Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | LENSAR, INC. | |
Entity Central Index Key | 0001320350 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,638,819 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | LNSR | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-39473 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0125724 | |
Entity Address, Address Line One | 2800 Discovery Drive | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32826 | |
City Area Code | 888 | |
Local Phone Number | 536-7271 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Product and service revenue | $ 6,072 | $ 6,955 | $ 15,579 | $ 18,895 |
Lease | 1,073 | 1,113 | 2,519 | 3,173 |
Total revenue | 7,145 | 8,068 | 18,098 | 22,068 |
Cost of revenue (exclusive of amortization) | ||||
Lease | 209 | 520 | 905 | 1,787 |
Total cost of revenue | 3,249 | 4,793 | 8,688 | 13,504 |
Operating expenses | ||||
Selling, general and administrative expenses | 6,290 | 3,964 | 15,110 | 12,278 |
Research and development expenses | 2,005 | 4,331 | 5,010 | 6,159 |
Amortization of intangible assets | 313 | 317 | 944 | 910 |
Operating loss | (4,712) | (5,337) | (11,654) | (10,783) |
Other income (expense) | ||||
Interest expense | (65) | (494) | (1,340) | (1,447) |
Other income, net | 14 | 13 | 48 | 41 |
Net loss | (4,763) | (5,818) | (12,946) | (12,189) |
Net loss attributable to common stockholders | $ (4,763) | $ (5,818) | $ (12,946) | $ (12,189) |
Net loss per share attributable to common stockholders | ||||
Basic and diluted | $ (0.64) | $ (5.44) | $ (4.04) | $ (11.39) |
Weighted-average number of shares used in calculation of net loss per share: | ||||
Basic and diluted | 7,464,949 | 1,070,000 | 3,201,650 | 1,070,000 |
Product | ||||
Revenue | ||||
Product and service revenue | $ 5,264 | $ 6,127 | $ 13,360 | $ 16,560 |
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | 2,356 | 3,551 | 5,824 | 9,357 |
Service | ||||
Revenue | ||||
Product and service revenue | 808 | 828 | 2,219 | 2,335 |
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | $ 684 | $ 722 | $ 1,959 | $ 2,360 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 42,701 | $ 4,615 |
Accounts receivable, net of allowance of $23 and $0, respectively | 2,429 | 3,384 |
Notes receivable, net of allowance of $9 and $0, respectively | 451 | 502 |
Inventories | 13,685 | 8,064 |
Prepaid and other current assets | 742 | 618 |
Total current assets | 60,008 | 17,183 |
Property and equipment, net | 793 | 720 |
Equipment under lease, net | 3,038 | 1,431 |
Notes and other receivables, long-term, net of allowance of $11 and $0, respectively | 538 | 827 |
Intangible assets, net | 12,422 | 13,366 |
Other assets | 3,911 | 1,009 |
Total assets | 80,710 | 34,536 |
Current liabilities: | ||
Accounts payable | 2,349 | 1,577 |
Accrued liabilities | 3,586 | 4,778 |
Deferred revenue | 836 | 777 |
Other current liabilities | 1,502 | 697 |
Total current liabilities | 8,273 | 7,829 |
Long-term operating lease liabilities | 3,440 | 333 |
Note payable due to related party | 20,200 | |
Series A Preferred Stock | 36,417 | |
Other long-term liabilities | 51 | 310 |
Total liabilities | 11,764 | 65,089 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity (deficit): | ||
Common stock, par value $0.01 per share, 150,000,000 shares and 1,070,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 10,634,566 shares and 1,070,000 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 106 | 11 |
Additional paid-in capital | 120,005 | 7,621 |
Accumulated deficit | (51,165) | (38,185) |
Total stockholders’ equity (deficit) | 68,946 | (30,553) |
Total liabilities and stockholders’ equity (deficit) | $ 80,710 | $ 34,536 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 23 | $ 0 |
Notes receivable, allowance | 9 | 0 |
Notes and other receivables, long-term, allowance | $ 11 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 1,070,000 |
Common stock, shares issued | 10,634,566 | 1,070,000 |
Common stock, shares outstanding | 10,634,566 | 1,070,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash flows from operating activities | |||
Net loss | $ (12,946) | $ (12,189) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,035 | 2,091 | |
Amortization of intangible assets | 944 | 910 | |
Non-cash operating lease cost | 377 | 402 | |
Provision for bad debts | 28 | (23) | |
Loss on disposal of property and equipment | 27 | ||
Stock-based compensation expense | 3,910 | 73 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 912 | 288 | |
Prepaid and other current assets | (123) | (273) | |
Inventories | (8,126) | (3,092) | |
Accounts payable | 772 | 4,929 | |
Accrued liabilities | (70) | 699 | |
Other | 1,466 | 372 | |
Net cash used in operating activities | (11,794) | (5,813) | |
Cash flows from investing activities | |||
Acquisition of intangibles | (1,700) | ||
Purchase of property and equipment | (261) | (318) | |
Proceeds from sale of property and equipment | 40 | ||
Net cash used in investing activities | (221) | (2,018) | |
Cash flows from financing activities | |||
Contributions from PDL | 2,366 | 2,644 | |
Distributions to PDL | (1,862) | (52) | |
Proceeds from note payable due to related party | 12,400 | 4,225 | |
Payment of contingent consideration | (1,071) | ||
Sale of common stock to PDL | 16,431 | ||
Capital contribution from PDL | 20,666 | ||
Net cash provided by financing activities | 50,001 | 5,746 | |
Net increase (decrease) in cash and restricted cash | 37,986 | (2,085) | |
Cash and restricted cash at beginning of the period | [1] | 4,715 | 3,444 |
Cash and restricted cash at end the period | [2] | 42,701 | 1,359 |
Supplemental cash flow information | |||
Cash paid for interest | 478 | 302 | |
Supplemental schedule of non-cash investing and financing activities | |||
Transfer from equipment under lease, net to inventories | 2,521 | 439 | |
Phantom stock liability settled with common stock | 783 | $ 584 | |
Modification of phantom stock-based awards | 306 | ||
Common stock issued to extinguish Series A Preferred Stock | 37,246 | ||
Common stock issued to extinguish note payable due to related party | $ 32,633 | ||
[1] | Includes restricted cash of $100 as of December 31, 2019 and 2018, respectively. | ||
[2] | Includes restricted cash of zero and $100 as of September 30, 2020 and 2019, respectively. |
CONDENSED STATEMENTS OF CASH _2
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Cash Flows [Abstract] | ||||
Restricted cash | $ 0 | $ 100 | $ 100 | $ 100 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning Balance at Dec. 31, 2018 | $ (20,465) | $ 11 | $ 3,052 | $ (23,528) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 1,070,000 | |||||
Contributions from PDL | 830 | 830 | ||||
Distributions to PDL | (28) | (28) | ||||
Settlement of phantom stock-based awards | 572 | 572 | ||||
Net loss | (2,581) | (2,581) | ||||
Ending Balance at Mar. 31, 2019 | (21,672) | $ 11 | 4,426 | (26,109) | ||
Ending Balance, Shares at Mar. 31, 2019 | 1,070,000 | |||||
Beginning Balance at Dec. 31, 2018 | (20,465) | $ 11 | 3,052 | (23,528) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 1,070,000 | |||||
Net loss | (12,189) | |||||
Ending Balance at Sep. 30, 2019 | (29,405) | $ 11 | 6,301 | (35,717) | ||
Ending Balance, Shares at Sep. 30, 2019 | 1,070,000 | |||||
Beginning Balance at Mar. 31, 2019 | (21,672) | $ 11 | 4,426 | (26,109) | ||
Beginning Balance, Shares at Mar. 31, 2019 | 1,070,000 | |||||
Contributions from PDL | 1,036 | 1,036 | ||||
Distributions to PDL | (24) | (24) | ||||
Settlement of phantom stock-based awards | 12 | 12 | ||||
Net loss | (3,790) | (3,790) | ||||
Ending Balance at Jun. 30, 2019 | (24,438) | $ 11 | 5,450 | (29,899) | ||
Ending Balance, Shares at Jun. 30, 2019 | 1,070,000 | |||||
Contributions from PDL | 851 | 851 | ||||
Net loss | (5,818) | (5,818) | ||||
Ending Balance at Sep. 30, 2019 | (29,405) | $ 11 | 6,301 | (35,717) | ||
Ending Balance, Shares at Sep. 30, 2019 | 1,070,000 | |||||
Beginning Balance at Dec. 31, 2019 | $ (30,553) | $ (34) | $ 11 | 7,621 | (38,185) | $ (34) |
Beginning Balance, Shares at Dec. 31, 2019 | 1,070,000 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Contributions from PDL | $ 1,519 | 1,519 | ||||
Distributions to PDL | (97) | (97) | ||||
Settlement of phantom stock-based awards | 783 | 783 | ||||
Net loss | (3,686) | (3,686) | ||||
Ending Balance at Mar. 31, 2020 | (32,068) | $ 11 | 9,826 | (41,905) | ||
Ending Balance, Shares at Mar. 31, 2020 | 1,070,000 | |||||
Beginning Balance at Dec. 31, 2019 | $ (30,553) | $ (34) | $ 11 | 7,621 | (38,185) | $ (34) |
Beginning Balance, Shares at Dec. 31, 2019 | 1,070,000 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||
Net loss | $ (12,946) | |||||
Ending Balance at Sep. 30, 2020 | 68,946 | $ 106 | 120,005 | (51,165) | ||
Ending Balance, Shares at Sep. 30, 2020 | 10,634,566 | |||||
Beginning Balance at Mar. 31, 2020 | (32,068) | $ 11 | 9,826 | (41,905) | ||
Beginning Balance, Shares at Mar. 31, 2020 | 1,070,000 | |||||
Contributions from PDL | 290 | 290 | ||||
Net loss | (4,497) | (4,497) | ||||
Ending Balance at Jun. 30, 2020 | (36,275) | $ 11 | 10,116 | (46,402) | ||
Ending Balance, Shares at Jun. 30, 2020 | 1,070,000 | |||||
Impact from recapitalization transactions | 69,879 | $ 62 | 69,817 | |||
Impact from recapitalization transactions, Shares | 6,221,069 | |||||
Sale of common stock to PDL | 16,431 | $ 15 | 16,416 | |||
