Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | LENSAR, INC. | ||
Entity Central Index Key | 0001320350 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 10,989,720 | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 78.5 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Tampa, Florida | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2022 annual meeting of stockholders, which the registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended December 31, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | ||
Product and service revenue | $ 29,493 | $ 22,781 |
Lease | 4,966 | 3,601 |
Total revenue | 34,459 | 26,382 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 16,626 | 12,307 |
Operating expenses | ||
Selling, general and administrative expenses | 23,887 | 23,768 |
Research and development expenses | 12,358 | 7,553 |
Amortization of intangible assets | 1,240 | 1,256 |
Operating loss | (19,652) | (18,502) |
Other income (expense) | ||
Interest expense | (1,340) | |
Other income, net | 51 | 68 |
Net loss attributable to common stockholders | $ (19,601) | $ (19,774) |
Net loss per share attributable to common stockholders | ||
Basic and diluted | $ (2.09) | $ (4.28) |
Weighted-average number of shares used in calculation of net loss per share: | ||
Basic and diluted | 9,374 | 4,621 |
Product | ||
Revenue | ||
Product and service revenue | $ 26,246 | $ 19,831 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 11,845 | 8,303 |
Service | ||
Revenue | ||
Product and service revenue | 3,247 | 2,950 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 3,406 | 2,868 |
Lease | ||
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | $ 1,375 | $ 1,136 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 31,637 | $ 40,599 |
Accounts receivable, net of allowance of $47 and $19, respectively | 4,638 | 2,012 |
Notes receivable, net of allowance of $61 and $9, respectively | 350 | 444 |
Inventories | 6,488 | 13,473 |
Prepaid and other current assets | 1,700 | 1,857 |
Total current assets | 44,813 | 58,385 |
Property and equipment, net | 756 | 832 |
Equipment under lease, net | 6,690 | 3,583 |
Notes and other receivables, long-term, net of allowance of $2 and $9, respectively | 121 | 452 |
Intangible assets, net | 10,870 | 12,110 |
Other assets | 3,215 | 3,758 |
Total assets | 66,465 | 79,120 |
Current liabilities: | ||
Accounts payable | 2,694 | 2,481 |
Accrued liabilities | 4,604 | 4,570 |
Deferred revenue | 904 | 923 |
Operating lease liabilities | 512 | 493 |
Total current liabilities | 8,714 | 8,467 |
Long-term operating lease liabilities | 2,803 | 3,314 |
Other long-term liabilities | 69 | 129 |
Total liabilities | 11,586 | 11,910 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 10,000 shares authorized at December 31, 2021 and 2020; no shares issued and outstanding at December 31, 2021 and 2020 | ||
Common stock, par value $0.01 per share, 150,000 shares authorized at December 31, 2021 and 2020; 10,990 and 10,933 shares issued and outstanding at December 31, 2021 and 2020, respectively | 110 | 109 |
Additional paid-in capital | 132,363 | 125,094 |
Accumulated deficit | (77,594) | (57,993) |
Total stockholders’ equity | 54,879 | 67,210 |
Total liabilities and stockholders’ equity | $ 66,465 | $ 79,120 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 47 | $ 19 |
Notes receivable, allowance | 61 | 9 |
Notes and other receivables, long-term, allowance | $ 2 | $ 9 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 10,990,000 | 10,933,000 |
Common stock, shares outstanding | 10,990,000 | 10,933,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (19,601) | $ (19,774) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,524 | 1,309 |
Amortization of intangible assets | 1,240 | 1,256 |
Non-cash operating lease cost | 517 | 505 |
Provision for expected credit losses | 74 | 22 |
Write-down of inventory | 320 | 8 |
Loss on disposal of property and equipment | 133 | 27 |
Stock-based compensation expense | 6,866 | 9,045 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,654) | 1,332 |
Prepaid and other current assets | 157 | (1,239) |
Inventories | 2,333 | (8,697) |
Accounts payable | 213 | 910 |
Accrued liabilities | 75 | 871 |
Other | (166) | 634 |
Net cash used in operating activities | (8,969) | (13,791) |
Cash flows from investing activities | ||
Purchase of property and equipment | (354) | (366) |
Proceeds from sale of property and equipment | 40 | |
Net cash used in investing activities | (354) | (326) |
Cash flows from financing activities | ||
Contributions from PDL | 2,366 | |
Distributions to PDL | (1,862) | |
Proceeds from notes payable due to related party | 12,400 | |
Sale of common stock to PDL | 16,431 | |
Capital contribution from PDL | 20,666 | |
Proceeds from issuance of common stock under employee stock purchase plan | 361 | |
Net cash provided by financing activities | 361 | 50,001 |
Net (decrease) increase in cash and cash equivalents | (8,962) | 35,884 |
Cash and cash equivalents at beginning of the year | 40,599 | 4,715 |
Cash and cash equivalents at end the year | 31,637 | 40,599 |
Supplemental cash flow information | ||
Cash paid for interest | 478 | |
Cash paid for taxes | 19 | |
Supplemental schedule of non-cash investing and financing activities | ||
Transfer from Inventories to Equipment under lease, net | $ 4,332 | 3,280 |
Phantom stock liability settled with common stock | 783 | |
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 |
STATEMENT OF CHANGES IN STOCKHO
STATEMENT OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) shares in Thousands, $ 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, 2019 | $ (30,553) | $ (34) | $ 11 | $ 7,621 | $ (38,185) | $ (34) |
Beginning Balance, Shares at Dec. 31, 2019 | 1,070 | |||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||||
Impact from recapitalization transactions | $ 69,879 | $ 62 | 69,817 | |||
Impact from recapitalization transactions, Shares | 6,221 | |||||
Sale of common stock to PDL | 16,431 | $ 15 | 16,416 | |||
Sale of common stock to PDL, Shares | 1,496 | |||||
Capital contribution from PDL | 20,666 | 20,666 | ||||
Issuance of common stock, net of cancellations | $ 21 | (21) | ||||
Issuance of common stock, net of cancellations,Shares | 2,146 | |||||
Stock-based compensation under the 2020 Plan | 8,849 | 8,849 | ||||
Contributions from PDL | 2,518 | 2,518 | ||||
Distributions to PDL | (1,861) | (1,861) | ||||
Settlement of phantom stock-based awards | 783 | 783 | ||||
Modification of phantom stock-based awards | 306 | 306 | ||||
Net loss | (19,774) | (19,774) | ||||
Ending Balance at Dec. 31, 2020 | 67,210 | $ 109 | 125,094 | (57,993) | ||
Ending Balance, Shares at Dec. 31, 2020 | 10,933 | |||||
Issuance of common stock under the 2020 ESPP | 361 | $ 1 | 360 | |||
Issuance of common stock under the 2020 ESPP, Shares | 57 | |||||
Stock-based compensation under the 2020 Plan | 6,909 | 6,909 | ||||
Net loss | (19,601) | (19,601) | ||||
Ending Balance at Dec. 31, 2021 | $ 54,879 | $ 110 | $ 132,363 | $ (77,594) | ||
Ending Balance, Shares at Dec. 31, 2021 | 10,990 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. 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 Device (“PID”), procedure licenses, training, installation, limited warranty and maintenance agreements through extended warranty. In September 2020, the Company’s former parent entity, PDL BioPharma, Inc. (“PDL”) announced its plans to pursue a separation and distribution of its medical device segment, which was solely comprised of its majority-owned subsidiary, LENSAR. On October 1, 2020, the previously planned spin-off was completed 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” or the “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 did not own any equity interest in LENSAR. LENSAR became an independent public company whose stock is listed and trading under the symbol “LNSR” on the Nasdaq Stock Market (“Nasdaq”). In September 2020, the Company amended its amended and restated certificate of incorporation to effect a one-for-nine All issued and outstanding shares of common stock, other common stock share numbers, equity awards and per share amounts contained in the 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 December 31, 2021 had an accumulated deficit of $77,594. 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, including supply chain shortages and price increases. 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. The Company has also experienced some supply chain disruptions, unavailability, and increased costs of various component parts needed for the LENSAR Laser System and ALLY Adaptive Cataract Treatment System (“ALLY” or “ALLY system”) as a result of COVID-19, including increasing lead times required for the ordering of component parts to ensure timely delivery. To date, the Company has maintained sufficient inventory to mitigate adverse impact from such disruptions and unavailability; however, the Company is continuing to monitor developments with respect to such disruptions and their potential impact on the Company’s business, results of operations and financial condition. During 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 and cash equivalents on hand provide sufficient liquidity to meet the Company’s projected obligations for a period of at least twelve months from the date of issuance of these financial statements. As the Company gets closer to the planned commercial launch of the ALLY system anticipated to be in the second half of 2022, it expects annual revenue and selling, general and administrative expenses to increase from current levels. Clearance of the ALLY system and its subsequent anticipated launch in 2022 is contingent on the regulatory review and discretion of the U.S. Food and Drug Administration (“ FDA ”) and is not entirely within the Company’s control. The Company expects cash and cash equivalents, together with cash generated from the sale and lease of products, to be sufficient to operate through the anticipated clearance and launch of ALLY and into 2023. The Company’s liquidity needs will be largely determined by the success of its operations regarding the successful commercialization of its existing products and the progression, clearance and launch of ALLY in the future. The Company expects it will need to raise additional capital through equity or debt financings or from other sources to continue its operations beyond 2023. The Company may issue securities, including common stock, preferred stock, warrants, and/or debt securities through private placement transactions or registered public offerings in the future. The Company’s ability to raise additional funds will depend, among other factors, on financial, economic and market conditions, many of which are outside of the Company’s control and the Company may be unable to raise financing when needed, or on terms favorable to the Company. If the necessary funds are not available from these sources, the Company may have to delay, reduce or suspend the scope of its sales and marketing efforts, research and development activities, or other components of its operations. Description of the Recapitalization Transactions and Capital Contributions In July 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 shares and (b) issue to PDL a total of 3,415 shares of the Company’s common stock in exchange for the extinguishment of all 30 shares of the Company’s Series A Preferred Stock, including any accrued and unpaid dividends thereon (the “Series A Preferred Stock Recapitalization”). In July 2020, the Company and PDL entered into a contribution and exchange agreement whereby the Company issued to PDL a total of 2,806 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 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 year ended December 31, 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. In July 2020, the Company issued an additional 740 shares of common stock to PDL in exchange for $8,000 in cash (the “Capital Contribution”). In August 2020, the Company received cash of $29,000 from PDL (the “Additional Capital Contribution”). The Company issued 747 shares of common stock to PDL in exchange for $8,334. The remaining $20,666 was a cash contribution from PDL. In September 2020, the Company issued an additional nine shares of additional common stock to PDL in exchange for $97 in cash. Basis of Presentation These financial statements 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”). Prior to the Spin-Off, these financial statements were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of PDL and are presented as if LENSAR had been operating as a stand-alone company for all years presented. These 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 did not result in U.S. 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. For periods following the Spin-Off, these financial statements were prepared on a stand-alone basis from the Company’s accounting records. During the periods prior to the Spin-Off presented in these 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 financial statements for those periods are presented on a separate return basis as if the Company had filed its own tax returns. 