Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | 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 | 23,307,814 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36309 | |
Entity Tax Identification Number | 33-0989359 | |
Entity Address, Address Line One | 859 Ward Drive | |
Entity Address, City or Town | Goleta | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93111 | |
City Area Code | (805) | |
Local Phone Number | 562-0500 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 124,608 | $ 187,014 |
Marketable securities | 13,432 | |
Accounts receivable, net | 48,380 | 62,725 |
Inventories, net | 24,015 | 34,093 |
Income tax receivable | 470 | 1,626 |
Prepaid expenses and other current assets | 14,363 | 19,187 |
Total current assets | 225,268 | 304,645 |
Property and equipment, net | 49,525 | 43,269 |
Goodwill | 9,869 | 32,852 |
Intangible assets, net | 34,067 | 177 |
Operating lease right-of-use asset | 21,184 | 21,653 |
Other assets | 3,783 | 2,445 |
Total assets | 343,696 | 405,041 |
Current liabilities | ||
Accounts payable and accrued expenses | 30,413 | 33,974 |
Accrued payroll | 8,369 | 11,190 |
Warranty reserve - current | 9,027 | 7,790 |
Operating lease liability - current | 3,894 | 3,515 |
Deferred revenue - current | 8,479 | 8,880 |
Income tax payable | 200 | |
Total current liabilities | 60,382 | 65,349 |
Long-term liabilities | ||
Warranty reserve - noncurrent | 13,329 | 12,123 |
Operating lease liability - noncurrent | 18,873 | 19,764 |
Earnout liability | 3,178 | |
Deferred revenue - noncurrent | 8,883 | 10,399 |
Deferred tax liability | 8,421 | |
Total liabilities | 113,066 | 107,635 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 200,000,000 authorized; 23,306,825 and 22,941,643 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 23 | 23 |
Additional paid-in capital | 321,584 | 312,126 |
Accumulated deficit | (90,394) | (14,500) |
Accumulated other comprehensive loss | (583) | (243) |
Total stockholders' equity | 230,630 | 297,406 |
Total liabilities and stockholders' equity | $ 343,696 | $ 405,041 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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 | 23,306,825 | 22,941,643 |
Common stock, shares outstanding | 23,306,825 | 22,941,643 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||
Sales revenue | $ 67,973 | $ 90,672 | $ 192,203 | $ 247,365 |
Rental revenue | 15,994 | 14,717 | 47,561 | 41,785 |
Total revenue | 83,967 | 105,389 | 239,764 | 289,150 |
Cost of revenue | ||||
Cost of sales revenue | 42,708 | 55,891 | 118,700 | 146,052 |
Cost of rental revenue, including depreciation of $3,364 and $2,795, for the three months ended and $9,680 and $8,153 for the nine months ended, respectively | 7,495 | 6,700 | 22,523 | 19,036 |
Total cost of revenue | 50,203 | 62,591 | 141,223 | 165,088 |
Gross profit | ||||
Gross profit-sales revenue | 25,265 | 34,781 | 73,503 | 101,313 |
Gross profit-rental revenue | 8,499 | 8,017 | 25,038 | 22,749 |
Total gross profit | 33,764 | 42,798 | 98,541 | 124,062 |
Operating expense | ||||
Research and development | 4,489 | 4,581 | 14,126 | 16,009 |
Sales and marketing | 26,091 | 33,734 | 81,438 | 92,161 |
General and administrative | 17,011 | 14,775 | 50,487 | 42,646 |
Impairment charges | 32,894 | 32,894 | ||
Total operating expense | 80,485 | 53,090 | 178,945 | 150,816 |
Loss from operations | (46,721) | (10,292) | (80,404) | (26,754) |
Other income (expense) | ||||
Interest income, net | 1,801 | 868 | 4,972 | 1,122 |
Other (expense) income | (398) | (12) | 176 | (1,167) |
Total other income (expense), net | 1,403 | 856 | 5,148 | (45) |
Loss before provision for income taxes | (45,318) | (9,436) | (75,256) | (26,799) |
Provision for income taxes | 401 | 70 | 638 | 363 |
Net loss | (45,719) | (9,506) | (75,894) | (27,162) |
Other comprehensive loss, net of tax | ||||
Change in foreign currency translation adjustment | (752) | (616) | (575) | (1,453) |
Change in net unrealized gains (losses) on foreign currency hedging | 33 | 209 | 40 | (1,669) |
Less: reclassification adjustment for net losses included in net loss | 13 | 13 | 1,206 | |
Total net change in unrealized gains (losses) on foreign currency hedging | 46 | 209 | 53 | (463) |
Change in net unrealized gains on marketable securities | 49 | 17 | 182 | 16 |
Total other comprehensive loss, net of tax | (657) | (390) | (340) | (1,900) |
Comprehensive loss | $ (46,376) | $ (9,896) | $ (76,234) | $ (29,062) |
Basic net loss per share attributable to common stockholders (Note 7) | $ (1.97) | $ (0.42) | $ (3.28) | $ (1.19) |
Diluted net loss per share attributable to common stockholders (Note 7) | $ (1.97) | $ (0.42) | $ (3.28) | $ (1.19) |
Weighted average number of shares used in calculating net loss per share attributable to common stockholders: | ||||
Basic common shares | 23,231,217 | 22,882,333 | 23,129,795 | 22,827,733 |
Diluted common shares | 23,231,217 | 22,882,333 | 23,129,795 | 22,827,733 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Depreciation | $ 3,364 | $ 2,795 | $ 9,680 | $ 8,153 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
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 | ||||
Net loss | (27,162) | (27,162) | |||
Other comprehensive income | (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 loss | (9,506) | (9,506) | |||
Other comprehensive income | (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 | ||||
Beginning Balance at Dec. 31, 2022 | 297,406 | $ 23 | 312,126 | (14,500) | (243) |
Beginning Balance, shares at Dec. 31, 2022 | 22,941,643 | ||||
Stock-based compensation | 8,484 | 8,484 | |||
Employee stock purchases | 1,094 | 1,094 | |||
Employee stock purchases, shares | 136,032 | ||||
Vesting of restricted stock units | (503) | (503) | |||
Vesting of restricted stock units, shares | 175,213 | ||||
Shares withheld related to net restricted stock settlement | (1) | (1) | |||
Shares withheld related to net restricted stock settlement, shares | (495) | ||||
Stock options exercised | $ 384 | 384 | |||
Stock options exercised, shares | 54,432 | 54,432 | |||
Net loss | $ (75,894) | (75,894) | |||
Other comprehensive income | (340) | (340) | |||
Ending Balance at Sep. 30, 2023 | 230,630 | $ 23 | 321,584 | (90,394) | (583) |
Ending Balance, shares at Sep. 30, 2023 | 23,306,825 | ||||
Beginning Balance at Jun. 30, 2023 | 274,779 | $ 23 | 319,357 | (44,675) | 74 |
Beginning Balance, shares at Jun. 30, 2023 | 23,194,034 | ||||
Stock-based compensation | 1,779 | 1,779 | |||
Employee stock purchases | 464 | 464 | |||
Employee stock purchases, shares | 88,356 | ||||
Vesting of restricted stock units | (16) | (16) | |||
Vesting of restricted stock units, shares | 24,435 | ||||
Net loss | (45,719) | (45,719) | |||
Other comprehensive income | (657) | (657) | |||
Ending Balance at Sep. 30, 2023 | $ 230,630 | $ 23 | $ 321,584 | $ (90,394) | $ (583) |
Ending Balance, shares at Sep. 30, 2023 | 23,306,825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (75,894) | $ (27,162) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 13,008 | 17,536 |
Loss on rental units and other assets | 3,377 | 2,488 |
Gain on sale of former rental assets | (58) | (93) |
Provision for sales revenue returns and doubtful accounts | 7,075 | 10,816 |
Provision for inventory losses | 2,343 | 2,060 |
Stock-based compensation expense | 8,484 | 9,185 |
Change in fair value of earnout liability | (1,699) | |
Impairment charges | 32,894 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,140 | (37,828) |
Inventories | 6,452 | (5,958) |
Income tax receivable | 1,165 | (236) |
Prepaid expenses and other current assets | 5,054 | 5,675 |
Operating lease right-of-use asset | 2,453 | 2,433 |
Other noncurrent assets | (1,406) | 135 |
Accounts payable and accrued expenses | (7,224) | 7,253 |
Accrued payroll | (3,179) | (5,498) |
Warranty reserve | 2,443 | 1,734 |
Deferred revenue | (1,920) | (283) |
Income tax payable | 200 | (82) |
Operating lease liability | (2,493) | (2,526) |
Net cash used in operating activities | (86) | (22,050) |
Cash flows from investing activities | ||
Maturities of available-for-sale securities | 10,500 | 10,005 |
Purchases of available-for-sale securities | (23,750) | |
Investment in intangible assets | (494) | |
Investment in property and equipment | (3,824) | (2,770) |
Production and purchase of rental equipment | (16,391) | (11,320) |
Proceeds from sale of former assets | 149 | 152 |
Acquisition of business, net of cash acquired | (29,633) | |
Net cash used in investing activities | (63,443) | (3,933) |
Cash flows from financing activities | ||
Proceeds from stock options exercised | 384 | 35 |
Proceeds from employee stock purchases | 1,094 | 1,691 |
Payment of employment taxes related to release of restricted stock | (504) | (1,234) |
Net cash provided by financing activities | 974 | 492 |
Effect of exchange rates on cash | 149 | (400) |
Net decrease in cash and cash equivalents | (62,406) | (25,891) |
Cash and cash equivalents, beginning of period | 187,014 | 235,524 |
Cash and cash equivalents, end of period | 124,608 | 209,633 |
Supplemental disclosures of cash flow information | ||
Cash (received) paid during the period for income taxes, net of refunds received | (738) | 535 |
Supplemental disclosure of non-cash transactions | ||
Accrued value of earnout related to acquisition | 3,178 | |
Property and equipment in accounts payable and accrued liabilities | $ 430 | $ 314 |
Business Overview
Business Overview | 9 Months Ended |
Sep. 30, 2023 | |