Sale of common stock to PDL, Shares | 1,496,210 | |||||
Capital contribution from PDL | 20,666 | 20,666 | ||||
Issuance of common stock | $ 18 | (18) | ||||
Issuance of common stock, Shares | 1,847,298 | |||||
Stock-based compensation under the 2020 Plan | 3,857 | 3,857 | ||||
Contributions from PDL | 609 | 609 | ||||
Distributions to PDL | (1,764) | (1,764) | ||||
Modification of phantom stock-based awards | 306 | 306 | ||||
Cancellation of fractional shares due to reverse stock split | (11) | |||||
Net loss | (4,763) | (4,763) | ||||
Ending Balance at Sep. 30, 2020 | $ 68,946 | $ 106 | $ 120,005 | $ (51,165) | ||
Ending Balance, Shares at Sep. 30, 2020 | 10,634,566 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Organization LENSAR, Inc. (“LENSAR” or the “Company”) is a global medical device business focused on the design, development and commercialization of advanced technology for the treatment of cataracts and management of astigmatisms to achieve improved vision outcomes for patients. The Company’s revenue is derived from the sale and lease of the LENSAR Laser System, which may include equipment, a consumable referred to as the Patient Interface Devices (“PIDs”), procedure licenses, training, installation, limited warranty and maintenance agreements through extended warranty. In September 2020, the Company’s parent entity, PDL BioPharma, Inc. (“PDL” or the “Parent”) announced its plans to pursue a separation and distribution of its medical device segment, which is solely comprised of its majority owned subsidiary LENSAR. On October 1, 2020, PDL completed the planned spin-off in the form of a dividend involving the distribution of substantially all outstanding shares of LENSAR common stock owned by PDL to holders of PDL common stock (“Spin-Off”) and LENSAR became a stand-alone publicly traded company. Refer to Note 15, Subsequent Events On September 10, 2020, the Company amended its amended and restated certificate of incorporation to effect a one-for-nine reverse stock split of the Company’s common stock. The par value of the Company’s common stock and the total number of shares of common stock that the Company is authorized to issue remained unchanged. All issued and outstanding shares of common stock, other common stock share numbers, equity awards and per share amounts contained in the condensed financial statements have been retroactively adjusted to give effect to the reverse stock split for all periods presented. The Company has incurred recurring losses and operating cash outflows since its inception and as of September 30, 2020 had an accumulated deficit of $51,165. The Company expects to continue to incur losses and cash outflows from operating activities for the foreseeable future. In addition, the Company’s results of operations, financial condition and cash flows have been adversely affected by the COVID-19 pandemic. The extent to which the COVID-19 outbreak will further negatively impact the Company’s business or operating results cannot be determined with certainty at this time. In geographies in which the Company or its customers, partners and service providers operate, health concerns as well as political or governmental developments in response to COVID-19 could result in further economic, social or labor instability or prolonged contractions in the industries in which the Company’s customers or partners operate, slow the sales process, result in customers not purchasing or renewing the Company’s products or failing to make payments, and could otherwise have a material adverse effect on the Company’s business and results of operations and financial condition. During the three months ended September 30, 2020, PDL and the Company entered into a series of recapitalization transactions and capital contribution transactions as described below. Management believes the Company’s cash on hand provides sufficient liquidity to meet the Company’s projected obligations for a period of at least twelve months from the date of issuance of the financial statements. Description of the Recapitalization Transactions and Capital Contributions On July 10, 2020, the Company amended and restated its certificate of incorporation to, among other things, (a) increase the number of shares of common stock ($0.01 par value per share) the Company is authorized to issue to 150,000,000 shares and (b) issue to PDL a total of 3,414,825 shares of the Company’s common stock in exchange for the extinguishment of all 30,000 shares of the Company’s Series A Preferred Stock, including any accrued and unpaid dividends thereon (the “Series A Preferred Stock Recapitalization”). As of September 30, 2020, the Company does not have any shares of Series A Preferred Stock outstanding. On July 13, 2020, the Company and PDL entered into a contribution and exchange agreement whereby the Company issued to PDL a total of 2,806,244 shares of the Company’s common stock in exchange for the extinguishment of the $32,600 outstanding that the Company owed PDL under the loan agreement (the “Note Payable Recapitalization”). The Series A Preferred Stock Recapitalization, together with the Note Payable Recapitalization, is defined as the “Recapitalization Transactions”. The Recapitalization Transactions resulted in the issuance of 6,221,069 shares of common stock with a fair value of $67,188 to extinguish an aggregate of $69,879 carrying value of liabilities recognized for the Series A Preferred Stock inclusive of accumulated dividend and loans outstanding under the loan agreement inclusive of accrued interest, resulting in an approximate $2,691 extinguishment gain recorded in additional paid-in capital during the three months ended September 30, 2020. The estimated fair value of the common stock was determined by the board of directors, with input from management. In the absence of a public trading market for the common stock, the Company developed an estimate of the fair value of the common stock based on the information known as of the date of the Recapitalization Transactions, upon a review of any recent events and their potential impact on the estimated fair value, and valuations from an independent third-party valuation firm. Valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation, or the Practice Aid. In evaluating the fair value of common stock, the Company first established the enterprise value of the Company using generally accepted valuation methodologies including discounted cash flow analysis, comparable public company analysis and comparable acquisitions analysis. Then the Company allocated the equity value among the fully diluted shares outstanding as a result of the Recapitalization Transactions. On July 21, 2020, the Company issued an additional 740,740 shares of common stock to PDL in exchange for $8,000 in cash (the “Capital Contribution”). On August 4, 2020, PDL committed that through August 5, 2021 it would provide financial support of up to $20,000 to support the operating, investing and financing activities of the Company. On August 24, 2020, the Company received cash of $29,000 from PDL (the “Additional Capital Contribution”). The Company issued 746,767 shares of common stock to PDL in exchange for $8,334. The remaining $20,666 was a cash contribution from PDL. In connection with the Additional Capital Contribution, PDL’s financial support under its commitment on August 4, 2020 was fulfilled. On September 29, 2020, the Company issued an additional 8,703 shares of additional common stock to PDL in exchange for $97 in cash. Basis of Presentation The condensed financial statements of the Company are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information and, therefore, omit or condense certain footnotes and other information normally included. The condensed financial statements include all adjustments (consisting only of normal recurring adjustments), that management of the Company believes are necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year. The accompanying unaudited condensed financial statements and related financial information should be read in conjunction with the Company’s annual audited financial statements and the related notes thereto for the fiscal year ended December 31, 2019, included in the information statement included as Exhibit 99.9 to the Registration Statement on Form 10, as amended and filed with the SEC on September 14, 2020. These condensed financial statements were prepared on a stand-alone basis derived from the unaudited condensed consolidated financial statements and accounting records of PDL and are presented as if LENSAR had been operating as a stand-alone company for all periods presented. These condensed financial statements exclude the assets, liabilities, revenue and expenses directly attributable to LENSAR’s wholly owned subsidiary, PDL Investment Holdings, LLC (“PDLIH”). On August 20, 2020, the Company distributed 100% of its ownership interest in its wholly owned subsidiary, PDLIH, to PDL. This distribution will not result in US Federal or State income tax effects due to an election made by the Company and PDL following the Company’s separation from PDL under Internal Revenue Code (“IRC”) Section 336(e) which provides for a recharacterization of the distribution of stock as a deemed sale of assets for tax purposes. This election was made following the Spin-Off of all outstanding shares of LENSAR common stock owned by PDL to holders of PDL common stock. Refer to Note 15, Subsequent Events The assets, liabilities, revenue and expenses directly attributable to the Company’s operations have been reflected in these condensed financial statements on a historical cost basis, as included in the consolidated financial statements of PDL. The condensed statements of operations include expenses for certain corporate support functions that are provided by PDL such as administration and organizational oversight; including employee benefits, finance and accounting, treasury and risk management, professional and legal services, among others. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a proportional basis of expenses of the Company and PDL. Management of the Company and PDL considered the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by the Company during the periods presented. These allocations may not be reflective of the expenses that would have been incurred had the Company operated as a separate, unaffiliated entity apart from PDL. Actual costs that would have been incurred if LENSAR had been a stand-alone, public company would depend on multiple factors, including the chosen organizational structure and strategic decisions made in various areas, including information technology and infrastructure. Following its separation on October 1, 2020, the Company expects to perform these functions using its own resources or purchased services. For an interim period in 2021, however, some of these functions will continue to be provided by PDL as the Company entered into a transition service agreement with PDL in connection with the separation. Refer to Note 15, Subsequent Events The Company was historically funded as part of PDL’s treasury program. Cash and restricted cash managed through bank accounts legally owned by PDL at the corporate level were not attributable to the Company for any of the periods presented. Only cash and restricted cash legally owned by the Company are reflected in the condensed balance sheets. All significant transactions between the Company and PDL are considered to be effectively settled for cash at the time the transaction is recorded, unless otherwise noted. Such transfers of cash to and from PDL have been included in these condensed financial statements as a component of equity in the condensed balance sheets and as a financing activity in the condensed statements of cash flows, unless otherwise noted. During the periods presented in these condensed financial statements, the operations of the Company were included in the consolidated U.S. federal and state income tax returns filed by PDL. Income tax expense and other income tax related information contained in the condensed financial statements are presented on a separate return basis as if the Company had filed its own tax returns. The deferred income taxes of the Company as presented in these condensed financial statements, including tax attributes such as net operating losses or credit carryforwards, are not indicative of the deferred tax assets available to the Company in the future as described within Note 15, Subsequent Events Income Taxes In addition, as a result of the impact of COVID-19 as discussed above, the Company determined certain impairment triggers had occurred during the three months ended March 31, 2020 related to the Company’s finite-lived tangible and intangible assets. Accordingly, the Company analyzed undiscounted cash flows at the asset group level for certain finite-lived tangible and intangible assets as of March 31, 2020. Based on that undiscounted cash flow analysis, the Company determined that estimated undiscounted future cash flows substantially exceeded their net carrying values, and, therefore, as of March 31, 2020, the Company’s finite-lived tangible and intangible assets were not impaired. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Other than policies noted below, there have been no significant changes to the significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies Accounting Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes to the condensed financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, cost allocations from PDL, revenue recognition and allowance for doubtful accounts, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, operating lease right-of-use assets and liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities. Management evaluates its estimates on an ongoing basis as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including revenue, expenses, reserves and allowances, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat it, as well as the economic impact on domestic and international customers and markets. The Company has made estimates of the impact of COVID-19 within its condensed financial statements and there may be changes to those estimates in future periods. As of the date of issuance of these unaudited condensed interim financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update estimates, judgments or revise the carrying value of any assets or liabilities. Fair Value Measurement The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or the Company paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: • Level 1—based on quoted market prices in active markets for identical assets and liabilities. • Level 2—based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. Fair value measurements are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The carrying value of the Company’s cash, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate the fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates the fair value based on the associated credit risk. Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments Accounts and Notes Receivable The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends, changes in customer payment patterns, and possible impact of current conditions and reasonable forecasts not already reflected in historical loss information when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely, and the Company ceases collection efforts. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently-asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract. The Company elected to account for lease concessions related to the effects of the COVID-19 pandemic in accordance with the COVID-19 Q&A. LENSAR entered into agreements with 23 customers through which LENSAR agreed to waive monthly rental fees ranging from one to three months. A total of zero and $335 in lease revenue was not recognized during the three and nine months ended September 30, 2020, respectively, related to the waived lease payments. There were no concessions provided for any non-lease components of the lease arrangements. In return for these concessions the related contracts were extended by the same number of months waived. No amounts of accounts receivable or notes receivable were deemed uncollectible due to COVID-19 as of September 30, 2020; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in ASU No. 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not expect this guidance to have a significant impact on its financial statements and related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 3. Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes the Company’s product and service revenue disaggregated by geographic region, which is determined based on customer location, for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 3,119 $ 2,986 $ 7,559 $ 7,644 South Korea 642 2,018 2,048 5,840 Europe 761 697 2,301 2,422 Asia (excluding South Korea) 1,463 1,181 3,447 2,729 Other 87 73 224 260 Total 1 $ 6,072 $ 6,955 $ 15,579 $ 18,895 1 Leases Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers: Classification As of September 30, 2020 As of December 31, 2019 Accounts receivable, current Accounts receivable, net $ 2,429 $ 3,384 Notes receivable, current Notes receivable, net $ 451 $ 502 Notes receivable, long-term Notes and other receivables, long-term, net $ 538 $ 827 Contract liability, current Deferred revenue $ 836 $ 777 Contract liability, non-current Other long-term liabilities $ 47 $ 118 Accounts Accounts receivables, net, include amounts billed and due from customers. The amounts due are stated at their net estimated realizable value and are classified as current or noncurrent based on the timing of when the Company expects to receive payment. Most customers are on pre-paid or 30-day payment terms, depending on the product purchased. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer credit worthiness, historical payment experience, the age of outstanding receivables, collateral to the extent applicable and reflects the possible impact of current conditions and reasonable forecasts not already reflected in historical loss information. The following table summarizes the activity in the allowance for accounts receivable: Amount Accounts receivable, allowance for doubtful accounts as of January 1, 2020 $ — Impact of adoption of ASC 326 15 Provision for doubtful accounts 28 Write-offs (20 ) Accounts receivable, allowance for doubtful accounts as of September 30, 2020 $ 23 Notes Receivables, Net – Notes receivable, net includes amounts billed and due from customers under extended payment terms with a significant financing component. Interest rates on notes receivable range from 5.0% to 5.75%. The Company recorded interest income on notes receivable during the three months ended September 30, 2020 and 2019 of $13 and $12, respectively, and for the nine months ended September 30, 2020 and September 30, 2019 of $42 and $38, respectively, in Other income, net in its condensed statements of operations. The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for doubtful accounts as of January 1, 2020 $ — Impact of adoption of ASC 326 19 Provision for doubtful accounts 1 Write-offs — Notes receivable, allowance for doubtful accounts as of September 30, 2020 $ 20 Contract Liabilities – The Company’s contract liabilities consist of deferred revenue related to services and products sold to customers for which the performance obligation has not been completed by the Company. The Company classifies deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the Company’s condensed balance sheets. The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2018 $ 994 Billings not yet recognized as revenue 619 Beginning contract liabilities recognized as revenue (687 ) Contract liabilities as of September 30, 2019 $ 926 Contract liabilities as of December 31, 2019 $ 895 Billings not yet recognized as revenue 658 Beginning contract liabilities recognized as revenue (670 ) Contract liabilities as of September 30, 2020 $ 883 Transaction Price Allocated to Future Performance Obligations At September 30, 2020, the revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $9,159. The Company expects to satisfy its remaining performance obligations over the next four years, with $4,811 to be satisfied in the next twelve months, $2,112 to be satisfied in the next two years, and $2,236 to be satisfied thereafter. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected lengths of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for the products delivered or services performed. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventory balances were as follows: As of September 30, 2020 As of December 31, 2019 Finished Goods $ 7,806 $ 3,156 Work-in-progress 2,039 1,170 Raw Materials 3,840 3,738 Total $ 13,685 $ 8,064 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 5. Leases Lessor Arrangements The Company has operating leases for the LENSAR Laser System. The Company’s leases have remaining lease terms of less than one year to four years. Lease revenue for the three and nine months ended September 30, 2020 and 2019 was as follows: Three Months ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Lease revenue $ 1,073 $ 1,113 $ 2,519 $ 3,173 Lessee Arrangements The Company has an operating lease for its corporate office and manufacturing facility. On August 20, 2020, the Company amended its lease pursuant to which the term of the lease was extended through November 30, 2027 commencing on September 1, 2020. The lease amendment constitutes a modification as it extends the original lease term, which requires evaluation of the remeasurement of the lease liability and corresponding right-of-use-asset. The reassessment resulted in continuing to classify the lease as an operating lease and remeasurement of the lease liability on the basis of the extended lease term and the incremental borrowing rate at the effective date of modification of 10%. The remeasurement for the modification resulted in an increase to the lease liability and the right-of-use-asset of Following the change, the Company's maturities of lease liabilities as of September 30, 2020 were as follows: Fiscal Year Amount Remainder of 2020 $ 43 2021 522 2022 537 2023 552 2024 and thereafter 2,309 Total operating lease payments 3,963 Less: imputed interest (118 ) Total operating lease liabilities $ 3,845 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. Intangible Assets In April 2019, LENSAR acquired certain intellectual property from a third-party for $2,000 in cash and contingent obligations to pay a $300 milestone payment and royalties upon the completion of certain events. The $300 milestone payment was paid prior to December 31, 2019. The components of intangible assets were as follows: As of September 30, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ (1,235 ) $ 3,057 $ 4,292 $ (951 ) $ 3,341 Acquired technology 1,3 11,500 (2,316 ) 9,184 11,500 (1,741 ) 9,759 Acquired trademarks 1 570 (389 ) 181 570 (304 ) 266 $ 16,362 $ (3,940 ) $ 12,422 $ 16,362 $ (2,996 ) $ 13,366 1 Certain intangible assets were established upon PDL’s acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are amortized on a straight-line basis or a double declining basis over their estimated useful lives up to 20 years based on the method that better represents the economic benefits to be obtained. 2 LENSAR acquired certain intangible assets for customer relationships from a domestic distributor in an asset acquisition, which are being amortized on a straight-line basis over a period of 10 years. 3 LENSAR acquired certain intangible assets from a medical technology company in an asset acquisition, which are being amortized on a straight-line basis over a period of 15 years. Amortization expense for three months ended September 30, 2020 and 2019 was $313 and $317, respectively, and for the nine months ended September 30, 2020 and 2019 $944 and $910, respectively. Based on the intangible assets recorded at September 30, 2020, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows: Fiscal Year Amount 2020 (Remaining three months) $ 312 2021 1,240 2022 1,149 2023 1,097 2024 1,085 Thereafter 7,539 Total remaining estimated amortization expense $ 12,422 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 7. Accrued Liabilities Accrued liabilities consist of the following: As of September 30, 2020 As of December 31, 2019 Compensation $ 2,370 $ 3,972 Warranty 52 58 Other 1,164 748 Total $ 3,586 $ 4,778 |
Series A Preferred Stock
Series A Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Series A Preferred Stock | Note 8. Series A Preferred Stock The Company authorized and issued 30,000 shares of Series A Preferred Stock, par value $0.01 to PDL in May 2017. The Series A Preferred Stock had an aggregate liquidation preference of $30,000 (“stated value”), plus all accumulated and unpaid dividends (whether or not declared). Dividends on each share of Series A Preferred Stock initially accrued on an annual basis at a rate of 15.0% per annum of the stated value, and subsequently decreased to 5.0% per annum of the stated value effective January 1, 2019 as amended in December 2018. Dividends were to be payable when and if declared by the board of directors. No dividends were declared by the board of directors from the time of issuance to the Series A Preferred Stock Recapitalization. The Series A Preferred Stock was accounted for as a liability on the Company’s condensed balance sheets because it was mandatorily redeemable. Upon completion of the Series A Preferred Stock Recapitalization, the Company does not currently have any shares of Series A Preferred Stock outstanding. See Note 1, Overview and Basis of Presentation . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Purchase Obligation LENSAR entered into various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $2,543 over the next nine months. LENSAR expects to meet these requirements. LENSAR made purchases of $1,677 and zero under these supply agreements during the nine months ended September 30, 2020 and 2019, respectively. Royalty and Milestone Payments In connection with the acquisition of certain intellectual property the Company could be required to make milestone payments in the amount of $2,400 which are contingent upon the regulatory approval and commercialization of the next generation system. In addition, the Company acquired certain intellectual property, which if used in the development of the next generation system could result in additional royalty payments. Legal Matters The medical device market in which LENSAR participates is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Management believes that there are currently no claims or legal actions that would reasonably be expected to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Note 10. Stockholders’ Equity (Deficit) Common Stock The Company has a single class of common stock in which stockholders are entitled to one vote for each share of common stock. No cash dividend was declared on common stock during the three and nine months ended September 30, 2020 and 2019. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 11. Stock-Based Compensation Phantom Stock Plan LENSAR had a phantom stock plan under which it granted phantom stock units to LENSAR directors and employees. In connection with the Company’s issuance of restricted stock awards under the 2020 Plan (as defined below), all remaining outstanding awards under the Phantom Stock Plan were cancelled, and no further awards are outstanding under such plan. As such, the liability recorded for unvested phantom stock units was remeasured at fair value immediately prior to the modification on July 22, 2020, which resulted in a decrease in fair value of $108. The fair value of $306 was reclassified from Accrued liabilities to Additional paid-in capital on the modification date. T he fair value of the underlying common stock was determined using preliminary valuation techniques with the most reliable information currently available. The following table summarizes the phantom share activity during the nine months ended September 30, 2020: Number of Units Weighted- average grant date fair value per share Non-vested at beginning of year 42,800 $ 6.39 Granted — — Vested (5,350 ) 6.39 Forfeited — — Cancelled (37,450 ) 6.39 Non-vested at end of the period — $ — Stock-Based Incentive The 2020 Plan On July 9, 2020, the Board of Directors approved the LENSAR Inc. 2020 Incentive Award Plan (the “2020 Plan”). Under the 2020 Plan, the Company is authorized to issue up to 3,333,333 shares in the form of stock options, restricted stock, restricted stock unit awards and other stock-based awards. The amount and terms of grants are determined by the Company’s Board of Directors or a duly authorized committee thereof. Participants must pay the Company, or make provisions to pay, any required withholding taxes by the date of the event creating the tax liability. Participants may satisfy the tax liability in cash or in stock. On July 22, 2020, the Board of Directors approved the grants of 1,847,298 shares of restricted stock in connection with the proposed Spin-Off to certain individuals under the 2020 Plan in consideration of future services to be rendered to the Company. The aggregate grant date fair value of these restricted stock awards was determined to be $19,951 or $10.80 per share based on the fair value of the underlying common stock using preliminary valuation techniques with the most reliable information currently available. The vesting schedule of the restricted stock awards is (i) 40% vest on the later of three months following the completion of the proposed Spin-Off or six months following the grant date (provided the proposed Spin-Off has occurred prior to such date), (ii) 30% vest 18 months following grant date, and (iii) 30% vest 36 months following grant date. The fair value of awards granted under the 2020 Plan will be recognized using a straight-line attribution method over the service period, except for portions of the award subject to performance conditions which will be recognized ratably over the service period for each separate performance vesting tranche. Awards subject to the performance condition were considered probable of vesting as of September 30, 2020. The weighted-average grant date fair value for restricted stock awards granted under the 2020 Plan for the three and nine months ended September 30, 2020 was $10.80 and $10.80, respectively. At September 30, 2020, there was approximately $16,101 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.4 years. The following table sets forth the total stock-based compensation expense recognized under the Phantom Stock Plan and the 2020 Plan in the Company’s condensed statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue – product $ 130 $ 7 $ 130 $ 6 Cost of revenue – service 70 3 70 3 Selling, general and administrative expenses 3,179 122 3,267 271 Research and development expenses 370 15 370 22 Total $ 3,749 $ 147 $ 3,837 $ 302 PDL Equity Incentive Plan PDL has equity incentive plans under which it grants equity awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance share and performance unit awards, deferred compensation awards and other stock-based or cash-based awards. Stock-based compensation expense related to the PDL awards for the three months ended September 30, 2020 and 2019 was approximately $15 and $28 and for the nine months ended September 30, 2020 and 2019 was approximately $53 and $73 recorded in selling, general, and administrative expenses, respectively. The total fair value of restricted stock awards vested during the nine months ended September 30, 2020 and 2019 was approximately $65 and zero, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The Company is included in the consolidated federal tax return of PDL until the date of the Spin-Off. Refer to Note 15, Subsequent Events Income tax expense/(benefit) from continuing operations for the three and nine months ended September 30, 2020 and 2019, was zero in each period, which resulted primarily from maintaining a full valuation allowance against the Company’s deferred tax assets. In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The enactment of the CARES Act did not have a material effect on current income tax expense or the realizability of deferred income tax assets. The Company will monitor additional guidance and impact that the CARES Act and other potential legislation may have on its income taxes. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 13. Net Loss per Share The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted net loss per share calculations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net loss $ (4,763 ) $ (5,818 ) $ (12,946 ) $ (12,189 ) Less: Cumulative dividends in excess of interest expense on Series A Preferred Stock — — — — Net loss attributable to common stockholders $ (4,763 ) $ (5,818 ) $ (12,946 ) $ (12,189 ) Weighted average number of shares of common stock 7,464,949 1,070,000 3,201,650 1,070,000 Basic and diluted net loss per share $ (0.64 ) $ (5.44 ) $ (4.04 ) $ (11.39 ) The Company applied the two-class method for calculating net loss per share. The two-class method is an allocation of losses between the holders of common stock and the Company’s participating securities. Net loss attributable to common stockholders is computed by deducting the dividends accumulated for the period on the Series A Preferred Stock from the Company’s net loss. Interest expense on the Series A Preferred Stock is calculated using the effective interest method. The adjustment, if any, to the net loss is the portion of the cumulative dividends in excess of the interest expense on the Series A Preferred Stock. There were no cumulative dividends in excess of interest expense during the three and nine months ended September 30, 2020 and 2019. The Company’s basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. As the Company has reported a net loss for all periods presented, basic and diluted net loss per share attributable to common stockholders are the same for those periods. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions In the ordinary course of business, the Company entered into transactions with PDL. Corporate Allocations The Company’s condensed financial statements include expenses of $637 and $917 for the three months ended September 30, 2020 and 2019, respectively and $3,387 and $3,178 for the nine months ended September 30, 2020 and 2019, respectively, allocated to the Company by PDL for corporate support functions that are provided by PDL such as administration and organizational oversight; including employee benefits, finance and accounting, treasury and risk management, professional and legal services, among others. Allocated costs are included within selling, general and administrative expenses in the accompanying condensed statements of operations. A portion of these allocated costs related to certain cross charges that have historically been cash settled and included in the condensed statements of cash flows as operating activities. As of September 30, 2020 and December 31, 2019, $1,098 and $142, respectively, related to the allocation of corporate costs are included in other current liabilities as those amounts are to be cash settled. No costs related to the separation of LENSAR incurred by PDL have been allocated to the Company for the three and nine months ended September 30, 2020. Note Payable to Related Party In May 2017, the Company entered into a loan agreement with PDL. Under the loan agreement, the maximum aggregate principal amount that LENSAR can draw from the loan agreement is $25,600. On April 15, 2020, the Company and PDL, upon mutual agreement, increased the credit limit that LENSAR can draw from PDL under the loan agreement by $7,000 to a total of $32,600. LENSAR drew an additional $12,400 under the loan agreement during the nine months ended September 30, 2020. Immediately before the Note Payable Recapitalization, the Company had drawn the full amount under the amended loan agreement. The interest expense incurred during the three months ended September 30, 2020 and 2019 was $33 and $112, respectively, and is included in interest expense. The interest expense incurred during the nine months ended September 30, 2020 and 2019 was $511 and $302, respectively, and is included in interest expense. Upon completion of the Note Payable Recapitalization, as of September 30, 2020 the Company does not have a Note payable due to related party. See Note 1, Overview and Basis of Presentation Series A Preferred Stock Refer to Note 8, Series A Preferred Stock Agreements with PDL In connection with the completion of the Spin-Off, the Company entered into several agreements with PDL, each dated September 30, 2020, that, among other things, provide a framework for the Company’s relationship with PDL after the Distribution, including the following (collectively, the “Spin Agreements”): • Separation and Distribution Agreement: The Separation and Distribution Agreement set forth the agreements between PDL and the Company regarding the principal transactions necessary to separate the Company from PDL. It also set forth other agreements that govern certain aspects of the relationship with PDL after the completion of the Spin-Off. In general, neither the Company