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 was effective as of October 2, 2020. As a result of this election, LENSAR’s research and development credits and net operating losses remained with PDL, and LENSAR recorded 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. In periods following the Spin-Off, LENSAR will file federal and state tax returns separate from PDL. The deferred income taxes of the Company as presented in these financial statements for periods prior to the Spin-Off, including tax attributes such as net operating losses or credit carryforwards, may not be indicative of the deferred tax assets available to the Company. For periods following the Spin-Off, tax attributes and deferred tax assets are indicative of LENSAR’s status as a separate Company for federal and state tax return filing purposes. See Note 13, Income Taxes Prior to the Spin-Off, the assets, liabilities, revenue and expenses directly attributable to the Company’s operations have been reflected in these financial statements on a historical cost basis, as included in the consolidated financial statements of PDL. The statements of operations include expenses for certain corporate support functions that were 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 performs these functions using its own resources or purchased services. For an interim period through March 2021, however, some of these functions were provided by PDL as the Company entered into a transition service agreement with PDL in connection with the separation. The Company was historically funded as part of PDL’s treasury program prior to the Spin-Off. 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 balance sheets. All significant transactions between the Company and PDL were considered to be effectively settled for cash at the time the transaction was recorded, unless otherwise noted. Such transfers of cash to and from PDL have been included in these financial statements as a component of equity in the balance sheets and as a financing activity in the statements of cash flows, unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, revenue recognition and allowance for expected credit losses, 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 liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities, and cost allocations from PDL. 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 COVID-19 pandemic continues to directly and indirectly impact the Company’s business, results of operations and financial condition, including revenue, expenses, reserves and allowances. The Company continues to monitor developments that are highly uncertain, including supply chain disruptions and price increases, as well as the economic impact on domestic and international suppliers, customers, and markets. The Company assessed certain accounting matters that require consideration of forecasted financial information, including, but not limited to, its current expected credit losses, the carrying value of the Company's intangible assets and other long-lived assets, and valuation allowances in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021 and through the date of this report. As a result of these assessments, there were no impairments or material increases in expected credit losses or valuation allowances that impacted the Company's financial statements as of and for the years ended December 31, 2021 and 2020. However, the Company's future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the financial statements in future reporting periods. As of the date of issuance of these 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. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on an entity-wide basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As of December 31, 2021 and 2020, 89% and 100% of long-lived assets were in the United States, respectively. Revenue is attributed to a geographic region based on the location of the customer. Cash and Cash Equivalents The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, limits the amount of credit exposure in any one financial instrument. Accounts Receivable The Company had $110 and $37 for allowance for credit losses as of December 31, 2021 and 2020, respectively. 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. 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, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk. Inventory Inventory, which consists of raw materials, work-in-process and finished goods, is stated at the lower of cost or net realizable value. The Company determines cost using standard costs which approximates actual costs determined on the first-in, first-out basis. Inventory levels are analyzed periodically and written down to their net realizable value if they have become obsolete, have a cost basis in excess of expected net realizable value or are in excess of expected requirements. The Company analyzes current and future product demand relative to the remaining product shelf life to identify potential excess inventory. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classifies inventory as current on the balance sheets when the Company expects inventory to be consumed for commercial use within the next twelve months. Intangible Assets Intangible assets with finite useful lives consist primarily of acquired product rights, acquired technology, and customer relationships. Acquired product rights and acquired technology are amortized on a straight-line basis over their estimated useful lives of 15 to 20 years. 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. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The Company did not record any impairment of its intangible assets for the years ended December 31, 2021 and 2020. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Manufacturing equipment 3-5 years Computer and office equipment 3 years Transportation equipment 3 years Furniture and fixtures 7 years Software 3 years Equipment Under Lease Equipment under lease is related to LENSAR Laser Systems which are leased to customers instead of sold. Equipment under operating lease is stated at cost less accumulated depreciation and is classified as Equipment under lease, net on the balance sheets. Depreciation is computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years. Revenue Recognition The reported results reflect the application of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Contracts with customers Policy Elections and Practical Expedients Taken Upon the Company’s adoption of ASC 606, the Company applied the following policy elections: Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue. Shipping and handling costs for the years ended December 31, 2021 and 2020 were $245 and $90, respectively. General In accordance with ASC 606, revenue is recognized from the sale of products and services when the Company transfers control of such promised products and services. The amount of revenue recognized reflects the consideration to which LENSAR expects to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied. LENSAR principally derives its revenue from the sale and lease of the LENSAR Laser System and the sale of other related products and services, including PIDs, procedure licenses, and extended warranty service agreements. Most customers are on pre-paid or 30-day payment terms, depending on the product purchased. Typically, returns are not allowed. Judgment is required to determine the level of interdependency between the LENSAR Laser System and the sale of other related products and services. For bundled packages, which include the sale or lease of a LENSAR Laser System and provision of other products and services, the Company accounts for individual products and services separately if they are distinct—i.e. , if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The LENSAR Laser System, training and installation services are one performance obligation. The other products and services, including PIDs, procedure licenses, and extended warranty services, which are either sold together with the LENSAR Laser System or on a standalone basis, are all accounted for as separate performance obligations. The transaction price of bundled packages is allocated to each performance obligation on a relative standalone selling price basis. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, the Company estimates the selling price using available observable information. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below. Product Revenue . The Company recognizes revenue for the sale of the following products at a point in time: Equipment . The Company’s LENSAR Laser System sales are recognized as Product revenue when the Company transfers control of the system. This usually occurs after the customer signs a contract, LENSAR installs the system, and LENSAR performs the requisite training for use of the system for direct customers. LENSAR Laser System sales to distributors are recognized as revenue upon shipment as they do not require training and installation. PID and Procedure Licenses . The LENSAR Laser System requires both a PID and a procedure license to perform each procedure. The Company recognizes Product revenue for PIDs when the Company transfers control of the PID. The Company recognizes Product revenue for procedure licenses at the point in time when control of the procedure license is transferred to the customer. A procedure license represents a one-time right to utilize the LENSAR Laser System surgical application in connection with a surgery procedure. For the sale of PIDs and procedure licenses, the Company may offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transfers to the customer, the Company estimates the average per unit price, net of discounts. Service Revenue . The Company offers an extended warranty that provides additional maintenance services beyond the standard limited warranty. The Company recognizes Service revenue from the sale of extended warranties over the warranty period on a ratable basis as the Company stands ready to provide services as needed. Customers have the option of renewing the warranty period, which is considered a new and separate contract. Lease Revenue . For LENSAR Laser System operating leases, the Company recognizes lease revenue over the length of the lease in accordance with ASC Topic 842, , (“ASC 842”). For additional information regarding accounting for leases, see the Leases section within this footnote below and Note 5, . Contract Costs The Company offers a variety of commission plans to the Company’s salesforce. Certain compensation under these plans is earned by sales representatives solely as a result of obtaining a customer contract. These are considered incremental costs of obtaining a contract and are eligible for capitalization under ASC Topic 340-40, Other Assets and Deferred Costs – Contracts with Customers Significant Financing Component The Company provides extended payment terms to certain customers that represent a significant financing component. The Company adjusts the amount of promised consideration for the time value of money using its discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. Limited Warranty Obligations The Company offers limited warranties on the Company’s products which provide the customer assurance that the product will function as the parties intended because it complies with agreed-upon specifications; therefore, these assurance-type warranties are not treated as a separate revenue performance obligation and are accounted for as guarantees under U.S. GAAP. The Company regularly reviews its warranty liability and updates these balances based on historical warranty cost trends. Concentrations of Customers For the year ended December 31, 2021, two customers accounted for 16%, and 13% of the Company’s revenue, respectively, and three customers accounted for 37%, 13%, and 10% of the Company’s accounts receivable, net as of December 31, 2021. For the year ended December 31, 2020, three customers each accounted for 12% of the Company’s revenue, respectively, and two customers accounted for 11% and 10% of the Company’s accounts receivable, net as of December 31, 2020, respectively. Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that are in development. Research and development expenses include employee compensation, including stock-based compensation, supplies, consulting, prototypes, testing, materials, travel expenses, and depreciation. Until future commercialization of the ALLY system is considered probable and the future economic benefit is expected to be realized the Company recognizes pre-launch inventory costs as research and development expenses. Income Taxes The Company is subject to U.S. federal, state, and local corporate income taxes at the entity level. Prior to the Spin-Off, the Company’s losses were included with PDL’s consolidated U.S. federal and state income tax returns. Subsequent to the Spin-Off, income taxes as presented in the Company’s financial statements reflect our status as a separate Company, filing federal and state income tax returns on a stand-alone basis. The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws in the year in which such laws are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision. Leases The Company adopted ASC Topic 842, Leases and the recently adopted revenue recognition guidance. The adoption of ASC 842 did not materially change how the Company accounts for lessor arrangements. The Company determines if an arrangement is a lease or contains an embedded lease at inception if it contains the right to control the use of an identified asset under a leasing arrangement with an initial term greater than 12 months. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Policy Elections and Practical Expedients Taken The Company has lease arrangements with lease and non-lease components, which are accounted for separately. For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For short term leases, defined as leases with a lease term of 12 months or less, the Company elected to not recognize an associated lease liability and ROU asset. Lease payments for short term leases are expensed on a straight-line basis over the lease term. The Company has a policy to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee. Lessee Arrangements Lessee operating right of use assets are included in Other assets in the Company’s balance sheet. Lessee operating lease liabilities are included in Other current liabilities and Long-term operating lease liabilities in the Company’s balance sheet. The Company does not have lessee financing leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date, including the lease term and the Company’s credit risk, in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis as operating expense in the statements of operations over the lease term. For lease arrangements with lease and non-lease components where the Company is the lessee, the Company separately accounts for lease and non-lease components, which consists primarily of common area maintenance services. Non-lease components are expensed as incurred. Lessor Arrangements The Company leases equipment to customers under operating leases. Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Lease elements generally include a LENSAR Laser System, while non-lease elements generally include extended warranty services, PIDs and procedure licenses. The stand-alone selling prices for the extended warranty services, PIDs and procedure licenses are determined based on the prices at which the Company separately sells such products and services. The LENSAR Laser System stand-alone selling prices are determined using the expected cost plus a margin approach. Allocation of the transaction price is determined at the inception of the lease arrangement. The Company’s leases primarily consist of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and consumables used with the leased equipment. Non-lease components are accounted for under ASC 606 . For additional information regarding ASC 606, see Note 3 , Revenue from Contracts with Customers. Some leases include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term. A new contract is generated if a customer intends to continue using the equipment under the initial term and the new contract term is not included in the initial lease term. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following criteria at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term, (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system, (3) whether the lease term is for the major part of the remaining economic life of the leased system, (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise, and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. If any of these criteria are met, the lease is classified as a sales-type lease. If none of these criteria are met the lease is classified as an operating lease. For the years ended December 31, 2021 and 2020, the Company does not have any sales-type leases. For operating leases, rental income is recognized on a straight-line basis over the lease term as lease revenue. The cost of customer-leased equipment is recorded within equipment under lease, net in the balance sheets and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in cost of lease in the statements of operations. Some of the Company’s operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement, subject to a new contract. The purchase price does not qualify as a bargain purchase option. The Company manages its risk on its investment in the equipment through pricing and the term of the leases. Lessees do not provide residual value guarantees on leased equipment. Equipment returned to the Company may be leased or sold to other customers. Initial direct costs, recorded in prepaid and other current assets, are deferred and recognized over the lease term. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation See Note 12, Stock-Based Compensation, Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 (“ASU 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 ASC Topic 740, Income Taxes Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recent pronouncements issued by the FASB and other authoritative standards groups with future effective dates and concluded the pronouncements are either not applicable to the Company or are not expected to have a material impact on the Company’s financial position or results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
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 years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 United States $ 15,004 $ 11,604 South Korea 4,380 3,077 Europe 5,805 3,588 Asia (excluding South Korea) 3,855 4,193 Other 449 319 Total 1 $ 29,493 $ 22,781 1 The table above does not include lease revenue of $4,966 and $3,601 for the years ended December 31, 2021 and 2020, respectively. Refer to Note 5, Leases Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers: As of December 31, Classification 2021 2020 Accounts receivable, current Accounts receivable, net $ 4,638 $ 2,012 Notes receivable, current Notes receivable, net $ 350 $ 444 Notes receivable, long-term Notes and other receivables, long-term, net $ 121 $ 452 Contract liability, current Deferred revenue $ 904 $ 923 Contract liability, non-current Other long-term liabilities $ 66 $ 128 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 expected 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 credit losses as of January 1, 2020 $ — Impact of adoption of ASC 326 15 Change in provision for credit losses 24 Write-offs (20 ) Accounts receivable, allowance for credit losses as of December 31, 2020 19 Change in provision for credit losses 28 Write-offs — Accounts receivable, allowance for credit losses as of December 31, 2021 $ 47 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 years ended December 31, 2021 and 2020 of $34 and $54 in other income, net in its statements of operations. The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for credit losses as of January 1, 2020 $ — Impact of adoption of ASC 326 19 Change in provision for credit losses (1 ) Write-offs — Notes receivable, allowance for credit losses as of December 31, 2020 18 Change in provision for credit losses 45 Write-offs — Notes receivable, allowance for credit losses as of December 31, 2021 $ 63 Maturities of notes receivables, net under extended payment terms with a significant financing component as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 350 2023 126 2024 and thereafter — Total undiscounted cash flows 476 Present value of notes receivable 534 Difference between undiscounted and discounted cash flows $ (58 ) 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 balance sheets. The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2019 $ 895 Billings not yet recognized as revenue 880 Beginning contract liabilities recognized as revenue (724 ) Contract liabilities at December 31, 2020 1,051 Billings not yet recognized as revenue 798 Beginning contract liabilities recognized as revenue (879 ) Contract liabilities at December 31, 2021 $ 970 Transaction Price Allocated to Future Performance Obligations At December 31, 2021, 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 $6,641. The Company expects to satisfy its remaining performance obligations over the next five years, with $4,477 to be satisfied in the next twelve months, $1,674 to be satisfied in the next two years, and $490 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. Costs to Obtain Contracts The following table provides information about the costs to obtain contracts associated with contracts with customers for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 Beginning balance $ 109 $ 190 Additions 509 379 Amortization (575 ) (460 ) Ending balance $ 43 $ 109 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventory balances were as follows: As of December 31, 2021 2020 Finished Goods $ 4,319 $ 10,551 Work-in-process 173 319 Raw Materials 1,996 2,603 Total $ 6,488 $ 13,473 Write downs of inventories to net realizable value amounted to $264 and $8 for the years ended December 31, 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 5. Leases Lessee Arrangements The Company has an operating lease for a corporate office. In August 2020, the Company amended the lease to extend 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 components of lease expense are as follows: Year Ended December 31, 2021 2020 Operating lease cost $ 578 $ 543 Short-term lease cost 30 9 Total lease cost $ 608 $ 552 Supplemental cash flow information related to leases, including the lease modification, is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 522 $ 413 Right-of-use-assets obtained in exchange for lease obligations: Operating leases $ — $ 3,320 The following table presents the lease balances within the balance sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases: As of December 31, Operating Leases Classification 2021 2020 Operating lease ROU assets Other assets $ 3,151 $ 3,668 Operating lease liabilities, current Other current liabilities $ 512 $ 493 Operating lease liabilities, long-term Long-term operating lease liabilities 2,803 3,314 Total operating lease liabilities $ 3,315 $ 3,807 Weighted-average remaining lease term 5.9 years 6.9 years Weighted-average discount rate 10.00 % 10.00 % Maturities of operating lease liabilities as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 537 2023 551 2024 567 2025 582 2026 598 Thereafter 562 Total operating lease payments 3,397 Less: imputed interest (82 ) Total operating lease liabilities $ 3,315 Lessor Arrangements The Company has operating leases for the LENSAR Laser System, which occur primarily in the United States. The Company’s leases have remaining lease terms of less than one year to four years. Lease revenue for the years ended December 31, 2021 and 2020 was as follows: Year ended December 31, 2021 2020 Lease revenue $ 4,966 $ 3,601 Equipment under lease is as follows: As of December 31, 2021 2020 Equipment under lease $ 13,488 $ 9,343 Less accumulated depreciation (6,798 ) (5,760 ) Equipment under lease, net $ 6,690 $ 3,583 Depreciation expense on equipment under lease amounted to $1,214 and $1,037 for the years ended December 31, 2021 and 2020, respectively. Maturities of operating lease payments as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 2,146 2023 570 2024 100 2025 35 2026 23 Thereafter — Total undiscounted cash flows $ 2,874 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment The following table provides details of property and equipment, net: As of December 31, 2021 2020 Leasehold improvements $ 112 $ 112 Manufacturing equipment 940 269 Computer and office equipment 102 107 System and laser 1,219 1,452 Software 56 — Furniture and fixtures 50 50 Transportation equipment 38 38 Total 2,517 2,028 Less accumulated depreciation (1,945 ) (1,876 ) Construction in progress 184 680 Property and equipment, net $ 756 $ 832 Depreciation expense on property and equipment amounted to $310 and $272 for the years ended December 31, 2021 and 2020, respectively. The Company recognizes molds and tools that suppliers use in producing certain products under a long-term supply arrangement in construction in progress while the molds are under construction. When the molds are completed, they are transferred to property and equipment. The assets capitalized amounted to $662 and $680 as of December 31, 2021 and 2020, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7. Intangible Assets The components of intangible assets were as follows: As of December 31, 2021 As of December 31, 2020 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 $ (1,685 ) $ 2,607 $ 4,292 $ (1,326 ) $ 2,966 Acquired technology 1,3 11,500 (3,275 ) 8,225 11,500 (2,508 ) 8,992 Acquired trademarks 1 570 (532 ) 38 570 (418 ) 152 $ 16,362 $ (5,492 ) $ 10,870 $ 16,362 $ (4,252 ) $ 12,110 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 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 the years ended December 31, 2021 and 2020 was $1,240 and $1,256, respectively. Based on the intangible assets recorded at December 31, 2021, 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 2022 $ 1,149 2023 1,097 2024 1,085 2025 1,074 2026 1,064 Thereafter 5,401 Total remaining estimated amortization expense $ 10,870 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 8. Accrued Liabilities Accrued liabilities consist of the following: As of December 31, 2021 2020 Compensation $ 3,375 $ 2,971 Professional services 526 1,271 Warranty 45 79 Other 658 249 Total $ 4,604 $ 4,570 |
Series A Preferred Stock