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 business 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 refers to as 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® and Inogen Rove systems concentrate the air around the patient to offer a source of supplemental oxygen anytime, anywhere with a 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. On September 14, 2023 , the Company completed the acquisition of all of the issued and outstanding capital stock of Physio-Assist SAS (Physio-Assist) and its wholly-owned subsidiary PhysioAssist GmbH. Simeox, from Physio-Assist, is a technology-enabled airway clearance and mucus management device predominantly aimed at treating bronchiectasis, which is a condition that presents as the lung’s bronchi are damaged and widened, in patients with cystic fibrosis or chronic obstructive pulmonary disease. Simeox is used in pulmonary rehabilitation centers as well as at home. Simeox has been cleared under CE mark in the EU and is currently being sold in Europe, Asia, and the Middle East. Inogen will leverage its commercial infrastructure and capabilities to continue marketing the device in these geographies while pursuing U.S. regulatory approvals. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2023. 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, 2023. 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, 2023. Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. 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 goodwill, 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. Goodwill Goodwill represents the excess acquisition cost over the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized and is tested for impairment on an annual basis as of October 1 or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or asset below its carrying amount. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If, based on a review of qualitative factors, it is more likely than not that the fair value is less than its carrying amount, the Company will use a quantitative approach, and calculate the fair value and compare it to its carrying amount. If the fair value exceeds the carrying amount, there is no indication of impairment. If the carrying amount exceeds the fair value, an impairment loss is recorded equal to the difference. Earnout liability The earnout liability will be adjusted to fair value at each reporting date until settled. At the end of each reporting period after the acquisition date, the arrangement is remeasured at its fair value, with changes in fair value recorded in earnings. Changes in fair value will be recognized in general and administrative expense. Restructuring charges Restructuring costs include workforce reductions, termination benefits, office downsizing, centralizing manufacturing activities, and equipment relocation. Key assumptions used in calculating the restructuring costs include the terms of, and payments under, agreements to terminate certain contractual obligations and the timing of reductions in workforce . |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions On July 10, 2023, the Company entered into a share purchase agreement to acquire Physio-Assist SAS (Physio-Assist), which is in the business of the design, production, and marketing of medical devices for bronchial decongestion (airway clearance technique) for patients suffering from obstructive respiratory diseases. On September 14, 2023, the Company completed the acquisition of all of the issued and outstanding capital stock of Physio-Assist and its wholly-owned subsidiary PhysioAssist GmbH for a purchase price consisting of $ 32,250 in cash consideration and the fair value of a potential earnout of $ 3,178 based on future regulatory clearances. The Company incurred acquisition-related expenses of approximately $ 1,427 in the nine months ended September 30, 2023, which were recorded within general and administrative expense. A potential earnout payment of either $ 13,000 (without a clinical trial requirement) or $ 11,000 (with a required clinical trial and minus related development costs) is dependent upon the achievement of one of two milestones related to U.S. Food and Drug Administration (FDA) de novo authorization or 510(k) clearance for the Simeox Airway Clearance System within four years of the date of the closing of the transaction. The fair value of the earnout liability was measured using the probability weighted expected return methodology and was discounted using a rate and probability that appropriately captures the risk associated with the obligation. The acquisition was treated as a business combination. Assets and liabilities of the acquired company were recorded at their estimated fair values at the date of acquisition. The excess purchase price over the fair value of net tangible assets and identifiable intangible assets acquired has been allocated to goodwill. Goodwill represents the expected synergies with the existing business, the acquired assembled workforce, and future cash flows after the acquisition. The fair value assigned to the identifiable intangible assets was determined primarily by using the excess earnings method. The key assumptions included in the excess earnings method included revenue recognized, cost of revenue, and the discount rate. The following table summarizes the preliminary allocation of the purchase price over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of Physio-Assist: Cash $ 2,617 Accounts receivable 184 Inventories 296 Other assets 325 Property and equipment 82 Operating lease right-of-use asset 306 Intangible assets 34,100 Goodwill 9,991 Total assets acquired $ 47,901 Accounts payable and accrued expenses $ 1,108 Bank loans 2,158 Other current liabilities 419 Operating lease liability - noncurrent 263 Deferred tax liability - noncurrent 8,525 Total liabilities assumed 12,473 Total identifiable net assets $ 35,428 Cash consideration $ 32,250 Fair value of contingent earnout consideration 3,178 Total purchase price $ 35,428 Included in the acquired intangible assets were $ 32,300 of developed technology, $ 1,600 of customer relationships, and $ 200 related to trade name. The fair value measurements of the intangibles were based primarily on Level 3 inputs. Certain working capital accounts such as accounts receivables, inventories, other current assets, accounts payable, accrued expenses, and other current liabilities, as well as intangibles and related income tax amounts may be adjusted subsequent to the acquisition as they are realized at different values. These changes would be reflected as measurement period adjustments. The majority of the bank loans were settled subsequent to the acquisition date and prior to September 30, 2023. The consolidated financial and operating results reflect the Physio-Assist operations beginning September 14, 2023. The following unaudited pro forma information for the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022 presents the revenues and operating income assuming the acquisition of Physio-Assist had occurred as of January 1, 2022. Revenue and earnings from the acquisition date to September 30, 2023 are immaterial. Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Total revenue $ 84,680 $ 105,793 $ 242,060 $ 290,587 Net loss $ ( 45,321 ) $ ( 10,811 ) $ ( 77,266 ) $ ( 30,002 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair value measurements 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, 2023 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 23,739 $ — $ 23,739 $ 23,739 $ — Level 1: Money market accounts 71,098 — 71,098 71,098 — Level 2: U.S. Treasury securities 22,170 189 22,359 8,927 13,432 Institutional Insured Liquidity Deposit Savings 20,844 — 20,844 20,844 — Total $ 137,851 $ 189 $ 138,040 $ 124,608 $ 13,432 As of December 31, 2022 Gross Cash Adjusted unrealized and cash cost gains Fair value equivalents Cash $ 27,970 $ — $ 27,970 $ 27,970 Level 1: Money market accounts 113,534 — 113,534 113,534 Level 2: Corporate bonds 6,474 — 6,474 6,474 U.S. Treasury securities 18,913 26 18,939 18,939 Institutional Insured Liquidity Deposit Savings 20,097 — 20,097 20,097 Total $ 186,988 $ 26 $ 187,014 $ 187,014 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 $ 317 and payable of $ 422 as of September 30, 2023 and December 31, 2022, respectively. Accumulated other comprehensive income (loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains gains other translation on marketable on cash comprehensive adjustments securities flow hedges loss Balance as of December 31, 2022 $ ( 269 ) $ 26 $ — $ ( 243 ) Other comprehensive income (loss) ( 575 ) 182 53 ( 340 ) Balance as of September 30, 2023 $ ( 844 ) $ 208 $ 53 $ ( 583 ) Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for foreign currency translation adjustments and unrealized gains and losses on marketable securities and foreign currency 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 $ 13,000 in an earnout payment in cash if certain future regulatory results are met. The earnout liability of $ 3,178 was valued using Level 3 inputs using a probability weighted expected return methodology and was discounted using a rate and probability that appropriately captures the risk associated with the obligation. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 5. Balance sheet components Cash, cash equivalents, and marketable securities Cash, cash equivalents, and marketable securities consist of the following: September 30, December 31, Cash and cash equivalents 2023 2022 Cash $ 23,739 $ 27,970 Money market accounts 71,098 113,534 Corporate bonds — 6,474 U.S. Treasury securities 8,927 18,939 Institutional Insured Liquidity Deposit Savings 20,844 20,097 Total cash and cash equivalents $ 124,608 $ 187,014 Marketable securities U.S. Treasury securities 13,432 — Total marketable securities $ 13,432 $ — Accounts receivable and allowance for bad debts, returns, and adjustments Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, Net accounts receivable 2023 2022 Rental (1) $ 6,967 $ 5,246 Business-to-business and other receivables (2) 41,413 57,479 Total net accounts receivable $ 48,380 $ 62,725 (1) Rental includes Medicare, Medicaid/other government, private insurance, and patient pay. (2) Business-to-business receivables included extended terms for two customers: 1) One customer had an accounts receivable balance of $ 12,162 and $ 22,641 as of September 30, 2023 and December 31, 2022 ; and 2) One customer had accounts receivable balances of $ 5,848 and $ 9,861 as of September 30, 2023 and December 31, 2022 , respectively. Each customer received extended payment terms through a direct financing plan offered. The following table sets forth the accounts receivable allowances as of September 30, 2023 and December 31, 2022: September 30, December 31, Allowances - accounts receivable 2023 2022 Doubtful accounts $ 548 $ 77 Sales returns 615 483 Total allowances - accounts receivable $ 1,163 $ 560 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. Two customers each represented more than 10% of the Company’s net accounts receivable balance with accounts receivable balances of $ 12,162 and $ 5,848 , respectively, as of September 30, 2023 , and two customers each represented more than 10% of the Company's net accounts receivable balance with accounts receivable balances of $ 22,641 and $ 9,861 , respectively, as of December 31, 2022. 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 69.7 % and 77.8 % of rental revenue in the nine months ended September 30, 2023 and 2022 , respectively, and based on total revenue were 13.7 % and 11.2 % for the nine months ended September 30, 2023 and 2022 , respectively. Accounts receivable balances relating to Medicare’s service reimbursement programs (including held and unbilled, net of allowances) amounted to $ 2,500 or 5.2 % of total net accounts receivable as of September 30, 2023 compared to $ 2,138 or 3.4 % of total net accounts receivable as of December 31, 2022. 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, 2023 , the Company’s three major vendors accounted for 29.3 %, 16.3 %, and 9.1 %, respectively, of total raw material purchases. 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. A portion of revenue is earned from sales outside the United States. Approximately 76.9 % and 48.3 % of the non-U.S. revenue for the three months ended September 30, 2023 and 2022 , respectively, were invoiced in Euros. Approximately 78.0 % and 70.5 % of the non-U.S. revenue for the nine months ended September 30, 2023 and 2022, 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, 2023 and 2022, respectively, is as follows: Three months ended Nine months ended 2023 2022 2023 2022 U.S. revenue $ 58,354 $ 90,311 $ 171,887 $ 208,690 Non-U.S. revenue 25,613 15,078 67,877 80,460 Total revenue $ 83,967 $ 105,389 $ 239,764 $ 289,150 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 $ 1,100 and $ 1,249 as of September 30, 2023 and December 31, 2022 , 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 $ 0 and $ 7,017 as of September 30, 2023 and December 31, 2022, respectively, that were classified in prepaid expenses and other current assets. During the nine months ended September 30, 2023 and 2022 , $ 1,997 and $ 998 , 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, 2023 2022 Raw materials and work-in-progress $ 17,287 $ 26,496 Finished goods 9,502 9,324 Less: reserves ( 2,774 ) ( 1,727 ) Inventories, net $ 24,015 $ 34,093 Property and equipment Repair and maintenance expense, which includes labor, parts, and freight, for rental equipment was $ 1,320 and $ 1,059 for the three months ended September 30, 2023 and 2022 , respectively, and $ 3,873 and $ 3,289 for the nine months ended September 30, 2023 and 2022, respectively. 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, 2023 and 2022, respectively. Three months ended Nine months ended 2023 2022 2023 2022 Rental equipment $ 3,364 $ 2,795 $ 9,680 $ 8,153 Other property and equipment 1,045 983 3,044 2,936 Total depreciation and amortization $ 4,409 $ 3,778 $ 12,724 $ 11,089 Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of September 30, 2023 and December 31, 2022, respectively. September 30, December 31, Property and equipment 2023 2022 Rental equipment, net of allowances of $ 2,491 and $ 2,255 , respectively $ 66,489 $ 61,679 Other property and equipment 36,336 33,434 Property and equipment 102,825 95,113 Accumulated depreciation Rental equipment 30,416 31,320 Other property and equipment 22,884 20,524 Accumulated depreciation 53,300 51,844 Property and equipment, net Rental equipment, net of allowances of $2,491 and $2,255, respectively 36,073 30,359 Other property and equipment 13,452 12,910 Property and equipment, net $ 49,525 $ 43,269 Long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification (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, 2023. Goodwill and other identifiable intangible assets Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows: Balance as of December 31, 2022 $ 32,852 Translation adjustment ( 80 ) Impairment charge ( 32,894 ) Acquisition 9,991 Balance as of September 30, 2023 $ 9,869 As a result of a decrease in Company’s public stock price that caused the Company's market capitalization to fall below its carrying amount (stockholders' equity) during July 2023 and noted by management to be more than temporary as the quarter progressed, a quantitative analysis was required to be performed during the quarter ended September 30, 2023. The Company used a discounted cash flow analysis based on Level 3 inputs and determined that the goodwill carrying amount exceeded its fair value and, as such, an impairment charge of $ 32,894 was incurred in the quarter ended September 30, 2023. Total accumulated impairment losses were $ 32,894 as of September 30, 2023. 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, 2023 (in years) amount amortization Net amount Developed technology 10 $ 31,904 $ 132 $ 31,772 Licenses 10 185 185 — Patents and websites 5 4,518 4,411 107 Customer relationships 4 2,849 1,275 1,574 Trade name 4 197 1 196 Commercials 3 494 76 418 Total $ 40,147 $ 6,080 $ 34,067 Average estimated Gross useful lives carrying Accumulated December 31, 2022 (in years) amount amortization Net amount Licenses 10 $ 185 $ 183 $ 2 Patents and websites 5 4,514 4,353 161 Customer relationships 4 1,284 1,284 — Commercials 2 - 3 256 242 14 Total $ 6,239 $ 6,062 $ 177 Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2023 Remaining 3 months of 2023 $ 968 2024 3,866 2025 3,818 2026 3,687 2027 3,515 2028 3,190 Thereafter 15,023 $ 34,067 Current liabilities Accounts payable and accrued expenses as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Accounts payable $ 15,408 $ 18,237 Accrued inventory (in-transit and unvouchered receipts) and trade payables 9,754 10,837 Accrued purchasing card liability 2,607 2,606 Accrued franchise, sales and use taxes 456 492 Other accrued expenses 2,188 1,802 Total accounts payable and accrued expenses $ 30,413 $ 33,974 Accrued payroll as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Accrued bonuses $ 1,106 $ 2,620 Accrued wages and other payroll related items 3,963 4,967 Accrued vacation 3,187 3,133 Accrued employee stock purchase plan deductions 113 470 Total accrued payroll $ 8,369 $ 11,190 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases The Company has entered into operating leases primarily for commercial buildings. These leases have terms that range from 2 years to 11 years , some of which include options to extend the leases for up to 5 years . Rent expense, including short-term lease cost, was $ 1,008 and $ 960 for the three months ended September 30, 2023 and 2022 , respectively, and $ 2,944 and $ 2,889 for the nine months ended September 30, 2023 and 2022, respectively. In July 2023, the Company entered into an Assignment and Assumption of Lease Agreement (the Assignment) in which a third party (the Assignee) assumed the rights, title, and interest in the lease, including assumption of lease payments. As inducement for the Assignee to enter into the agreement, the Company paid an incentive of $ 395 , provided for four months of free rent for the period October 1, 2023 through January 31, 2024, and conveyed ownership of certain items of the facility's furniture and equipment. Commencing February 1, 2024 and ending May 31, 2031, the Assignee assumes responsibility for the monthly lease payments. Notwithstanding the Assignee's assumption of lease payments, Inogen remains the primary obligor under the lease to the landlord. The Assignee gained control to the facilities on September 29, 2023. Lease payments assumed by the Assignee are: Payments due in the 12-month period ending September 30, 2024 $ 757 2025 1,136 2026 1,136 2027 1,136 2028 1,136 Thereafter 3,029 $ 8,330 Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Nine months ended September 30, 2023 2022 Cash paid for operating lease liabilities $ 3,016 $ 2,970 Operating lease cost 2,923 2,878 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 1,997 225 Weighted average remaining lease term 1.9 years 2.4 years Weighted average discount rate 3.0 % 2.9 % Maturities of lease liabilities due in the 12-month period ending September 30, 2024 $ 4,345 2025 3,224 2026 3,225 2027 3,223 2028 3,003 Thereafter 7,537 24,557 Less imputed interest ( 1,790 ) Total lease liabilities $ 22,767 Operating lease liability - current $ 3,894 Operating lease liability - noncurrent $ 18,873 Total lease liabilities $ 22,767 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 7. 