Issuance of performance-based restricted stock units (in shares) | shares | 24,940 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | shares | 707,278 | |||
Number of tranches | tranche | 4 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Executive Officer | Share-based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | $ 50,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Executive Officer | Share-based Payment Arrangement, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | 65,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Executive Officer | Share-based Payment Arrangement, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | 80,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Executive Officer | Share-Based Payment Arrangement, Tranche Four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | $ 95,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Financial Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | shares | 120,000 | |||
Number of tranches | tranche | 3 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Financial Officer | Share-based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | $ 70,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Financial Officer | Share-based Payment Arrangement, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | 90,000 | |||
Restricted Stock Units (RSUs) And Performance Shares | Chief Financial Officer | Share-based Payment Arrangement, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount vested | $ 110,000 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining amortization period, less then | 2 years 10 months 24 days | |||
Restricted stock units granted (in shares) | shares | 1,587,540 | |||
Compensation not yet recognized | $ 7,474 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture of performance-based restricted stock units (in shares) | shares | 66,553 | |||
Issuance of performance-based restricted stock units (in shares) | shares | 110,267 | |||
Compensation not yet recognized | $ 657 |
Stock Option Plans - Restricted
Stock Option Plans - Restricted Stock Units Activity (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Units | ||
Shares outstanding beginning balance (in shares) | 1,194,432 | |
Restricted stock units granted (in shares) | 1,587,540 | |
Restricted stock units released (in shares) | (414,803) | |
Restricted stock units forfeited (in shares) | (128,601) | |
Shares outstanding ending balance (in shares) | 2,238,568 | |
Weighted Average Grant Date Fair Value | ||
Units outstanding beginning balance (in USD per share) | $ 5.67 | |
Restricted stock units granted (in USD per share) | 5.32 | |
Restricted stock units released (in USD per share) | 5.48 | |
Restricted stock units forfeited (in USD per share) | 4.48 | |
Units outstanding ending balance (in USD per share) | $ 5.52 | |
Aggregate Intrinsic Value | $ 22,319 | $ 10,069 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Raw materials | $ 7,602 | $ 3,442 | |
Raw materials | |||
Other Commitments [Line Items] | |||
Agreement period | 1 year | ||
Raw materials | $ 2,885 | ||
Raw materials | Subsequent Event | |||
Other Commitments [Line Items] | |||
Agreement period | 1 year | ||
Raw materials | $ 575 | ||
Minimum | |||
Other Commitments [Line Items] | |||
Period for salary and benefits payment | 3 months | ||
Maximum | |||
Other Commitments [Line Items] | |||
Period for salary and benefits payment | 12 months | ||
Executive Officer | |||
Other Commitments [Line Items] | |||
Period following change in control | 12 months | ||
Executive Officer | Minimum | |||
Other Commitments [Line Items] | |||
Period for salary and benefits payment | 3 months | ||
Executive Officer | Maximum | |||
Other Commitments [Line Items] | |||
Period for salary and benefits payment | 24 months |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Cost of defined contribution plan | $ 993 | $ 729 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ 584,000 | $ 156,000 |
Valuation allowance, increase (decrease) | 6,672,000 | |
Unrecognized tax benefits | 0 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 259,638,000 | |
Operating loss carryforwards, unlimited life | 115,800,000 | |
Operating loss carryforwards, reduction due to ownership change | 100,825,000 | |
Operating loss carryforwards, net | 158,813,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 132,987,000 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 2,455,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Capitalized transaction costs | $ 212 | $ 250 |
Intangible assets | 1,342 | 1,205 |
Inventory valuation | 58 | 43 |
Research and development credit | 4,005 | 4,005 |
Interest expense carryforward | 5,810 | 4,980 |
Foreign timing differences | 633 | 624 |
Depreciable assets | 38 | 53 |
Other | 3,000 | 1,871 |
Net operating loss carryforwards | 62,314 | 57,739 |
Deferred tax assets, gross | 77,412 | 70,770 |
Deferred tax liabilities: | ||
Unremitted foreign earnings | (426) | (448) |
Total deferred tax liabilities | (426) | (448) |
Total net deferred tax assets | 76,986 | 70,322 |
Less valuation allowance | (76,727) | (70,055) |
Net deferred tax assets (included in other assets) | $ 259 | $ 267 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Tax at U.S. statutory rate | $ (8,244) | $ (5,150) |
State taxes, net of deferred benefit | (1,192) | (783) |
Foreign tax rate differential | (206) | (260) |
Foreign taxes | 179 | (169) |
Permanent differences | 2,400 | (231) |
Transaction costs | 859 | 0 |
Other | 41 | (124) |
Deferred tax adjustment | 117 | (43) |
Unremitted foreign earnings | 20 | 27 |
Valuation allowance - current year | 6,610 | 6,889 |
Income tax expense | $ 584 | $ 156 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current taxes: | ||
U.S. state | $ 3 | $ 2 |
International | 580 | 239 |
Total current income tax expense | 583 | 241 |
Deferred taxes: | ||
International | 1 | (85) |
Total deferred income tax expense | 1 | (85) |
Income tax expense | $ 584 | $ 156 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 23,888,812 | 24,232,917 |
Warrants for common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 12,110,710 | 13,908,419 |
Convertible debt | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 6,306,134 | 6,310,235 |
Common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 3,675,760 | 3,094,197 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 1,796,208 | 920,066 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Revenue, Major Customer [Line Items] | ||
Number of reportable segments | segment | 1 | |
Revenues | $ 76,856 | $ 62,989 |
U.S. | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 43,961 | 34,004 |
OUS | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 32,895 | $ 28,985 |
Revenue | Product Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 100% | 100% |
Revenue | Product Risk | U.S. | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 57.20% | 54% |
Revenue | Product Risk | OUS | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 42.80% | 46% |
Distributor Sales | Product Risk | OUS | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 51.40% | 44.30% |
Distributor Sales | Product Risk | Non US Next Largest Single Country | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 4.80% | 6.30% |
ESS | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 53,852 | $ 39,965 |
ESS | U.S. | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 35,519 | 25,917 |
ESS | OUS | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 18,333 | $ 14,048 |
ESS | Revenue | Product Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 70.10% | 63.40% |
IGB | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 22,256 | $ 22,097 |
IGB | U.S. | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 7,707 | 7,193 |
IGB | OUS | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 14,549 | $ 14,904 |
IGB | Revenue | Product Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 29% | 35.10% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 748 | $ 927 |
Other | U.S. | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 735 | 894 |
Other | OUS | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 13 | $ 33 |
Other | Revenue | Product Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue or sales | 0.90% | 1.50% |
Segment and Geographic Inform_4
Segment and Geographic Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, equipment and right-of-use assets, net | $ 7,507 | $ 5,593 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, equipment and right-of-use assets, net | 4,158 | 1,855 |
Costa Rica | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, equipment and right-of-use assets, net | 3,159 | 3,436 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, equipment and right-of-use assets, net | $ 190 | $ 302 |