Series A Preferred Stock | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Series A Preferred Stock | Note 9. Series A Preferred Stock The Company authorized and issued 30 shares of Series A preferred stock, par value $0.01, to PDL in May 2017. The Series A preferred stock has an aggregate liquidation preference of $30,000 (“stated value”), plus all accumulated and unpaid dividends (whether or not declared). Dividends on each share of preferred stock initially accrued on an annual basis at a rate of 15.00 % 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 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. 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 $4,568 over the next 12 months. LENSAR expects to meet these requirements. Royalty and Milestone Payments In connection with the exclusive license 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 ALLY 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) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Note 11. Stockholders’ Equity 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 years ended December 31, 2021 and 2020. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation Stock-Based Incentive Plans The 2020 Plan On July 9, 2020, the Board of Directors approved the LENSAR Inc. 2020 Incentive Award Plan (the “2020 Plan”). The 2020 Plan provides for the grant of stock options, restricted stock, restricted stock unit awards and other stock-based awards to recipients. 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. A total of 3,333 shares of common stock were initially reserved for issuance pursuant to the 2020 Plan. The number of shares available for issuance under the 2020 Plan includes an annual increase on the first day of each fiscal year beginning fiscal 2021, equal to the lesser of (i) 5% of the aggregate number of shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as determined by the Board of Directors. As of December 31, 2021 the Company has reserved 3,880 shares of common stock for issuance under the 2020 Plan. A summary of the shares available for issuance under the 2020 Plan is as follows: Number of Shares Balance at December 31, 2020 1,188 Authorized 547 Granted/Awarded (674 ) Cancelled 21 Balance at December 31, 2021 1,082 Stock Options The exercise price of incentive stock options (“ISOs”) and nonqualified stock options (“NSOs”) shall not be less than 100% of the fair market value on the grant date of the option and the term may not exceed 10 years. The exercise price of ISOs granted to a 10% stockholder shall not be less than 110% of the estimated fair market value on the grant date of the option and the term may not exceed five years. To date, options have a term of 10 years and generally vest over one to four years from the grant date. Option award activity under the 2020 Plan is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 — $ — — $ — Options granted 674 $ 7.59 Options exercised — $ — Options cancelled (21 ) $ 8.27 Outstanding at December 31, 2021 653 $ 7.57 9.3 $ — Vested and expected to vest at December 31, 2021 653 $ 7.57 9.3 $ — Vested and exercisable at December 31, 2021 94 $ 7.70 9.4 $ — The weighted average grant date fair value of options granted during the year ended December 31, 2021 was $4.85. The total fair value of options vested during the year ended December 31, 2021 was approximately $466. Total unrecognized compensation expense of $2,180 related to stock options will be recognized over a weighted average period of 2.6 years. The Company estimated the fair value of stock-options using the Black-Scholes option pricing model. The fair value of employee and non-employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee and non-employee stock options was estimated using the following assumptions for the year ended December 31, 2021 : Year Ended December 31, 2021 Risk-free interest rate 0.6 - 1.3% Expected term (years) 6 Expected volatility 72 - 73% Dividends 0.0% Expected term : The expected term for the Company’s stock-based compensation awards was based on an index of the expected terms of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the expected term of its awards. Risk-free interest rate : The risk-free interest rate was based on the rates paid on securities issued by the U.S. Treasury with a term approximating the expected term. Expected volatility : The expected volatility for the Company’s stock-based compensation awards was based on an index of the historical volatilities of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the volatility of its common stock. Expected dividend yield : The Company does not intend to pay dividends for the foreseeable future. Accordingly, the Company used a dividend yield of zero in the assumptions. Restricted Stock Awards Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock. The compensation expense related to these awards is determined using the fair market value of the Company’s common stock on the date of the grant. Under the Company’s restricted stock plans, restricted stock awards typically vest over three years and compensation expense associated with these awards is recognized on a straight-line basis over the vesting period. Restricted stock award activity under the 2020 Plan is set forth below: 2021 Number of Units Weighted- average grant- date fair value per share Non-vested at beginning of year 2,050 $ 10.30 Granted — $ — Vested (718 ) $ 10.31 Cancelled — $ — Non-vested at end of year 1,332 $ 10.29 The total fair value of restricted stock awards vested during the years ended December 31, 2021 and 2020 was $7,406 and $970, respectively. The weighted-average grant date fair value for restricted stock awards granted under the 2020 Plan for the year ended December 31, 2020 was $10.30 . No restricted stock awards were granted under the 2020 Plan during the year ended December 31, 2021. At December 31, 2021, there was approximately $7,493 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.6 years. The number of restricted stock awards that are expected to vest are as follows: 338 in the quarter ending March 31, 2022; 140 in the quarter ending June 30, 2022; 113 in the quarter ending September 30, 2022; 113 in the quarter ending December 31, 2022; 237 in the quarter ending March 31, 2023; 136 in the quarter ending June 30, 2023; 180 in the quarter ending September 30, 2023; and 75 in the quarter ending December 31, 2023. These are based on restricted stock awards outstanding at December 31, 2021 and assumes the requisite service period is fulfilled for all awards outstanding. Actual vesting in future periods may vary from those reflected above. 2020 Employee Stock Purchase Plan In September 2020, the Board of Directors approved the LENSAR Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”), under which eligible employees are permitted to purchase common stock at a discount through payroll deductions. A total of 340 shares of common stock are reserved for issuance and will be increased on the first day of each fiscal year, beginning in 2022, by an amount equal to the lesser of (i) 1.0% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (ii) a lesser amount as determined by the Board of Directors. The price of the common stock purchased will be the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. The 2020 ESPP is intended to qualify as an "employee stock purchase plan" within the meaning of Section 423 of the IRC. As of December 31, 2021, 57 shares of common stock have been issued to employees participating in the 2020 ESPP and 283 shares were available for future issuance under the 2020 ESPP. The grant date fair value of the shares to be issued under the Company’s 2020 ESPP was estimated using the Black-Scholes valuation model. 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 stock awards under the 2020 Plan, all remaining outstanding awards under the Phantom Stock Plan were cancelled in 2020, and no further awards are outstanding under such plan. The following table sets forth the total stock-based compensation expense recognized under the 2020 Plan, the 2020 ESPP and the Phantom Stock Plan in the Company’s statements of operations: Year Ended December 31, 2021 2020 Cost of revenue—product $ 216 $ 303 Cost of revenue—service 122 165 Selling, general and administrative expenses 5,914 7,529 Research and development expenses 614 876 Total $ 6,866 $ 8,873 Total unrecognized stock-based compensation expense is expected to be amortized as follows: Fiscal Year Amount 2022 $ 5,607 2023 3,497 2024 470 2025 99 2026 — Thereafter — Total unrecognized stock-based compensation expense $ 9,673 The amounts included in this table are based on restricted stock awards and stock options outstanding at December 31, 2021 and assumes the requisite service period is fulfilled for all awards outstanding. Actual stock-based compensation expense in future periods may vary from those reflected in the table. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes Prior to the Spin-off, the Company was included in the consolidated federal tax return of PDL. Subsequent to the Spin-Off, the Company is no longer included in the consolidated federal tax return of PDL and files separate tax returns starting for the year ended December 31, 2020. The provision for income taxes for the years ended December 31, 2021 and 2020 reflects the impact of the Spin-Off and the Company’s status as a separate company for federal and state income tax filing purposes. For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2021 2020 United States $ (19,601 ) $ (19,774 ) Foreign — — Total $ (19,601 ) $ (19,774 ) The provision for income taxes for the years ended December 31, 2021 and 2020 consisted of the following: Year Ended December 31, 2021 2020 Current income tax expense (benefit) Federal $ — $ — State — — Foreign — — Total current — — Deferred income tax (benefit) Federal — — State — — Foreign — — Total deferred — — Total provision $ — $ — A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statements of operations is as follows: Year Ended December 31, 2021 2020 Tax at U.S. statutory rate on income before income taxes $ (4,116 ) $ (4,153 ) Change in valuation allowance 3,930 1,573 State taxes (684 ) (210 ) Section 162(m) 310 — Stock-based compensation 559 68 (Income)/Loss taxable in period under the separate return method — 2,719 Other 1 3 Total $ — $ — Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards, and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The significant components of the Company’s net deferred tax assets and liabilities are as follows: Year Ended December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 4,417 $ 496 Intangible assets 6,287 6,541 Stock-based compensation 1,675 1,886 Other 639 170 Total deferred tax assets 13,018 9,093 Valuation allowance (13,014 ) (9,084 ) Total deferred tax assets, net of valuation allowance 4 9 Deferred tax liabilities: Other (4 ) (9 ) Total deferred tax liabilities (4 ) (9 ) Net deferred tax assets $ — $ — The deferred tax assets associated with net operating losses included in the table above for the years ended December 31, 2021 and 2020 reflect the net operating losses the Company expects to generate on its separate federal and state income tax returns subsequent to the Spin-Off. As of December 31, 2021 and 2020, the Company maintained federal net operating loss carryforwards of $15,993 and $1,972, respectively. As of December 31, 2021 and 2020, the Company also maintained state net operating loss carryforwards of $13,502 and $1,532, respectively. The federal net operating losses generated during the period ended December 31, 2020 after the Spin-Off and during the year ended December 31, 2021 may only be utilized to offset 80% of taxable income annually and may be carried forward indefinitely. The state net operating losses generated after the Spin-Off will begin to expire in the year 2028 if not utilized. As of December 31, 2021, the Company determined that it was more likely than not that certain deferred tax assets would not be realized in the near future and maintained a $13,014 valuation allowance against deferred tax assets. The net change in total valuation allowance between the years ended December 31, 2021 and 2020, was an increase of $3,930. The Company’s designation was based on its review and analysis of all the available evidence as of the balance sheet date, both positive and negative. A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, is as follows: Year Ended December 31, 2021 2020 Balance at the beginning of the year $ — $ 2,255 Decreases related to prior year tax positions — — Increases related to tax positions from prior fiscal years — — Increases related to tax positions taken during current fiscal year — — Decreases related to the Spin-Off — (2,255 ) Balance at the end of the year $ — $ — The Company periodically evaluates its exposures associated with its tax filing positions. At this time, the Company does not anticipate a material change in the unrecognized tax benefits that would affect the effective tax rate or deferred tax assets or valuation allowances over the next 12 months. The U.S. federal income tax returns for which the Company filed as part of the PDL consolidated group are subject to examination for tax years 2017 forward. Certain of the Company’s state and local returns are subject to examination by authorities for tax years 2010 forward. The Company’s income tax returns for periods separate from our consolidation with PDL are subject to examination by U.S. federal, state and local tax authorities for tax years 2020 forward. The Company is not currently under examination in any significant tax jurisdictions. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $ 0 as of December 31, 2021 and 2020 . 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, and the American Rescue Plan Act, which was enacted on March 11, 2021, in the U.S., include measures to assist companies, including temporary changes to income and non-income-based tax laws. The Company will monitor additional guidance and impact that the CARES Act, American Rescue Plan Act, and other potential legislation may have on its income taxes. The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the Consolidated Financial Statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 14. 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: Year Ended December 31, 2021 2020 Net loss attributable to common stockholders $ (19,601 ) $ (19,774 ) Weighted average number of shares of common stock 9,374 4,621 Basic and diluted net loss per share $ (2.09 ) $ (4.28 ) 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 computed 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 adjustments for cumulative dividends in excess of the interest expense on the Series A Preferred Stock for the years ended December 31, 2021 and 2020. 