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. The computation of EPS is as follows: Three months ended Nine months ended 2023 2022 2023 2022 Numerator—basic and diluted: Net loss $ ( 45,719 ) $ ( 9,506 ) $ ( 75,894 ) $ ( 27,162 ) Denominator: Weighted average common shares - basic common stock (1) 23,231,217 22,882,333 23,129,795 22,827,733 Weighted average common shares - diluted common stock (2) 23,231,217 22,882,333 23,129,795 22,827,733 Net loss per share - basic common stock $ ( 1.97 ) $ ( 0.42 ) $ ( 3.28 ) $ ( 1.19 ) Net loss per share - diluted common stock (2) $ ( 1.97 ) $ ( 0.42 ) $ ( 3.28 ) $ ( 1.19 ) Denominator calculation from basic to diluted: Weighted average common shares - basic common stock (1) 23,231,217 22,882,333 23,129,795 22,827,733 Stock options and other dilutive awards 149,236 152,783 301,309 143,802 Weighted average common shares - diluted common stock 23,380,453 23,035,116 23,431,104 22,971,535 Shares excluded from diluted weighted average shares: Stock options 57,364 320,734 54,498 320,734 Restricted stock units and restricted stock awards 1,186,231 480,602 849,398 447,775 Shares excluded from diluted weighted average shares 1,243,595 801,336 903,896 768,509 (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, 2023 and September 30, 2022 , diluted loss per share is the same as basic. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. 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 December 31, 2022, the Company recorded a full valuation allowance of $ 41,933 . As of September 30, 2023, the Company continued to record a valuation allowance against its domestic 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 loss. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 9. 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, 2023 , options to purchase 2,866 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) under which the Company granted restricted stock units, restricted stock awards, performance units, performance shares, and options to purchase shares of its common stock. As of September 30, 2023 , awards with respect to 1,570,425 shares of the Company’s common stock were outstanding. An additional 895,346 shares were added to the 2014 Plan share reserve for 2023. The Company’s stockholders approved the adoption of the 2023 Equity Incentive Plan (2023 Plan) on May 31, 2023 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. The 2023 Plan became effective June 5, 2023. The 2014 Plan terminated upon effectiveness o f the 2023 Plan and no further awards will be made under the 2014 Plan, but the 2014 Plan will continue to govern awards previously granted under it. The number of shares of common stock reserved for issuance under the 2023 Plan was: (i) 400,000 shares, plus (ii) (A) 2,027,790 shares that, as of immediately before the termination or expiration of the 2014 Plan, had been reserved but not issued under any 2014 Plan awards and are not subject to any awards granted under the 2014 Plan, plus (B) any shares subject to awards granted under the 2014 Plan or the 2012 Plan that, after the 2014 Plan is terminated or expired, expire or otherwise terminate without having been exercised or issued in full or are forfeited to or repurchased by the Company due to failure to vest, plus (C) any shares that, after the 2014 Plan is terminated or expired, are tendered to or withheld by us for payment of an exercise or purchase price or for tax withholding obligations with respe ct to an award granted under the 2014 Plan or 2012 Plan, with the maximum number of shares that may be added to the 2023 Plan under subsection (ii) above equal to 2,950,000 shares. As of September 30, 2023 , 1,623,001 shares of common stock remained available for issuance under the 2023 Plan. The shares available for issuance under the 2023 Plan will be increased by any shares returned to the 2012 Plan and 2014 Plan as a result of 1) expiration or termination of awards and 2) tendered to or withheld by us for payment of an exercise or purchase price or for tax withholding obligations. 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, 2023 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, 2022 348,284 $ 1.17 -$ 83.30 $ 44.21 0.43 $ 2.07 Exercised ( 54,432 ) 1.17 - 8.37 7.03 Forfeited ( 4,125 ) 44.19 44.19 Expired ( 232,363 ) 44.19 44.19 Outstanding as of September 30, 2023 57,364 8.37 - 83.30 79.56 0.32 — Vested and exercisable as of September 30, 2023 57,364 8.37 - 83.30 79.56 0.32 — Vested and expected to vest as of September 30, 2023 57,364 $ 8.37 -$ 83.30 $ 79.56 0.32 $ — The total intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022 was $ 735 and $ 204 , respectively. As of September 30, 2023, all stock-based compensation expense for options granted under the Plans was recognized. Stock incentive awards The Company granted restricted stock units (RSUs) and restricted stock awards (RSAs) under the 2014 and 2023 Plans (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 more or 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, 2023 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, 2022 820,941 183,197 1,004,138 $ 32.72 Granted 915,314 536,990 1,452,304 14.66 Vested ( 194,102 ) ( 15,618 ) ( 209,720 ) 35.74 Forfeited/canceled ( 443,625 ) ( 235,745 ) ( 679,370 ) 23.71 Unvested restricted stock units as of September 30, 2023 (1) 1,098,528 468,824 1,567,352 $ 19.99 Unvested and expected to vest restricted stock units outstanding as of September 30, 2023 1,138,017 $ 20.27 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, 2022 786 — 786 $ 59.55 Vested ( 786 ) — ( 786 ) 59.55 Unvested restricted stock awards outstanding as of September 30, 2023 (1) — — — $ — Unvested and expected to vest restricted stock awards outstanding as of September 30, 2023 — $ — (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, 2023 , the unrecognized compensation cost related to unvested employee restricted stock units was $ 15,833 , excluding estimated forfeitures. This amount is expected to be recognized over a weighted average period of 1.8 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, 2023 , a total of 550,595 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 2023 , an additional 179,069 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, 2023 and 2022, was as follows: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock-based compensation expense by type of award: Restricted stock units and restricted stock awards $ 1,682 $ 3,389 $ 8,164 $ 8,748 Employee stock purchase plan 97 111 320 437 Total stock-based compensation expense $ 1,779 $ 3,500 $ 8,484 $ 9,185 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, 2023 and 2022, 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, 2023 2022 2023 2022 Cost of revenue $ 164 $ 327 $ 401 $ 863 Research and development 358 409 1,192 1,205 Sales and marketing ( 255 ) 754 1,177 2,111 General and administrative 1,512 2,010 5,714 5,006 Total stock-based compensation expense $ 1,779 $ 3,500 $ 8,484 $ 9,185 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and contingencies Purchase obligations The Company had approximately $ 114,900 of outstanding purchase orders due within one year with its outside vendors and suppliers as of September 30, 2023. 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, 2023 and December 31, 2022, respectively: September 30, December 31, 2023 2022 Product warranty liability at beginning of period $ 19,913 $ 13,726 Accruals for warranties issued 6,944 10,416 Adjustments related to preexisting warranties 4,111 8,234 Settlements made (in cash or in kind) ( 8,612 ) ( 12,463 ) Product warranty liability at end of period $ 22,356 $ 19,913 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, 2023 was primarily driven by $ 4,899 of revenue recognized that were included in the deferred revenue balances as of December 31, 2022 , partially offset by $ 2,667 of payments received in advance of satisfying performance obligations. Deferred revenue related to lifetime warranties was $ 14,301 and $ 16,534 as of September 30, 2023 and December 31, 2022, respectively, and is classified within deferred revenue - current and deferred revenue - noncurrent 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. Compliance with government 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 is not aware of any pending claims against it under the HIPAA and HITECH regulations that are applicable to the Company’s business. Legal proceedings 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. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 11. Restructuring charges The Company incurred $ 1,416 and $ 3,426 of restructuring costs during the three and nine months ended September 30, 2023 , respectively, primarily in connection with the Company's cost reduction initiatives, which were recorded within general and administrative expense in the consolidated statements of comprehensive loss. The restructuring charges consisted primarily of severance and termination benefits. Other related costs consisted of targeted workforce reductions, office downsizing, centralizing manufacturing activities, and equipment relocation. The Company had approximately $ 1,483 of accrued liabilities, primarily related to accrued severance costs as of September 30, 2023. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Exchange Contracts and Hedging | 12. Foreign currency exchange contracts and hedging As of September 30, 2023 and September 30, 2022 , the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $ 10,414 and $ 1,613 , respectively, and $ 9,537 and $ 9,730 , respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expire within one to three months . During the nine months ended September 30, 2023 and 2022 , these contracts had, net of tax, an unrealized gain of $ 53 and an unrealized loss of $ 463 , 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, 2023 , there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. During the nine months ended September 30, 2022 , there were three ineffective portions relation to these hedges. As of September 30, 2023 , the Company had three designated hedges and one non-designated hedge. As of September 30, 2022 , the Company had three 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, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. 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 goodwill, 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. |
