Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | INGN | |
Entity Registrant Name | INOGEN, INC. | |
Entity Central Index Key | 0001294133 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 22,921,002 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36309 | |
Entity Tax Identification Number | 33-0989359 | |
Entity Address, Address Line One | 301 Coromar Drive | |
Entity Address, City or Town | Goleta | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93117 | |
City Area Code | (805) | |
Local Phone Number | 562-0500 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 209,633 | $ 235,524 |
Marketable securities | 9,989 | |
Accounts receivable, net | 50,533 | 24,452 |
Inventories, net | 35,725 | 31,873 |
Income tax receivable | 1,579 | 1,343 |
Prepaid expenses and other current assets | 20,306 | 26,005 |
Total current assets | 317,776 | 329,186 |
Property and equipment | ||
Rental equipment, net | 58,698 | 59,073 |
Manufacturing equipment and tooling | 11,246 | 12,050 |
Computer equipment and software | 9,219 | 8,585 |
Furniture and equipment | 3,194 | 3,167 |
Leasehold improvements | 6,126 | 5,956 |
Land and building | 125 | 125 |
Construction in process | 2,843 | 1,639 |
Total property and equipment | 91,451 | 90,595 |
Less accumulated depreciation | (50,819) | (51,669) |
Property and equipment, net | 40,632 | 38,926 |
Goodwill | 32,674 | 32,979 |
Intangible assets, net | 53,700 | 60,147 |
Operating lease right-of-use asset | 22,479 | 24,912 |
Other assets | 2,323 | 3,363 |
Total assets | 469,584 | 489,513 |
Current liabilities | ||
Accounts payable and accrued expenses | 33,512 | 25,689 |
Accrued payroll | 11,789 | 17,307 |
Warranty reserve - current | 7,830 | 6,480 |
Operating lease liability - current | 3,486 | 3,393 |
Deferred revenue - current | 9,119 | 8,568 |
Income tax payable | 75 | |
Total current liabilities | 65,736 | 61,512 |
Long-term liabilities | ||
Warranty reserve - noncurrent | 7,630 | 7,246 |
Operating lease liability - noncurrent | 20,662 | 23,281 |
Earnout liability - noncurrent | 13,687 | 15,386 |
Deferred revenue - noncurrent | 11,027 | 11,861 |
Total liabilities | 118,742 | 119,286 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 200,000,000 authorized; 22,919,781 and 22,731,586 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 23 | 23 |
Additional paid-in capital | 309,140 | 299,463 |
Retained earnings | 42,110 | 69,272 |
Accumulated other comprehensive income (loss) | (431) | 1,469 |
Total stockholders' equity | 350,842 | 370,227 |
Total liabilities and stockholders' equity | $ 469,584 | $ 489,513 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 22,919,781 | 22,731,586 |
Common stock, shares outstanding | 22,919,781 | 22,731,586 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Sales revenue | $ 90,672 | $ 80,974 | $ 247,365 | $ 248,359 |
Rental revenue | 14,717 | 12,131 | 41,785 | 33,241 |
Total revenue | 105,389 | 93,105 | 289,150 | 281,600 |
Cost of revenue | ||||
Cost of sales revenue | 55,891 | 40,437 | 146,052 | 129,637 |
Cost of rental revenue, including depreciation of $2,795 and $2,315, for the three months ended and $8,153 and $6,257 for the nine months ended, respectively | 6,700 | 4,981 | 19,036 | 14,068 |
Total cost of revenue | 62,591 | 45,418 | 165,088 | 143,705 |
Gross profit | ||||
Gross profit-sales revenue | 34,781 | 40,537 | 101,313 | 118,722 |
Gross profit-rental revenue | 8,017 | 7,150 | 22,749 | 19,173 |
Total gross profit | 42,798 | 47,687 | 124,062 | 137,895 |
Operating expense | ||||
Research and development | 4,581 | 3,754 | 16,009 | 11,892 |
Sales and marketing | 33,734 | 28,301 | 92,161 | 83,109 |
General and administrative | 14,775 | 9,258 | 42,646 | 26,981 |
Total operating expense | 53,090 | 41,313 | 150,816 | 121,982 |
Income (loss) from operations | (10,292) | 6,374 | (26,754) | 15,913 |
Other income (expense) | ||||
Interest income | 868 | 21 | 1,122 | 107 |
Other expense | (12) | (466) | (1,167) | (472) |
Total other income (expense), net | 856 | (445) | (45) | (365) |
Income (loss) before provision (benefit) for income taxes | (9,436) | 5,929 | (26,799) | 15,548 |
Provision (benefit) for income taxes | 70 | (6,245) | 363 | (996) |
Net income (loss) | (9,506) | 12,174 | (27,162) | 16,544 |
Other comprehensive income (loss), net of tax | ||||
Change in foreign currency translation adjustment | (616) | (251) | (1,453) | (585) |
Change in net unrealized gains (losses) on foreign currency hedging | 209 | 494 | (1,669) | 2,028 |
Less: reclassification adjustment for net (gains) losses included in net income | 106 | 1,206 | (267) | |
Total net change in unrealized gains (losses) on foreign currency hedging | 209 | 600 | (463) | 1,761 |
Change in net unrealized gains (losses) on marketable securities | 17 | (1) | 16 | |
Total other comprehensive income (loss), net of tax | (390) | 348 | (1,900) | 1,176 |
Comprehensive income (loss) | $ (9,896) | $ 12,522 | $ (29,062) | $ 17,720 |
Basic net income (loss) per share attributable to common stockholders (Note 6) | $ (0.42) | $ 0.54 | $ (1.19) | $ 0.74 |
Diluted net income (loss) per share attributable to common stockholders (Note 6) | $ (0.42) | $ 0.53 | $ (1.19) | $ 0.73 |
Weighted average number of shares used in calculating net income (loss) per share attributable to common stockholders: | ||||
Basic common shares | 22,882,333 | 22,619,272 | 22,827,733 | 22,416,575 |
Diluted common shares | 22,882,333 | 22,854,229 | 22,827,733 | 22,803,355 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Depreciation | $ 2,795 | $ 2,315 | $ 8,153 | $ 6,257 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained earnings | Accumulated other comprehensive income |
Beginning Balance at Dec. 31, 2020 | $ 349,623 | $ 22 | $ 273,521 | $ 75,605 | $ 475 |
Beginning Balance, shares at Dec. 31, 2020 | 22,131,447 | ||||
Stock-based compensation | 8,547 | 8,547 | |||
Employee stock purchases | 1,948 | 1,948 | |||
Employee stock purchases, shares | 60,299 | ||||
Restricted stock awards issued, net of forfeitures, shares | (41,344) | ||||
Vesting of restricted stock units | (396) | (396) | |||
Vesting of restricted stock units, shares | 89,052 | ||||
Shares withheld related to net restricted stock settlement | (221) | (221) | |||
Shares withheld related to net restricted stock settlement, shares | (3,873) | ||||
Stock options exercised | 13,699 | $ 1 | 13,698 | ||
Stock options exercised, shares | 486,038 | ||||
Net income (loss) | 16,544 | 16,544 | |||
Other comprehensive income (loss) | 1,176 | 1,176 | |||
Ending Balance at Sep. 30, 2021 | 390,920 | $ 23 | 297,097 | 92,149 | 1,651 |
Ending Balance, shares at Sep. 30, 2021 | 22,721,619 | ||||
Beginning Balance at Jun. 30, 2021 | 370,916 | $ 23 | 289,615 | 79,975 | 1,303 |
Beginning Balance, shares at Jun. 30, 2021 | 22,578,696 | ||||
Stock-based compensation | 2,792 | 2,792 | |||
Employee stock purchases | 1,021 | 1,021 | |||
Employee stock purchases, shares | 22,600 | ||||
Vesting of restricted stock units | (39) | (39) | |||
Vesting of restricted stock units, shares | 12,131 | ||||
Shares withheld related to net restricted stock settlement | (33) | (33) | |||
Shares withheld related to net restricted stock settlement, shares | (545) | ||||
Stock options exercised | 3,741 | 3,741 | |||
Stock options exercised, shares | 108,737 | ||||
Net income (loss) | 12,174 | 12,174 | |||
Other comprehensive income (loss) | 348 | 348 | |||
Ending Balance at Sep. 30, 2021 | 390,920 | $ 23 | 297,097 | 92,149 | 1,651 |
Ending Balance, shares at Sep. 30, 2021 | 22,721,619 | ||||
Beginning Balance at Dec. 31, 2021 | 370,227 | $ 23 | 299,463 | 69,272 | 1,469 |
Beginning Balance, shares at Dec. 31, 2021 | 22,731,586 | ||||
Stock-based compensation | 9,185 | 9,185 | |||
Employee stock purchases | 1,691 | 1,691 | |||
Employee stock purchases, shares | 62,328 | ||||
Restricted stock awards issued, net of forfeitures, shares | (5,134) | ||||
Vesting of restricted stock units | (1,134) | (1,134) | |||
Vesting of restricted stock units, shares | 125,252 | ||||
Shares withheld related to net restricted stock settlement | (100) | (100) | |||
Shares withheld related to net restricted stock settlement, shares | (2,900) | ||||
Stock options exercised | $ 35 | 35 | |||
Stock options exercised, shares | 8,649 | 8,649 | |||
Net income (loss) | $ (27,162) | (27,162) | |||
Other comprehensive income (loss) | (1,900) | (1,900) | |||
Ending Balance at Sep. 30, 2022 | 350,842 | $ 23 | 309,140 | 42,110 | (431) |
Ending Balance, shares at Sep. 30, 2022 | 22,919,781 | ||||
Beginning Balance at Jun. 30, 2022 | 356,537 | $ 23 | 304,939 | 51,616 | (41) |
Beginning Balance, shares at Jun. 30, 2022 | 22,865,715 | ||||
Stock-based compensation | 3,500 | 3,500 | |||
Employee stock purchases | 776 | 776 | |||
Employee stock purchases, shares | 31,770 | ||||
Restricted stock awards issued, net of forfeitures, shares | (123) | ||||
Vesting of restricted stock units | (72) | (72) | |||
Vesting of restricted stock units, shares | 22,536 | ||||
Shares withheld related to net restricted stock settlement | (3) | (3) | |||
Shares withheld related to net restricted stock settlement, shares | (117) | ||||
Net income (loss) | (9,506) | (9,506) | |||
Other comprehensive income (loss) | (390) | (390) | |||
Ending Balance at Sep. 30, 2022 | $ 350,842 | $ 23 | $ 309,140 | $ 42,110 | $ (431) |
Ending Balance, shares at Sep. 30, 2022 | 22,919,781 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (27,162) | $ 16,544 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,536 | 15,861 |
Loss on rental units and other fixed assets | 2,488 | 952 |
Gain on sale of former rental assets | (93) | (59) |
Provision for sales revenue returns and doubtful accounts | 10,816 | 8,248 |
Provision for rental revenue adjustments | 3,543 | |
Provision for inventory losses | 2,060 | 1,452 |
Stock-based compensation expense | 9,185 | 8,547 |
Deferred income taxes | (1,014) | |
Change in fair value of earnout liability | (1,699) | (9,822) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (37,828) | (15,232) |
Inventories | (5,958) | (9,935) |
Income tax receivable | (236) | 261 |
Prepaid expenses and other current assets | 5,675 | (6,323) |
Operating lease right-of-use asset | 2,433 | (17,005) |
Other noncurrent assets | 135 | 73 |
Accounts payable and accrued expenses | 7,253 | (3,015) |
Accrued payroll | (5,498) | 5,141 |
Warranty reserve | 1,734 | 522 |
Deferred revenue | (283) | 1,743 |
Income tax payable | (82) | (979) |
Operating lease liability | (2,526) | 17,632 |
Net cash provided by (used in) operating activities | (22,050) | 17,135 |
Cash flows from investing activities | ||
Maturities of marketable securities | 10,005 | 15,705 |
Investment in intangible assets | (132) | |
Investment in property and equipment | (2,770) | (4,807) |
Production and purchase of rental equipment | (11,320) | (13,156) |
Proceeds from sale of former assets | 152 | 122 |
Net cash used in investing activities | (3,933) | (2,268) |
Cash flows from financing activities | ||
Proceeds from stock options exercised | 35 | 13,699 |
Proceeds from employee stock purchases | 1,691 | 1,948 |
Payment of employment taxes related to release of restricted stock | (1,234) | (617) |
Net cash provided by financing activities | 492 | 15,030 |
Effect of exchange rates on cash | (400) | (283) |
Net increase (decrease) in cash and cash equivalents | (25,891) | 29,614 |