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. The Company excluded 1,332 shares of underlying unvested restricted stock awards and 653 outstanding stock options for the year ended December 31, 2021 and 2,050 shares of underlying unvested restricted stock awards and 0 outstanding stock options for the year ended December 31, 2020 from its net loss per diluted share calculations because their effect was anti-dilutive. The anti-dilutive weighted-average shares excluded from the net loss per share diluted shares calculations were: Year Ended December 31, 2021 2020 Restricted stock awards 1,142 843 Outstanding stock options 491 — Total 1,633 843 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15. Related Party Transactions In the ordinary course of business, the Company entered into transactions with PDL. Corporate Allocations The Company’s Financial Statements include expenses of $0 and $3,387 for the years ended December 31, 2021 and 2020, respectively, allocated to the Company by PDL for corporate support functions that were 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 were included within selling, general and administrative expenses in the accompanying statements of operations. A portion of these allocated costs related to certain cross charges that were historically cash settled and included in the statements of cash flows as operating activities. As of December 31, 2021 and 2020, $0 corporate allocation costs were outstanding. No costs related to the separation of LENSAR incurred by PDL have been allocated to the Company for the years ended December 31, 2021 and 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 could draw from the loan agreement was $25,600. On April 15, 2020, the Company and PDL, upon mutual agreement, increased the credit limit that LENSAR could 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 year ended December 31, 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 years ended December 31, 2021 and 2020 was $0 and $511, respectively, and is included in interest expense. As of December 31, 2021, 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 9, 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”): • • • 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 F-30 and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company submitted an application for 510(k) clearance of the ALLY system to the FDA for the femtosecond laser aspect of ALLY as the first stage of a planned, two part commercial release strategy. This submission was accepted for substantive review by the FDA in February 2022. The Company plans to submit an additional 510(k) application seeking clearance for the phacoemulsification features within the integrated ALLY system later in 2022. Subject to FDA clearance, the Company expects to begin commercialization of the ALLY system in the second half of 2022. Commercialization of the ALLY system will be in a controlled launch and the ALLY system will have the phacoemulsification features integrated as part of the system; however, these features will not be activated for use until the Company receives FDA clearance on these aspects of the combined system from the planned second 510(k) submission to occur late in 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, revenue recognition and allowance for expected credit losses, 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 liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities, and cost allocations from PDL. 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 COVID-19 pandemic continues to directly and indirectly impact the Company’s business, results of operations and financial condition, including revenue, expenses, reserves and allowances. The Company continues to monitor developments that are highly uncertain, including supply chain disruptions and price increases, as well as the economic impact on domestic and international suppliers, customers, and markets. The Company assessed certain accounting matters that require consideration of forecasted financial information, including, but not limited to, its current expected credit losses, the carrying value of the Company's intangible assets and other long-lived assets, and valuation allowances in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021 and through the date of this report. As a result of these assessments, there were no impairments or material increases in expected credit losses or valuation allowances that impacted the Company's financial statements as of and for the years ended December 31, 2021 and 2020. However, the Company's future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the financial statements in future reporting periods. As of the date of issuance of these 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. |
Segments | Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on an entity-wide basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As of December 31, 2021 and 2020, 89% and 100% of long-lived assets were in the United States, respectively. Revenue is attributed to a geographic region based on the location of the customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, limits the amount of credit exposure in any one financial instrument. |
Accounts Receivable | Accounts Receivable The Company had $110 and $37 for allowance for credit losses as of December 31, 2021 and 2020, respectively. 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. |
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, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk. |
Inventory | Inventory Inventory, which consists of raw materials, work-in-process and finished goods, is stated at the lower of cost or net realizable value. The Company determines cost using standard costs which approximates actual costs determined on the first-in, first-out basis. Inventory levels are analyzed periodically and written down to their net realizable value if they have become obsolete, have a cost basis in excess of expected net realizable value or are in excess of expected requirements. The Company analyzes current and future product demand relative to the remaining product shelf life to identify potential excess inventory. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classifies inventory as current on the balance sheets when the Company expects inventory to be consumed for commercial use within the next twelve months. |
Intangible Assets | Intangible Assets Intangible assets with finite useful lives consist primarily of acquired product rights, acquired technology, and customer relationships. Acquired product rights and acquired technology are amortized on a straight-line basis over their estimated useful lives of 15 to 20 years. 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. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The Company did not record any impairment of its intangible assets for the years ended December 31, 2021 and 2020. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Manufacturing equipment 3-5 years Computer and office equipment 3 years Transportation equipment 3 years Furniture and fixtures 7 years Software 3 years |
Equipment Under Lease | Equipment Under Lease Equipment under lease is related to LENSAR Laser Systems which are leased to customers instead of sold. Equipment under operating lease is stated at cost less accumulated depreciation and is classified as Equipment under lease, net on the balance sheets. Depreciation is computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years. |
Revenue Recognition | Revenue Recognition The reported results reflect the application of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Contracts with customers Policy Elections and Practical Expedients Taken Upon the Company’s adoption of ASC 606, the Company applied the following policy elections: Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue. Shipping and handling costs for the years ended December 31, 2021 and 2020 were $245 and $90, respectively. General In accordance with ASC 606, revenue is recognized from the sale of products and services when the Company transfers control of such promised products and services. The amount of revenue recognized reflects the consideration to which LENSAR expects to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied. LENSAR principally derives its revenue from the sale and lease of the LENSAR Laser System and the sale of other related products and services, including PIDs, procedure licenses, and extended warranty service agreements. Most customers are on pre-paid or 30-day payment terms, depending on the product purchased. Typically, returns are not allowed. Judgment is required to determine the level of interdependency between the LENSAR Laser System and the sale of other related products and services. For bundled packages, which include the sale or lease of a LENSAR Laser System and provision of other products and services, the Company accounts for individual products and services separately if they are distinct—i.e. , if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The LENSAR Laser System, training and installation services are one performance obligation. The other products and services, including PIDs, procedure licenses, and extended warranty services, which are either sold together with the LENSAR Laser System or on a standalone basis, are all accounted for as separate performance obligations. The transaction price of bundled packages is allocated to each performance obligation on a relative standalone selling price basis. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, the Company estimates the selling price using available observable information. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below. Product Revenue . The Company recognizes revenue for the sale of the following products at a point in time: Equipment . The Company’s LENSAR Laser System sales are recognized as Product revenue when the Company transfers control of the system. This usually occurs after the customer signs a contract, LENSAR installs the system, and LENSAR performs the requisite training for use of the system for direct customers. LENSAR Laser System sales to distributors are recognized as revenue upon shipment as they do not require training and installation. PID and Procedure Licenses . The LENSAR Laser System requires both a PID and a procedure license to perform each procedure. The Company recognizes Product revenue for PIDs when the Company transfers control of the PID. The Company recognizes Product revenue for procedure licenses at the point in time when control of the procedure license is transferred to the customer. A procedure license represents a one-time right to utilize the LENSAR Laser System surgical application in connection with a surgery procedure. For the sale of PIDs and procedure licenses, the Company may offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transfers to the customer, the Company estimates the average per unit price, net of discounts. Service Revenue . The Company offers an extended warranty that provides additional maintenance services beyond the standard limited warranty. The Company recognizes Service revenue from the sale of extended warranties over the warranty period on a ratable basis as the Company stands ready to provide services as needed. Customers have the option of renewing the warranty period, which is considered a new and separate contract. Lease Revenue . For LENSAR Laser System operating leases, the Company recognizes lease revenue over the length of the lease in accordance with ASC Topic 842, , (“ASC 842”). For additional information regarding accounting for leases, see the Leases section within this footnote below and Note 5, . Contract Costs The Company offers a variety of commission plans to the Company’s salesforce. Certain compensation under these plans is earned by sales representatives solely as a result of obtaining a customer contract. These are considered incremental costs of obtaining a contract and are eligible for capitalization under ASC Topic 340-40, Other Assets and Deferred Costs – Contracts with Customers Significant Financing Component The Company provides extended payment terms to certain customers that represent a significant financing component. The Company adjusts the amount of promised consideration for the time value of money using its discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. Limited Warranty Obligations The Company offers limited warranties on the Company’s products which provide the customer assurance that the product will function as the parties intended because it complies with agreed-upon specifications; therefore, these assurance-type warranties are not treated as a separate revenue performance obligation and are accounted for as guarantees under U.S. GAAP. The Company regularly reviews its warranty liability and updates these balances based on historical warranty cost trends. |
Concentrations of Customers | Concentrations of Customers For the year ended December 31, 2021, two customers accounted for 16%, and 13% of the Company’s revenue, respectively, and three customers accounted for 37%, 13%, and 10% of the Company’s accounts receivable, net as of December 31, 2021. For the year ended December 31, 2020, three customers each accounted for 12% of the Company’s revenue, respectively, and two customers accounted for 11% and 10% of the Company’s accounts receivable, net as of December 31, 2020, respectively. |
Research and Development | Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that are in development. Research and development expenses include employee compensation, including stock-based compensation, supplies, consulting, prototypes, testing, materials, travel expenses, and depreciation. Until future commercialization of the ALLY system is considered probable and the future economic benefit is expected to be realized the Company recognizes pre-launch inventory costs as research and development expenses. |
Income Taxes | Income Taxes The Company is subject to U.S. federal, state, and local corporate income taxes at the entity level. Prior to the Spin-Off, the Company’s losses were included with PDL’s consolidated U.S. federal and state income tax returns. Subsequent to the Spin-Off, income taxes as presented in the Company’s financial statements reflect our status as a separate Company, filing federal and state income tax returns on a stand-alone basis. The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws in the year in which such laws are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision. |