Goodwill | Goodwill Goodwill represents the excess acquisition cost over the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized and is tested for impairment on an annual basis as of October 1 or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or asset below its carrying amount. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If, based on a review of qualitative factors, it is more likely than not that the fair value is less than its carrying amount, the Company will use a quantitative approach, and calculate the fair value and compare it to its carrying amount. If the fair value exceeds the carrying amount, there is no indication of impairment. If the carrying amount exceeds the fair value, an impairment loss is recorded equal to the difference. |
Earnout liability | Earnout liability The earnout liability will be adjusted to fair value at each reporting date until settled. At the end of each reporting period after the acquisition date, the arrangement is remeasured at its fair value, with changes in fair value recorded in earnings. Changes in fair value will be recognized in general and administrative expense. |
Restructuring charges | Restructuring charges Restructuring costs include workforce reductions, termination benefits, office downsizing, centralizing manufacturing activities, and equipment relocation. Key assumptions used in calculating the restructuring costs include the terms of, and payments under, agreements to terminate certain contractual obligations and the timing of reductions in workforce |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price | The following table summarizes the preliminary allocation of the purchase price over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of Physio-Assist: Cash $ 2,617 Accounts receivable 184 Inventories 296 Other assets 325 Property and equipment 82 Operating lease right-of-use asset 306 Intangible assets 34,100 Goodwill 9,991 Total assets acquired $ 47,901 Accounts payable and accrued expenses $ 1,108 Bank loans 2,158 Other current liabilities 419 Operating lease liability - noncurrent 263 Deferred tax liability - noncurrent 8,525 Total liabilities assumed 12,473 Total identifiable net assets $ 35,428 Cash consideration $ 32,250 Fair value of contingent earnout consideration 3,178 Total purchase price $ 35,428 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma information for the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022 presents the revenues and operating income assuming the acquisition of Physio-Assist had occurred as of January 1, 2022. Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Total revenue $ 84,680 $ 105,793 $ 242,060 $ 290,587 Net loss $ ( 45,321 ) $ ( 10,811 ) $ ( 77,266 ) $ ( 30,002 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 23,739 $ — $ 23,739 $ 23,739 $ — Level 1: Money market accounts 71,098 — 71,098 71,098 — Level 2: U.S. Treasury securities 22,170 189 22,359 8,927 13,432 Institutional Insured Liquidity Deposit Savings 20,844 — 20,844 20,844 — Total $ 137,851 $ 189 $ 138,040 $ 124,608 $ 13,432 As of December 31, 2022 Gross Cash Adjusted unrealized and cash cost gains Fair value equivalents Cash $ 27,970 $ — $ 27,970 $ 27,970 Level 1: Money market accounts 113,534 — 113,534 113,534 Level 2: Corporate bonds 6,474 — 6,474 6,474 U.S. Treasury securities 18,913 26 18,939 18,939 Institutional Insured Liquidity Deposit Savings 20,097 — 20,097 20,097 Total $ 186,988 $ 26 $ 187,014 $ 187,014 |
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 other translation on marketable on cash comprehensive adjustments securities flow hedges loss Balance as of December 31, 2022 $ ( 269 ) $ 26 $ — $ ( 243 ) Other comprehensive income (loss) ( 575 ) 182 53 ( 340 ) Balance as of September 30, 2023 $ ( 844 ) $ 208 $ 53 $ ( 583 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 Cash $ 23,739 $ 27,970 Money market accounts 71,098 113,534 Corporate bonds — 6,474 U.S. Treasury securities 8,927 18,939 Institutional Insured Liquidity Deposit Savings 20,844 20,097 Total cash and cash equivalents $ 124,608 $ 187,014 Marketable securities U.S. Treasury securities 13,432 — Total marketable securities $ 13,432 $ — |
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, 2023 and December 31, 2022 were as follows: September 30, December 31, Net accounts receivable 2023 2022 Rental (1) $ 6,967 $ 5,246 Business-to-business and other receivables (2) 41,413 57,479 Total net accounts receivable $ 48,380 $ 62,725 (1) Rental includes Medicare, Medicaid/other government, private insurance, and patient pay. (2) Business-to-business receivables included extended terms for two customers: 1) One customer had an accounts receivable balance of $ 12,162 and $ 22,641 as of September 30, 2023 and December 31, 2022 ; and 2) One customer had accounts receivable balances of $ 5,848 and $ 9,861 as of September 30, 2023 and December 31, 2022 , respectively. Each customer received extended payment terms through a direct financing plan offered. |
Schedule of Allowances for Accounts Receivable | The following table sets forth the accounts receivable allowances as of September 30, 2023 and December 31, 2022: September 30, December 31, Allowances - accounts receivable 2023 2022 Doubtful accounts $ 548 $ 77 Sales returns 615 483 Total allowances - accounts receivable $ 1,163 $ 560 |
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 76.9 % and 48.3 % of the non-U.S. revenue for the three months ended September 30, 2023 and 2022 , respectively, were invoiced in Euros. Approximately 78.0 % and 70.5 % of the non-U.S. revenue for the nine months ended September 30, 2023 and 2022, 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, 2023 and 2022, respectively, is as follows: Three months ended Nine months ended 2023 2022 2023 2022 U.S. revenue $ 58,354 $ 90,311 $ 171,887 $ 208,690 Non-U.S. revenue 25,613 15,078 67,877 80,460 Total revenue $ 83,967 $ 105,389 $ 239,764 $ 289,150 |
Schedule of Inventories | Inventories that are considered current consist of the following: September 30, December 31, 2023 2022 Raw materials and work-in-progress $ 17,287 $ 26,496 Finished goods 9,502 9,324 Less: reserves ( 2,774 ) ( 1,727 ) Inventories, net $ 24,015 $ 34,093 |
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, 2023 and 2022, respectively. Three months ended Nine months ended 2023 2022 2023 2022 Rental equipment $ 3,364 $ 2,795 $ 9,680 $ 8,153 Other property and equipment 1,045 983 3,044 2,936 Total depreciation and amortization $ 4,409 $ 3,778 $ 12,724 $ 11,089 |
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, 2023 and December 31, 2022, respectively. September 30, December 31, Property and equipment 2023 2022 Rental equipment, net of allowances of $ 2,491 and $ 2,255 , respectively $ 66,489 $ 61,679 Other property and equipment 36,336 33,434 Property and equipment 102,825 95,113 Accumulated depreciation Rental equipment 30,416 31,320 Other property and equipment 22,884 20,524 Accumulated depreciation 53,300 51,844 Property and equipment, net Rental equipment, net of allowances of $2,491 and $2,255, respectively 36,073 30,359 Other property and equipment 13,452 12,910 Property and equipment, net $ 49,525 $ 43,269 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows: Balance as of December 31, 2022 $ 32,852 Translation adjustment ( 80 ) Impairment charge ( 32,894 ) Acquisition 9,991 Balance as of September 30, 2023 $ 9,869 |
Summary of Changes in Net Carrying Values of Intangibles | 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, 2023 (in years) amount amortization Net amount Developed technology 10 $ 31,904 $ 132 $ 31,772 Licenses 10 185 185 — Patents and websites 5 4,518 4,411 107 Customer relationships 4 2,849 1,275 1,574 Trade name 4 197 1 196 Commercials 3 494 76 418 Total $ 40,147 $ 6,080 $ 34,067 Average estimated Gross useful lives carrying Accumulated December 31, 2022 (in years) amount amortization Net amount Licenses 10 $ 185 $ 183 $ 2 Patents and websites 5 4,514 4,353 161 Customer relationships 4 1,284 1,284 — Commercials 2 - 3 256 242 14 Total $ 6,239 $ 6,062 $ 177 |
