Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 07, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40592 | ||
Entity Registrant Name | Rapid Micro Biosystems, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8121647 | ||
Entity Address, Address Line One | 1001 Pawtucket Boulevard West, | ||
Entity Address, Address Line Two | Suite 280 | ||
Entity Address, City or Town | Lowell | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01854 | ||
City Area Code | 978 | ||
Local Phone Number | 349-3200 | ||
Title of 12(b) Security | Class A common stock, $0.01 par valueper share | ||
Trading Symbol | RPID | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24,145,209 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to its 2023 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2022 are incorporated herein by reference in Part III. | ||
Entity Central Index Key | 0001380106 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 36,635,108 | ||
Class B Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 5,553,379 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Boston, Massachusetts |
Auditor Firm ID | 238 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 27,064,000 | $ 178,387,000 |
Short-term investments | 81,584,000 | 15,110,000 |
Accounts receivable | 5,369,000 | 5,005,000 |
Inventory | 21,187,000 | 15,671,000 |
Prepaid expenses and other current assets | 3,372,000 | 3,951,000 |
Total current assets | 138,576,000 | 218,124,000 |
Property and equipment, net | 13,818,000 | 11,304,000 |
Right-of-use assets | 7,063,000 | |
Long-term investments | 29,790,000 | 9,966,000 |
Other long-term assets | 1,119,000 | 1,491,000 |
Restricted cash | 284,000 | 284,000 |
Total assets | 190,650,000 | 241,169,000 |
Current liabilities: | ||
Accounts payable | 5,428,000 | 3,944,000 |
Accrued expenses and other current liabilities | 8,150,000 | 10,917,000 |
Deferred revenue | 4,706,000 | 3,305,000 |
Lease liabilities, short-term | 766,000 | |
Total current liabilities | 19,050,000 | 18,166,000 |
Deferred rent, long-term | 813,000 | |
Lease liabilities, long-term | 7,202,000 | |
Other long-term liabilities | 229,000 | 1,210,000 |
Total liabilities | 26,481,000 | 20,189,000 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 540,775,000 | 535,693,000 |
Accumulated deficit | (375,918,000) | (315,112,000) |
Accumulated other comprehensive loss | (1,109,000) | (16,000) |
Total stockholders’ equity | 164,169,000 | 220,980,000 |
Total liabilities and stockholders’ equity | 190,650,000 | 241,169,000 |
Class A Common stock | ||
Stockholders’ equity: | ||
Common stock | 366,000 | 346,000 |
Class B Common stock | ||
Stockholders’ equity: | ||
Common stock | $ 55,000 | $ 69,000 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Class A Common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 210,000,000 | 210,000,000 |
Common stock, issued (in shares) | 36,538,805 | 34,564,040 |
Common stock, outstanding (in shares) | 36,538,805 | 34,564,040 |
Class B Common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 5,553,379 | 6,903,379 |
Common stock, outstanding (in shares) | 5,553,379 | 6,903,379 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | ||
Total revenue | $ 17,133 | $ 23,232 |
Costs and operating expenses: | ||
Research and development | 12,866 | 9,781 |
Sales and marketing | 14,994 | 11,815 |
General and administrative | 26,819 | 17,895 |
Total costs and operating expenses | 80,352 | 70,464 |
Loss from operations | (63,219) | (47,232) |
Other income (expense): | ||
Interest income (expense), net | 1,778 | (2,608) |
Change in fair value of preferred stock warrant liability | 0 | (19,643) |
Loss on extinguishment of debt | 0 | (3,100) |
Other income (expense), net | 59 | (850) |
Total other income (expense), net | 1,837 | (26,201) |
Loss before income taxes | (61,382) | (73,433) |
Income tax (benefit) expense | (576) | 91 |
Net loss | (60,806) | (73,524) |
Accretion of redeemable convertible preferred stock to redemption value | 0 | (1,761) |
Cumulative redeemable convertible preferred stock dividends | 0 | (2,747) |
Net loss attributable to common stockholders - basic | (60,806) | (78,032) |
Net loss attributable to common stockholders - diluted | $ (60,806) | $ (78,032) |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (1.43) | $ (3.94) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (1.43) | $ (3.94) |
Weighted average common shares outstanding - basic (in shares) | 42,454,403 | 19,783,539 |
Weighted average common shares outstanding - diluted (in shares) | 42,454,403 | 19,783,539 |
Product | ||
Revenue: | ||
Total revenue | $ 11,056 | $ 15,512 |
Costs and operating expenses: | ||
Cost of revenue | 18,477 | 23,434 |
Service | ||
Revenue: | ||
Total revenue | 6,077 | 6,125 |
Costs and operating expenses: | ||
Cost of revenue | 7,196 | 5,922 |
Non-commercial | ||
Revenue: | ||
Total revenue | 0 | 1,595 |
Costs and operating expenses: | ||
Cost of revenue | $ 0 | $ 1,617 |
Consolidated statements of comp
Consolidated statements of comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (60,806) | $ (73,524) |
Other comprehensive loss: | ||
Unrealized loss on investments, net of tax | (1,093) | (17) |
Comprehensive loss | $ (61,899) | $ (73,541) |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) $ in Thousands | Total | Series D1 Redeemable Convertible Preferred Stock | Series D2 Redeemable Convertible Preferred Stock | Common stock Class A Common stock | Common stock Class B Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) |
Common stock, balance at beginning of period (in shares) at Dec. 31, 2020 | 612,850 | 0 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ (127,006) | $ 6 | $ 0 | $ 114,575 | $ (241,588) | $ 1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accretion of redeemable convertible preferred stock to redemption value | (1,761) | (1,761) | ||||||
Cumulative redeemable convertible preferred stock dividends | (2,747) | (2,747) | ||||||
Conversion of stock (in shares) | 24,200,920 | 6,903,379 | ||||||
Conversion of stock | 236,077 | $ 242 | $ 69 | 235,766 | ||||
Conversion of preferred warrants to Class A common stock warrants | 23,760 | 23,760 | ||||||
Issuance of Class A common stock in initial public offering, net of issuance (in shares) | 9,006,604 | |||||||
Issuance of Class A common stock in initial public offering, net of issuance costs | 164,100 | $ 90 | 164,010 | |||||
Restricted stock award liability accretion | 19 | 19 | ||||||
Issuance of Class A common stock upon exercise of common stock warrants (in shares) | 268,718 | |||||||
Issuance of Class A common stock upon exercise of common stock warrants | 13 | $ 2 | 11 | |||||
Issuance of Class A common stock upon exercise of common stock options (In shares) | 226,043 | |||||||
Issuance of Class A common stock upon exercise of common stock options | 223 | $ 4 | 219 | |||||
Issuance of Restricted Class A common stock awards (in shares) | 248,905 | |||||||
Issuance of Restricted Class A common stock awards | $ 2 | (2) | ||||||
Stock-based compensation expense | 1,843 | 1,843 | ||||||
Net income (loss) | (73,524) | (73,524) | ||||||
Other comprehensive loss | (17) | (17) | ||||||
Common stock, balance at end of period (in shares) at Dec. 31, 2021 | 34,564,040 | 6,903,379 | ||||||
Balance at end of period at Dec. 31, 2021 | $ 220,980 | $ 346 | $ 69 | 535,693 | (315,112) | (16) | ||
Redeemable convertible preferred stock, balance at beginning of period (in shares) at Dec. 31, 2020 | 133,021,640 | |||||||
Balance at beginning of period at Dec. 31, 2020 | $ 151,826 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs (in shares) | 22,086,725 | 413,268 | ||||||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 78,274 | $ 1,469 | ||||||
Accretion of redeemable convertible preferred stock to redemption value | 1,761 | |||||||
Cumulative redeemable convertible preferred stock dividends | $ 2,747 | |||||||
Conversion of preferred stock to common stock (in shares) | (155,521,633) | |||||||
Conversion of preferred stock to common stock | $ (236,077) | |||||||
Redeemable convertible preferred stock, balance at end of period (in shares) at Dec. 31, 2021 | 0 | |||||||
Balance at end of period at Dec. 31, 2021 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of stock (in shares) | 1,350,000 | 1,350,000 | ||||||
Conversion of stock | $ 14 | $ (14) | ||||||
Restricted stock award liability accretion | $ 342 | 342 | ||||||
Issuance of Class A common stock upon exercise of common stock options (In shares) | 572,932 | 572,932 | ||||||
Issuance of Class A common stock upon exercise of common stock options | $ 568 | $ 6 | 562 | |||||
Issuance of Class A common stock under ESPP (in shares) | 51,833 | |||||||
Issuance of Class A common stock under ESPP | 159 | 159 | ||||||
Stock-based compensation expense | 4,019 | 4,019 | ||||||
Net income (loss) | (60,806) | (60,806) | ||||||
Other comprehensive loss | (1,093) | (1,093) | ||||||
Common stock, balance at end of period (in shares) at Dec. 31, 2022 | 36,538,805 | 5,553,379 | ||||||
Balance at end of period at Dec. 31, 2022 | $ 164,169 | $ 366 | $ 55 | $ 540,775 | $ (375,918) | $ (1,109) |
Consolidated statements of st_2
Consolidated statements of stockholders' equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Series D1 Redeemable Convertible Preferred Stock | |
Issuance costs | $ 1,278,000 |
Series D2 Redeemable Convertible Preferred Stock | |
Issuance costs | 19,000 |
Class A Common stock | |
Issuance costs | $ 16,032,000 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (60,806) | $ (73,524) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 2,837 | 1,529 |
Stock-based compensation expense | 4,019 | 1,843 |
Non-cash lease expense | 1,143 | |
Change in fair value of preferred stock warrant liability | 0 | 19,643 |
Provision recorded for inventory | 326 | 60 |
Noncash interest expense | 0 | 390 |
Loss (gain) on disposal of property and equipment | 28 | (18) |
Accretion on investments | (662) | (3) |
Loss on extinguishment of debt | 0 | 3,100 |
Other, net | (107) | 14 |
Changes in operating assets and liabilities | ||
Accounts receivable | (364) | (17) |
Inventory | (5,843) | (6,766) |
Prepaid expenses and other current assets | 578 | (1,105) |
Other long-term assets | 179 | (851) |
Accounts payable | 1,484 | (524) |
Accrued expenses and other current liabilities | (2,760) | 2,305 |
Deferred revenue | 1,401 | (1,117) |
Deferred rent, long term | 0 | 107 |
Other long-term liabilities | 0 | (30) |
Net cash used in operating activities | (58,547) | (54,964) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,740) | (3,217) |
Proceeds from sale of property and equipment | 0 | 20 |
Purchases of investments | (179,229) | (25,092) |
Maturity of investments | 92,500 | 15,000 |