Lessee Arrangements | Leases The Company adopted ASC Topic 842, Leases and the recently adopted revenue recognition guidance. The adoption of ASC 842 did not materially change how the Company accounts for lessor arrangements. The Company determines if an arrangement is a lease or contains an embedded lease at inception if it contains the right to control the use of an identified asset under a leasing arrangement with an initial term greater than 12 months. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Policy Elections and Practical Expedients Taken The Company has lease arrangements with lease and non-lease components, which are accounted for separately. For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For short term leases, defined as leases with a lease term of 12 months or less, the Company elected to not recognize an associated lease liability and ROU asset. Lease payments for short term leases are expensed on a straight-line basis over the lease term. The Company has a policy to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee. Lessee Arrangements Lessee operating right of use assets are included in Other assets in the Company’s balance sheet. Lessee operating lease liabilities are included in Other current liabilities and Long-term operating lease liabilities in the Company’s balance sheet. The Company does not have lessee financing leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date, including the lease term and the Company’s credit risk, in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis as operating expense in the statements of operations over the lease term. For lease arrangements with lease and non-lease components where the Company is the lessee, the Company separately accounts for lease and non-lease components, which consists primarily of common area maintenance services. Non-lease components are expensed as incurred. |
Lessor Arrangements | Lessor Arrangements The Company leases equipment to customers under operating leases. Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Lease elements generally include a LENSAR Laser System, while non-lease elements generally include extended warranty services, PIDs and procedure licenses. The stand-alone selling prices for the extended warranty services, PIDs and procedure licenses are determined based on the prices at which the Company separately sells such products and services. The LENSAR Laser System stand-alone selling prices are determined using the expected cost plus a margin approach. Allocation of the transaction price is determined at the inception of the lease arrangement. The Company’s leases primarily consist of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and consumables used with the leased equipment. Non-lease components are accounted for under ASC 606 . For additional information regarding ASC 606, see Note 3 , Revenue from Contracts with Customers. Some leases include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term. A new contract is generated if a customer intends to continue using the equipment under the initial term and the new contract term is not included in the initial lease term. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following criteria at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term, (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system, (3) whether the lease term is for the major part of the remaining economic life of the leased system, (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise, and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. If any of these criteria are met, the lease is classified as a sales-type lease. If none of these criteria are met the lease is classified as an operating lease. For the years ended December 31, 2021 and 2020, the Company does not have any sales-type leases. For operating leases, rental income is recognized on a straight-line basis over the lease term as lease revenue. The cost of customer-leased equipment is recorded within equipment under lease, net in the balance sheets and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in cost of lease in the statements of operations. Some of the Company’s operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement, subject to a new contract. The purchase price does not qualify as a bargain purchase option. The Company manages its risk on its investment in the equipment through pricing and the term of the leases. Lessees do not provide residual value guarantees on leased equipment. Equipment returned to the Company may be leased or sold to other customers. Initial direct costs, recorded in prepaid and other current assets, are deferred and recognized over the lease term. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation See Note 12, Stock-Based Compensation, |
Adopted Accounting Pronouncements | Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 (“ASU 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 ASC Topic 740, Income Taxes Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recent pronouncements issued by the FASB and other authoritative standards groups with future effective dates and concluded the pronouncements are either not applicable to the Company or are not expected to have a material impact on the Company’s financial position or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation is Computed using Straight-Line Method over Useful Lives | Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Manufacturing equipment 3-5 years Computer and office equipment 3 years Transportation equipment 3 years Furniture and fixtures 7 years Software 3 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 United States $ 15,004 $ 11,604 South Korea 4,380 3,077 Europe 5,805 3,588 Asia (excluding South Korea) 3,855 4,193 Other 449 319 Total 1 $ 29,493 $ 22,781 Leases |
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: As of December 31, Classification 2021 2020 Accounts receivable, current Accounts receivable, net $ 4,638 $ 2,012 Notes receivable, current Notes receivable, net $ 350 $ 444 Notes receivable, long-term Notes and other receivables, long-term, net $ 121 $ 452 Contract liability, current Deferred revenue $ 904 $ 923 Contract liability, non-current Other long-term liabilities $ 66 $ 128 The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2019 $ 895 Billings not yet recognized as revenue 880 Beginning contract liabilities recognized as revenue (724 ) Contract liabilities at December 31, 2020 1,051 Billings not yet recognized as revenue 798 Beginning contract liabilities recognized as revenue (879 ) Contract liabilities at December 31, 2021 $ 970 |
Summary of Allowance for Accounts Receivable | The following table summarizes the activity in the allowance for accounts receivable: Amount Accounts receivable, allowance for credit losses as of January 1, 2020 $ — Impact of adoption of ASC 326 15 Change in provision for credit losses 24 Write-offs (20 ) Accounts receivable, allowance for credit losses as of December 31, 2020 19 Change in provision for credit losses 28 Write-offs — Accounts receivable, allowance for credit losses as of December 31, 2021 $ 47 |
Summary of Allowance for Notes Receivable | The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for credit losses as of January 1, 2020 $ — Impact of adoption of ASC 326 19 Change in provision for credit losses (1 ) Write-offs — Notes receivable, allowance for credit losses as of December 31, 2020 18 Change in provision for credit losses 45 Write-offs — Notes receivable, allowance for credit losses as of December 31, 2021 $ 63 |
Summary of Maturities of Notes Receivables Net Under Extended Payment Terms | Maturities of notes receivables, net under extended payment terms with a significant financing component as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 350 2023 126 2024 and thereafter — Total undiscounted cash flows 476 Present value of notes receivable 534 Difference between undiscounted and discounted cash flows $ (58 ) |
Summary of Costs to Obtain Customer Contracts | The following table provides information about the costs to obtain contracts associated with contracts with customers for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 Beginning balance $ 109 $ 190 Additions 509 379 Amortization (575 ) (460 ) Ending balance $ 43 $ 109 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: As of December 31, 2021 2020 Finished Goods $ 4,319 $ 10,551 Work-in-process 173 319 Raw Materials 1,996 2,603 Total $ 6,488 $ 13,473 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows: Year Ended December 31, 2021 2020 Operating lease cost $ 578 $ 543 Short-term lease cost 30 9 Total lease cost $ 608 $ 552 |
Summary of Supplemental Cash Flow Information Related to Company Leases Including Lease Modification | Supplemental cash flow information related to leases, including the lease modification, is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 522 $ 413 Right-of-use-assets obtained in exchange for lease obligations: Operating leases $ — $ 3,320 |
Summary of Operating Lease liabilities | The following table presents the lease balances within the balance sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases: As of December 31, Operating Leases Classification 2021 2020 Operating lease ROU assets Other assets $ 3,151 $ 3,668 Operating lease liabilities, current Other current liabilities $ 512 $ 493 Operating lease liabilities, long-term Long-term operating lease liabilities 2,803 3,314 Total operating lease liabilities $ 3,315 $ 3,807 Weighted-average remaining lease term 5.9 years 6.9 years Weighted-average discount rate 10.00 % 10.00 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 537 2023 551 2024 567 2025 582 2026 598 Thereafter 562 Total operating lease payments 3,397 Less: imputed interest (82 ) Total operating lease liabilities $ 3,315 |
Schedule of Lease Revenue | . Lease revenue for the years ended December 31, 2021 and 2020 was as follows: Year ended December 31, 2021 2020 Lease revenue $ 4,966 $ 3,601 |
Schedule of Equipment Under Lease | Equipment under lease is as follows: As of December 31, 2021 2020 Equipment under lease $ 13,488 $ 9,343 Less accumulated depreciation (6,798 ) (5,760 ) Equipment under lease, net $ 6,690 $ 3,583 |
Maturities of Operating Lease Payments | Maturities of operating lease payments as of December 31, 2021 are as follows: Fiscal Year Amount 2022 $ 2,146 2023 570 2024 100 2025 35 2026 23 Thereafter — Total undiscounted cash flows $ 2,874 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table provides details of property and equipment, net: As of December 31, 2021 2020 Leasehold improvements $ 112 $ 112 Manufacturing equipment 940 269 Computer and office equipment 102 107 System and laser 1,219 1,452 Software 56 — Furniture and fixtures 50 50 Transportation equipment 38 38 Total 2,517 2,028 Less accumulated depreciation (1,945 ) (1,876 ) Construction in progress 184 680 Property and equipment, net $ 756 $ 832 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The components of intangible assets were as follows: As of December 31, 2021 As of December 31, 2020 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 $ (1,685 ) $ 2,607 $ 4,292 $ (1,326 ) $ 2,966 Acquired technology 1,3 11,500 (3,275 ) 8,225 11,500 (2,508 ) 8,992 Acquired trademarks 1 570 (532 ) 38 570 (418 ) 152 $ 16,362 $ (5,492 ) $ 10,870 $ 16,362 $ (4,252 ) $ 12,110 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 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 December 31, 2021, 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 2022 $ 1,149 2023 1,097 2024 1,085 2025 1,074 2026 1,064 Thereafter 5,401 Total remaining estimated amortization expense $ 10,870 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of December 31, 2021 2020 Compensation $ 3,375 $ 2,971 Professional services 526 1,271 Warranty 45 79 Other 658 249 Total $ 4,604 $ 4,570 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Shares Available for Issuance Under 2020 Plan | A summary of the shares available for issuance under the 2020 Plan is as follows: Number of Shares Balance at December 31, 2020 1,188 Authorized 547 Granted/Awarded (674 ) Cancelled 21 Balance at December 31, 2021 1,082 |
Summary of Option Award Activity | Option award activity under the 2020 Plan is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 — $ — — $ — Options granted 674 $ 7.59 Options exercised — $ — Options cancelled (21 ) $ 8.27 Outstanding at December 31, 2021 653 $ 7.57 9.3 $ — Vested and expected to vest at December 31, 2021 653 $ 7.57 9.3 $ — Vested and exercisable at December 31, 2021 94 $ 7.70 9.4 $ — |
Summary of Fair Value of Employee and Non-Employee Stock Options was Estimated Using Assumptions | The fair value of employee and non-employee stock options was estimated using the following assumptions for the year ended December 31, 2021 : Year Ended December 31, 2021 Risk-free interest rate 0.6 - 1.3% Expected term (years) 6 Expected volatility 72 - 73% Dividends 0.0% |
Summary of Restricted Stock Award Activity | Restricted stock award activity under the 2020 Plan is set forth below: 2021 Number of Units Weighted- average grant- date fair value per share Non-vested at beginning of year 2,050 $ 10.30 Granted — $ — Vested (718 ) $ 10.31 Cancelled — $ — Non-vested at end of year 1,332 $ 10.29 |
Summary of Total Stock-Based Compensation Expense Recognized | The following table sets forth the total stock-based compensation expense recognized under the 2020 Plan, the 2020 ESPP and the Phantom Stock Plan in the Company’s statements of operations: Year Ended December 31, 2021 2020 Cost of revenue—product $ 216 $ 303 Cost of revenue—service 122 165 Selling, general and administrative expenses 5,914 7,529 Research and development expenses 614 876 Total $ 6,866 $ 8,873 |