Schedule of Annual Estimated Amortization Expense | Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2023 Remaining 3 months of 2023 $ 968 2024 3,866 2025 3,818 2026 3,687 2027 3,515 2028 3,190 Thereafter 15,023 $ 34,067 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Accounts payable $ 15,408 $ 18,237 Accrued inventory (in-transit and unvouchered receipts) and trade payables 9,754 10,837 Accrued purchasing card liability 2,607 2,606 Accrued franchise, sales and use taxes 456 492 Other accrued expenses 2,188 1,802 Total accounts payable and accrued expenses $ 30,413 $ 33,974 |
Schedule of Accrued Payroll | Accrued payroll as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Accrued bonuses $ 1,106 $ 2,620 Accrued wages and other payroll related items 3,963 4,967 Accrued vacation 3,187 3,133 Accrued employee stock purchase plan deductions 113 470 Total accrued payroll $ 8,369 $ 11,190 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | Lease payments assumed by the Assignee are: Payments due in the 12-month period ending September 30, 2024 $ 757 2025 1,136 2026 1,136 2027 1,136 2028 1,136 Thereafter 3,029 $ 8,330 Maturities of lease liabilities due in the 12-month period ending September 30, 2024 $ 4,345 2025 3,224 2026 3,225 2027 3,223 2028 3,003 Thereafter 7,537 24,557 Less imputed interest ( 1,790 ) Total lease liabilities $ 22,767 Operating lease liability - current $ 3,894 Operating lease liability - noncurrent $ 18,873 Total lease liabilities $ 22,767 |
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, 2023 2022 Cash paid for operating lease liabilities $ 3,016 $ 2,970 Operating lease cost 2,923 2,878 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 1,997 225 Weighted average remaining lease term 1.9 years 2.4 years Weighted average discount rate 3.0 % 2.9 % |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of EPS is as follows: Three months ended Nine months ended 2023 2022 2023 2022 Numerator—basic and diluted: Net loss $ ( 45,719 ) $ ( 9,506 ) $ ( 75,894 ) $ ( 27,162 ) Denominator: Weighted average common shares - basic common stock (1) 23,231,217 22,882,333 23,129,795 22,827,733 Weighted average common shares - diluted common stock (2) 23,231,217 22,882,333 23,129,795 22,827,733 Net loss per share - basic common stock $ ( 1.97 ) $ ( 0.42 ) $ ( 3.28 ) $ ( 1.19 ) Net loss per share - diluted common stock (2) $ ( 1.97 ) $ ( 0.42 ) $ ( 3.28 ) $ ( 1.19 ) Denominator calculation from basic to diluted: Weighted average common shares - basic common stock (1) 23,231,217 22,882,333 23,129,795 22,827,733 Stock options and other dilutive awards 149,236 152,783 301,309 143,802 Weighted average common shares - diluted common stock 23,380,453 23,035,116 23,431,104 22,971,535 Shares excluded from diluted weighted average shares: Stock options 57,364 320,734 54,498 320,734 Restricted stock units and restricted stock awards 1,186,231 480,602 849,398 447,775 Shares excluded from diluted weighted average shares 1,243,595 801,336 903,896 768,509 (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, 2023 and September 30, 2022 , diluted loss per share is the same as basic. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 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, 2022 348,284 $ 1.17 -$ 83.30 $ 44.21 0.43 $ 2.07 Exercised ( 54,432 ) 1.17 - 8.37 7.03 Forfeited ( 4,125 ) 44.19 44.19 Expired ( 232,363 ) 44.19 44.19 Outstanding as of September 30, 2023 57,364 8.37 - 83.30 79.56 0.32 — Vested and exercisable as of September 30, 2023 57,364 8.37 - 83.30 79.56 0.32 — Vested and expected to vest as of September 30, 2023 57,364 $ 8.37 -$ 83.30 $ 79.56 0.32 $ — |
Summary of Restricted Stock Activity | Stock Awards activity for the nine months ended September 30, 2023 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, 2022 820,941 183,197 1,004,138 $ 32.72 Granted 915,314 536,990 1,452,304 14.66 Vested ( 194,102 ) ( 15,618 ) ( 209,720 ) 35.74 Forfeited/canceled ( 443,625 ) ( 235,745 ) ( 679,370 ) 23.71 Unvested restricted stock units as of September 30, 2023 (1) 1,098,528 468,824 1,567,352 $ 19.99 Unvested and expected to vest restricted stock units outstanding as of September 30, 2023 1,138,017 $ 20.27 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, 2022 786 — 786 $ 59.55 Vested ( 786 ) — ( 786 ) 59.55 Unvested restricted stock awards outstanding as of September 30, 2023 (1) — — — $ — Unvested and expected to vest restricted stock awards outstanding as of September 30, 2023 — $ — (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, 2023 and 2022, was as follows: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock-based compensation expense by type of award: Restricted stock units and restricted stock awards $ 1,682 $ 3,389 $ 8,164 $ 8,748 Employee stock purchase plan 97 111 320 437 Total stock-based compensation expense $ 1,779 $ 3,500 $ 8,484 $ 9,185 For the three and nine months ended September 30, 2023 and 2022, 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, 2023 2022 2023 2022 Cost of revenue $ 164 $ 327 $ 401 $ 863 Research and development 358 409 1,192 1,205 Sales and marketing ( 255 ) 754 1,177 2,111 General and administrative 1,512 2,010 5,714 5,006 Total stock-based compensation expense $ 1,779 $ 3,500 $ 8,484 $ 9,185 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022, respectively: September 30, December 31, 2023 2022 Product warranty liability at beginning of period $ 19,913 $ 13,726 Accruals for warranties issued 6,944 10,416 Adjustments related to preexisting warranties 4,111 8,234 Settlements made (in cash or in kind) ( 8,612 ) ( 12,463 ) Product warranty liability at end of period $ 22,356 $ 19,913 |
Business Overview - Additional
Business Overview - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Physio-Assist SAS | |
Business Overview Disclosures [Line Items] | |
Effective date of acquisition | Sep. 14, 2023 |
Inogen Europe Holding B.V. | |
Business Overview Disclosures [Line Items] | |
Date of incorporation of subsidiary | Apr. 13, 2017 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 14, 2023 | Sep. 30, 2023 | |
Developed Technology | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 32,300 | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets | 1,600 | |
Trade Name | ||
Business Acquisition [Line Items] | ||
Intangible assets | 200 | |
Physio-Assist SAS | ||
Business Acquisition [Line Items] | ||
Cash consideration | 32,250 | |
Fair value consideration | 3,178 | |
Acquisition-related expenses | $ 1,427 | |
Intangible assets | $ 34,100 | |
Maximum | ||
Business Acquisition [Line Items] | ||
Potential milestone payment | 13,000 | |
Minimum | ||
Business Acquisition [Line Items] | ||
Potential milestone payment | $ 11,000 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Sep. 14, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,869 | $ 32,852 | |
Physio-Assist SAS | |||
Business Acquisition [Line Items] | |||
Cash | $ 2,617 | ||
Accounts receivable | 184 | ||
Inventories | 296 | ||
Other assets | 325 | ||
Property and equipment | 82 | ||
Operating lease right-of-use asset | 306 | ||
Intangible assets | 34,100 | ||
Goodwill | 9,991 | ||
Total assets acquired | 47,901 | ||
Accounts payable and accrued expenses | 1,108 | ||
Bank loans | 2,158 | ||
Other current liabilities | 419 | ||
Operating lease liability - noncurrent | 263 | ||
Deferred tax liability - noncurrent | 8,525 | ||
Total liabilities assumed | 12,473 | ||
Total identifiable net assets | 35,428 | ||
Cash consideration | 32,250 | ||
Fair value of contingent earnout consideration | 3,178 | ||
Total purchase price | $ 35,428 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Details) - Physio-Assist SAS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Total revenue | $ 84,680 | $ 105,793 | $ 242,060 | $ 290,587 |
Net loss | $ (45,321) | $ (10,811) | $ (77,266) | $ (30,002) |
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, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 124,608 | $ 187,014 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 137,851 | 186,988 |
Gross unrealized gains | 189 | 26 |
Fair value | 138,040 | 187,014 |
Cash and cash equivalents | 124,608 | 187,014 |
Marketable securities | 13,432 | |
Fair Value Measurements Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 23,739 | 27,970 |
Fair value | 23,739 | 27,970 |
Cash and cash equivalents | 23,739 | 27,970 |
Fair Value Measurements Recurring | Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 71,098 | 113,534 |
Fair value | 71,098 | 113,534 |
Cash and cash equivalents | 71,098 | 113,534 |
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 | 6,474 | |
Fair value | 6,474 | |
Cash and cash equivalents | 6,474 | |
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 | 22,170 | 18,913 |
Gross unrealized gains | 189 | 26 |
Fair value | 22,359 | 18,939 |
Cash and cash equivalents | 8,927 | 18,939 |
Marketable securities | 13,432 | |
Fair Value Measurements Recurring | Fair Value, Inputs, Level 2 | Institutional Insured Liquidity Deposit Savings | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 20,844 | 20,097 |
Fair value | 20,844 | 20,097 |
Cash and cash equivalents | $ 20,844 | $ 20,097 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Earnout liability | $ 3,178 | |
Fair Value Measurements Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Earnout liability | 3,178 | |
Maximum | Fair Value Measurements Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Earnout liability | 13,000 | |
Forward Contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related payable | $ 317 | $ 422 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 274,779 | $ 356,537 | $ 297,406 | $ 370,227 |