Cash and cash equivalents, beginning of period | 235,524 | 211,962 |
Cash and cash equivalents, end of period | 209,633 | 241,576 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for income taxes, net of refunds received | 535 | 1,284 |
Supplemental disclosure of non-cash transactions | ||
Property and equipment in accounts payable and accrued liabilities | $ 314 | $ 333 |
Business Overview
Business Overview | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | 1. Business overview Inogen, Inc. (Company or Inogen) was incorporated in Delaware on November 27, 2001. The Company is a medical technology company that primarily develops, manufactures and markets innovative portable oxygen concentrators (POCs) used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. Traditionally, these patients have relied on stationary oxygen concentrator systems for use in the home and oxygen tanks or cylinders for mobile use, which the Company calls the delivery model. The tanks and cylinders must be delivered regularly and have a finite amount of oxygen, which requires patients to plan activities outside of their homes around delivery schedules and a finite oxygen supply. Additionally, patients must attach long, cumbersome tubing to their stationary concentrators simply to enable mobility within their homes. The Company’s proprietary Inogen One ® systems concentrate the air around the patient to offer a single source of supplemental oxygen anytime, anywhere with a single battery and can be plugged into an outlet when at home, in a car, or in a public place with outlets available. The Company’s Inogen One systems reduce the patient’s reliance on stationary concentrators and scheduled deliveries of tanks with a finite supply of oxygen, thereby improving patient quality of life and fostering mobility. The Company incorporated Inogen Europe Holding B.V., a Dutch limited liability company, on April 13, 2017 . On May 4, 2017, Inogen Europe Holding B.V. acquired all issued and outstanding capital stock of MedSupport Systems B.V. (MedSupport) and began operating under the name Inogen Europe B.V. The Company merged Inogen Europe Holding B.V. and Inogen Europe B.V. on December 28, 2018. Inogen Europe B.V. is the remaining legal entity. Inogen completed the acquisition of New Aera, Inc. (New Aera) on August 9, 2019. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of presentation and summary of significant accounting policies The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The results of operations for the three and nine months ended September 30, 2022 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2022. In the opinion of the Company’s management, the information contained herein reflects all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. Certain footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations relating to interim financial statements. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2022. Except as further described below, there have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 24, 2022. Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated. Use of estimates The preparation of consolidated financial statements in conformity with 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 period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition, warranty reserves and expense, determining the stand-alone selling price (SSP) and service period of performance obligations, rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, impairment of long-lived assets, stock-based compensation expense, income taxes, fair value of acquired intangible assets and goodwill and fair value of earnout liabilities. Actual results could differ from these estimates. Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair value measurements Accounting Standards Codification (ASC) 820 — Fair Value Measurements and Disclosures creates a single definition of fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and states that a fair value measurement is to estimate the price at which an orderly transaction to sell an asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Assets and liabilities adjusted to fair value in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by ASC 820, are as follows: Level input Input definition Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Company’s financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses. The carrying values of its financial instruments approximate fair value based on their short-term nature. Cash, cash equivalents and marketable securities The Company obtained the fair value of its available-for-sale investments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company's professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g., large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered, and the fair value is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values against the fair values provided by its investment managers. The Company's investment managers use similar techniques to its professional pricing service to derive pricing as described above. As all significant inputs were observable, derived from observable information in the marketplace or supported by observable levels at which transactions are executed in the marketplace, the Company has classified its marketable securities within Level 2 of the fair value hierarchy. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of September 30, 2022 Gross Cash Adjusted unrealized and cash Marketable cost gains (losses) Fair value equivalents securities Cash $ 36,934 $ — $ 36,934 $ 36,934 $ — Level 1: Money market accounts 147,810 — 147,810 147,810 — Level 2: Corporate bonds 16,418 ( 6 ) 16,412 16,412 — U.S. Treasury securities 8,454 23 8,477 8,477 — Total $ 209,616 $ 17 $ 209,633 $ 209,633 $ — As of December 31, 2021 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 48,817 $ — $ 48,817 $ 48,817 $ — Level 1: Money market accounts 186,707 — 186,707 186,707 — Level 2: Corporate bonds 9,988 1 9,989 — 9,989 Total $ 245,512 $ 1 $ 245,513 $ 235,524 $ 9,989 Derivative instruments and hedging activities The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheet. The Company had a related receivable of $ 996 and $ 1,671 as of September 30, 2022 and December 31, 2021, respectively. Accumulated other comprehensive income (loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains gains (losses) other translation on marketable on cash comprehensive adjustments securities flow hedges income (loss) Balance as of December 31, 2021 $ 328 $ 1 $ 1,140 $ 1,469 Other comprehensive income (loss) ( 1,453 ) 16 ( 463 ) ( 1,900 ) Balance as of September 30, 2022 $ ( 1,125 ) $ 17 $ 677 $ ( 431 ) Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for net income (loss) and unrealized gains and losses on cash flow hedges, the Company does not have any transactions or other economic events that qualify as other comprehensive income (loss). Earnout liability The Company has obligations to pay up to $ 31,400 in earnout payments in cash if certain future financial results are met. The earnout liability was valued using Level 3 inputs. The fair value of the earnout was determined by employing a Monte Carlo simulation in a risk-neutral framework. The underlying simulated variable includes recognized revenue. The recognized revenue volatility estimate was based on a study of historical asset volatility for a set of comparable public companies. The model includes other assumptions including the market price of risk, which was calculated as the weighted average cost of capital (WACC) less the long-term risk free rate. The earnout period for recognized revenue is each calendar year beginning with calendar year 2019 and ending on the calendar year in which the earnout consideration equals the earnout cap. The following table provides quantitative information about Level 3 inputs for fair value measurement of the earnout liability as of September 30, 2022 and December 31, 2021. Significant increases or decreases in these inputs in isolation could result in a significant impact on the fair value measurement: Simulation input September 30, 2022 December 31, 2021 Revenue volatility 20.00 % 15.00 % WACC 13.50 % 10.50 % 20-year risk free rate 4.08 % 2.02 % Market price of risk 2.60 % 2.68 % The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows: Three months ended Nine months ended September 30, 2022 September 30, 2022 Balance at beginning of period $ 14,605 $ 16,016 Change in fair value ( 288 ) ( 1,699 ) Balance at end of period $ 14,317 $ 14,317 The Company recorded $ 630 and $ 630 of preacquisition loss recoveries that can be withheld from any earnout amounts payable as of September 30, 2022 and December 31, 2021 , respectively. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 4. Balance sheet components Cash, cash equivalents and marketable securities The Company considers all short-term highly liquid investments with a maturity of three months or less to be cash equivalents. The Company’s marketable debt securities are classified and accounted for as available-for-sale. Cash equivalents are recorded at cost plus accrued interest, which is considered adjusted cost, and approximates fair value. Marketable debt securities are included in cash equivalents and marketable securities based on the maturity date of the security. Short-term investments are included in marketable securities in the current period presentation. The Company considers investments with maturities greater than three months, but less than one year, to be marketable securities. Investments are reported at fair value with realized and unrealized gains or losses reported in other income (expense), net. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company's intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Credit losses and other-than-temporary impairments are declines in fair value that are not expected to recover and are charged to other income (expense), net. Cash, cash equivalents, and marketable securities consist of the following: September 30, December 31, Cash and cash equivalents 2022 2021 Cash $ 36,934 $ 48,817 Money market accounts 147,810 186,707 Corporate bonds 16,412 — U.S. Treasury securities 8,477 — Total cash and cash equivalents $ 209,633 $ 235,524 Marketable securities Corporate bonds $ — $ 9,989 Total marketable securities $ — $ 9,989 Accounts receivable and allowance for bad debts, returns, and adjustments Accounts receivable are customer obligations due under normal sales and rental terms. The Company performs credit evaluations of the customers’ financial condition and generally does not require collateral. The allowance for doubtful accounts is maintained at a level that, in management’s opinion, is adequate to absorb potential losses related to accounts receivable and is based upon the Company’s continuous evaluation of the collectability of outstanding balances. Management’s evaluation takes into consideration such factors as past bad debt experience, economic conditions and information about specific receivables. The Company’s evaluation also considers the age and composition of the outstanding amounts in determining their net realizable value. The allowance for doubtful accounts is based on estimates, and ultimate losses may vary from current estimates. As adjustments to these estimates become necessary, they are reported in general and administrative expense for sales revenue in the periods in which they become known. The allowance is increased by bad debt provisions, net of recoveries, and is reduced by direct write-offs. The Company generally does not allow returns from providers for reasons not covered under its standard warranty. Therefore, provision for returns applies primarily to direct-to-consumer sales. This reserve is calculated primarily based on actual historical return rates under the Company’s 30-day return program and is applied to the related sales revenue for the last month of the quarter reported. The Company also records an estimate for rental revenue adjustments which is recorded as a reduction of rental revenue and net rental accounts receivable balances. These adjustments result from contractual adjustments, audit adjustments, untimely claims filings, or billings not paid due to another provider performing same or similar functions for the patient in the same period, all of which prevent billed revenue from becoming realizable. The reserve is based on historical revenue adjustments as a percentage of rental revenue billed and unbilled during the related period. When recording the allowance for doubtful accounts for sales revenue, the bad debt expense account (general and administrative expense account) is charged and when recording allowance for sales returns, the sales returns account (contra sales revenue account) is charged. The Company consistently applies its allowance estimation methodology from period-to-period. The Company’s best estimate is made on an accrual basis and adjusted in future periods as required. Any adjustments to the prior period estimates are included in the current period. As additional information becomes known, the Company adjusts its assumptions accordingly to change its estimate of accounts receivable. Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2022 and December 31, 2021 were as follows: September 30, December 31, Net accounts receivable 2022 2021 Rental (1) $ 5,532 $ 6,011 Business-to-business and other receivables (2) 45,001 18,441 Total net accounts receivable $ 50,533 $ 24,452 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with an accounts receivable balance of $ 7,220 and $ 5,945 as of September 30, 2022 and December 31, 2021 , respectively. The customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $ 12,000 and $ 10,000 in coverage as of September 30, 2022 and December 31, 2021 , respectively, for this customer with a $ 400 deductible and 10 % retention. The following table sets forth the accounts receivable allowances as of September 30, 2022 and December 31, 2021: September 30, December 31, Allowances - accounts receivable 2022 2021 Doubtful accounts $ 72 $ 52 Sales returns 816 810 Total allowances - accounts receivable $ 888 $ 862 Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, marketable securities and accounts receivable. At times, cash account balances may be in excess of the amounts insured by the Federal Deposit Insurance Corporation. However, management believes the risk of loss to be minimal. The Company performs periodic evaluations of the relative credit standing of these institutions and has not experienced any losses on its cash and cash equivalents to date. The Company has also entered into hedging relationships with a single counterparty to offset the forecasted Euro-based revenues. The credit risk has been reduced due to a net settlement arrangement whereby the Company is allowed to net settle transactions with a single net amount payable by one party to the other. Concentration of customers and vendors The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries on a credit basis. The Company also sells its products direct-to-consumers primarily on a prepayment basis. Medicare's service reimbursement programs represented more than 10% of the Company’s total revenue for the nine months ended September 30, 2022 , and one single customer represented more than 10% of the Company’s total revenue for the nine months ended September 30, 2021 . Two customers each represented more than 10% of the Company’s net accounts receivable balance with accounts receivable balances of $ 19,301 and $ 7,220 , respectively, as of September 30, 2022 , and one single customer and Medicare each represented more than 10% of the Company's net accounts receivable balance with an accounts receivable balance of $ 5,945 and $ 2,685 , respectively, as of December 31, 2021. The Company also rents products directly to consumers for insurance reimbursement, which resulted in a customer concentration relating to Medicare’s service reimbursement programs. Medicare’s service reimbursement programs accounted for 77.8 % and 82.6 % of rental revenue for the nine months ended September 30, 2022 and 2021 , respectively, and based on total revenue were 11.2 % and 9.7 % for the nine months ended September 30, 2022 and 2021 , respectively. Accounts receivable balances relating to Medicare’s service reimbursement programs (including held and unbilled, net of allowances) amounted to $ 2,459 or 4.9 % of total net accounts receivable as of September 30, 2022 compared to $ 2,685 or 11.0 % of total net accounts receivable as of December 31, 2021. The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. The three major vendors supply the Company with raw materials used to manufacture the Company’s products. For the nine months ended September 30, 2022 , the Company’s three major vendors accounted for 27.0 %, 20.2 % and 8.4 %, respectively, of total raw material purchases. For the nine months ended September 30, 2021 , the Company’s three major vendors accounted for 17.0 %, 12.6 % and 10.8 %, respectively, of total raw material purchases. A portion of revenue is earned from sales outside the United States. Approximately 48.3 % and 71.0 % of the non-U.S. revenue for the three months ended September 30, 2022 and 2021 , respectively, were invoiced in Euros. Approximately 70.5 % and 71.9 % of the non-U.S. revenue for the nine months ended September 30, 2022 and 2021, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2022 and 2021, respectively, is as follows: Three months ended Nine months ended 2022 2021 2022 2021 U.S. revenue $ 90,311 $ 71,271 $ 208,690 $ 222,223 Non-U.S. revenue 15,078 21,834 80,460 59,377 Total revenue $ 105,389 $ 93,105 $ 289,150 $ 281,600 Inventories Inventories are stated at the lower of cost and net realizable value, using the first-in, first-out (FIFO) method. The Company records adjustments at least quarterly to inventory for potentially excess, obsolete, slow-moving or impaired items. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $ 1,039 and $ 1,943 as of September 30, 2022 and December 31, 2021 , respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. The Company had prepayments for raw materials of $ 9,756 and $ 15,426 as of September 30, 2022 and December 31, 2021, respectively, that were classified in prepaid expenses and other current assets. During the nine months ended September 30, 2022 and 2021 , $ 998 and $ 817 , respectively, of inventory was transferred to rental equipment and was considered a noncash transaction in the production and purchase of rental equipment on the consolidated statements of cash flows. Inventories that are considered current consist of the following: September 30, December 31, 2022 2021 Raw materials and work-in-progress $ 26,255 $ 21,909 Finished goods 11,697 12,116 Less: reserves ( 2,227 ) ( 2,152 ) Inventories, net $ 35,725 $ 31,873 Property and equipment Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5 - 5 years Manufacturing equipment and tooling 3 - 5 years Computer equipment and software 2 - 3 years Furniture and equipment 3 - 5 years Leasehold improvements Lesser of estimated useful life or remaining lease term Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $ 0 . Repair and maintenance costs on rental equipment are included in cost of rental revenue on the consolidated statements of comprehensive income (loss). Repair and maintenance expense, which includes labor, parts and freight, for rental equipment was $ 1,059 and $ 858 for the three months ended September 30, 2022 and 2021, respectively, and $ 3,289 and $ 2,531 for the nine months ended September 30, 2022 and 2021, respectively. Included within property and equipment is construction in process, primarily related to the design and engineering of tooling, jigs and other machinery. In addition, this item also includes computer software or development costs that have been purchased but have not completed the final configuration process for implementation into the Company’s systems. These items have not been placed in service; therefore, no depreciation or amortization was recognized for these items in the respective periods. Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three and nine months ended September 30, 2022 and 2021, respectively. Three months ended Nine months ended 2022 2021 2022 2021 Rental equipment $ 2,795 $ 2,315 $ 8,153 $ 6,257 Other property and equipment 983 1,052 2,936 2,982 Total depreciation and amortization $ 3,778 $ 3,367 $ 11,089 $ 9,239 Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of September 30, 2022 and December 31, 2021, respectively. September 30, December 31, Property and equipment 2022 2021 Rental equipment, net of allowances of $ 2,085 and $ 1,290 , respectively $ 58,698 $ 59,073 Other property and equipment 32,753 31,522 Property and equipment 91,451 90,595 Accumulated depreciation Rental equipment 31,309 33,355 Other property and equipment 19,510 18,314 Accumulated depreciation 50,819 51,669 Property and equipment, net Rental equipment, net of allowances of $2,085 and $1,290, respectively 27,389 25,718 Other property and equipment 13,243 13,208 Property and equipment, net $ 40,632 $ 38,926 Long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360 — Property, Plant, and Equipment . In accordance with ASC 360, long-lived assets to be held are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. No impairments were recorded as of September 30, 2022 and September 30, 2021. Goodwill and other identifiable intangible assets Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 were as follows: Balance as of December 31, 2021 $ 32,979 Translation adjustment ( 305 ) Balance as of September 30, 2022 $ 32,674 As of September 30, 2022 , the Company had no accumulated impairment losses related to goodwill. Intangible assets There were no accumulated impairment losses related to the Company’s intangible assets as of September 30, 2022 and December 31, 2021. The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated September 30, 2022 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 24,281 $ 53,419 Licenses 10 185 182 3 Patents and websites 5 4,519 4,293 226 Customer relationships 4 1,175 1,175 — Commercials 2 - 3 318 266 52 Total $ 83,897 $ 30,197 $ 53,700 Average estimated Gross useful lives carrying Accumulated December 31, 2021 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 18,454 $ 59,246 Licenses 10 185 180 5 Patents and websites 5 4,519 3,746 773 Customer relationships 4 1,361 1,361 — Commercials 2 - 3 799 676 123 Total $ 84,564 $ 24,417 $ 60,147 Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2022 Remaining 3 months of 2022 $ 2,023 2023 7,878 2024 7,839 2025 7,790 2026 7,774 Thereafter 20,396 $ 53,700 Current liabilities Accounts payable and accrued expenses as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, 2022 2021 Accounts payable $ 21,470 $ 10,258 Accrued inventory (in-transit and unvouchered receipts) and trade payables 7,158 12,488 Accrued purchasing card liability 3,338 1,488 Accrued franchise, sales and use taxes 500 486 Other accrued expenses 1,046 969 Accounts payable and accrued expenses $ 33,512 $ 25,689 Accrued payroll as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, 2022 2021 Accrued bonuses $ 3,665 $ 8,274 Accrued wages and other payroll related items 4,741 5,469 Accrued vacation 3,200 2,894 Accrued employee stock purchase plan deductions 183 670 Accrued payroll $ 11,789 $ 17,307 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 5. Leases The Company has entered into operating leases primarily for commercial buildings. These leases have terms which range from 3 years to 11 years , some of which include options to extend the leases for up to 5 years . There are no economic penalties for the Company to extend the lease, and it is not reasonably certain that the Company will exercise the extension options. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. The operating leases do not contain material residual value guarantees or material restrictive covenants. Rent expense, including short-term lease cost, was $ 960 and $ 1,007 for the three months ended September 30, 2022 and 2021 , respectively, and $ 2,889 and $ 3,099 for the nine months ended September 30, 2022 and 2021, respectively. Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Nine months ended September 30, 2022 2021 Cash paid for operating lease liabilities $ 2,970 $ 2,273 Operating lease cost 2,878 2,842 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 225 19,417 Weighted average remaining lease term 2.4 years 3.0 years Weighted average discount rate 2.9 % 3.0 % Maturities of lease liabilities due in the 12-month period ending September 30, 2023 $ 3,972 2024 3,991 2025 2,736 2026 2,700 2027 2,735 Thereafter 10,047 26,181 Less imputed interest ( 2,033 ) Total lease liabilities $ 24,148 Operating lease liability - current $ 3,486 Operating lease liability - noncurrent $ 20,662 Total lease liabilities $ 24,148 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 6. Earnings (loss) per share Earnings (loss) per share (EPS) is computed in accordance with ASC 260 —Earnings per Share and is calculated using the weighted average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options, restricted stock units and restricted stock awards) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject to repurchase by the Company, options, and other dilutive awards are considered to be common stock equivalents and are only included in the calculation of diluted earnings (loss) per share when their effect is dilutive. Basic earnings (loss) per share is calculated using the Company’s weighted average outstanding common shares. Diluted earnings (loss) per share is calculated using the Company’s weighted average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The computation of EPS is as follows: Three months ended Nine months ended 2022 2021 2022 2021 Numerator—basic and diluted: Net income (loss) $ ( 9,506 ) $ 12,174 $ ( 27,162 ) $ 16,544 Denominator: Weighted average common shares - basic common stock (1) 22,882,333 22,619,272 22,827,733 22,416,575 Weighted average common shares - diluted common stock (2) 22,882,333 22,854,229 22,827,733 22,803,355 Net income (loss) per share - basic common stock $ ( 0.42 ) $ 0.54 $ ( 1.19 ) $ 0.74 Net income (loss) per share - diluted common stock (2) $ ( 0.42 ) $ 0.53 $ ( 1.19 ) $ 0.73 Denominator calculation from basic to diluted: Weighted average common shares - basic common stock (1) 22,882,333 22,619,272 22,827,733 22,416,575 Stock options and other dilutive awards 152,783 234,957 143,802 386,780 Weighted average common shares - diluted common stock 23,035,116 22,854,229 22,971,535 22,803,355 Shares excluded from diluted weighted average shares: Stock options 320,734 88,391 320,734 54,498 Restricted stock units and restricted stock awards 480,602 67,374 447,775 69,062 Shares excluded from diluted weighted average shares 801,336 155,765 768,509 123,560 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. (2) Due to net losses for the three and nine months ended September 30, 2022 , diluted loss per share is the same as basic. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income taxes The Company accounts for income taxes in accordance with ASC 740 — Income Taxes . Under ASC 740, income taxes are recognized for the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets are recognized for the future tax consequences of transactions that have been recognized in the Company’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. As of September 30, 2022, the Company continued to record a valuation allowance against its deferred tax assets. The Company accounts for uncertainties in income taxes in accordance with ASC 740-10 — Accounting for Uncertainty in Income Taxes . ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This accounting standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes interest and penalties on taxes, if any, within its income tax provision on its consolidated statements of comprehensive income. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ equity The Company has a 2012 Equity Incentive Plan (2012 Plan) under which the Company granted options to purchase shares of its common stock. As of September 30, 2022 , options to purchase 62,803 shares of common stock remained outstanding under the 2012 Plan. The 2012 Plan was terminated in connection with the Company’s initial public offering in February 2014, and accordingly, no new options are available for issuance under this plan. The 2012 Plan continues to govern outstanding awards granted thereunder. The Company has a 2014 Equity Incentive Plan (2014 Plan) that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants. As of September 30, 2022 , awards with respect to 1,242,781 shares of the Company’s common stock were outstanding, and 810,698 shares of common stock remained available for issuance under the 2014 Plan. The shares available for issuance under the 2014 Plan will be increased by any shares returned to the 2012 Plan and 2014 Plan as a result of expiration or termination of awards (provided that the maximum number of shares that may be added to the 2014 Plan pursuant to such previously granted awards under the 2012 Plan is 2,328,569 shares). The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year by an amount equal to the least of: • 895,346 shares; • 4 % of the outstanding shares of common stock as of the last day of the Company’s immediately preceding fiscal year; or • such other amount as the Company’s board of directors may determine. For 2022, no additional shares were added to the 2014 Plan share reserve pursuant to the provision described above. Stock options Options typically expire between seven and ten years from the date of grant and vest over one to four year terms. Options have been granted to employees, directors and consultants of the Company, as determined by the board of directors, at the deemed fair market value of the shares underlying the options at the date of grant. The activity for stock options under the Company’s stock plans for the nine months ended September 30, 2022 is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2021 459,441 $ 1.17 -$ 83.30 $ 42.18 1.36 $ 4.31 Exercised ( 8,649 ) 1.17 - 8.37 4.08 Forfeited ( 12,500 ) 38.54 - 44.19 43.06 Expired ( 54,755 ) 38.54 38.54 Outstanding as of September 30, 2022 383,537 1.17 - 83.30 43.53 0.63 2.89 Vested and exercisable as of September 30, 2022 383,537 1.17 - 83.30 43.53 0.63 2.89 Vested and expected to vest as of September 30, 2022 383,537 $ 1.17 -$ 83.30 $ 43.53 0.63 $ 2.89 The total intrinsic value of options exercised during the nine months ended September 30, 2022 and 2021 was $ 204 and $ 14,524 , respectively. As of September 30, 2022, all stock-based compensation expense for options granted under the Plans was recognized. Stock incentive awards The Company grants restricted stock units (RSUs) and restricted stock awards (RSAs) under the 2014 Plan (Stock Awards). The Stock Awards vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. Stock Awards are subject to forfeiture if the holder’s services to the Company terminate before vesting. Stock Awards granted with only time-based service vesting conditions generally vest over three-year and four-year service periods, as defined in the terms of each award. Stock Awards that vest based on the satisfaction of time-based service conditions combined with performance criteria generally vest over a three-year service and performance period, based on performance criteria established at the time of the award. The portion of the Stock Award that is earned may equal or be less than the targeted number of shares subject to the Stock Award depending on whether the performance criteria are met. Stock Awards activity for the nine months ended September 30, 2022 is summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units as of December 31, 2021 289,166 99,112 388,278 $ 54.81 Granted 730,575 164,722 895,297 30.08 Vested ( 121,321 ) ( 37,678 ) ( 158,999 ) 55.57 Forfeited/canceled ( 73,842 ) ( 42,959 ) ( 116,801 ) 45.92 Unvested restricted stock units as of September 30, 2022 (1) 824,578 183,197 1,007,775 $ 33.76 Unvested and expected to vest restricted stock units outstanding as of September 30, 2022 855,617 $ 33.44 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2021 10,416 5,629 16,045 $ 87.12 Vested ( 3,911 ) ( 5,629 ) ( 9,540 ) 99.49 Forfeited/canceled ( 5,134 ) — ( 5,134 ) 74.25 Unvested restricted stock awards outstanding as of September 30, 2022 (1) 1,371 — 1,371 $ 76.35 Unvested and expected to vest restricted stock awards outstanding as of September 30, 2022 1,309 $ 77.05 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. As of September 30, 2022 , the unrecognized compensation cost related to unvested employee restricted stock units and restricted stock awards was $ 23,589 , excluding estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.1 years. Employee stock purchase plan The Company’s 2014 Employee Stock Purchase Plan (ESPP) provides for the grant to all eligible employees an option to purchase stock under the ESPP, within the meaning Section 423 of the Internal Revenue Code. The ESPP permits participants to purchase common stock through payroll deductions of up to 15 % of their eligible compensation, which includes a participant’s base straight time gross earnings, incentive compensation, bonuses, overtime and shift premium, but exclusive of payments for equity compensation and other similar compensation. A participant may purchase a maximum of 1,500 shares during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of the Company’s common stock at the end of each six-month period. The purchase price of the shares will be 85 % of the lower of the fair market value of the Company’s common stock on the first trading day of each offering period or on the exercise date. The offering periods are currently approximately six months in