nor PDL will make any representations or warranties regarding the transactions contemplated by the Separation and Distribution Agreement or the respective businesses, assets, liabilities, condition or prospects of PDL or the Company. • Transition Services Agreement: The Transition Services Agreement provides that for a limited time, PDL is to provide services (through various separate work streams) to LENSAR on an interim basis, ranging in duration from two to nine months, with the majority of such services being provided for a duration of six months. The support functions include accounting and other financial functions. The agreed upon charges for such services are either (i) generally intended to allow PDL to recover all out-of-pocket costs and expenses, along with a pre-determined mark-up of such out-of-pocket costs and expenses or (ii) where available, a benchmark market based rate for the service. • Tax Matters Agreement: The Tax Matters Agreement generally governs the respective rights, responsibilities and obligations of LENSAR and PDL with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events On October 1, 2020, PDL completed the previously planned Spin-Off in the form of a dividend involving the distribution of all outstanding shares of LENSAR common stock owned by PDL to holders of PDL common stock (“Distribution”). The Distribution was made to PDL’s stockholders of record as of the close of business on September 22, 2020 (the “Record Date”) and such stockholders received 0.075879 shares of LENSAR common stock for one PDL common share held as of close of business on the Record Date. Prior to the Distribution, PDL owned approximately 81.5% of LENSAR common stock. Following the completion of the distribution, PDL does not own any equity interest in LENSAR. During the periods presented in these condensed financial statements, the operations of the Company were included in the consolidated U.S. federal and state income tax returns filed by PDL. For income tax purposes, LENSAR and PDL jointly made an election under IRC Section 336(e) which provides for a recharacterization of the Distribution of stock as a deemed sale of assets. This election was made following the Spin-Off and is effective as of October 2, 2020. As a result of this election, LENSAR’s research and development credits and net operating losses will remain with PDL, and LENSAR will record a tax-basis step up adjustment to reflect the fair value of all assets and liabilities on the date of the Spin-Off for tax purposes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes to the condensed financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, cost allocations from PDL, revenue recognition and allowance for doubtful accounts, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, operating lease right-of-use assets and liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities. Management evaluates its estimates on an ongoing basis as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including revenue, expenses, reserves and allowances, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat it, as well as the economic impact on domestic and international customers and markets. The Company has made estimates of the impact of COVID-19 within its condensed financial statements and there may be changes to those estimates in future periods. |
Fair Value Measurement | Fair Value Measurement The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or the Company paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: • Level 1—based on quoted market prices in active markets for identical assets and liabilities. • Level 2—based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. Fair value measurements are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The carrying value of the Company’s cash, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate the fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates the fair value based on the associated credit risk. |
Adopted Accounting Pronouncement | Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments Accounts and Notes Receivable The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends, changes in customer payment patterns, and possible impact of current conditions and reasonable forecasts not already reflected in historical loss information when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely, and the Company ceases collection efforts. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently-asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract. The Company elected to account for lease concessions related to the effects of the COVID-19 pandemic in accordance with the COVID-19 Q&A. LENSAR entered into agreements with 23 customers through which LENSAR agreed to waive monthly rental fees ranging from one to three months. A total of zero and $335 in lease revenue was not recognized during the three and nine months ended September 30, 2020, respectively, related to the waived lease payments. There were no concessions provided for any non-lease components of the lease arrangements. In return for these concessions the related contracts were extended by the same number of months waived. No amounts of accounts receivable or notes receivable were deemed uncollectible due to COVID-19 as of September 30, 2020; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in ASU No. 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not expect this guidance to have a significant impact on its financial statements and related disclosures. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Product and Service Revenue Disaggregated by Geographic Region | The following table summarizes the Company’s product and service revenue disaggregated by geographic region, which is determined based on customer location, for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 3,119 $ 2,986 $ 7,559 $ 7,644 South Korea 642 2,018 2,048 5,840 Europe 761 697 2,301 2,422 Asia (excluding South Korea) 1,463 1,181 3,447 2,729 Other 87 73 224 260 Total 1 $ 6,072 $ 6,955 $ 15,579 $ 18,895 |
Summary of Information about Receivables and Contract Liabilities from Contracts with Customers | The following table provides information about receivables and contract liabilities from contracts with customers: Classification As of September 30, 2020 As of December 31, 2019 Accounts receivable, current Accounts receivable, net $ 2,429 $ 3,384 Notes receivable, current Notes receivable, net $ 451 $ 502 Notes receivable, long-term Notes and other receivables, long-term, net $ 538 $ 827 Contract liability, current Deferred revenue $ 836 $ 777 Contract liability, non-current Other long-term liabilities $ 47 $ 118 The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2018 $ 994 Billings not yet recognized as revenue 619 Beginning contract liabilities recognized as revenue (687 ) Contract liabilities as of September 30, 2019 $ 926 Contract liabilities as of December 31, 2019 $ 895 Billings not yet recognized as revenue 658 Beginning contract liabilities recognized as revenue (670 ) Contract liabilities as of September 30, 2020 $ 883 |
Summary of Allowance for Accounts Receivable | The following table summarizes the activity in the allowance for accounts receivable: Amount Accounts receivable, allowance for doubtful accounts as of January 1, 2020 $ — Impact of adoption of ASC 326 15 Provision for doubtful accounts 28 Write-offs (20 ) Accounts receivable, allowance for doubtful accounts as of September 30, 2020 $ 23 |
Summary of Allowance for Notes Receivable | The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for doubtful accounts as of January 1, 2020 $ — Impact of adoption of ASC 326 19 Provision for doubtful accounts 1 Write-offs — Notes receivable, allowance for doubtful accounts as of September 30, 2020 $ 20 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: As of September 30, 2020 As of December 31, 2019 Finished Goods $ 7,806 $ 3,156 Work-in-progress 2,039 1,170 Raw Materials 3,840 3,738 Total $ 13,685 $ 8,064 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Revenue | Lease revenue for the three and nine months ended September 30, 2020 and 2019 was as follows: Three Months ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Lease revenue $ 1,073 $ 1,113 $ 2,519 $ 3,173 |
Maturities of Lease Liabilities | Following the change, the Company's maturities of lease liabilities as of September 30, 2020 were as follows: Fiscal Year Amount Remainder of 2020 $ 43 2021 522 2022 537 2023 552 2024 and thereafter 2,309 Total operating lease payments 3,963 Less: imputed interest (118 ) Total operating lease liabilities $ 3,845 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The components of intangible assets were as follows: As of September 30, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ (1,235 ) $ 3,057 $ 4,292 $ (951 ) $ 3,341 Acquired technology 1,3 11,500 (2,316 ) 9,184 11,500 (1,741 ) 9,759 Acquired trademarks 1 570 (389 ) 181 570 (304 ) 266 $ 16,362 $ (3,940 ) $ 12,422 $ 16,362 $ (2,996 ) $ 13,366 1 Certain intangible assets were established upon PDL’s acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are amortized on a straight-line basis or a double declining basis over their estimated useful lives up to 20 years based on the method that better represents the economic benefits to be obtained. 2 LENSAR acquired certain intangible assets for customer relationships from a domestic distributor in an asset acquisition, which are being amortized on a straight-line basis over a period of 10 years. 3 LENSAR acquired certain intangible assets from a medical technology company in an asset acquisition, which are being amortized on a straight-line basis over a period of 15 years. |