Net cash used in investing activities | (93,469) | (13,289) |
Cash flows from financing activities: | ||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | 0 | 79,743 |
Proceeds from issuance of Class A common stock - stock option exercise | 566 | 403 |
Proceeds from issuance of Class A common stock - employee stock purchase plan | 160 | 0 |
Proceeds from issuance of restricted Class A stock award | 0 | 523 |
Proceeds from initial public offering of Class A and Class B common stock, net of issuance costs | 0 | 164,100 |
Proceeds from exercise of Class A common stock warrants | 0 | 13 |
Payments on finance lease obligations | (33) | |
Payments on finance lease obligations | (12) | |
Repayment of term loans | 0 | (26,159) |
Payment of debt extinguishment fees | 0 | (1,866) |
Net cash provided by financing activities | 693 | 216,745 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (151,323) | 148,492 |
Cash, cash equivalents and restricted cash at beginning of period | 178,671 | 30,179 |
Cash, cash equivalents and restricted cash at end of period | 27,348 | 178,671 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 42 | 2,590 |
Supplemental disclosure of non-cash investing activities | ||
Establishment of property and equipment retirement cost asset | 0 | 188 |
Establishment of right of use operating assets | 7,605 | |
Purchases of property and equipment in accounts payable | 561 | 1,957 |
Supplemental disclosure of non-cash financing activities | ||
Establishment of right of use finance assets | 366 | |
Assets acquired under capital lease | 372 | |
Conversion of preferred stock to Class A and Class B common stock | 0 | 236,077 |
Conversion of preferred stock warrants to Class A common stock warrants | 0 | 23,760 |
Accretion of redeemable convertible preferred stock to redemption value | 0 | 1,761 |
Cumulative redeemable convertible preferred stock dividends | $ 0 | $ 2,747 |
Nature of the business and basi
Nature of the business and basis of presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the business and basis of presentation | Nature of the business and basis of presentation Rapid Micro Biosystems, Inc. (the “Company”) was incorporated under the laws of the State of Delaware on December 29, 2006. The Company develops, manufactures, markets and sells Growth Direct systems (“Systems”), proprietary consumables, laboratory information management system (“LIMS”) connection software, and services to address rapid microbial analysis used for quality control in the manufacture of pharmaceuticals, medical devices and personal care products. The Company’s technology uses a highly sensitive camera and the natural auto fluorescence of living cells to identify and quantify microbial growth faster and more accurately than the traditional method, which relies on the human eye. The Company currently sells to customers in North America, Europe and Asia. The Company is headquartered in Lowell, Massachusetts. Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries in Germany and Switzerland. All intercompany accounts and transactions have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Reverse stock split On July 9, 2021, the Company effected a one-for-five reverse stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s Preferred Stock (see Note 10). Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split and adjustment of the Preferred Stock conversion ratios. Initial public offering On July 19, 2021, the Company closed an initial public offering (“IPO”) of its Class A common stock, which resulted in the sale of 7,920,000 shares of its Class A common stock at a public offering price of $20.00 per share, before underwriting discounts. The offering resulted in gross proceeds of $158.4 million and net proceeds to the Company of $143.8 million from the initial public offering after deducting underwriting discounts, commissions and offering expenses payable by the Company. On August 4, 2021, the underwriters exercised their overallotment option in part and purchased 1,086,604 shares of Class A common stock at the initial public offering price of $20.00 per share less underwriting discounts and commissions. The overallotment option exercise resulted in net proceeds of $20.2 million. Liquidity |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, calculating the standalone selling price of products and services for revenue recognition, the valuation of inventory, and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific and relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when 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 those estimates. Risk of concentrations of credit, significant customers and significant suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term and long-term investments and accounts receivable. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company maintains its cash and cash equivalents with financial institutions that management believes to be of high credit quality. The Company has not experienced any losses on such accounts or any other-than-temporary losses with respect to its cash equivalents and investments and does not believe it is exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective balance sheet date. The following table presents customers that represent 10% or more of the Company’s total revenue: Year Ended December 31, 2022 2021 Customer A 22.8 % 16.7 % 22.8 % 16.7 % The following table presents customers that represent 10% or more of the Company’s accounts receivable: Year Ended December 31, 2022 2021 Customer A 21.4 % 19.5 % Customer B 16.7 % * Customer C 11.8 % * Customer D * 12.6 % Customer E * 10.6 % Customer F * 10.0 % 49.9 % 52.7 % ______________________________ * – less than 10% The Company relies on third parties for the supply and manufacture of certain of its products as well as logistics. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers to satisfactorily deliver its products to its customers on time, if at all, which could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. There are no significant concentrations around a single third-party supplier or manufacturer for the year ended December 31, 2022 or 2021. Debt issuance costs The Company capitalizes certain legal and other third-party fees that are directly associated with the issuance of debt as debt issuance costs. Debt issuance costs are recorded as a direct reduction of the carrying amount of the associated debt on the consolidated balance sheets and amortized as interest expense on the consolidated statement of operations using the effective interest method, which approximates the straight-line method. As of December 31, 2022 and 2021, the Company had no debt issuance costs on its consolidated balance sheets. During the year ended December 31, 2022 and 2021, the Company recorded zero and $0.4 million, respectively, in amortization of debt issuance costs within interest income (expense) in the consolidated statement of operations. Cash equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents that are readily convertible to cash are stated at cost, which approximates fair value. At December 31, 2022 and 2021, the Company held cash of $0.2 million and $0.3 million in banks located outside of the U.S., respectively. Restricted cash As of December 31, 2022 and 2021, the Company was required to maintain guaranteed investment certificates of $0.3 million, with maturities of three months to one year that are subject to an insignificant risk of changes in value. The guaranteed investment certificates are held for the benefit of landlords in connection with operating leases which have remaining terms of greater than one year and are classified as restricted cash (non-current) on the Company’s consolidated balance sheet. Investments The Company’s short-term and long-term investments are classified as available-for-sale and recorded at fair value based upon market prices at period end. Unrealized gains and losses are recorded in accumulated other comprehensive income as a separate component of stockholders’ equity. Realized gains and losses and declines in value of investments determined to be other than temporary are included as a component of interest income (expense), net in the consolidated statement of operations. The costs of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. The Company evaluates its short-term and long-term investments with unrealized losses for other-than-temporary impairment. When assessing investments for other-than-temporary declines in value, the Company considers such factors as, among other things, how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the Company’s ability and intent to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value and market conditions in general. If any adjustment to fair value reflects a decline in the value of the investment that the Company considers to be other-than-temporary, the Company reduces the investment to fair value through a charge to the consolidated statement of operations. No such adjustments were necessary during the periods presented. The Company’s short-term investments as of December 31, 2022 and 2021 had maturities of less than one year, and long-term investments as of December 31, 2022 and 2021 had maturities greater than one year. Accounts receivable Accounts receivable are customer obligations that are unconditional. Accounts receivable are presented net of an allowance for doubtful accounts, which represents an estimate of amounts that may not be collectible. The Company performs ongoing credit evaluations of its customers and, if necessary, provides an allowance for doubtful accounts and expected losses. The Company writes off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. The Company does not have any off-balance-sheet credit exposure related to customers. As of December 31, 2022 and 2021, the Company recorded zero allowance for doubtful accounts. Additionally, for the years ended December 31, 2022 and 2021, the Company recorded zero provision for bad debts or recoveries. Inventory Inventory is valued at the lower of cost or net realizable value. Cost is computed using the first-in, first-out method. The Company regularly reviews inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, records charges to write down inventories to their estimated net realizable value, after evaluating historical sales, future demand, market conditions and expected product life cycles. Such charges are classified as cost of product revenue in the consolidated statements of operations. Any write-down of inventory to net realizable value creates a new cost basis. Property and equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Manufacturing and laboratory equipment 5-10 years Computer hardware and software 3 years Office furniture and fixtures 5-7 years Leasehold improvements Shorter of remaining life of lease or useful life Estimated useful lives are periodically assessed to determine if changes are appropriate. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation or amortization are eliminated from the consolidated balance sheet and any resulting gains or losses are included in the consolidated statement of operations in the period of disposal. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. Software development costs The Company accounts for software development costs for internal-use software under the provisions of ASC 350-40, “Internal-Use Software” (“ASC 350”). Accordingly, certain costs to develop internal-use computer software are capitalized, provided these costs are expected to be recoverable. There was $1.4 million and $1.3 million of software development costs capitalized in other long-term assets at December 31, 2022 and 2021, respectively, net of accumulated amortization of $0.4 million and $0.1 million, respectively. The capitalized costs are being amortized on a straight-line basis over the initial subscription term of five years. There was $0.3 million and $0.1 million of amortization expense recorded in the consolidated statement of operations for the years ended December 31, 2022 and 2021. Impairment of long-lived assets Long-lived assets consist of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss is based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2022 or 2021. Fair value measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents, investments, and its redeemable convertible preferred stock warrant liability are carried at fair value, determined according to the fair value hierarchy described above (see Note 3). The carrying values of the Company’s accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities. Product warranties The Company offers a one-year limited assurance warranty on system sales, which is included in the selling price. Product warranties provide assurance that the Company’s product functions in accordance with standard specifications. Warranties cover for repairs and replacements when the product does not function in accordance with agreed specifications. The standard assurance warranty does not cover, and no warranty is provided for, parts which by their nature are normally required to be replaced periodically. The accrued warranty cost is based on estimated material, labor and other costs that the Company expects to incur to fulfill the warranty obligation. Estimates are primarily based on historical information, current cost data and future forecasts. The Company periodically assesses the adequacy of the warranty accrual and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty accrual are not indicative of future requirements, additional or reduced warranty accrual may be required. The warranty accrual is included in accrued expenses and other current liabilities in the consolidated balance sheets. The following table presents a summary of changes in the amount reserved for warranty cost (in thousands): Year Ended December 31, 2022 2021 Balance, beginning of the period $ 598 $ 637 Warranty provisions 646 — Warranty repairs (372) (39) Balance, end of the year $ 872 $ 598 Classification and accretion of redeemable convertible preferred stock Prior to the IPO and the conversion of redeemable convertible preferred stock to Class A and Class B common stock, the Company had classified redeemable convertible preferred stock outside of stockholders’ equity because the shares contained certain redemption features that were not solely within the control of the Company. Costs incurred in connection with the issuance of each series of redeemable convertible preferred stock was recorded as a reduction of gross proceeds from issuance. The Company recorded periodic accretion to the carrying values of its outstanding redeemable convertible preferred stock such that the carrying value of the redeemable convertible preferred stock would have been equal to the redemption value at the earliest date of redemption. Adjustments to the carrying values of the redeemable convertible preferred stock to record this accretion at each reporting date were considered deemed dividends, which adjusted retained earnings (or in the absence of retained earnings, additional paid-in capital) and increased or decreased net loss attributable to common stockholders in computing basic and diluted earnings per share. Preferred stock warrant liability Prior to the IPO and the conversion of redeemable convertible preferred stock warrant liabilities to Class A common stock warrants, the Company classified warrants for the purchase of shares of its redeemable convertible preferred stock (see Notes 3 and 10) as a liability on its consolidated balance sheets as these warrants were freestanding financial instruments that may have required the Company to transfer assets upon exercise. The warrant liability was initially recorded at fair value on the issuance date of each warrant and was subsequently remeasured to fair value at each reporting date using the Black-Scholes pricing model. Changes in the fair value of the warrant liability were recognized as a component of other income (expense) in the consolidated statements of operations. Changes in the fair value of the preferred stock warrant liability were recognized up until the warrants qualified for equity classification upon IPO. Segment information The Company determined its operating segment after considering the Company’s organizational structure and the information regularly reviewed and evaluated by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company has determined that its CODM is its Chief Executive Officer. The CODM reviews the financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. On the basis of these factors, the Company determined that it operates and manages its business as one operating segment, that develops, manufactures, markets and sells systems and related LIMS connection software, consumables and services; and, accordingly, has one reportable segment for financial reporting purposes. Substantially all of the Company’s long-lived assets are held in the United States. Revenue recognition Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In order to achieve this core principle, the Company applies the following five steps when recording revenue: (1) identify the contract, or contracts, with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when, or as, performance obligations are satisfied. The Company derives revenue from the sale of its products and services through direct sales representatives and distributors. The Company’s arrangements are generally noncancelable and nonrefundable after ownership passes to the customer or distributor. Product revenue The Company derives product revenue primarily from the sale of its systems, optional LIMS connection software, which facilitates the transfer of data captured by the system to the customer’s existing LIMS software, and proprietary consumables. Revenue is recognized when control of the products is transferred to the customer. Transfer of control is generally at shipment or delivery, depending on contractual terms, and occurs when title and risk of loss transfers to the customer, which represents the point in time when the customer obtains the use of and substantially all of the benefits of the product. Upon delivery, the System is fully functional for use by the customer. As such, the Company’s performance obligation related to product sales is satisfied at a point in time. The Company’s principal terms of sale are free carrier shipping point. Service revenue The Company derives service revenue primarily from validation services, service contracts and field service (including installation). The Company’s validation services include validation and documentation services performed utilizing systems purchased by the customer. Service contracts are around-the-clock maintenance support which can be purchased by the customer after the expiration of the one-year assurance warranty included with each system purchase. Field service revenue primarily consists of services provided by field service engineers to install the system at the customer site and perform two preventative maintenance services during the warranty period. Service revenue is recognized over time using an input method based on time lapsed for service contracts and output method based on milestone achieved for validation services and field service. Performance obligations A performance obligation is a promise in a contract to transfer a distinct product or service to a customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the product or service is separately identifiable from other promises in the contract. The Company’s main performance obligations in customer arrangements are systems, LIMS connection software, consumables, validation services, service contracts, and field service. Payment terms Payment terms for customer orders are typically between 30 to 90 days after the shipment or delivery of the product. For certain products, services and customer types, the Company requires payment before the products or services are delivered to, or performed for, the customer. None of the Company’s contracts contain a significant financing component. Multiple performance obligations with an arrangement The Company’s contracts may include multiple performance obligations when customers purchase a combination of products and services such as system sold together with the LIMS connection software, consumables or services. For these arrangements, the Company allocates the contract’s transaction price to each performance obligation 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. The primary methods used to estimate standalone selling prices are based on the prices observed in standalone sales to customers or cost-plus margin depending on the nature of the obligation and available evidence of fair value. Allocation of the transaction price is determined at contract’s inception. Remaining performance obligations The Company does not disclose the value of remaining performance obligations for (i) contracts with an original contract term of one year or less, (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice when that amount corresponds directly with the value of services performed, and (iii) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct service that forms part of a single performance obligation. The Company does not have material remaining performance obligations associated with contracts with terms greater than one year. Contract balances from contracts with customers Contract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is conditional and not only subject to the passage of time. The Company had $0.1 million and $0.3 million in contract assets as of December 31, 2022 and 2021, respectively, included in prepaid expenses and other current assets. These balances relate to unbilled amounts with commercial customers as well as an amount in the prior year related to the BARDA agreement. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has a contract liability related to service revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as noncurrent deferred revenue. The Company did not record any non-current deferred revenue as of December 31, 2022 or 2021. Deferred revenue was $4.7 million and $3.3 million at December 31, 2022 and 2021, respectively. Revenue recognized during the year ended December 31, 2022 that was included in deferred revenue at the prior year-end was $2.7 million. Revenue recognized during the year ended December 31, 2021 that was included in deferred revenue at the prior year-end was $3.8 million. Non-commercial revenue The Company has historically generated revenue from a long-term contract with the U.S. Department of Health and Human Services Biomedical Advanced Research and Development Authority (“BARDA”) a part of the U.S. government. The Company’s contracts with the U.S. government are typically subject to the Federal Acquisition Regulation (“FAR”) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods or services provided under U.S. government contracts. In September 2017, the Company signed a contract with BARDA, which was subsequently modified on multiple occasions to increase the contract value and adjust the cost share reimbursement rate. Modifications were accounted for in accordance with the contract modification framework. The contract is a cost-reimbursable, cost-sharing arrangement, whereby BARDA reimburses the Company for a percentage of the total costs that have been incurred including indirect allowable costs. All funding under this contract was fully earned by the fourth quarter of 2021. However, the Company is now in the process of closing out its BARDA contract, which includes a true-up of actual reimbursable costs to those previously billed at provisional rates for each year of performance. Any true-up will be recognized as non-commercial revenue once finalized. Disaggregated revenue The Company disaggregates revenue based on the recurring and non-recurring, and commercial and non-commercial, nature of the underlying sale. Recurring revenue includes sales of consumables and service contracts. Non-recurring revenue includes sales of systems, LIMS connection software, validation services, field service, and revenue under the Company’s contract with BARDA. The following table presents the Company’s revenue by the recurring or non-recurring and commercial or non-commercial nature of the revenue stream (in thousands): Year Ended December 31, 2022 2021 Product and service revenue — recurring $ 10,983 $ 7,819 Product and service revenue — non-recurring 6,150 13,818 Non-commercial revenue — non-recurring — 1,595 Total revenue $ 17,133 $ 23,232 The following table presents the Company’s revenue by customer geography (in thousands): Year Ended December 31, 2022 2021 United States $ 8,767 $ 12,892 Germany 2,649 1,695 Switzerland 2,756 4,314 All other countries 2,961 4,331 Total revenue $ 17,133 $ 23,232 Contract acquisition costs The Company incurs and pays commissions on systems, LIMS connection software, validation services, consumables, and service contracts. The period of the related revenue stream is typically less than one year in duration, and as such, the Company applies the practical expedient to expense the costs in the period in which they were incurred. The Company does not pay commissions on non-commercial revenue with BARDA. Cost of revenue Cost of product revenue primarily consists of costs for raw material parts and associated freight, shipping and handling costs, royalties, contract manufacturer costs, salaries and other personnel costs including stock-based compensation expense, depreciation and amortization expense, scrap, warranty cost, inventory reserves, allocated information technology and facility-related costs, overhead and other costs related to those sales recognized as product revenue in the period. Cost of service revenue primarily consists of salaries and other personnel costs including stock-based compensation expense, travel costs, materials consumed when performing installations, validations and other services, allocated information technology and facility-related costs, costs associated with training and other expenses related to service revenue recognized in the period. Cost of non-commercial revenue primarily consists of salaries and other personnel costs including stock-based compensation expense, consulting expense, materials, travel and other costs related to revenue recognized as non-commercial revenue during the period. Shipping and handling fees Shipping and handling fees billed to customers for product shipments are recorded in product revenue in the consolidated statements of operations. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of product revenue in the consolidated statements of operations. Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities including, employee-related expenses, such as salaries, bonuses and other personnel costs including stock-based compensation expense, the cost of developing maintaining and improving new and existing products designs, the cost of hardware and software engineering, the cost of research materials and supplies, external costs of outside consultants engaged to conduct research and development services associated with the Company’s technology and products, and information technology and facilities expenses, which include direct and allocated expenses for rent, maintenance of facilities and insurance, as well as related depreciation and amortization. The costs incurred for the development of system software that will be sold are capitalized when technological feasibility has been established. The Company has continued to develop the software associated with its platform and products, and the associated costs have been expensed as incurred, when the nature of improvements did not significantly improve the performance or functionality of the software. Advertising costs Advertising costs are expensed as incurred and are included in sales and marketing expenses in the consolidated statements of operations. Advertising costs were $0.1 million during both of the years ended December 31, 2022 and 2021. Patent costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditures. Amounts incurred are classified within general and administrative expense in the consolidated statement of operations. Stock-based compensation The Company measures all stock-based awards granted to employees, officers and directors based on their fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method. Forfeitures are accounted for as they occur. The Company has not issued any stock-based awards with performance-based vesting conditions. The Company measures all restricted common stock and restricted stock units granted to employees based on the common stock value on the date of grant. The purchase price of the restricted common stock is the common stock value on the date of grant. The Company classifies stock-based compensation expense in its consolidated statement of operations in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which uses the following inputs: (i) the fair value per share of the common stock issuable upon exercise of the option, (ii) the expected term of the option, (iii) expected volatility of the price of the common stock, (iv) the risk-free interest rate, and (v) the expected dividend yield. The exercise price of the option cannot be less than the fair market value of a share of common stock on the date of grant. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards t |
Fair value of financial assets
Fair value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial assets and liabilities | Fair value of financial assets and liabilities The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands): Fair value measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 22,072 $ — $ — $ 22,072 Short-term investments 81,093 491 — 81,584 Long-term investments 26,431 3,359 — 29,790 $ 129,596 $ 3,850 $ — $ 133,446 Fair value measurements at December 31, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 173,755 $ — $ — $ 173,755 Short-term investments 15,110 — — 15,110 Long term investments 9,966 — — 9,966 $ 198,831 $ — $ — $ 198,831 During the years ended December 31, 2022 and 2021, respectively, there were no transfers between Level 1, Level 2 and Level 3. Valuation of short-term and long-term investments U.S. Treasury bills and notes included in short-term and long-term investments were valued by the Company using quoted prices in active markets for identical securities, which represents a Level 1 measurement within the fair value hierarchy. The Company's certificates of deposit included in short-term and long-term investments were valued using quoted prices for similar assets in active markets (or identical assets in inactive markets), which represent a Level 2 measurement within the fair value hierarchy. There were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the years ended December 31, 2022 and 2021. Valuation of preferred stock warrant liability The warrant liability at December 31, 2021 was related to warrants (the “Warrants”) to purchase shares of the Company’s Series A1, B1, and C1 redeemable convertible preferred stock (see Note 11). The fair value of the warrant liability was determined based on inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used the Black-Scholes option-pricing model, which incorporates assumptions and estimates, to value the warrant liability. Key estimates and assumptions impacting the fair value measurement include (i) the fair value per share of the underlying shares of applicable series of redeemable convertible preferred stock issuable upon exercise of the Warrants, (ii) the remaining contractual term of the Warrants, (iii) the risk-free interest rate, (iv) the expected dividend yield and (v) expected volatility of the price of the underlying applicable series of redeemable convertible preferred stock. The Company estimated the fair value per share of the underlying applicable series of redeemable convertible preferred stock based, in part, on the results of third-party valuations and additional factors deemed relevant. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the Warrant. The Company estimated a zero expected dividend yield based on the fact that the Company has never paid or declared dividends and does not intend to do so in the foreseeable future. As the Company has historically been a private company and lacks company-specific historical and implied volatility information of its stock, the expected stock volatility was based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the Warrant. In connection with the IPO, all of the Company’s outstanding preferred stock warrants were automatically converted to Class A common stock warrants. The Company performed a final fair value assessment of these warrants as of the date of its IPO which resulted in a charge of $8.2 million that was recorded within other income (expense) in the Company’s consolidated statement of operations. The Company determined the conversion to Class A common stock warrants resulted in equity classification of the Class A common stock warrants and reclassified the fair value of the preferred stock warrant liability as of the IPO date into stockholders’ equity (see Note 12). The table below quantifies the weighted average of the unobservable inputs used to fair value the preferred stock warrant liability prior to their conversion into common stock warrants in connection with the Company’s IPO in July 2021: Year Ended December 31, 2021 Fair value of Series A1 preferred stock $ 3.01 Fair value of Series B1 preferred stock $ 3.26 Fair value of Series C1 preferred stock $ 3.30 Remaining contractual term (in years) 6.8 Risk-free interest rate 1.2% Expected dividend yield — % Expected volatility 42.0% The following table provides a rollforward of the aggregate fair values of the Company’s preferred stock warrant liability, for which fair values are determined using Level 3 inputs (in thousands): Year Ended December 31, 2021 Balance, beginning of period $ 4,117 Initial fair value of Series C1 preferred stock warrants — Change in fair value of preferred stock warrants 19,643 Conversion of preferred stock warrants to common stock warrants (23,760) Balance, end of period $ — |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Short-term and long-term investments by investment type consisted of the following (in thousands): December 31, 2022 Amortized Gross Gross Fair Short-term investments Certificates of Deposit $ 491 $ — $ — $ 491 U.S. Government Treasury Bills $ 32,115 $ 1 $ (40) $ 32,076 U.S. Government Treasury Notes 49,625 (608) 49,017 $ 82,231 $ 1 $ (648) $ 81,584 Long-term Investments Certificates of Deposit 3,391 4 (36) 3,359 U.S. Government Treasury Notes - Maturity Up To Two Years 26,861 1 (431) 26,431 $ 30,252 $ 5 $ (467) $ 29,790 December 31, 2021 Short-term investments Amortized Gross Gross Fair U.S. Government Treasury Bills $ 4,983 $ — $ (2) $ 4,981 U.S. Government Treasury Notes $ 10,142 $ — $ (13) $ 10,129 $ 15,125 $ — $ (15) $ 15,110 Long-term Investments U.S. Government Treasury Notes - Maturity Up To Two Years $ 9,966 $ — $ — $ 9,966 $ 9,966 $ — $ — $ 9,966 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following (in thousands): December 31, December 31, 2022 2021 Raw materials $ 15,014 $ 10,135 Work in process 1,599 1,235 Finished goods 4,574 4,301 Total $ 21,187 $ 15,671 Raw materials, work in process and finished goods were net of adjustments to realizable value of $1.1 million and $1.2 million, as of December 31, 2022 and 2021, respectively. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Prepaid insurance $ 1,500 $ 1,622 Contract asset 112 396 Deposits 1,055 1,262 Lease receivables, current portion — 231 Other 705 440 $ 3,372 $ 3,951 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net Property and equipment, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Manufacturing and laboratory equipment $ 13,408 $ 13,277 Computer hardware and software 1,651 1,742 Office furniture and fixtures 589 745 Leasehold improvements 8,260 3,012 Construction-in-process 1,712 4,313 25,620 23,089 Less: Accumulated depreciation (11,802) (11,785) $ 13,818 $ 11,304 Depreciation and amortization expense related to property and equipment was $2.5 million and $1.5 million for the years ended December 31, 2022 and 2021, respectively. The Company had $2.3 million and less than $0.1 million of fully depreciated assets disposed of during the years ended December 31, 2022 and 2021, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, December 31, 2022 2021 Accrued employee compensation and benefits expense $ 3,217 $ 3,569 Accrued vendor expenses 3,212 5,500 Accrued warranty expense 872 598 Deferred rent, current portion — 131 Accrued taxes 329 781 Other 520 338 $ 8,150 $ 10,917 On August 11, 2022, the board of directors of the Company approved an organizational restructuring plan (the “Restructuring Plan”) to right-size its cost structure based on its lowered 2022 outlook. The Company recorded a restructuring charge of $1.1 million in the third quarter of 2022 primarily related to severance, employee benefits, outplacement and related costs under the Restructuring Plan. The Company made payments of $0.6 million during the year |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt There was no long-term debt outstanding as of December 31, 2022 or December 31, 2021. Term loan agreements 2020 Term Loan In May 2020, the Company entered into a $60.0 million term loan facility with a new lender (the “2020 Term Loan”), which provided for borrowings of an initial $25.0 million tranche upon closing and options to borrow up to an aggregate of $35.0 million in two additional tranches of $20.0 million under the second tranche (the “Term B Loan”) and $15.0 million under the third tranche (the “Term C Loan”). At closing, the Company issued warrants to purchase 1,195,652 shares of Series C1 Preferred Stock to the lender with an exercise price of $1.15 per share which were accounted for as debt discount. The Company paid a $0.8 million facility fee in connection with the term loan facility. The Company allocated the $0.8 million term loan facility fee to the three loan tranches on a pro-rata basis based on the amount available to be drawn down under each tranche. The Company allocated $0.3 million to the initial draw which was recorded within debt issuance cost as an offset to the carrying value of the 2020 Term Loan and amortized over the term of the loan within interest expense on the consolidated statement of operations. Additionally, the Company allocated $0.3 million to the Term B Loan and $0.2 million to the Term C Loan, all of which was recorded within prepaid expenses and other current assets on the consolidated balance sheet and is being amortized on a straight-line basis over the debt access period within interest expense on the consolidated statement of operations. The Company incurred debt issuance costs of $1.5 million in connection with the 2020 Term Loan including $0.9 million of professional fees and $0.6 million for the fair value of the warrants issued with the debt. Interest expense on the 2020 Term Loan totaled $2.5 million for year ended December 31, 2021, which included amortization of the debt discount of $0.3 million. |
Redeemable convertible preferre
Redeemable convertible preferred stock | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity [Abstract] | |
Redeemable convertible preferred stock | Redeemable convertible preferred stock The Company has historically issued Series A1 redeemable convertible preferred stock (the “Series A1 Preferred Stock”), Series B1 redeemable convertible preferred stock (the “Series B1 Preferred Stock”), Series C1 redeemable convertible preferred stock (the “Series C1 Preferred Stock”), Series C2 redeemable convertible preferred stock (the “Series C2 Preferred Stock”), Series D1 redeemable convertible preferred stock (the “Series D1 Preferred Stock”) and Series D2 redeemable convertible preferred stock (the “Series D2 Preferred Stock”). The Series A1 Preferred Stock, Series B1 Preferred Stock, Series C1 Preferred Stock, Series C2 Preferred Stock, Series D1 Preferred Stock, and Series D2 Preferred Stock are collectively referred to as the “Preferred Stock”. In March 2021, the Company issued and sold 22,086,725 shares of Series D1 Preferred Stock and 413,268 shares of Series D2 Preferred Stock to new and existing investors at a price of $3.60 per share for gross proceeds of $79.5 million and $1.5 million, respectively. The Company incurred issuance costs in connection with this transaction of $2.7 million and recorded them as a reduction to the carrying value of the Series D1 Preferred Stock and Series D2 Preferred Stock. On June 25, 2021, investors exchanged a total of 11,437,301 shares and 2,364,509 shares of Series C1 and D1 Preferred Stock to an equal number of shares of Series C2 and D2 Preferred Stock, respectively. On July 14, 2021, the IPO resulted in the automatic conversion of all Series A1, Series B1, Series C1 and Series D1 preferred stock into 24,200,920 shares of Class A common stock and of all Series C2 and Series D2 preferred stock into |
Preferred stock warrants
Preferred stock warrants | 12 Months Ended |
Dec. 31, 2022 | |
Preferred stock warrants | |
Preferred stock warrants | Preferred stock warrantsIn connection with the 2020 Term Loan, the Company issued 1,195,652 warrants to purchase shares of Series C1 Preferred Stock at an exercise price of $1.15 per share. The Company’s warrants were immediately exercisable and expire 10 years after issuance. The fair value of the warrants on the issuance date was $0.7 million. Prior to the IPO, the Company also had outstanding warrants to purchase shares of Preferred Stock issued in connection with previous financing agreements.In connection with the IPO, all of the Company’s outstanding preferred stock warrants were automatically converted to Class A common stock warrants. The Company determined the conversion to Class A common stock warrants resulted in equity classification of the Class A common stock warrants and reclassified the fair value of the preferred stock warrant liability as of the IPO date into stockholders’ equity (see Note 12). |
Common stock and common stock w
Common stock and common stock warrants | 12 Months Ended |
Dec. 31, 2022 | |
Common stock and common stock warrants | |