length beginning on the first business day on or after March 1 and September 1 of each year and ending on the first business day on or after September 1 and March 1 approximately six months later. As of September 30, 2022 , a total of 507,532 shares of common stock were available for sale pursuant to the ESPP. The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year by an amount equal to the least of: • 179,069 shares; • 1.5 % of the outstanding shares of the Company’s common stock on the last day of the Company’s immediately preceding fiscal year; or • such other amount as may be determined by the administrator. For 2022, no additional shares were added to the ESPP share reserve pursuant to the provision described above. Stock-based compensation Stock-based compensation expense recognized for the three and nine months ended September 30, 2022 and 2021, was as follows: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation expense by type of award: Restricted stock units and restricted stock awards $ 3,389 $ 2,631 $ 8,748 $ 8,014 Employee stock purchase plan 111 161 437 533 Total stock-based compensation expense $ 3,500 $ 2,792 $ 9,185 $ 8,547 Employee stock-based compensation expense was calculated based on awards of stock options, restricted stock units and restricted stock awards ultimately expected to vest based on the Company’s historical award cancellations. ASC 718 – Compensation-Stock Compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For the three and nine months ended September 30, 2022 and 2021, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Cost of revenue $ 327 $ 269 $ 863 $ 826 Research and development 409 264 1,205 944 Sales and marketing 754 695 2,111 1,975 General and administrative 2,010 1,564 5,006 4,802 Total stock-based compensation expense $ 3,500 $ 2,792 $ 9,185 $ 8,547 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and contingencies Purchase obligations The Company had approximately $ 141,700 of outstanding purchase orders due within one year with its outside vendors and suppliers as of September 30, 2022. Warranty obligation The following table identifies the changes in the Company’s aggregate product warranty liabilities for the nine and twelve-month periods ended September 30, 2022 and December 31, 2021, respectively: September 30, December 31, 2022 2021 Product warranty liability at beginning of period $ 13,726 $ 14,394 Accruals for warranties issued 7,126 9,168 Adjustments related to preexisting warranties 4,342 ( 597 ) Settlements made (in cash or in kind) ( 9,734 ) ( 9,239 ) Product warranty liability at end of period $ 15,460 $ 13,726 Contract liabilities Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when cash payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The decrease in deferred revenue related to lifetime warranties for the nine months ended September 30, 2022 was primarily driven by $ 4,910 of revenue recognized that was included in the deferred revenue balances as of December 31, 2021 , partially offset by $ 4,233 of payments received in advance of satisfying performance obligations. Deferred revenue related to lifetime warranties was $ 17,299 and $ 17,976 as of September 30, 2022 and December 31, 2021, respectively, and is classified within deferred revenue - current and noncurrent deferred revenue in the consolidated balance sheet. Legislation and HIPAA The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Government activity has continued with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers. Violations of these laws and regulations could result in exclusion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. The Company believes that it is in compliance in all material respects with applicable fraud and abuse regulations and other applicable government laws and regulations. Compliance with such laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted to ensure health insurance portability, reduce healthcare fraud and abuse, guarantee security and privacy of health information, and enforce standards for health information. The Health Information Technology for Economic and Clinical Health Act (HITECH Act), in part, imposes notification requirements of certain security breaches relating to protected health information. The Company believes that it complies in all material respects with the provisions of those regulations that are applicable to the Company’s business. Legal proceedings Civil Investigative Demand On June 21, 2022, the Company received a civil investigative demand (CID) from the United States Attorney’s Office for the Northern District of Iowa. The CID states that it was issued in a False Claims Act investigation to determine whether there is or has been a violation of the False Claims Act and that the investigation involves concerns of inappropriate kickbacks provided by certain manufacturers of portable oxygen concentrators and related products in violation of the Anti-Kickback Statute. The CID followed informal requests from the United States Attorney’s Office for the Northern District of Iowa begun in late 2020, with which the Company voluntarily complied, to obtain information concerning the Company’s participation in (i) zero-interest or below market-rate loans through a third party lender to finance customer purchases; (ii) guaranteeing the obligation of a customer to a finance company in connection with financing of purchases of Company equipment; and (iii) entering into an agreement with a customer that included marketing, exclusivity, discount, and favorable financing terms. The Company is cooperating in the investigation. The Company is currently unable to predict the outcome of this investigation or whether qui tam or other litigation is probable. Regardless of the outcome, this inquiry has the potential to have an adverse impact on the Company due to any related defense and settlement costs, diversion of management resources, and other factors. Other Litigation The Company is party to various legal proceedings arising in the normal course of business. The Company carries insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, the Company does not anticipate that any of these other proceedings arising in the normal course of business will have a material adverse effect on the Company’s business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign currency exchange contracts and hedging | 10. Foreign currency exchange contracts and hedging As of September 30, 2022 and September 30, 2021 , the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $ 9,537 and $ 9,730 , respectively, and $ 2,772 and $ 31,118 , respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within one to three months . During the nine months ended September 30, 2022 and 2021 , these contracts had, net of tax, an unrealized loss of $ 463 and an unrealized gain of $ 1,761 , respectively. The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the nine months ended September 30, 2022 , there were three ineffective portions relating to these hedges. During the nine months ended September 30, 2021 , there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. As of September 30, 2022 , the Company had three designated hedges and three non-designated hedges. As of September 30, 2021 , the Company had twenty-one designated hedges and three non-designated hedges. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with 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 period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition, warranty reserves and expense, determining the stand-alone selling price (SSP) and service period of performance obligations, rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, impairment of long-lived assets, stock-based compensation expense, income taxes, fair value of acquired intangible assets and goodwill and fair value of earnout liabilities. Actual results could differ from these estimates. |
Business Segments | Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities | The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of September 30, 2022 Gross Cash Adjusted unrealized and cash Marketable cost gains (losses) Fair value equivalents securities Cash $ 36,934 $ — $ 36,934 $ 36,934 $ — Level 1: Money market accounts 147,810 — 147,810 147,810 — Level 2: Corporate bonds 16,418 ( 6 ) 16,412 16,412 — U.S. Treasury securities 8,454 23 8,477 8,477 — Total $ 209,616 $ 17 $ 209,633 $ 209,633 $ — As of December 31, 2021 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 48,817 $ — $ 48,817 $ 48,817 $ — Level 1: Money market accounts 186,707 — 186,707 186,707 — Level 2: Corporate bonds 9,988 1 9,989 — 9,989 Total $ 245,512 $ 1 $ 245,513 $ 235,524 $ 9,989 |
Summary of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains gains (losses) other translation on marketable on cash comprehensive adjustments securities flow hedges income (loss) Balance as of December 31, 2021 $ 328 $ 1 $ 1,140 $ 1,469 Other comprehensive income (loss) ( 1,453 ) 16 ( 463 ) ( 1,900 ) Balance as of September 30, 2022 $ ( 1,125 ) $ 17 $ 677 $ ( 431 ) |
Summary of Quantitative Information about Level 3 Inputs for Fair Value Measurement of Earnout Liability | The following table provides quantitative information about Level 3 inputs for fair value measurement of the earnout liability as of September 30, 2022 and December 31, 2021. Significant increases or decreases in these inputs in isolation could result in a significant impact on the fair value measurement: Simulation input September 30, 2022 December 31, 2021 Revenue volatility 20.00 % 15.00 % WACC 13.50 % 10.50 % 20-year risk free rate 4.08 % 2.02 % Market price of risk 2.60 % 2.68 % |
Summary of Reconciliation of Earnout Liability Measured and Carried Fair Value on a Recurring Basis | The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows: Three months ended Nine months ended September 30, 2022 September 30, 2022 Balance at beginning of period $ 14,605 $ 16,016 Change in fair value ( 288 ) ( 1,699 ) Balance at end of period $ 14,317 $ 14,317 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents, and marketable securities consist of the following: September 30, December 31, Cash and cash equivalents 2022 2021 Cash $ 36,934 $ 48,817 Money market accounts 147,810 186,707 Corporate bonds 16,412 — U.S. Treasury securities 8,477 — Total cash and cash equivalents $ 209,633 $ 235,524 Marketable securities Corporate bonds $ — $ 9,989 Total marketable securities $ — $ 9,989 |
Schedule of Net Accounts Receivable Balance Concentrations by Major Category | Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2022 and December 31, 2021 were as follows: September 30, December 31, Net accounts receivable 2022 2021 Rental (1) $ 5,532 $ 6,011 Business-to-business and other receivables (2) 45,001 18,441 Total net accounts receivable $ 50,533 $ 24,452 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with an accounts receivable balance of $ 7,220 and $ 5,945 as of September 30, 2022 and December 31, 2021 , respectively. The customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $ 12,000 and $ 10,000 in coverage as of September 30, 2022 and December 31, 2021 , respectively, for this customer with a $ 400 deductible and 10 % retention. |