Schedule of Impairment of Underlying Assets, Remaining Amortization Expense | Based on the intangible assets recorded at September 30, 2020, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows: Fiscal Year Amount 2020 (Remaining three months) $ 312 2021 1,240 2022 1,149 2023 1,097 2024 1,085 Thereafter 7,539 Total remaining estimated amortization expense $ 12,422 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of September 30, 2020 As of December 31, 2019 Compensation $ 2,370 $ 3,972 Warranty 52 58 Other 1,164 748 Total $ 3,586 $ 4,778 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Phantom Share Activity | The following table summarizes the phantom share activity during the nine months ended September 30, 2020: Number of Units Weighted- average grant date fair value per share Non-vested at beginning of year 42,800 $ 6.39 Granted — — Vested (5,350 ) 6.39 Forfeited — — Cancelled (37,450 ) 6.39 Non-vested at end of the period — $ — |
Summary of Total Stock-Based Compensation Expense Recognized | The following table sets forth the total stock-based compensation expense recognized under the Phantom Stock Plan and the 2020 Plan in the Company’s condensed statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue – product $ 130 $ 7 $ 130 $ 6 Cost of revenue – service 70 3 70 3 Selling, general and administrative expenses 3,179 122 3,267 271 Research and development expenses 370 15 370 22 Total $ 3,749 $ 147 $ 3,837 $ 302 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share | The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted net loss per share calculations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net loss $ (4,763 ) $ (5,818 ) $ (12,946 ) $ (12,189 ) Less: Cumulative dividends in excess of interest expense on Series A Preferred Stock — — — — Net loss attributable to common stockholders $ (4,763 ) $ (5,818 ) $ (12,946 ) $ (12,189 ) Weighted average number of shares of common stock 7,464,949 1,070,000 3,201,650 1,070,000 Basic and diluted net loss per share $ (0.64 ) $ (5.44 ) $ (4.04 ) $ (11.39 ) |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) | Sep. 29, 2020USD ($)shares | Sep. 10, 2020 | Aug. 24, 2020USD ($)shares | Aug. 04, 2020USD ($) | Jul. 21, 2020USD ($)shares | Jul. 13, 2020USD ($)shares | Jul. 10, 2020$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Aug. 20, 2020 | Dec. 31, 2019USD ($)$ / sharesshares |
Overview and Basis of Presentation [Line Items] | |||||||||||
Stockholders' equity, reverse stock split | one-for-nine reverse stock split | ||||||||||
Stockholders' equity, reverse stock split, ratio | 0.111111111 | ||||||||||
Accumulated deficit | $ (51,165,000) | $ (51,165,000) | $ (38,185,000) | ||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 | 1,070,000 | |||||||
Extinguishment of debt | $ 32,600,000 | ||||||||||
Impact from recapitalization transactions | 69,879,000 | $ 69,879,000 | |||||||||
Gain on extinguishment | $ 2,691,000 | ||||||||||
Additional capital contribution, shares | shares | 8,703 | 740,740 | |||||||||
Capital contribution, cash | $ 97,000 | $ 8,000,000 | $ 20,666,000 | ||||||||
Financial Support, Capital Contributions | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Additional capital contribution, shares | shares | 746,767 | ||||||||||
Capital contribution, cash | $ 29,000,000 | ||||||||||
Issuance of common stock | 8,334,000 | ||||||||||
Stock issued during period, remaining cash contribution amount | $ 20,666,000 | ||||||||||
Financial Support, Capital Contributions | Maximum | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Financial support by parent for operating, investing and financing activities | $ 20,000,000 | ||||||||||
Common Stock | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Impact from recapitalization transactions, Shares | shares | 6,221,069 | ||||||||||
Fair value of debt | $ 67,188,000 | ||||||||||
Impact from recapitalization transactions | $ 62,000 | ||||||||||
Additional capital contribution, shares | shares | 1,847,298 | ||||||||||
Issuance of common stock | $ 18,000 | ||||||||||
Series A Preferred Stock | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Number of shares exchanged | shares | 30,000 | ||||||||||
PDL BioPharma, Inc | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Shares issued in exchange for extinguishment of Preferred stock | shares | 3,414,825 | ||||||||||
PDL BioPharma, Inc | PDLIH | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Distribution of ownership interest in its wholly owned subsidiary | 100.00% | ||||||||||
PDL BioPharma, Inc | Common Stock | |||||||||||
Overview and Basis of Presentation [Line Items] | |||||||||||
Common stock shares issued in exchange for extinguishment of debt | shares | 2,806,244 | ||||||||||
Impact from recapitalization transactions, Shares | shares | 6,221,069 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)Customer | Dec. 31, 2019USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||
Adjustment to accumulated deficit | $ (51,165) | $ (51,165) | $ (38,185) |
Number of customers | Customer | 23 | ||
Lease revenue | $ 0 | $ 335 | |
Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Monthly rental fee period | 1 month | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Monthly rental fee period | 3 months | ||
Accounting Standards Update 2016-13 | |||
Summary of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | false | false | |
Adjustment to accumulated deficit | $ 34 | $ 34 | |
Accounting Standards Update 2018-15 | |||
Summary of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Summary of Product and Service Revenue Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | $ 6,072 | $ 6,955 | $ 15,579 | $ 18,895 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 3,119 | 2,986 | 7,559 | 7,644 |
South Korea | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 642 | 2,018 | 2,048 | 5,840 |
Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 761 | 697 | 2,301 | 2,422 |
Asia (Excluding South Korea) | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 1,463 | 1,181 | 3,447 | 2,729 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | $ 87 | $ 73 | $ 224 | $ 260 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue From Contracts With Customers [Line Items] | ||||
Lease revenue | $ 1,073 | $ 1,113 | $ 2,519 | $ 3,173 |
Accounts receivables payment terms | 30 days | |||
Revenue remaining performance obligation amount | 9,159 | $ 9,159 | ||
Other Income, Net | ||||
Revenue From Contracts With Customers [Line Items] | ||||
Interest income on notes receivable | $ 13 | $ 12 | $ 42 | $ 38 |
Minimum [Member] | ||||
Revenue From Contracts With Customers [Line Items] | ||||
Notes receivable interest rate | 5.00% | 5.00% | ||
Maximum | ||||
Revenue From Contracts With Customers [Line Items] | ||||
Notes receivable interest rate | 5.75% | 5.75% |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Summary of Information about Receivables and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, current | $ 2,429 | $ 3,384 |
Notes receivable, current | 451 | 502 |
Notes receivable, long-term | 538 | 827 |
Contract liability, current | 836 | 777 |
Notes and Other Receivables, Long-Term, Net | ||
Schedule Of Contract Balances [Line Items] | ||
Notes receivable, long-term | 538 | 827 |
Deferred Revenue | ||
Schedule Of Contract Balances [Line Items] | ||
Contract liability, current | 836 | 777 |
Other Long-Term Liabilities | ||
Schedule Of Contract Balances [Line Items] | ||
Contract liability, non-current | $ 47 | $ 118 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Summary of Allowance for Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | $ 0 | $ 0 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |
Provision for bad debts | $ 28 | $ (23) | |
Write-offs | (20) | ||
Ending balance | 23 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | $ 15 | $ 15 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers - Summary of Allowance for Notes Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member |
Provision for doubtful accounts | $ 1 | |
Ending balance | 20 | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 19 | $ 19 |
Revenue From Contracts With C_8
Revenue From Contracts With Customers - Schedule of Information About Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning balance | $ 895 | $ 994 |
Billings not yet recognized as revenue | 658 | 619 |
Beginning contract liabilities recognized as revenue | (670) | (687) |
Ending balance | $ 883 | $ 926 |
Revenue From Contracts With C_9
Revenue From Contracts With Customers - Additional Information (Details 1) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 9,159 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 4,811 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 2,112 |
Revenue remaining performance obligation expected timing of satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 2,236 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Net [Abstract] | ||
Finished Goods | $ 7,806 | $ 3,156 |