Summary of Unrecognized Stock-based Compensation Expense Expected to be Amortized | Total unrecognized stock-based compensation expense is expected to be amortized as follows: Fiscal Year Amount 2022 $ 5,607 2023 3,497 2024 470 2025 99 2026 — Thereafter — Total unrecognized stock-based compensation expense $ 9,673 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2021 2020 United States $ (19,601 ) $ (19,774 ) Foreign — — Total $ (19,601 ) $ (19,774 ) |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2021 and 2020 consisted of the following: Year Ended December 31, 2021 2020 Current income tax expense (benefit) Federal $ — $ — State — — Foreign — — Total current — — Deferred income tax (benefit) Federal — — State — — Foreign — — Total deferred — — Total provision $ — $ — |
Schedule of Reconciliation of Income Tax Provision Computed using U.S. Statutory Federal Income Tax Rate | A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statements of operations is as follows: Year Ended December 31, 2021 2020 Tax at U.S. statutory rate on income before income taxes $ (4,116 ) $ (4,153 ) Change in valuation allowance 3,930 1,573 State taxes (684 ) (210 ) Section 162(m) 310 — Stock-based compensation 559 68 (Income)/Loss taxable in period under the separate return method — 2,719 Other 1 3 Total $ — $ — |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The significant components of the Company’s net deferred tax assets and liabilities are as follows: Year Ended December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 4,417 $ 496 Intangible assets 6,287 6,541 Stock-based compensation 1,675 1,886 Other 639 170 Total deferred tax assets 13,018 9,093 Valuation allowance (13,014 ) (9,084 ) Total deferred tax assets, net of valuation allowance 4 9 Deferred tax liabilities: Other (4 ) (9 ) Total deferred tax liabilities (4 ) (9 ) Net deferred tax assets $ — $ — |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, is as follows: Year Ended December 31, 2021 2020 Balance at the beginning of the year $ — $ 2,255 Decreases related to prior year tax positions — — Increases related to tax positions from prior fiscal years — — Increases related to tax positions taken during current fiscal year — — Decreases related to the Spin-Off — (2,255 ) Balance at the end of the year $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: Year Ended December 31, 2021 2020 Net loss attributable to common stockholders $ (19,601 ) $ (19,774 ) Weighted average number of shares of common stock 9,374 4,621 Basic and diluted net loss per share $ (2.09 ) $ (4.28 ) |
Schedule of Anti-Dilutive Weighted Average Shares Excluded From Net Loss Per Share Diluted Shares Calculation | The anti-dilutive weighted-average shares excluded from the net loss per share diluted shares calculations were: Year Ended December 31, 2021 2020 Restricted stock awards 1,142 843 Outstanding stock options 491 — Total 1,633 843 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 01, 2020 | Sep. 30, 2020USD ($)shares | Aug. 31, 2020USD ($)shares | Jul. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Aug. 20, 2020 |
Overview And Basis Of Presentation [Line Items] | |||||||
Distribution, record date | Sep. 22, 2020 | ||||||
Stockholders' equity, reverse stock split | one-for-nine reverse stock split | ||||||
Stockholders' equity, reverse stock split, ratio | 0.111111111 | ||||||
Accumulated deficit | $ (57,993) | $ (77,594) | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 | ||||
Extinguishment of debt | $ 32,600 | ||||||
Impact from recapitalization transactions | $ 69,879 | $ 69,879 | |||||
Gain on extinguishment | 2,691 | ||||||
Additional capital contribution, shares | shares | 9,000 | 740,000 | |||||
Capital contribution from PDL | $ 97 | $ 8,000 | $ 20,666 | ||||
Financial Support, Capital Contributions | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Additional capital contribution, shares | shares | 747,000 | ||||||
Capital contribution from PDL | $ 29,000 | ||||||
Issuance of common stock | 8,334 | ||||||
Stock issued during period, remaining cash contribution amount | $ 20,666 | ||||||
Common Stock | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Impact from recapitalization transactions, Shares | shares | 6,221,000 | ||||||
Fair value of debt | $ 67,188 | ||||||
Impact from recapitalization transactions | $ 62 | ||||||
Additional capital contribution, shares | shares | 2,146,000 | ||||||
Issuance of common stock | $ 21 | ||||||
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 distribution ratio to PDL shareholders | 7.5879% | ||||||
Shares issued in exchange for extinguishment of Preferred stock | shares | 3,415,000 | ||||||
PDL BioPharma, Inc | Common Stock | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Common stock shares issued in exchange for extinguishment of debt | shares | 2,806,000 | ||||||
Impact from recapitalization transactions, Shares | shares | 6,221,000 | ||||||
PDL BioPharma, Inc | LENSAR | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Percentage of common stock owned | 81.50% | ||||||
PDL BioPharma, Inc | PDLIH | |||||||
Overview And Basis Of Presentation [Line Items] | |||||||
Distribution of ownership interest in its wholly owned subsidiary | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)SegmentCustomer | Dec. 31, 2020USD ($)Customer | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Long-lived assets in United States | 89.00% | 100.00% | |
Allowance for credit losses | $ 110,000 | $ 37,000 | |
Acquired intangible assets weighted average amortization period | 15 years | ||
Impairment of intangible assets | $ 0 | 0 | |
Accounts receivables payment terms | 30 days | ||
Operating lease right-of-use assets | $ 3,151,000 | 3,668,000 | |
Long-term operating lease liabilities | $ 2,803,000 | $ 3,314,000 | |
Customer Concentration Risk | Revenue Benchmark | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 2 | 3 | |
Customer Concentration Risk | Revenue Benchmark | Customer One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 16.00% | 12.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer Two | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 13.00% | 12.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer Three | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Customer Concentration Risk | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 3 | 2 | |
Customer Concentration Risk | Accounts Receivable | Customer One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 37.00% | 11.00% | |
Customer Concentration Risk | Accounts Receivable | Customer Two | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 13.00% | 10.00% | |
Customer Concentration Risk | Accounts Receivable | Customer Three | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Shipping and Handling | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cost of revenue | $ 245,000 | $ 90,000 | |
Accounting Standards Update 2014-09 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | ||
Accounting Standards Update 2016-02 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Operating lease right-of-use assets | $ 1,390,000 | ||
Long-term operating lease liabilities | $ 1,424,000 | ||
ASU 2019-12 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating leases, estimated useful life | 5 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating leases, estimated useful life | 10 years | ||
Maximum | Accounting Standards Update 2016-02 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating leases, estimated useful life | 12 months | ||
Acquired Product Rights and Technology | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired intangible assets weighted average amortization period | 15 years | ||
Acquired Product Rights and Technology | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired intangible assets weighted average amortization period | 20 years | ||
Customer Relationships | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired intangible assets weighted average amortization period | 10 years | ||
Customer Relationships | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Depreciation is Computed using Straight-Line Method over Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | Lesser of useful life or term of lease |
Manufacturing Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Manufacturing Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Transportation Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 7 years |
Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | $ 29,493 | $ 22,781 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 15,004 | 11,604 |
South Korea | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 4,380 | 3,077 |
Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 5,805 | 3,588 |
Asia (Excluding South Korea) | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 3,855 | 4,193 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | $ 449 | $ 319 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contracts With Customers [Line Items] | ||
Lease revenue | $ 4,966 | $ 3,601 |
Accounts receivables payment terms | 30 days | |
Revenue remaining performance obligation amount | $ 6,641 | |
Other Income, Net | ||
Revenue From Contracts With Customers [Line Items] | ||
Interest income on notes receivable | $ 34 | $ 54 |
Minimum | ||
Revenue From Contracts With Customers [Line Items] | ||
Notes receivable interest rate | 5.00% | |
Maximum | ||
Revenue From Contracts With Customers [Line Items] | ||
Notes receivable interest rate | 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, current | $ 4,638 | $ 2,012 |
Notes receivable, current | 350 | 444 |
Notes receivable, long-term | 121 | 452 |
Contract liability, current | 904 | 923 |
Notes and Other Receivables, Long-Term, Net | ||
Schedule Of Contract Balances [Line Items] | ||
Notes receivable, long-term | 121 | 452 |
Deferred Revenue | ||
Schedule Of Contract Balances [Line Items] | ||
Contract liability, current | 904 | 923 |
Other Long-Term Liabilities | ||
Schedule Of Contract Balances [Line Items] | ||
Contract liability, non-current | $ 66 | $ 128 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Summary of Allowance for Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | $ 19 | $ 0 |
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |
Change in provision for credit losses | 28 | $ 24 |
Write-offs | 0 | (20) |
Ending balance | $ 47 | 19 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | $ 15 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers - Summary of Allowance for Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 18 | |
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |
Change in provision for credit losses | 45 | $ (1) |
Ending balance | $ 63 | 18 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 19 |
Revenue From Contracts With C_8
Revenue From Contracts With Customers - Summary of Maturities of Notes Receivables Net Under Extended Payment Terms (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue From Contract With Customer [Abstract] | |
2022 | $ 350 |
2023 | 126 |
Total undiscounted cash flows | 476 |
Present value of notes receivable | 534 |
Difference between undiscounted and discounted cash flows | $ (58) |
Revenue From Contracts With C_9
Revenue From Contracts With Customers - Schedule of Information About Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning balance | $ 1,051 | $ 895 |
Billings not yet recognized as revenue | 798 | 880 |
Beginning contract liabilities recognized as revenue | (879) | (724) |
Ending balance | $ 970 | $ 1,051 |
Revenue From Contracts With _10
Revenue From Contracts With Customers - Additional Information (Details 1) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 6,641 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 4,477 |
Revenue remaining performance obligation expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 1,674 |
Revenue remaining performance obligation expected timing of satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 490 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue From Contracts With _11
Revenue From Contracts With Customers - Summary of Costs to Obtain Customer Contracts (Details) - Cost to Obtain Customer Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Beginning balance | $ 109 | $ 190 |
Additions | 509 | 379 |
Amortization | (575) | (460) |
Ending balance | $ 43 | $ 109 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Net [Abstract] | ||
Finished Goods | $ 4,319 | $ 10,551 |
Work-in-process | 173 | 319 |
Raw Materials | 1,996 | 2,603 |
Total | $ 6,488 | $ 13,473 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Net [Abstract] | ||
Write downs of inventories to net realizable value | $ 264 | $ 8 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee and Lessor Lease Description [Line Items] | ||
Lease expiration date | Nov. 30, 2027 | |
Incremental borrowing rate | 10.00% | |
Lessee, operating leases, remaining lease terms | 5 years 10 months 24 days | |
Lessee, operating lease, renewal term | 5 years | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Depreciation expense on equipment under lease | $ 1,214 | $ 1,037 |
Minimum | ||
Lessee and Lessor Lease Description [Line Items] | ||
Lessor, operating leases, remaining lease terms | 1 year | |
Maximum | ||
Lessee and Lessor Lease Description [Line Items] | ||
Lessor, operating leases, remaining lease terms | 4 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 578 | $ 543 |
Short-term lease cost | 30 | 9 |
Total lease cost | $ 608 | $ 552 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Company Leases Including Lease Modification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 522 | $ 413 |
Right-of-use-assets obtained in exchange for lease obligations: | ||
Operating leases | $ 3,320 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 3,151 | $ 3,668 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease liabilities, current | $ 512 | $ 493 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities, long-term | $ 2,803 | $ 3,314 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Total operating lease liabilities | $ 3,315 | $ 3,807 |