Schedule of Allowances for Accounts Receivable | The following table sets forth the accounts receivable allowances as of September 30, 2022 and December 31, 2021: September 30, December 31, Allowances - accounts receivable 2022 2021 Doubtful accounts $ 72 $ 52 Sales returns 816 810 Total allowances - accounts receivable $ 888 $ 862 |
Breakdown of Company's Revenue from U.S. and Non-U.S. Sources | A portion of revenue is earned from sales outside the United States. Approximately 48.3 % and 71.0 % of the non-U.S. revenue for the three months ended September 30, 2022 and 2021 , respectively, were invoiced in Euros. Approximately 70.5 % and 71.9 % of the non-U.S. revenue for the nine months ended September 30, 2022 and 2021, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2022 and 2021, respectively, is as follows: Three months ended Nine months ended 2022 2021 2022 2021 U.S. revenue $ 90,311 $ 71,271 $ 208,690 $ 222,223 Non-U.S. revenue 15,078 21,834 80,460 59,377 Total revenue $ 105,389 $ 93,105 $ 289,150 $ 281,600 |
Schedule of Inventories | Inventories that are considered current consist of the following: September 30, December 31, 2022 2021 Raw materials and work-in-progress $ 26,255 $ 21,909 Finished goods 11,697 12,116 Less: reserves ( 2,227 ) ( 2,152 ) Inventories, net $ 35,725 $ 31,873 |
Computation of Depreciation and Amortization using Straight Line Method Over Estimated Useful Lives of Assets | Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5 - 5 years Manufacturing equipment and tooling 3 - 5 years Computer equipment and software 2 - 3 years Furniture and equipment 3 - 5 years Leasehold improvements Lesser of estimated useful life or remaining lease term |
Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment | Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three and nine months ended September 30, 2022 and 2021, respectively. Three months ended Nine months ended 2022 2021 2022 2021 Rental equipment $ 2,795 $ 2,315 $ 8,153 $ 6,257 Other property and equipment 983 1,052 2,936 2,982 Total depreciation and amortization $ 3,778 $ 3,367 $ 11,089 $ 9,239 |
Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation | Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of September 30, 2022 and December 31, 2021, respectively. September 30, December 31, Property and equipment 2022 2021 Rental equipment, net of allowances of $ 2,085 and $ 1,290 , respectively $ 58,698 $ 59,073 Other property and equipment 32,753 31,522 Property and equipment 91,451 90,595 Accumulated depreciation Rental equipment 31,309 33,355 Other property and equipment 19,510 18,314 Accumulated depreciation 50,819 51,669 Property and equipment, net Rental equipment, net of allowances of $2,085 and $1,290, respectively 27,389 25,718 Other property and equipment 13,243 13,208 Property and equipment, net $ 40,632 $ 38,926 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 were as follows: Balance as of December 31, 2021 $ 32,979 Translation adjustment ( 305 ) Balance as of September 30, 2022 $ 32,674 |
Summary of Changes in Net Carrying Values of Intangible Assets | The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated September 30, 2022 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 24,281 $ 53,419 Licenses 10 185 182 3 Patents and websites 5 4,519 4,293 226 Customer relationships 4 1,175 1,175 — Commercials 2 - 3 318 266 52 Total $ 83,897 $ 30,197 $ 53,700 Average estimated Gross useful lives carrying Accumulated December 31, 2021 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 18,454 $ 59,246 Licenses 10 185 180 5 Patents and websites 5 4,519 3,746 773 Customer relationships 4 1,361 1,361 — Commercials 2 - 3 799 676 123 Total $ 84,564 $ 24,417 $ 60,147 |
Schedule of Annual Estimated Amortization Expense | Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2022 Remaining 3 months of 2022 $ 2,023 2023 7,878 2024 7,839 2025 7,790 2026 7,774 Thereafter 20,396 $ 53,700 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, 2022 2021 Accounts payable $ 21,470 $ 10,258 Accrued inventory (in-transit and unvouchered receipts) and trade payables 7,158 12,488 Accrued purchasing card liability 3,338 1,488 Accrued franchise, sales and use taxes 500 486 Other accrued expenses 1,046 969 Accounts payable and accrued expenses $ 33,512 $ 25,689 |
Schedule of Accrued Payroll | Accrued payroll as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, 2022 2021 Accrued bonuses $ 3,665 $ 8,274 Accrued wages and other payroll related items 4,741 5,469 Accrued vacation 3,200 2,894 Accrued employee stock purchase plan deductions 183 670 Accrued payroll $ 11,789 $ 17,307 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Nine months ended September 30, 2022 2021 Cash paid for operating lease liabilities $ 2,970 $ 2,273 Operating lease cost 2,878 2,842 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 225 19,417 Weighted average remaining lease term 2.4 years 3.0 years Weighted average discount rate 2.9 % 3.0 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities due in the 12-month period ending September 30, 2023 $ 3,972 2024 3,991 2025 2,736 2026 2,700 2027 2,735 Thereafter 10,047 26,181 Less imputed interest ( 2,033 ) Total lease liabilities $ 24,148 Operating lease liability - current $ 3,486 Operating lease liability - noncurrent $ 20,662 Total lease liabilities $ 24,148 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of EPS is as follows: Three months ended Nine months ended 2022 2021 2022 2021 Numerator—basic and diluted: Net income (loss) $ ( 9,506 ) $ 12,174 $ ( 27,162 ) $ 16,544 Denominator: Weighted average common shares - basic common stock (1) 22,882,333 22,619,272 22,827,733 22,416,575 Weighted average common shares - diluted common stock (2) 22,882,333 22,854,229 22,827,733 22,803,355 Net income (loss) per share - basic common stock $ ( 0.42 ) $ 0.54 $ ( 1.19 ) $ 0.74 Net income (loss) per share - diluted common stock (2) $ ( 0.42 ) $ 0.53 $ ( 1.19 ) $ 0.73 Denominator calculation from basic to diluted: Weighted average common shares - basic common stock (1) 22,882,333 22,619,272 22,827,733 22,416,575 Stock options and other dilutive awards 152,783 234,957 143,802 386,780 Weighted average common shares - diluted common stock 23,035,116 22,854,229 22,971,535 22,803,355 Shares excluded from diluted weighted average shares: Stock options 320,734 88,391 320,734 54,498 Restricted stock units and restricted stock awards 480,602 67,374 447,775 69,062 Shares excluded from diluted weighted average shares 801,336 155,765 768,509 123,560 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. (2) Due to net losses for the three and nine months ended September 30, 2022 , diluted loss per share is the same as basic. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Stock Options Activity | The activity for stock options under the Company’s stock plans for the nine months ended September 30, 2022 is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2021 459,441 $ 1.17 -$ 83.30 $ 42.18 1.36 $ 4.31 Exercised ( 8,649 ) 1.17 - 8.37 4.08 Forfeited ( 12,500 ) 38.54 - 44.19 43.06 Expired ( 54,755 ) 38.54 38.54 Outstanding as of September 30, 2022 383,537 1.17 - 83.30 43.53 0.63 2.89 Vested and exercisable as of September 30, 2022 383,537 1.17 - 83.30 43.53 0.63 2.89 Vested and expected to vest as of September 30, 2022 383,537 $ 1.17 -$ 83.30 $ 43.53 0.63 $ 2.89 |
Summary of Restricted Stock Activity | Stock Awards activity for the nine months ended September 30, 2022 is summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units as of December 31, 2021 289,166 99,112 388,278 $ 54.81 Granted 730,575 164,722 895,297 30.08 Vested ( 121,321 ) ( 37,678 ) ( 158,999 ) 55.57 Forfeited/canceled ( 73,842 ) ( 42,959 ) ( 116,801 ) 45.92 Unvested restricted stock units as of September 30, 2022 (1) 824,578 183,197 1,007,775 $ 33.76 Unvested and expected to vest restricted stock units outstanding as of September 30, 2022 855,617 $ 33.44 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2021 10,416 5,629 16,045 $ 87.12 Vested ( 3,911 ) ( 5,629 ) ( 9,540 ) 99.49 Forfeited/canceled ( 5,134 ) — ( 5,134 ) 74.25 Unvested restricted stock awards outstanding as of September 30, 2022 (1) 1,371 — 1,371 $ 76.35 Unvested and expected to vest restricted stock awards outstanding as of September 30, 2022 1,309 $ 77.05 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. |
Summary of Stock-based Compensation Expense | Stock-based compensation expense recognized for the three and nine months ended September 30, 2022 and 2021, was as follows: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Stock-based compensation expense by type of award: Restricted stock units and restricted stock awards $ 3,389 $ 2,631 $ 8,748 $ 8,014 Employee stock purchase plan 111 161 437 533 Total stock-based compensation expense $ 3,500 $ 2,792 $ 9,185 $ 8,547 For the three and nine months ended September 30, 2022 and 2021, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Cost of revenue $ 327 $ 269 $ 863 $ 826 Research and development 409 264 1,205 944 Sales and marketing 754 695 2,111 1,975 General and administrative 2,010 1,564 5,006 4,802 Total stock-based compensation expense $ 3,500 $ 2,792 $ 9,185 $ 8,547 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Aggregate Product Warranty Liabilities | The following table identifies the changes in the Company’s aggregate product warranty liabilities for the nine and twelve-month periods ended September 30, 2022 and December 31, 2021, respectively: September 30, December 31, 2022 2021 Product warranty liability at beginning of period $ 13,726 $ 14,394 Accruals for warranties issued 7,126 9,168 Adjustments related to preexisting warranties 4,342 ( 597 ) Settlements made (in cash or in kind) ( 9,734 ) ( 9,239 ) Product warranty liability at end of period $ 15,460 $ 13,726 |
Business Overview - Additional
Business Overview - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Inogen Europe Holding B.V. | |
Business Overview Disclosures [Line Items] | |
Date of incorporation of subsidiary | Apr. 13, 2017 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 209,633 | $ 235,524 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 209,616 | 245,512 |
Gross unrealized gains | 17 | 1 |
Fair value | 209,633 | 245,513 |
Cash and cash equivalents | 209,633 | 235,524 |
Marketable securities | 9,989 | |
Fair Value Measurements Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 36,934 | 48,817 |
Fair value | 36,934 | 48,817 |
Cash and cash equivalents | 36,934 | 48,817 |
Fair Value Measurements Recurring | Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 147,810 | 186,707 |
Fair value | 147,810 | 186,707 |
Cash and cash equivalents | 147,810 | 186,707 |
Fair Value Measurements Recurring | Fair Value, Inputs, Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 16,418 | 9,988 |
Gross unrealized gains | (6) | 1 |
Fair value | 16,412 | 9,989 |
Cash and cash equivalents | 16,412 | |
Marketable securities | $ 9,989 | |
Fair Value Measurements Recurring | Fair Value, Inputs, Level 2 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 8,454 | |
Gross unrealized gains | 23 | |
Fair value | 8,477 | |
Cash and cash equivalents | $ 8,477 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related receivables | $ 50,533,000 | $ 24,452,000 |
Preacquisition loss recoveries | 630,000 | 630,000 |
Fair Value Measurements Recurring | Level 3 | Maximum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Earnout liability | 31,400,000 | |