Common stock and common stock warrants | Common stock and common stock warrants As of December 31, 2022 and 2021, the Company’s restated certificate of incorporation authorized the issuance of 210,000,000 shares of $0.01 par value Class A common stock. On June 25, 2021, the Company filed an amended and restated certificate of incorporation, which effected a recapitalization of the Company’s then outstanding common stock to Class A common stock and authorized an additional new class of common stock (Class B common stock). Rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. On July 19, 2021, the Company filed an amended and restated certificate of incorporation which authorized Class A common stock and Class B common stock to 210,000,000 shares and 10,000,000 shares, respectively. As of December 31, 2022, there were 36,538,805 shares of Class A common stock issued and outstanding, and 5,553,379 shares of Class B common stock issued and outstanding. Each share of Class A common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. The Company’s Class B common stock is non-voting. Class A and Class B common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of Preferred Stock. As of December 31, 2022, no cash dividends had been declared or paid. As of December 31, 2022, the Company had reserved 20,118,778 shares of Class A common stock for the exercise of outstanding stock options, vesting of restricted stock units, the number of shares remaining available for grant under the Company’s 2021 Incentive Award Plan (see Note 13), the number of shares available for purchase under the Company’s Employee Stock Purchase Plan (see Note 13), for the exercise of outstanding common stock warrants and for the conversion of Class B common stock. Prior to its IPO, the Company issued warrants to purchase preferred stock in conjunction with previous financing arrangements. In connection with the IPO, all outstanding preferred stock warrants were automatically converted to Class A common stock warrants. The contractual terms of the converted Class A common stock warrants remained consistent with the original terms of the preferred stock warrants. The Company determined the event resulted in equity classification of the Class A common stock warrants and reclassified the fair value of the preferred stock warrant liability as of the IPO date into equity. As of December 31, 2022 and 2021, warrants to purchase the Class A common stock outstanding consisted of the following: December 31, 2022 Issuance date Contractual term Balance sheet Shares of Weighted average (in years) July 24, 2017 10 Equity 17,194 $ 292.81 April 12, 2018 10 Equity 30,000 $ 1.00 July 14, 2021 10 Equity 975,109 $ 1.46 1,022,303 December 31, 2021 Issuance date Contractual term Balance sheet Shares of Weighted average (in years) July 24, 2017 10 Equity 25,835 $ 295.15 April 12, 2018 10 Equity 30,000 $ 1.00 July 14, 2021 10 Equity 975,109 $ 1.46 1,030,944 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation 2010 Stock Option and Grant Plan The Company’s 2010 Stock Option and Grant Plan (the “2010 Plan”) provides for the Company to grant incentive stock options or nonqualified stock options, restricted stock awards and other stock-based awards to employees, officers, directors and consultants of the Company. In March 2021, the Board of Directors approved an increase to the 2010 Plan shares by 382,889 shares. Following the effectiveness of the IPO, no additional awards are being granted under the 2010 Plan and shares of existing outstanding options that are forfeited or cancelled will be available for grant under the 2021 Incentive Award Plan. 2021 Incentive Award Plan In July 2021, the Board of Directors adopted, and the Company’s stockholders approved, the 2021 Incentive Award Plan (the “2021 Plan”), which became effective in connection with the IPO of Class A common stock. The 2021 Plan provides for the grant of stock options, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and cash-based awards. The 2021 Plan has a term of ten years. The aggregate number of shares of Class A common stock available for issuance under the 2021 Plan is equal to (i) 4,200,000 shares; (ii) any shares which are subject to the 2010 Plan awards that become available for issuance under the 2021 Plan; and (iii) an annual increase for ten years on the first day of each calendar year beginning on January 1, 2022, equal to the lesser of (A) 5% of the aggregate number of shares of Class A common stock outstanding on the last day of the immediately preceding calendar year and (B) such smaller amount of shares as determined by the Board of Directors. No more than 33,900,000 shares of Class A common stock may be issued under the 2021 Plan upon the exercise of incentive stock options. As of December 31, 2022, there were 4,179,239 shares available for issuance under the 2021 Plan. The 2021 Plan is administered by the board of directors or, at the discretion of the board of directors, by a committee of the board of directors. The exercise prices, vesting and other restrictions are determined at the discretion of the board of directors, or its committee or management if so delegated, except that the exercise price per share of stock options may not be less than 100% of the fair market value of a share of common stock on the date of grant and the term of the stock option may not be greater than ten years. Stock options granted to employees, officers, and consultants typically vest over a four-year period, and stock options granted to members of the board of directors typically vest over a three-year period. During the years ended December 31, 2022 and 2021, the Company granted to employees, officers and directors options to purchase 1,708,293 shares and 2,011,479 shares, respectively, of common stock. The Company recorded stock-based compensation expense for options granted to employees, officers, and directors of $2.8 million and $1.8 million during the years ended December 31, 2022 and 2021, respectively. The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option- pricing model to determine the grant-date fair value of stock options granted to employees and directors: Year Ended December 31, 2022 2021 Risk-free interest rate 2.14 % 1.02 % Expected term (in years) 6.0 6.0 Expected volatility 43.3 % 44.4 % Expected dividend yield 0 % 0 % Stock options The following table summarizes the Company’s stock option activity since December 31, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2021 4,823,100 $ 5.06 7.62 $ 31,041 Granted 1,708,293 7.11 Exercised (572,932) 0.99 Expired (71,521) 11.04 Forfeited (845,632) 11.40 Outstanding as of December 31, 2022 5,041,308 $ 5.05 7.55 $ 532 Options vested and expected to vest as of December 31, 2022 5,041,308 $ 5.05 7.55 $ 532 Options exercisable as of December 31, 2022 2,745,821 $ 3.38 6.58 $ 393 The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock. The intrinsic value of stock options exercised during the years ended December 31, 2022 and 2021 was $2.9 million and $1.6 million, respectively. The weighted average grant-date fair value per share of stock options granted during the years ended December 31, 2022 and 2021 was $3.13 and $4.89, respectively. Restricted stock In February 2021, the Company granted 248,903 shares of restricted stock to an employee under the 2010 Plan with a four-year vesting term. In connection with the grant, the employee paid $0.5 million, which represents the $2.10 per share fair value of the common stock on the date of the restricted stock grant. The restricted common stock is no longer vesting due to the employees termination, and the Company expect to settle the restricted common stock in accordance with contractual provisions. At December 31, 2022 and December 31, 2021, the Company has $0.3 million and $0.5 million, respectively, in unvested restricted common stock liability included in accrued expenses and other long-term liabilities, respectively. The following table summarizes the Company’s restricted stock activity since December 31, 2021: Number of Weighted (in years) Unvested as of December 31, 2021 248,903 $ 2.10 Granted — Vested (93,338) $ 2.10 Forfeited — Unvested as of December 31, 2022 155,565 $ 2.10 Restricted stock units Restricted stock unit grants to employees have a three-year vesting term in which vesting occurs annually on the anniversary of the grant date. The Company expenses the fair value of the restricted stock units over the vesting period and accounts for forfeitures prospectively as they occur. The Company recorded stock-based compensation expense for restricted stock units granted to employees and officers of $1.0 million and zero during the years ended December 31, 2022 and 2021, respectively. The following table summarizes restricted stock units granted to Company employees during the year ended December 31, 2022: Number of Weighted Unvested as of December 31, 2021 — Granted 668,246 $ 7.12 Vested — Forfeited (136,125) 7.35 Unvested as of December 31, 2022 532,121 $ 7.06 The weighted average grant-date fair value per share of restricted stock units granted during the year ended December 31, 2022 was $7.12. There were no restricted stock units granted during the year ended December 31, 2021. Stock-based compensation Stock-based compensation expense was classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2022 2021 Cost of revenue $ 530 $ 329 General and administrative 2,630 1,025 Sales and marketing 475 346 Research and development 384 143 Total stock-based compensation expense $ 4,019 $ 1,843 As of December 31, 2022, total unrecognized compensation expense related to unvested stock options held by employees and directors was $6.8 million, which is expected to be recognized over weighted average period of 2.4 years. Additionally, unrecognized compensation expense related to unvested restricted stock units held by employees and directors was $2.7 million, which is expected to be recognized over a weighted average period of 2.2 years. 