Work-in-progress | 2,039 | 1,170 |
Raw Materials | 3,840 | 3,738 |
Total | $ 13,685 | $ 8,064 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Lease expiration date | Nov. 30, 2027 |
Incremental borrowing rate | 10.00% |
Increase to lease liability and right-of-use-asset remeasurement | $ 3,320 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessor, operating leases, remaining lease terms | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Lessor, operating leases, remaining lease terms | 4 years |
Leases - Schedule of Lease Reve
Leases - Schedule of Lease Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Lease revenue | $ 1,073 | $ 1,113 | $ 2,519 | $ 3,173 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 43 |
2021 | 522 |
2022 | 537 |
2023 | 552 |
2024 and thereafter | 2,309 |
Total operating lease payments | 3,963 |
Less: imputed interest | (118) |
Total operating lease liabilities | $ 3,845 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Acquired certain intellectual property from a third-party for cash | $ 2,000 | $ 1,700 | ||||
Contingent obligation recognized in business combination | $ 300 | |||||
Milestone payment | $ 300 | |||||
Amortization of intangible assets | $ 313 | $ 317 | $ 944 | $ 910 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16,362 | $ 16,362 |
Accumulated Amortization | (3,940) | (2,996) |
Net Carrying Amount | 12,422 | 13,366 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,292 | 4,292 |
Accumulated Amortization | (1,235) | (951) |
Net Carrying Amount | 3,057 | 3,341 |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,500 | 11,500 |
Accumulated Amortization | (2,316) | (1,741) |
Net Carrying Amount | 9,184 | 9,759 |
Acquired Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 570 | 570 |
Accumulated Amortization | (389) | (304) |
Net Carrying Amount | $ 181 | $ 266 |
Intangible Assets - Component_2
Intangible Assets - Components of Intangible Assets (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets weighted average amortization period | 15 years |
Customer Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets weighted average amortization period | 10 years |
Acquired Technology | |
Finite Lived Intangible Assets [Line Items] | |
Acquired intangible assets weighted average amortization period | 15 years |
Maximum | Customer Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 20 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Impairment of Underlying Assets, Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2020 (Remaining three months) | $ 312 | |
2021 | 1,240 | |
2022 | 1,149 | |
2023 | 1,097 | |
2024 | 1,085 | |
Thereafter | 7,539 | |
Net Carrying Amount | $ 12,422 | $ 13,366 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities Current [Abstract] | ||
Compensation | $ 2,370 | $ 3,972 |
Warranty | 52 | 58 |
Other | 1,164 | 748 |
Total | $ 3,586 | $ 4,778 |
Series A Preferred Stock - Addi
Series A Preferred Stock - Additional Information (Details) - Series A Preferred Stock - USD ($) | Jan. 01, 2019 | May 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||||||
Preferred shares authorized | 30,000 | |||||
Preferred shares issued | 30,000 | |||||
Preferred shares ,par value | $ 0.01 | |||||
Aggregate liquidation preference of preferred shares | $ 30,000,000 | |||||
Accrued dividend percentage of preferred shares | 5.00% | 15.00% | ||||
Dividends declared | $ 0 | |||||
Preferred stock, interest expense | $ 32,000 | $ 382,000 | $ 829,000 | $ 1,145,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Contingent milestone payments | $ 2,400 | |
Supply Agreement | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Purchase obligation | 2,543 | |
Purchases under supply agreements | $ 1,677 | $ 0 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Common stock voting rights | The Company has a single class of common stock in which stockholders are entitled to one vote for each share of common stock. | |||
Cash dividend declared on common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 22, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 09, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 3,749 | $ 147 | $ 3,837 | $ 302 | ||
Phantom Stock Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Decrease in fair value | $ 108 | |||||
Shares vested | 5,350 | |||||
Phantom Stock Plan | Additional Paid-in Capital | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Reclassified fair value | $ 306 | |||||
2020 Incentive Award Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares authorized for issuance | 3,333,333 | |||||
2020 Incentive Award Plan | Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares approved for grants | 1,847,298 | |||||
Aggregate grant date fair value | $ 19,951 | |||||
Weighted-average grant date fair value | $ 10.80 | $ 10.80 | $ 10.80 | |||
Shares vested | 0 | |||||
Total unrecognized compensation expense | $ 16,101 | $ 16,101 | ||||
Total unrecognized compensation expense, weighted-average period of recognition | 1 year 4 months 24 days | |||||
2020 Incentive Award Plan | Restricted Stock | Tranche One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period following proposed Spin-off | 3 months | |||||
Vesting period following grant date | 6 months | |||||
Vesting percentage | 40.00% | |||||
2020 Incentive Award Plan | Restricted Stock | Tranche Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period following grant date | 18 months | |||||
Vesting percentage | 30.00% | |||||
2020 Incentive Award Plan | Restricted Stock | Tranche Three | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period following grant date | 36 months | |||||
Vesting percentage | 30.00% | |||||
PDL Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total fair value of restricted stock awards vested | $ 65 | 0 | ||||
PDL Equity Incentive Plan | PDL Award | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 15 | $ 28 | $ 53 | $ 73 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Phantom Share Activity (Details) - Phantom Stock Plan | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested at beginning of year, Number of Units | shares | 42,800 |
Vested, Number of Units | shares | (5,350) |
Cancelled, Number of Units | shares | (37,450) |
Non-vested at beginning of year, Weighted-average grant-date fair value per share | $ / shares | $ 6.39 |
Vested, Weighted-average grant-date fair value per share | $ / shares | 6.39 |
Cancelled, Weighted-average grant-date fair value per share | $ / shares | $ 6.39 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 3,749 | $ 147 | $ 3,837 | $ 302 |
Cost of Revenue | Product | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 130 | 7 | 130 | 6 |
Cost of Revenue | Service | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 70 | 3 | 70 | 3 |
Selling, General and Administrative Expenses | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,179 | 122 | 3,267 | 271 |
Research and Development Expenses | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 370 | $ 15 | $ 370 | $ 22 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense/(benefit) from continuing operations | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss per Share - Reconcilia
Net Loss per Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net loss | $ (4,763) | $ (4,497) | $ (3,686) | $ (5,818) | $ (3,790) | $ (2,581) | $ (12,946) | $ (12,189) |
Net loss attributable to common stockholders | $ (4,763) | $ (5,818) | $ (12,946) | $ (12,189) | ||||
Weighted average number of shares of common stock | 7,464,949 | 1,070,000 | 3,201,650 | 1,070,000 | ||||
Basic and diluted net loss per share | $ (0.64) | $ (5.44) | $ (4.04) | $ (11.39) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share Basic [Line Items] | ||||
Cumulative dividends in excess of interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted Stock | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 1,847,298 | 1,847,298 | ||
Restricted Stock | 2020 Plan | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 0 | |||
Common Stock | ||||
Earnings Per Share Basic [Line Items] | ||||
Potential dilutive impacts from common stock equivalents | 0 | 0 | 0 | 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Apr. 15, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | May 31, 2017 |
Related Party Transaction [Line Items] | |||||||
Proceeds from note payable due to related party | $ 12,400,000 | $ 4,225,000 | |||||
PDL BioPharma, Inc | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transactions with related party | $ 637,000 | $ 917,000 | 3,387,000 | 3,178,000 | |||
Expense related to allocation of corporate costs | 1,098,000 | 1,098,000 | $ 142,000 | ||||
Costs associated with spin-off transaction | 0 | 0 | |||||
Maximum aggregate principal amount | $ 32,600,000 | $ 25,600,000 | |||||
Line of credit limit increased amount | $ 7,000,000 | ||||||
Proceeds from note payable due to related party | 12,400,000 | ||||||
Interest expense | $ 33,000 | $ 112,000 | $ 511,000 | $ 302,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Oct. 01, 2020 | Sep. 30, 2020 |
Subsequent Event [Line Items] | ||
Distribution, record date | Sep. 22, 2020 | |
PDL BioPharma, Inc | LENSAR | ||
Subsequent Event [Line Items] | ||
Percentage of common stock owned | 81.50% | |
PDL BioPharma, Inc | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shares distribution ratio to PDL shareholders | 7.5879% |