Forward Contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related receivables | $ 996,000 | $ 1,671,000 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 356,537 | $ 370,916 | $ 370,227 | $ 349,623 |
Other comprehensive income (loss) | (390) | 348 | (1,900) | 1,176 |
Ending Balance | 350,842 | 390,920 | 350,842 | 390,920 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 328 | |||
Other comprehensive income (loss) | (1,453) | |||
Ending Balance | (1,125) | (1,125) | ||
Unrealized Gains on Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 1 | |||
Other comprehensive income (loss) | 16 | |||
Ending Balance | 17 | 17 | ||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 1,140 | |||
Other comprehensive income (loss) | (463) | |||
Ending Balance | 677 | 677 | ||
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (41) | 1,303 | 1,469 | 475 |
Other comprehensive income (loss) | (390) | 348 | (1,900) | 1,176 |
Ending Balance | $ (431) | $ 1,651 | $ (431) | $ 1,651 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Quantitative Information about Level 3 Inputs for Fair Value Measurement of Earnout Liability (Details) - Level 3 | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue Volatility | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 0.2000 | 0.1500 |
WACC | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 0.1350 | 0.1050 |
20-Year Risk Free Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 0.0408 | 0.0202 |
Market Price of Risk | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 0.0260 | 0.0268 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Reconciliation of Earnout Liability Measured and Carried Fair Value on a Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning Balance | $ 14,605 | $ 16,016 |
Change in fair value | (288) | (1,699) |
Ending Balance | $ 14,317 | $ 14,317 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | ||
Cash | $ 36,934 | $ 48,817 |
Money market accounts | 147,810 | 186,707 |
Corporate bonds | 16,412 | |
U.S. Treasury securities | 8,477 | |
Total cash and cash equivalents | $ 209,633 | 235,524 |
Marketable securities | ||
Marketable securities | 9,989 | |
Corporate Bonds | ||
Marketable securities | ||
Marketable securities | $ 9,989 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 50,533 | $ 24,452 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | 5,532 | 6,011 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 45,001 | $ 18,441 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Parenthetical) (Details) - Customer Concentration Risk - Business To Business Receivables | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Accounts Notes And Loans Receivable [Line Items] | ||
Number of customers | Customer | 1 | 1 |
Gross accounts receivable | $ 7,220,000 | $ 5,945,000 |
Credit insurance policy, deductible amount | $ 400,000 | |
Credit insurance policy, retention percentage | 10% | |
Maximum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Credit insurance policy, coverage limit | $ 12,000,000 | $ 10,000,000 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Allowances for Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Doubtful accounts | $ 72 | $ 52 |
Sales returns | 816 | 810 |
Total allowances - accounts receivable | $ 888 | $ 862 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Customer | Sep. 30, 2021 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | $ 50,533,000 | $ 50,533,000 | $ 24,452,000 | ||
Percentage of Non-US revenue invoiced in Euros | 48.30% | 71% | 70.50% | 71.90% | |
Transfer of inventory to rental equipment | $ 998,000 | $ 817,000 | |||
Salvage value of expenditures for additions, improvements and replacements | $ 0 | 0 | |||
Repairs and maintenance expense | 1,059,000 | $ 858,000 | 3,289,000 | 2,531,000 | |
Depreciation and amortization | 3,778,000 | $ 3,367,000 | 11,089,000 | 9,239,000 | |
Impairments of long-lived assets | 0 | 0 | |||
Goodwill impairment loss | 0 | ||||
Impairment of finite lived intangible assets | 0 | 0 | |||
Construction in Process and Computer Software or Development Cost | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Depreciation and amortization | 0 | $ 0 | |||
Other Noncurrent Assets | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Noncurrent inventories expected to be realized or consumed | 1,039,000 | 1,039,000 | 1,943,000 | ||
Prepaid Expenses and Other Current Assets | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Inventory raw materials | 9,756,000 | 9,756,000 | 15,426,000 | ||
Customer Concentration Risk | Customer One | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | 19,301,000 | 19,301,000 | 5,945,000 | ||
Customer Concentration Risk | Customer Two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | 7,220,000 | 7,220,000 | |||
Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | $ 2,459,000 | $ 2,459,000 | $ 2,685,000 | ||
Sales Revenue, Net | Customer Concentration Risk | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Number of customers | Customer | 1 | ||||
Sales Revenue, Net | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 11.20% | 9.70% | |||
Net Accounts Receivable | Customer Concentration Risk | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Number of customers | Customer | 2 | 1 | |||
Net Accounts Receivable | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 4.90% | 11% | |||
Rental Revenue | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 77.80% | 82.60% | |||
Raw materials | Supplier Concentration Risk | Vendor one | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 27% | 17% | |||
Raw materials | Supplier Concentration Risk | Vendor two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 20.20% | 12.60% | |||
Raw materials | Supplier Concentration Risk | Vendor three | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 8.40% | 10.80% |
Balance Sheet Components - Brea
Balance Sheet Components - Breakdown of the Company Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | ||||
Revenues | $ 105,389 | $ 93,105 | $ 289,150 | $ 281,600 |
U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | 90,311 | 71,271 | 208,690 | 222,223 |
Non-U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 15,078 | $ 21,834 | $ 80,460 | $ 59,377 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 26,255 | $ 21,909 |
Finished goods | 11,697 | 12,116 |
Less: reserves | (2,227) | (2,152) |
Inventories, net | $ 35,725 | $ 31,873 |
Balance Sheet Components - Comp
Balance Sheet Components - Computation of Depreciation and Amortization Using Straight Line Method Over Estimated Useful Lives of Assets (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Rental equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 1 year 6 months |
Rental equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Manufacturing equipment and tooling | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Manufacturing equipment and tooling | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Computer equipment and software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 2 years |
Computer equipment and software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | Lesser of estimated useful life or remaining lease term |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation | $ 2,795 | $ 2,315 | $ 8,153 | $ 6,257 |
Depreciation and amortization | 3,778 | 3,367 | 11,089 | 9,239 |
Rental equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation | 2,795 | 2,315 | 8,153 | 6,257 |
Other property and equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 983 | $ 1,052 | $ 2,936 | $ 2,982 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 91,451 | $ 90,595 |
Accumulated depreciation | 50,819 | 51,669 |
Property and equipment, net | 40,632 | 38,926 |
Rental equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 58,698 | 59,073 |
Accumulated depreciation | 31,309 | 33,355 |
Property and equipment, net | 27,389 | 25,718 |
Other property and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 32,753 | 31,522 |
Accumulated depreciation | 19,510 | 18,314 |
Property and equipment, net | $ 13,243 | $ 13,208 |
Balance Sheet Components - Su_4
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Rental equipment, allowance | $ 2,085 | $ 1,290 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2021 | $ 32,979 |
Translation adjustment | (305) |
Balance as of September 30, 2022 | $ 32,674 |
Balance Sheet Components - Su_5
Balance Sheet Components - Summary of Changes in Net Carrying Values of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 83,897 | $ 84,564 |
Accumulated amortization | 30,197 | 24,417 |
Net amount | $ 53,700 | $ 60,147 |
Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 77,700 | $ 77,700 |
Accumulated amortization | 24,281 | 18,454 |
Net amount | $ 53,419 | $ 59,246 |
Licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 185 | $ 185 |
Accumulated amortization | 182 | 180 |
Net amount | $ 3 | $ 5 |
Patents And Websites | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | 5 years |
Gross carrying amount | $ 4,519 | $ 4,519 |
Accumulated amortization | 4,293 | 3,746 |
Net amount | $ 226 | $ 773 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 4 years | 4 years |
Gross carrying amount | $ 1,175 | $ 1,361 |
Accumulated amortization | 1,175 | 1,361 |
Commercials | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 318 | 799 |
Accumulated amortization | 266 | 676 |
Net amount | $ 52 | $ 123 |
Commercials | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 2 years | 2 years |
Commercials | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 3 years | 3 years |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Annual Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 3 months of 2022 | $ 2,023 | |
2023 | 7,878 | |
2024 | 7,839 | |
2025 | 7,790 | |
2026 | 7,774 | |
Thereafter | 20,396 | |
Net amount | $ 53,700 | $ 60,147 |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 21,470 | $ 10,258 |
Accrued inventory (in-transit and unvouchered receipts) and trade payables | 7,158 | 12,488 |
Accrued purchasing card liability | 3,338 | 1,488 |
Accrued franchise, sales and use taxes | 500 | 486 |
Other accrued expenses | 1,046 | 969 |
Accounts payable and accrued expenses | $ 33,512 | $ 25,689 |
Balance Sheet Components - Sc_8
Balance Sheet Components - Schedule of Accrued Payroll (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued bonuses | $ 3,665 | $ 8,274 |
Accrued wages and other payroll related items | 4,741 | 5,469 |
Accrued vacation | 3,200 | 2,894 |
Accrued employee stock purchase plan deductions | 183 | 670 |
Accrued payroll | $ 11,789 | $ 17,307 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee Lease Description [Line Items] | ||||
Operating lease, option to extend | options to extend the leases for up to 5 years. | |||
Operating lease, existence of option to extend [true false] | true | |||
Rent expense, including short-term lease cost | $ 960 | $ 1,007 | $ 2,889 | $ 3,099 |
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Operating leases, lease term | 3 years | 3 years | ||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Operating leases, lease term | 11 years | 11 years | ||
Operating lease option to extend term | 5 years |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 2,970 | $ 2,273 |
Operating lease cost | 2,878 | 2,842 |