Other comprehensive income (loss) | (657) | (390) | (340) | (1,900) |
Ending Balance | 230,630 | 350,842 | 230,630 | 350,842 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (269) | |||
Other comprehensive income (loss) | (575) | |||
Ending Balance | (844) | (844) | ||
Unrealized Gains on Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 26 | |||
Other comprehensive income (loss) | 182 | |||
Ending Balance | 208 | 208 | ||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income (loss) | 53 | |||
Ending Balance | 53 | 53 | ||
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 74 | (41) | (243) | 1,469 |
Other comprehensive income (loss) | (657) | (390) | (340) | (1,900) |
Ending Balance | $ (583) | $ (431) | $ (583) | $ (431) |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Cash | $ 23,739 | $ 27,970 |
Money market accounts | 71,098 | 113,534 |
Corporate bonds | 6,474 | |
U.S. Treasury securities | 8,927 | 18,939 |
Institutional Insured Liquidity Deposit Savings | 20,844 | 20,097 |
Total cash and cash equivalents | 124,608 | $ 187,014 |
Marketable securities | ||
Marketable securities | 13,432 | |
U.S. Treasury Securities | ||
Marketable securities | ||
Marketable securities | $ 13,432 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 48,380 | $ 62,725 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | 6,967 | 5,246 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 41,413 | $ 57,479 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Parenthetical) (Details) - Customer Concentration Risk $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) | |
Business To Business Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of customers | Customer | 2 | |
Gross accounts receivable | $ 12,162 | $ 22,641 |
Business To Business Receivables One | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 5,848 | $ 9,861 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Allowances for Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Doubtful accounts | $ 548 | $ 77 |
Sales returns | 615 | 483 |
Total allowances - accounts receivable | $ 1,163 | $ 560 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Customer | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Customer | |
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | $ 48,380 | $ 48,380 | $ 62,725 | ||
Percentage of Non-US revenue invoiced in Euros | 76.90% | 48.30% | 78% | 70.50% | |
Transfer of inventory to rental equipment | $ 1,997 | $ 998 | |||
Repairs and maintenance expense | $ 1,320 | $ 1,059 | 3,873 | $ 3,289 | |
Accumulated impairment losses | 32,894 | 32,894 | |||
Impairment charges | 32,894 | 32,894 | |||
Other Noncurrent Assets | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Noncurrent inventories expected to be realized or consumed | 1,100 | 1,100 | 1,249 | ||
Prepaid Expenses and Other Current Assets | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Inventory raw materials | 0 | 0 | 7,017 | ||
Customer Concentration Risk | Customer One | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | 12,162 | 12,162 | 22,641 | ||
Customer Concentration Risk | Customer Two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | 5,848 | 5,848 | 9,861 | ||
Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | $ 2,500 | $ 2,500 | $ 2,138 | ||
Sales Revenue, Net | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 13.70% | 11.20% | |||
Net Accounts Receivable | Customer Concentration Risk | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Number of customers | Customer | 2 | 2 | |||
Net Accounts Receivable | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 5.20% | 3.40% | |||
Rental Revenue | Customer Concentration Risk | Medicare's Service Reimbursement Programs | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 69.70% | 77.80% | |||
Raw materials | Supplier Concentration Risk | Vendor one | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 29.30% | 27% | |||
Raw materials | Supplier Concentration Risk | Vendor two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 16.30% | 20.20% | |||
Raw materials | Supplier Concentration Risk | Vendor three | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration Risk, Percentage | 9.10% | 8.40% |
Balance Sheet Components - Brea
Balance Sheet Components - Breakdown of the Company Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Revenues | $ 83,967 | $ 105,389 | $ 239,764 | $ 289,150 |
U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | 58,354 | 90,311 | 171,887 | 208,690 |
Non-U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 25,613 | $ 15,078 | $ 67,877 | $ 80,460 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 17,287 | $ 26,496 |
Finished goods | 9,502 | 9,324 |
Less: reserves | (2,774) | (1,727) |
Inventories, net | $ 24,015 | $ 34,093 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation | $ 3,364 | $ 2,795 | $ 9,680 | $ 8,153 |
Depreciation and amortization | 4,409 | 3,778 | 12,724 | 11,089 |
Rental equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation | 3,364 | 2,795 | 9,680 | 8,153 |
Other property and equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 1,045 | $ 983 | $ 3,044 | $ 2,936 |
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, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 102,825 | $ 95,113 |
Accumulated depreciation | 53,300 | 51,844 |
Property and equipment, net | 49,525 | 43,269 |
Rental equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 66,489 | 61,679 |
Accumulated depreciation | 30,416 | 31,320 |
Property and equipment, net | 36,073 | 30,359 |
Other property and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 36,336 | 33,434 |
Accumulated depreciation | 22,884 | 20,524 |
Property and equipment, net | $ 13,452 | $ 12,910 |
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, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Rental equipment, allowance | $ 2,491 | $ 2,255 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance as of December 31, 2022 | $ 32,852 | |
Translation adjustment | (80) | |
Impairment charge | $ (32,894) | (32,894) |
Acquisition | 9,991 | |
Balance as of September 30, 2023 | $ 9,869 | $ 9,869 |
Balance Sheet Components - Su_5
Balance Sheet Components - Summary of Changes in Net Carrying Values of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 40,147 | $ 6,239 |
Accumulated amortization | 6,080 | 6,062 |
Net amount | $ 34,067 | $ 177 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | |
Gross carrying amount | $ 31,904 | |
Accumulated amortization | 132 | |
Net amount | $ 31,772 | |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 185 | $ 185 |
Accumulated amortization | $ 185 | 183 |
Net amount | $ 2 | |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 4 years | |
Gross carrying amount | $ 197 | |
Accumulated amortization | 1 | |
Net amount | $ 196 | |
Patents And Websites | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | 5 years |
Gross carrying amount | $ 4,518 | $ 4,514 |
Accumulated amortization | 4,411 | 4,353 |
Net amount | $ 107 | $ 161 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 4 years | 4 years |
Gross carrying amount | $ 2,849 | $ 1,284 |
Accumulated amortization | 1,275 | 1,284 |
Net amount | $ 1,574 | |
Commercials | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 3 years | |
Gross carrying amount | $ 494 | 256 |
Accumulated amortization | 76 | 242 |
Net amount | $ 418 | $ 14 |
Commercials | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 2 years | |
Commercials | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 3 years |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Annual Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 3 months of 2023 | $ 968 | |
2024 | 3,866 | |
2025 | 3,818 | |
2026 | 3,687 | |
2027 | 3,515 | |
2028 | 3,190 | |
Thereafter | 15,023 | |
Net amount | $ 34,067 | $ 177 |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 15,408 | $ 18,237 |
Accrued inventory (in-transit and unvouchered receipts) and trade payables | 9,754 | 10,837 |
Accrued purchasing card liability | 2,607 | 2,606 |
Accrued franchise, sales and use taxes | 456 | 492 |
Other accrued expenses | 2,188 | 1,802 |
Total accounts payable and accrued expenses | $ 30,413 | $ 33,974 |
Balance Sheet Components - Sc_8
Balance Sheet Components - Schedule of Accrued Payroll (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued bonuses | $ 1,106 | $ 2,620 |
Accrued wages and other payroll related items | 3,963 | 4,967 |
Accrued vacation | 3,187 | 3,133 |
Accrued employee stock purchase plan deductions | 113 | 470 |
Total accrued payroll | $ 8,369 | $ 11,190 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jul. 31, 2023 | |
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 | $ 1,008 | $ 960 | $ 2,944 | $ 2,889 | |
Incentive paid | $ 395 | ||||
Minimum | |||||
Lessee Lease Description [Line Items] | |||||
Operating leases, lease term | 2 years | 2 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 Lease Paym
Leases - Schedule of Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilities payments due | $ 24,557 |
Assignee | |
Lessee, Lease, Description [Line Items] | |
2024 | 757 |
2025 | 1,136 |
2026 | 1,136 |
2027 | 1,136 |
2028 | 1,136 |
Thereafter | 3,029 |
Operating lease liabilities payments due | $ 8,330 |
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, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 3,016 | $ 2,970 |
Operating lease cost | 2,923 | 2,878 |
Non-cash right-of-use assets obtained in exchange for new operating lease obligations | $ 1,997 | $ 225 |