Weighted-average remaining lease term | 5 years 10 months 24 days | 6 years 10 months 24 days |
Weighted-average discount rate | 10.00% | 10.00% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 537 | |
2023 | 551 | |
2024 | 567 | |
2025 | 582 | |
2026 | 598 | |
Thereafter | 562 | |
Total operating lease payments | 3,397 | |
Less: imputed interest | (82) | |
Total operating lease liabilities | $ 3,315 | $ 3,807 |
Leases - Schedule of Lease Reve
Leases - Schedule of Lease Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Lease revenue | $ 4,966 | $ 3,601 |
Leases - Schedule of Equipment
Leases - Schedule of Equipment Under Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Equipment under lease | $ 13,488 | $ 9,343 |
Less accumulated depreciation | (6,798) | (5,760) |
Equipment under lease, net | $ 6,690 | $ 3,583 |
Leases - Maturities of Operat_2
Leases - Maturities of Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 2,146 |
2023 | 570 |
2024 | 100 |
2025 | 35 |
2026 | 23 |
Total undiscounted cash flows | $ 2,874 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 2,517 | $ 2,028 |
Less accumulated depreciation | (1,945) | (1,876) |
Property and equipment, net | 756 | 832 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 112 | 112 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 940 | 269 |
Computer and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 102 | 107 |
System and Laser | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 1,219 | 1,452 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 56 | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 50 | 50 |
Transportation Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 38 | 38 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Construction in progress | $ 184 | $ 680 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 1,524 | $ 1,309 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Assets capitalized amount | 662 | 680 |
Property and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 310 | $ 272 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16,362 | $ 16,362 |
Accumulated Amortization | (5,492) | (4,252) |
Net Carrying Amount | 10,870 | 12,110 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,292 | 4,292 |
Accumulated Amortization | (1,685) | (1,326) |
Net Carrying Amount | 2,607 | 2,966 |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,500 | 11,500 |
Accumulated Amortization | (3,275) | (2,508) |
Net Carrying Amount | 8,225 | 8,992 |
Acquired Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 570 | 570 |
Accumulated Amortization | (532) | (418) |
Net Carrying Amount | $ 38 | $ 152 |
Intangible Assets - Component_2
Intangible Assets - Components of Intangible Assets (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,240 | $ 1,256 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Impairment of Underlying Assets, Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2022 | $ 1,149 | |
2023 | 1,097 | |
2024 | 1,085 | |
2025 | 1,074 | |
2026 | 1,064 | |
Thereafter | 5,401 | |
Net Carrying Amount | $ 10,870 | $ 12,110 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Compensation | $ 3,375 | $ 2,971 |
Professional services | 526 | 1,271 |
Warranty | 45 | 79 |
Other | 658 | 249 |
Total | $ 4,604 | $ 4,570 |
Series A Preferred Stock - Addi
Series A Preferred Stock - Additional Information (Details) - Series A Preferred Stock - USD ($) | Jan. 01, 2019 | May 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
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 | $ 0 | $ 829,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |
Contingent milestone payments | $ 2,400 |
Additional royalty payments rate | 3.00% |
Supply Agreement | |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase obligation | $ 4,568 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 09, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jul. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Weighted average grant date fair value of options granted | $ 4.85 | ||||||||||||
Total fair value of options vested | $ 466 | ||||||||||||
Total unrecognized compensation expense | $ 2,180 | ||||||||||||
Total unrecognized compensation expense, weighted-average period of recognition | 2 years 7 months 6 days | ||||||||||||
Dividends | 0.00% | ||||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
2020 Employee Stock Purchase Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Common stock reserved for issuance | 283,000 | ||||||||||||
Percentage of outstanding shares of common stock | 1.00% | ||||||||||||
Exercise price of option on fair value (as a percent) | 85.00% | ||||||||||||
Common stock, shares authorized | 340,000 | ||||||||||||
Shares of common stock have been issued to employees | 57 | ||||||||||||
Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Award vesting percentage | 10.00% | ||||||||||||
Restricted Stock Awards | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Total unrecognized compensation expense, weighted-average period of recognition | 1 year 7 months 6 days | ||||||||||||
Total fair value of restricted stock awards vested | $ 7,406 | $ 970 | |||||||||||
Weighted-average grant date fair value | $ 10.30 | ||||||||||||
Number of stock awards granted | 0 | ||||||||||||
Total unrecognized compensation expense | $ 7,493 | ||||||||||||
Restricted Stock Awards | Forecast | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Number of restricted stock awards are expected to vest | 75,000 | 180,000 | 136,000 | 237,000 | 113,000 | 113,000 | 140,000 | 338,000 | |||||
Minimum | Incentive Stock Options And Nonqualified Stock Options | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Vesting period | 1 year | ||||||||||||
Minimum | Incentive Stock Options And Nonqualified Stock Options | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Exercise price of option on fair value (as a percent) | 100.00% | ||||||||||||
Minimum | Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Exercise price of option on fair value (as a percent) | 110.00% | ||||||||||||
Maximum | Incentive Stock Options And Nonqualified Stock Options | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Term of contract | 10 years | ||||||||||||
Vesting period | 4 years | ||||||||||||
Maximum | Incentive Stock Options And Nonqualified Stock Options | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Term of contract | 10 years | ||||||||||||
Maximum | Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Term of contract | 5 years | ||||||||||||
2020 Incentive Award Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Common stock reserved for issuance | 3,333,000 | 3,880,000 | |||||||||||
Percentage of outstanding shares of common stock | 5.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Shares Available for Issuance Under 2020 Plan (Details) - 2020 Incentive Award Plan | 12 Months Ended |
Dec. 31, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Balance | 1,188,000 |
Authorized | 547,000 |
Granted/Awarded | (674,000) |
Cancelled | 21,000 |
Balance | 1,082,000 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Option Award Activity (Details) - 2020 Incentive Award Plan | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options granted, Number of Shares | shares | 674,000 |
Options cancelled, Number of Shares | shares | (21,000) |
Outstanding at end of period, Number of shares | shares | 653,000 |
Vested and expected to vest at December 31, 2021, Number of Shares | shares | 653,000 |
Vested and exercisable at December 31, 2021, Number of Shares | shares | 94,000 |
Options granted, Weighted Average Exercise Price | $ / shares | $ 7.59 |
Options cancelled, Weighted Average Exercise Price | $ / shares | 8.27 |
Outstanding at end of period, Weighted Average Exercise Price | $ / shares | 7.57 |
Vested and expected to vest at December 31, 2021, Weighted Average Exercise Price | $ / shares | 7.57 |
Vested and exercisable at December 31, 2021, Weighted Average Exercise Price | $ / shares | $ 7.70 |
Outstanding at December 31, 2021, Weighted Average Remaining Contractual Term (in Years) | 9 years 3 months 18 days |
Vested and expected to vest at December 31, 2021, Weighted Average Remaining Contractual Term (in Years) | 9 years 3 months 18 days |
Vested and exercisable at December 31, 2021, Weighted Average Remaining Contractual Term (in Years) | 9 years 4 months 24 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Fair Value of Employee and Non-Employee Stock Options was Estimated Using Assumptions (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Risk-free interest rate, minimum | 0.60% |
Risk-free interest rate, maximum | 1.30% |
Expected term (years) | 6 years |
Expected volatility, minimum | 72.00% |
Expected volatility, maximum | 73.00% |
Dividends | 0.00% |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Number of Units | 0 | |
Granted, Weighted-average grant-date fair value per share | $ 10.30 | |
2020 Incentive Award Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested at beginning of year, Number of Units | 2,050,000 | |
Vested, Number of Units | (718,000) | |
Non-vested at end of the period, Number of Units | 1,332,000 | 2,050,000 |
Non-vested at beginning of year, Weighted-average grant-date fair value per share | $ 10.30 | |
Vested, Weighted-average grant-date fair value per share | 10.31 | |
Non-vested at ending of year, Weighted-average grant-date fair value per share | $ 10.29 | $ 10.30 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 6,866 | $ 8,873 |
Cost of Revenue | Product | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 216 | 303 |
Cost of Revenue | Service | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 122 | 165 |
Selling, General and Administrative Expenses | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 5,914 | 7,529 |
Research and Development Expenses | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 614 | $ 876 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Unrecognized Stock-based Compensation Expense Expected to be Amortized (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
2022 | $ 5,607 |
2023 | 3,497 |
2024 | 470 |
2025 | 99 |
Total unrecognized stock-based compensation expense | $ 9,673 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (19,601) | $ (19,774) |
Total | $ (19,601) | $ (19,774) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Provision Computed using U.S. Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax at U.S. statutory rate on income before income taxes | $ (4,116) | $ (4,153) |
Change in valuation allowance | 3,930 | 1,573 |
State taxes | (684) | (210) |
Section 162(m) | 310 | |
Stock-based compensation | 559 | 68 |
(Income)/Loss taxable in period under the separate return method | 2,719 | |
Other | $ 1 | $ 3 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,417 | $ 496 |
Intangible assets | 6,287 | 6,541 |
Stock-based compensation | 1,675 | 1,886 |
Other | 639 | 170 |
Total deferred tax assets | 13,018 | 9,093 |
Valuation allowance | (13,014) | (9,084) |
Total deferred tax assets, net of valuation allowance | 4 | 9 |
Deferred tax liabilities: | ||
Other | (4) | (9) |
Total deferred tax liabilities | $ (4) | $ (9) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||
Valuation allowance against deferred tax assets | $ 13,014,000 | $ 9,084,000 |
Increase in deferred tax assets valuation allowance | 3,930,000 | 3,930,000 |
Accrued interest and penalties associated with unrecognized tax benefits | 0 | 0 |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 15,993,000 | 1,972,000 |
Operating loss carryforwards, limitations on use | The federal net operating losses generated during the period ended December 31, 2020 after the Spin-Off and during the year ended December 31, 2021 may only be utilized to offset 80% of taxable income annually and may be carried forward indefinitely. | |
Maximum utilization percentage on taxable income | 80.00% | |
State | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 13,502,000 | $ 1,532,000 |
Operating loss carryforwards begin to expire year | 2028 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at the beginning of the year | $ 2,255 |
Decreases related to the Spin-Off | $ (2,255) |
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, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders | $ (19,601) | $ (19,774) |
Weighted average number of shares of common stock | 9,374 | 4,621 |
Basic and diluted net loss per share | $ (2.09) | $ (4.28) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic [Line Items] | ||
Cumulative dividends in excess of interest expense on Series A Preferred Stock | $ 0 | $ 0 |
Restricted Stock Awards | ||
Earnings Per Share Basic [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 1,332 | 2,050 |
Stock Options | ||
Earnings Per Share Basic [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 653 | 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Anti-Dilutive Weighted Average Shares Excluded From Net Loss Per Share Diluted Shares Calculation (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares excluded from the calculation of net loss per diluted share | 1,633 | 843 |
Restricted Stock Awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares excluded from the calculation of net loss per diluted share | 1,142 | 843 |
Outstanding Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average shares excluded from the calculation of net loss per diluted share | 491 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Apr. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2017 |
Related Party Transaction [Line Items] | ||||
Proceeds from note payable due to related party | $ 12,400,000 | |||
PDL BioPharma, Inc | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 0 | 3,387,000 | ||
Expense related to allocation of corporate costs | 0 | 0 | ||
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 | $ 0 | $ 511,000 |