Non-cash right-of-use assets obtained in exchange for new operating lease obligations | $ 225 | $ 19,417 |
Weighted average remaining lease term | 2 years 4 months 24 days | 3 years |
Weighted average discount rate | 2.90% | 3% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Maturities of lease liabilities due in the 12-month period ending March 31, | ||
2023 | $ 3,972 | |
2024 | 3,991 | |
2025 | 2,736 | |
2026 | 2,700 | |
2027 | 2,735 | |
Thereafter | 10,047 | |
Operating lease liabilities payments due | 26,181 | |
Less imputed interest | (2,033) | |
Total lease liabilities | 24,148 | |
Operating lease liability - current | 3,486 | $ 3,393 |
Operating lease liability - noncurrent | 20,662 | $ 23,281 |
Total lease liabilities | $ 24,148 |
Earnings (Loss) per Share - Com
Earnings (Loss) per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator—basic and diluted: | ||||
Net income (loss) | $ (9,506) | $ 12,174 | $ (27,162) | $ 16,544 |
Denominator: | ||||
Weighted average common shares - basic common stock | 22,882,333 | 22,619,272 | 22,827,733 | 22,416,575 |
Weighted average common shares - diluted common stock | 22,882,333 | 22,854,229 | 22,827,733 | 22,803,355 |
Net income (loss) per share - basic common stock | $ (0.42) | $ 0.54 | $ (1.19) | $ 0.74 |
Net income (loss) per share - diluted common stock | $ (0.42) | $ 0.53 | $ (1.19) | $ 0.73 |
Denominator calculation from basic to diluted: | ||||
Weighted average common shares - basic common stock | 22,882,333 | 22,619,272 | 22,827,733 | 22,416,575 |
Stock options and other dilutive awards | 152,783 | 234,957 | 143,802 | 386,780 |
Weighted average common shares - diluted common stock | 23,035,116 | 22,854,229 | 22,971,535 | 22,803,355 |
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 801,336 | 155,765 | 768,509 | 123,560 |
Stock options | ||||
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 320,734 | 88,391 | 320,734 | 54,498 |
Restricted stock units and restricted stock awards | ||||
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 480,602 | 67,374 | 447,775 | 69,062 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Class Of Stock [Line Items] | ||
Total intrinsic value of options exercised | $ 204 | $ 14,524 |
Time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Performance and time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Performance and time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Restricted stock units and restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unrecognized compensation cost related to unvested employee excluding estimated forfeitures | $ 23,589 | |
Amount expected to recognized over weighted-average period | 2 years 1 month 6 days | |
Maximum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 10 years | |
Vesting period | 4 years | |
Minimum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 7 years | |
Vesting period | 1 year | |
2012 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 62,803 | |
Number of equity awards available for grant | 0 | |
2014 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 1,242,781 | |
Number of equity awards available for grant | 810,698 | |
Terms of shares available for issuance | The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year by an amount equal to the least of:•895,346 shares; •4% of the outstanding shares of common stock as of the last day of the Company’s immediately preceding fiscal year; or•such other amount as the Company’s board of directors may determine. | |
Common stock capital shares reserved for future issuance maximum annual increase | 895,346 | |
Percentage on outstanding shares of common stock | 4% | |
Number of additional number of shares reserve to provision | 0 | |
2012 Plan | Maximum | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 2,328,569 | |
2014 ESPP Plan | ||
Class Of Stock [Line Items] | ||
Number of equity awards available for grant | 507,532 | |
Terms of shares available for issuance | The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year by an amount equal to the least of:•179,069 shares;•1.5% of the outstanding shares of the Company’s common stock on the last day of the Company’s immediately preceding fiscal year; or•such other amount as may be determined by the administrator. | |
Percentage on outstanding shares of common stock | 1.50% | |
Number of additional number of shares reserve to provision | 0 | |
Maximum percentage of common stock eligible to purchase through payroll deductions for participants | 15% | |
Maximum number of shares available for participant to purchase during period | 1,500 | |
Purchase price as percentage of stock price on offering period | 85% | |
Purchase price as percentage of stock price on exercise date | 85% | |
Potential increase of shares available for issuance | 179,069 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | ||
Stock Options Outstanding, Beginning balance | 459,441 | |
Stock Options, Exercised | (8,649) | |
Stock Options, Forfeited | (12,500) | |
Stock Options, Expired | (54,755) | |
Stock Options Outstanding, Ending balance | 383,537 | 459,441 |
Stock Options, Vested and exercisable | 383,537 | |
Stock Options, Vested and expected to vest | 383,537 | |
Price per share, Expired | $ 38.54 | |
Outstanding, Weighted-average exercise price, Beginning balance | 42.18 | |
Weighted-average exercise price, Exercised | 4.08 | |
Weighted-average exercise price, Forfeited | 43.06 | |
Weighted-average exercise price, Expired | 38.54 | |
Outstanding, Weighted-average exercise price, Ending balance | 43.53 | $ 42.18 |
Weighted-average exercise price, Vested and exercisable | 43.53 | |
Weighted-average exercise price, Vested and expected to vest | $ 43.53 | |
Remaining weighted-average contractual term, Outstanding | 7 months 17 days | 1 year 4 months 9 days |
Remaining weighted-average contractual term, Vested and exercisable | 7 months 17 days | |
Remaining weighted-average contractual term, Vested and expected to vest | 7 months 17 days | |
Outstanding, Per share average intrinsic value | $ 2.89 | $ 4.31 |
Per share average intrinsic value, Vested and exercisable | 2.89 | |
Per share average intrinsic value, Vested and expected to vest | 2.89 | |
Minimum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 1.17 | |
Price per share, Exercised | 1.17 | |
Price per share, Forfeited | 38.54 | |
Outstanding, Price per share, Ending balance | 1.17 | 1.17 |
Price per share, Vested and exercisable | 1.17 | |
Price per share, Vested and expected to vest | 1.17 | |
Maximum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 83.30 | |
Price per share, Exercised | 8.37 | |
Price per share, Forfeited | 44.19 | |
Outstanding, Price per share, Ending balance | 83.30 | $ 83.30 |
Price per share, Vested and exercisable | 83.30 | |
Price per share, Vested and expected to vest | $ 83.30 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 289,166 |
Granted | 730,575 |
Vested | (121,321) |
Forfeited/canceled | (73,842) |
Unvested restricted stock units/ awards outstanding, Ending balance | 824,578 |
Performance and time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 99,112 |
Granted | 164,722 |
Vested | (37,678) |
Forfeited/canceled | (42,959) |
Unvested restricted stock units/ awards outstanding, Ending balance | 183,197 |
Restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 388,278 |
Granted | 895,297 |
Vested | (158,999) |
Forfeited/canceled | (116,801) |
Unvested restricted stock units/ awards outstanding, Ending balance | 1,007,775 |
Unvested and expected to vest restricted stock units/awards outstanding | 855,617 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 54.81 |
Weighted-average grant date fair value per share, Granted | $ / shares | 30.08 |
Weighted-average grant date fair value per share, Vested | $ / shares | 55.57 |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 45.92 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 33.76 |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 33.44 |
Time based restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 10,416 |
Vested | (3,911) |
Forfeited/canceled | (5,134) |
Unvested restricted stock units/ awards outstanding, Ending balance | 1,371 |
Performance and time based restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 5,629 |
Vested | (5,629) |
Restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 16,045 |
Vested | (9,540) |
Forfeited/canceled | (5,134) |
Unvested restricted stock units/ awards outstanding, Ending balance | 1,371 |
Unvested and expected to vest restricted stock units/awards outstanding | 1,309 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 87.12 |
Weighted-average grant date fair value per share, Vested | $ / shares | 99.49 |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 74.25 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 76.35 |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 77.05 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 3,500 | $ 2,792 | $ 9,185 | $ 8,547 |
Restricted stock units and restricted stock awards | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | 3,389 | 2,631 | 8,748 | 8,014 |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 111 | $ 161 | $ 437 | $ 533 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized in Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 3,500 | $ 2,792 | $ 9,185 | $ 8,547 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 327 | 269 | 863 | 826 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 409 | 264 | 1,205 | 944 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 754 | 695 | 2,111 | 1,975 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 2,010 | $ 1,564 | $ 5,006 | $ 4,802 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments And Contingencies [Line Items] | ||
Outstanding purchase orders due within one year with its outside vendors and suppliers | $ 141,700 | |
Payments received in advance of satisfying performance obligations | 4,233 | |
Revenue recognized | 4,910 | |
Lifetime Warranties | Direct-to-Consumer | ||
Commitments And Contingencies [Line Items] | ||
Deferred revenue related to life time warranties | $ 17,299 | $ 17,976 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Aggregate Product Warranty Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product warranty liability at beginning of period | $ 13,726 | $ 14,394 |
Accruals for warranties issued | 7,126 | 9,168 |
Adjustments related to preexisting warranties | 4,342 | (597) |
Settlements made (in cash or in kind) | (9,734) | (9,239) |
Product warranty liability at end of period | $ 15,460 | $ 13,726 |
Foreign Currency Exchange Con_2
Foreign Currency Exchange Contracts and Hedging - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) Contract | Sep. 30, 2021 USD ($) Contract | |
Derivatives Fair Value [Line Items] | ||
Unrealized gain (loss) on derivative | $ | $ (463,000) | $ 1,761,000 |
Number of contract ineffective hedges | Contract | 3 | 0 |
Number of contract designated hedges | Contract | 3 | 21 |
Number of contract non-designated hedges | Contract | 3 | 3 |
Non-Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ | $ 9,537,000 | $ 2,772,000 |
Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ | $ 9,730,000 | $ 31,118,000 |
Minimum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 1 month | |
Maximum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 3 months |