Weighted average remaining lease term | 1 year 10 months 24 days | 2 years 4 months 24 days |
Weighted average discount rate | 3% | 2.90% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Maturities of lease liabilities due in the 12-month period ending September 30, | ||
2024 | $ 4,345 | |
2025 | 3,224 | |
2026 | 3,225 | |
2027 | 3,223 | |
2028 | 3,003 | |
Thereafter | 7,537 | |
Operating lease liabilities payments due | 24,557 | |
Less imputed interest | (1,790) | |
Total lease liabilities | 22,767 | |
Operating lease liability - current | 3,894 | $ 3,515 |
Operating lease liability - noncurrent | $ 18,873 | $ 19,764 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator—basic and diluted: | ||||
Net loss | $ (45,719) | $ (9,506) | $ (75,894) | $ (27,162) |
Denominator: | ||||
Weighted average common shares - basic common stock | 23,231,217 | 22,882,333 | 23,129,795 | 22,827,733 |
Weighted average common shares - diluted common stock | 23,231,217 | 22,882,333 | 23,129,795 | 22,827,733 |
Net loss per share - basic common stock | $ (1.97) | $ (0.42) | $ (3.28) | $ (1.19) |
Net loss per share - diluted common stock | $ (1.97) | $ (0.42) | $ (3.28) | $ (1.19) |
Denominator calculation from basic to diluted: | ||||
Weighted average common shares - basic common stock | 23,231,217 | 22,882,333 | 23,129,795 | 22,827,733 |
Stock options and other dilutive awards | 149,236 | 152,783 | 301,309 | 143,802 |
Weighted average common shares - diluted common stock | 23,380,453 | 23,035,116 | 23,431,104 | 22,971,535 |
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 1,243,595 | 801,336 | 903,896 | 768,509 |
Stock options | ||||
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 57,364 | 320,734 | 54,498 | 320,734 |
Restricted stock units and restricted stock awards | ||||
Shares excluded from diluted weighted average shares: | ||||
Shares excluded from diluted weighted-average shares | 1,186,231 | 480,602 | 849,398 | 447,775 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Valuation allowance | $ 41,933 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 05, 2023 | Jun. 04, 2023 | |
Class Of Stock [Line Items] | ||||
Total intrinsic value of options exercised | $ 735 | $ 204 | ||
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] | ||||
Stock option shares outstanding | 1,570,425 | |||
Restricted stock units | ||||
Class Of Stock [Line Items] | ||||
Unrecognized compensation cost related to unvested employee excluding estimated forfeitures | $ 15,833 | |||
Amount expected to recognized over weighted-average period | 1 year 9 months 18 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 | 2,866 | |||
Number of equity awards available for grant | 0 | |||
2014 Share Reserve Plan | ||||
Class Of Stock [Line Items] | ||||
Number of equity awards available for grant | 895,346 | |||
2014 ESPP Plan | ||||
Class Of Stock [Line Items] | ||||
Number of equity awards available for grant | 550,595 | |||
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 | 179,069 | |||
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 | |||
2023 Plan | ||||
Class Of Stock [Line Items] | ||||
Number of equity awards available for grant | 1,623,001 | |||
Number of shares common stock reserved for issuance | 400,000 | |||
2023 Plan | Maximum | ||||
Class Of Stock [Line Items] | ||||
Stock option shares outstanding | 2,950,000 | |||
2014 Plan | ||||
Class Of Stock [Line Items] | ||||
Number of shares common stock reserved for issuance | 2,027,790 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Class Of Stock [Line Items] | ||
Stock Options Outstanding, Beginning balance | 348,284 | |
Stock Options, Exercised | (54,432) | |
Stock Options, Forfeited | (4,125) | |
Stock Options, Expired | (232,363) | |
Stock Options Outstanding, Ending balance | 57,364 | 348,284 |
Stock Options, Vested and exercisable | 57,364 | |
Stock Options, Vested and expected to vest | 57,364 | |
Price per share, Forfeited | $ 44.19 | |
Price per share, Expired | 44.19 | |
Outstanding, Weighted-average exercise price, Beginning balance | 44.21 | |
Weighted-average exercise price, Exercised | 7.03 | |
Weighted-average exercise price, Forfeited | 44.19 | |
Weighted-average exercise price, Expired | 44.19 | |
Outstanding, Weighted-average exercise price, Ending balance | 79.56 | $ 44.21 |
Weighted-average exercise price, Vested and exercisable | 79.56 | |
Weighted-average exercise price, Vested and expected to vest | $ 79.56 | |
Remaining weighted-average contractual term, Outstanding | 3 months 25 days | 5 months 4 days |
Remaining weighted-average contractual term, Vested and exercisable | 3 months 25 days | |
Remaining weighted-average contractual term, Vested and expected to vest | 3 months 25 days | |
Outstanding, Per share average intrinsic value | $ 2.07 | |
Minimum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | $ 1.17 | |
Price per share, Exercised | 1.17 | |
Outstanding, Price per share, Ending balance | 8.37 | 1.17 |
Price per share, Vested and exercisable | 8.37 | |
Price per share, Vested and expected to vest | 8.37 | |
Maximum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 83.3 | |
Price per share, Exercised | 8.37 | |
Outstanding, Price per share, Ending balance | 83.3 | $ 83.3 |
Price per share, Vested and exercisable | 83.3 | |
Price per share, Vested and expected to vest | $ 83.3 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 820,941 |
Granted | 915,314 |
Vested | (194,102) |
Forfeited/canceled | (443,625) |
Unvested restricted stock units/ awards outstanding, Ending balance | 1,098,528 |
Performance and time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 183,197 |
Granted | 536,990 |
Vested | (15,618) |
Forfeited/canceled | (235,745) |
Unvested restricted stock units/ awards outstanding, Ending balance | 468,824 |
Restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 1,004,138 |
Granted | 1,452,304 |
Vested | (209,720) |
Forfeited/canceled | (679,370) |
Unvested restricted stock units/ awards outstanding, Ending balance | 1,567,352 |
Unvested and expected to vest restricted stock units/awards outstanding | 1,138,017 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 32.72 |
Weighted-average grant date fair value per share, Granted | $ / shares | 14.66 |
Weighted-average grant date fair value per share, Vested | $ / shares | 35.74 |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 23.71 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 19.99 |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 20.27 |
Time based restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 786 |
Vested | (786) |
Restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 786 |
Vested | (786) |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 59.55 |
Weighted-average grant date fair value per share, Vested | $ / shares | $ 59.55 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 1,779 | $ 3,500 | $ 8,484 | $ 9,185 |
Restricted stock units and restricted stock awards | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | 1,682 | 3,389 | 8,164 | 8,748 |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 97 | $ 111 | $ 320 | $ 437 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,779 | $ 3,500 | $ 8,484 | $ 9,185 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 164 | 327 | 401 | 863 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 358 | 409 | 1,192 | 1,205 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | (255) | 754 | 1,177 | 2,111 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,512 | $ 2,010 | $ 5,714 | $ 5,006 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | ||
Outstanding purchase orders due within one year with its outside vendors and suppliers | $ 114,900 | |
Payments received in advance of satisfying performance obligations | 2,667 | |
Revenue recognized | 4,899 | |
Lifetime Warranties | Direct-to-Consumer | ||
Commitments And Contingencies [Line Items] | ||
Deferred revenue related to life time warranties | $ 14,301 | $ 16,534 |
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, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product warranty liability at beginning of period | $ 19,913 | $ 13,726 |
Accruals for warranties issued | 6,944 | 10,416 |
Adjustments related to preexisting warranties | 4,111 | 8,234 |
Settlements made (in cash or in kind) | (8,612) | (12,463) |
Product warranty liability at end of period | $ 22,356 | $ 19,913 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $ 1,416 | $ 3,426 |
Accrued liabilities related to accrued severance cost | $ 1,483 | $ 1,483 |
Foreign Currency Exchange Con_2
Foreign Currency Exchange Contracts and Hedging - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) Contract | Sep. 30, 2022 USD ($) Contract | |
Derivatives Fair Value [Line Items] | ||
Unrealized gain (loss) on derivative | $ | $ 53,000 | $ 463,000 |
Number of contract ineffective hedges | Contract | 0 | 3 |
Number of contract designated hedges | Contract | 3 | 3 |
Number of contract non-designated hedges | Contract | 1 | 3 |
Non-Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ | $ 10,414,000 | $ 9,537,000 |
Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ | $ 1,613,000 | $ 9,730,000 |
Minimum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 1 month | |
Maximum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 3 months |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | Sep. 14, 2023 USD ($) |
Physio-Assist SAS | |
Subsequent Event [Line Items] | |
Payments to acquire business | $ 32,250 |