2021 Employee Stock Purchase Plan In July 2021, the board of directors adopted, and the Company’s stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective in connection with the IPO of Class A common stock. The aggregate number of shares of Class A common stock available for issuance under the 2021 ESPP is equal to (i) 400,000 shares and (ii) an annual increase for ten years on the first day of each calendar year beginning on January 1, 2022, equal to the lesser of (A) 1% of the aggregate number of shares of Class A common stock outstanding on the last day of the immediately preceding calendar year and (B) such smaller amount of shares as determined by the board of directors. No more than 6,300,000 shares of Class A common stock may be issued under the 2021 ESPP. Under the 2021 ESPP, eligible employees may purchase shares of the Company’s common stock through payroll deductions of up to 15% of eligible compensation during an offering period. Generally, each offering period will be for 6 months as determined by the Company's board of directors. In no event may an employee purchase more than 100,000 shares per offering period based on the closing price on the first trading date of an offering period or the last trading date of an offering period, or more than $25,000 worth of stock during any calendar year. The purchase price for shares to be purchased under the 2021 ESPP is 85% of the lesser of the market price of the Company's common stock on the first trading date of an offering period or on any purchase date during an offering period (March 14 or September 14). During the year ended December 31, 2022, there were 51,833 shares of Class A common stock purchased under the 2021 ESPP. The Company recognized $0.1 million of expense related to the 2021 ESPP for the year ended December 31, 2022. As of December 31, 2022, 693,807 shares were available for future issuance under the 2021 ESPP. The Company estimates the fair value of shares issued to employees under the 2021 ESPP using the Black-Scholes option-pricing model. The following weighted average assumptions were used in the calculation of fair value of shares under the 2021 ESPP at the grant date for the year ended December 31, 2022 (there were no offering periods for the year ended December 31, 2021 ): Year Ended December 31, 2022 Risk-free interest rate 2.60 % Expected term (in years) 0.5 Expected volatility 49.1 % Expected dividend yield 0 % |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of the Company’s loss before income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2022 2021 United States $ (61,396) $ (73,643) Foreign 14 $ 210 Loss before income tax provision $ (61,382) $ (73,433) The components of income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2022 2021 Current income tax provision: Federal $ — $ — State — — Foreign (576) 91 Total current income tax (benefit) expense (576) 91 Deferred income tax provision: Federal (13,347) 17,099 State (2,824) 2,923 Foreign — — Total deferred income tax provision (16,171) 20,022 Change in deferred tax asset valuation allowance 16,171 (20,022) Total (benefit) expense for income taxes $ (576) $ 91 During the years ended December 31, 2022 and 2021, the Company did not record income tax benefits for the net operating losses incurred or for the research and development tax credits generated in each year, due to its uncertainty of realizing a benefit from those items. The only income tax provision was generated from operations in Germany and Switzerland. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 3.6 (3.1) Federal and state research and development tax credits 0.6 0.5 Unrecognized tax benefits reserve and interest change 1.0 (0.1) Change in valuation allowance (25.3) 26.4 Permanent differences 0.1 (0.5) Section 382/383 limitation — (38.7) Unrealized gain (loss) on value of warrants — (5.6) Effective income tax rate 1.0 % (0.1) % Net deferred tax assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 46,387 $ 33,663 Research and development credit carryforwards 4,403 3,605 Research and development capitalized costs 6,119 4,041 Inventories 390 196 Lease liability 1,858 — Accrued expenses 778 1,076 Unrealized loss 270 — Other 712 139 Total deferred tax assets 60,917 42,720 Deferred tax liabilities: Right-of-use assets (1,644) — Depreciation (340) (229) Total deferred tax liabilities (1,984) (229) Valuation allowance (58,933) (42,491) Net deferred tax assets $ — $ — As of December 31, 2022, the Company had U.S. federal and state net operating loss (“NOL”) carryforwards of $189.3 million and 87.1 million respectively, which may be available to offset future taxable income and begin to expire at various dates beginning in 2038 and 2032, respectively. Additionally, the Company had federal NOLs of $176.6 million generated since 2018 that will not expire. The Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017 limits a taxpayer’s ability to utilize NOL deduction in a year to 80% taxable income for federal NOL arising in tax years beginning after 2017. The Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27, 2020 removes the 80% taxable income limitation for federal NOL deductions in taxable years beginning prior to January 1, 2021. As of December 31, 2022, the Company also had U.S. federal and state research and development tax credit carryforwards of $1.5 million and $2.9 million, respectively, which may be available to offset future tax liabilities and begin to expire in 2038 and 2024, respectively. Utilization of the U.S. federal and state NOL carryforwards and research and development tax credit carryforwards may be subject to a substantial annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, and corresponding provisions of state law, due to ownership changes that have occurred previously or that could occur in the future. These ownership changes may limit the amount of carryforwards that can be utilized annually to offset future taxable income or tax liabilities. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50% over a three-year period. The Company has completed a Section 382 study through July 31, 2020 to assess whether one or multiple ownership changes(s) occurred. According to the results from the study, the Company has four ownership changes which occurred on July 1, 2009, April 3, 2014, July 25, 2017, and April 12, 2018, as defined by Section 382. These ownership changes materially limit the NOL carryforwards and research and development tax credits available to offset future tax liabilities. The Section 382 study concluded that $121.5 million of federal NOL carryforwards, $58.4 million of state NOL carryforwards, and $2.4 million of federal research and development tax credits will expire unutilized from these ownership changes. These expirations and unutilized NOL carryforwards and research and development tax credits have been reflected in the amounts of NOL carryforwards, research and development tax credits, and deferred tax assets disclosed above. The Company has not completed a Section 382 study for post July 31, 2020 transactions which could create an additional limitation although materially all of the current federal NOL carryforwards can be carried forward indefinitely. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. The Company considered its history of cumulative net operating losses incurred since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Accordingly, a full valuation allowance has been established against the net deferred tax assets as of as of December 31, 2022 and 2021. The Company reevaluates the positive and negative evidence at each reporting period. Changes in the valuation allowance for deferred tax assets relates primarily to the decrease in NOL carryforwards and research and development tax credit carryforwards and were as follows (in thousands): December 31, December 31, 2022 2021 Valuation allowance as of beginning of year $ 42,491 $ 62,513 Increases recorded to income tax provision 17,726 13,067 Decreases recorded as a benefit to income tax provision (1,284) (33,089) Valuation allowance as of end of year $ 58,933 $ 42,491 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): December 31, December 31, 2022 2021 Unrecognized tax benefits as of beginning of year $ 623 $ 569 Additions for tax positions of prior years — 54 Reductions for tax positions of prior years (623) — Unrecognized tax benefits as of end of year $ — $ 623 The Company recognizes interest and penalties related to unrecognized tax benefits in U.S. Federal, state, and foreign income tax expense. For the each of years ended December 31, 2022, and 2021, the Company recognized less than $0.1 million in interest and penalties. The Company had approximately $0.1 million and zero of interest and penalties accrued as of both December 31, 2022 and 2021. The Company files U.S. income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending tax examinations in the U.S. The Company has not received notice of examination by any jurisdictions in the U.S. |
Net loss per share
Net loss per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share Net loss per share attributable to the common stockholders As of December 31, 2022, the Company had Class A common stock and Class B common stock. According to the Company’s restated certificate of incorporation, both classes have the same rights to the Company’s earnings and neither of the shares have any prior or senior rights to dividends to other shares. The Company reported net loss attributable to common stockholders for the years ended December 31, 2022 and 2021, as such basic net loss per share attributable to common stockholders was the same as diluted net loss per share attributable to common stockholders. Basic and diluted net loss per share attributable to common stockholders was calculated as follow (in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 Numerator: Net loss $ (60,806) $ (73,524) Accretion of redeemable convertible preferred stock to redemption value — (1,761) Cumulative redeemable convertible preferred stock dividends — (2,747) Net loss attributable to common stockholders—basic and diluted $ (60,806) $ (78,032) Denominator: Weighted average Class A common shares outstanding—basic and diluted 36,727,742 16,568,267 Weighted average Class B common shares outstanding—basic and diluted 5,726,661 3,215,272 Total shares for EPS—basic and diluted 42,454,403 19,783,539 Net loss per share attributable to Class A common stockholders—basic and diluted $ (1.43) $ (3.94) Net loss per share attributable to Class B common stockholders—basic and diluted $ (1.43) $ (3.94) The Company’s potentially dilutive securities, which include stock options, restricted stock, redeemable convertible preferred stock, common stock warrants and preferred stock warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2022 2021 Options to purchase common stock 5,076,650 4,823,100 Warrants to purchase common stock 286,324 294,964 Unvested restricted common stock 697,361 — Options to purchase common stock under ESPP 181,558 — 6,241,893 5,118,064 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company adopted Topic 842 on January 1, 2022 using the optional transition method to the modified retrospective approach. The impact of the adoption of Topic 842 to the Company's applicable balance sheet items as of January 1, 2022 is presented in the table below (in thousands). The standard did not have a material impact to the Company's consolidated statements of operations, comprehensive loss or cash flows. As Reported Adjustments Adjusted Assets Right-of-use assets, net, operating $ — $ 6,039 $ 6,039 Right-of-use assets, net, financing — 366 366 Property and equipment, net 11,304 (351) 10,953 Total $ 11,304 $ 6,054 $ 17,358 Total assets $ 241,169 $ 6,054 $ 247,223 Liabilities and Stockholders' Equity Current liabilities: Lease liabilities, short-term, operating $ — $ 1,023 $ 1,023 Lease liabilities, short-term, financing — 33 33 Accrued expenses 10,917 (160) 10,757 Total $ 10,917 $ 896 $ 11,813 Total current liabilities $ 18,166 $ 896 $ 19,062 Lease liabilities, long-term, operating — 5,960 5,960 Lease liabilities, long-term, financing — 341 341 Deferred rent, long-term 813 (813) — Other long-term liabilities 1,210 (330) 880 Total $ 2,023 $ 5,158 $ 7,181 Total liabilities $ 20,189 $ 6,054 $ 26,243 Total stockholders' equity $ 220,980 $ — $ 220,980 Total liabilities and stockholders' equity $ 241,169 $ 6,054 $ 247,223 The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset. See Note 2 for more information on the Company’s accounting policies for leases. The Company leases office and manufacturing space under operating lease agreements that have initial terms ranging from approximately 8 to 10 years. The Company leases furniture under a financing lease agreement that has an initial term of approximately 8 years. Some leases include one or more options to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term by up to 5 years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. Options to extend a lease are included in the lease term when it is reasonably certain that the Company will exercise the option. Options to terminate a lease are excluded from the lease term when it is reasonably certain that the Company will not exercise the option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees. Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 1,207 Operating cash outflows - payments on financing leases $ 42 Financing cash outflows - payments on financing leases $ 33 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 7,605 Financing leases $ 366 Supplemental balance sheet information related to the Company’s operating and financing leases is as follows (in thousands): December 31, 2022 Operating Leases: Operating lease assets $ 6,746 Operating lease liabilities, short-term $ 729 Operating lease liabilities, long-term 6,898 Total operating lease liabilities $ 7,627 Financing Leases: Office furniture and fixtures $ 386 Accumulated depreciation (69) Net property, plant and equipment $ 317 Current portion of long-term debt $ 37 Long-term debt 304 Total financing lease liabilities $ 341 Weighted-average remaining lease term - operating leases (in years): 6.54 Weighted-average remaining lease term - financing leases (in years): 6.50 Weighted-average discount rate - operating leases: 3.7 % Weighted-average discount rate - financing leases: 12.0 % The components of lease expense were as follows (in thousands): Year Ended December 31, 2022 Operating lease cost $ 1,144 Financing lease cost - amortization of right-of-use asset 49 Financing lease cost - interest on lease liability 42 Short-term lease cost 59 Variable lease cost 617 Total lease cost $ 1,911 Operating lease cost is recognized on a straight-line basis over the lease term. Total rent expense, including the Company’s share of the lessors’ operating expenses, was $1.8 million for the year ended December 31, 2022. Financing lease cost includes asset amortization on a straight-line basis over the lease term and interest accretion calculated using the effective interest method. Total financing lease asset depreciation and interest expense was $0.1 million for the year ended December 31, 2022. In March 2022, the Company amended the lease for its office and manufacturing space in Lowell, Massachusetts (the “Amendment”). The Amendment increased the amount of facility space subject to the lease and extended the expiration of the lease from July 2026 to July 2029. The terms of the Amendment include options for a one-time, five-year extension of the lease and early termination of the lease in July 2026 (subject to an early termination fee), as well as a $0.3 million tenant improvement allowance. Monthly rent payments are fixed and future minimum lease payments under the lease (as amended) are $4.6 million. Included in the $4.6 million are leases with commencement dates expected later in 2023 and therefore are not recorded on the consolidated balance sheets as of December 31, 2022. The future minimum lease payments related to these leases are approximately $0.9 million. The Amendment qualified as a lease modification and resulted in a right of use asset and lease liability in the amount of $1.2 million and $1.3 million, respectively, recognized in March 2022, and an additional right of use asset and lease liability of $0.7 million recognized in May 2022. Maturities of the Company’s operating lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Lease Maturities 2023 $ 1,273 2024 1,306 2025 1,339 2026 1,372 2027 1,404 Thereafter 2,223 Total lease payments $ 8,917 Less imputed interest (1,019) Total present value of lease liabilities $ 7,898 Maturities of the Company’s financing lease liability as of December 31, 2022 were as follows (in thousands): Financing Lease Maturities 2023 $ 75 2024 75 2025 75 2026 75 2027 75 Thereafter 113 Total lease payments $ 488 Less imputed interest (147) Total present value of lease liabilities $ 341 Maturities of the Company’s operating lease liabilities as of December 31, 2021 were as follows (in thousands): Year Ended 2022 $ 1,139 2023 1,169 2024 1,199 2025 1,229 2026 1,044 Thereafter 1,953 Total minimum lease commitments $ 7,733 |
Leases | Leases The Company adopted Topic 842 on January 1, 2022 using the optional transition method to the modified retrospective approach. The impact of the adoption of Topic 842 to the Company's applicable balance sheet items as of January 1, 2022 is presented in the table below (in thousands). The standard did not have a material impact to the Company's consolidated statements of operations, comprehensive loss or cash flows. As Reported Adjustments Adjusted Assets Right-of-use assets, net, operating $ — $ 6,039 $ 6,039 Right-of-use assets, net, financing — 366 366 Property and equipment, net 11,304 (351) 10,953 Total $ 11,304 $ 6,054 $ 17,358 Total assets $ 241,169 $ 6,054 $ 247,223 Liabilities and Stockholders' Equity Current liabilities: Lease liabilities, short-term, operating $ — $ 1,023 $ 1,023 Lease liabilities, short-term, financing — 33 33 Accrued expenses 10,917 (160) 10,757 Total $ 10,917 $ 896 $ 11,813 Total current liabilities $ 18,166 $ 896 $ 19,062 Lease liabilities, long-term, operating — 5,960 5,960 Lease liabilities, long-term, financing — 341 341 Deferred rent, long-term 813 (813) — Other long-term liabilities 1,210 (330) 880 Total $ 2,023 $ 5,158 $ 7,181 Total liabilities $ 20,189 $ 6,054 $ 26,243 Total stockholders' equity $ 220,980 $ — $ 220,980 Total liabilities and stockholders' equity $ 241,169 $ 6,054 $ 247,223 The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under ASC 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset. See Note 2 for more information on the Company’s accounting policies for leases. The Company leases office and manufacturing space under operating lease agreements that have initial terms ranging from approximately 8 to 10 years. The Company leases furniture under a financing lease agreement that has an initial term of approximately 8 years. Some leases include one or more options to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term by up to 5 years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. Options to extend a lease are included in the lease term when it is reasonably certain that the Company will exercise the option. Options to terminate a lease are excluded from the lease term when it is reasonably certain that the Company will not exercise the option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees. Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 1,207 Operating cash outflows - payments on financing leases $ 42 Financing cash outflows - payments on financing leases $ 33 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 7,605 Financing leases $ 366 Supplemental balance sheet information related to the Company’s operating and financing leases is as follows (in thousands): December 31, 2022 Operating Leases: Operating lease assets $ 6,746 Operating lease liabilities, short-term $ 729 Operating lease liabilities, long-term 6,898 Total operating lease liabilities $ 7,627 Financing Leases: Office furniture and fixtures $ 386 Accumulated depreciation (69) Net property, plant and equipment $ 317 Current portion of long-term debt $ 37 Long-term debt 304 Total financing lease liabilities $ 341 Weighted-average remaining lease term - operating leases (in years): 6.54 Weighted-average remaining lease term - financing leases (in years): 6.50 Weighted-average discount rate - operating leases: 3.7 % Weighted-average discount rate - financing leases: 12.0 % The components of lease expense were as follows (in thousands): Year Ended December 31, 2022 Operating lease cost $ 1,144 Financing lease cost - amortization of right-of-use asset 49 Financing lease cost - interest on lease liability 42 Short-term lease cost 59 Variable lease cost 617 Total lease cost $ 1,911 Operating lease cost is recognized on a straight-line basis over the lease term. Total rent expense, including the Company’s share of the lessors’ operating expenses, was $1.8 million for the year ended December 31, 2022. Financing lease cost includes asset amortization on a straight-line basis over the lease term and interest accretion calculated using the effective interest method. Total financing lease asset depreciation and interest expense was $0.1 million for the year ended December 31, 2022. In March 2022, the Company amended the lease for its office and manufacturing space in Lowell, Massachusetts (the “Amendment”). The Amendment increased the amount of facility space subject to the lease and extended the expiration of the lease from July 2026 to July 2029. The terms of the Amendment include options for a one-time, five-year extension of the lease and early termination of the lease in July 2026 (subject to an early termination fee), as well as a $0.3 million tenant improvement allowance. Monthly rent payments are fixed and future minimum lease payments under the lease (as amended) are $4.6 million. Included in the $4.6 million are leases with commencement dates expected later in 2023 and therefore are not recorded on the consolidated balance sheets as of December 31, 2022. The future minimum lease payments related to these leases are approximately $0.9 million. The Amendment qualified as a lease modification and resulted in a right of use asset and lease liability in the amount of $1.2 million and $1.3 million, respectively, recognized in March 2022, and an additional right of use asset and lease liability of $0.7 million recognized in May 2022. Maturities of the Company’s operating lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Lease Maturities 2023 $ 1,273 2024 1,306 2025 1,339 2026 1,372 2027 1,404 Thereafter 2,223 Total lease payments $ 8,917 Less imputed interest (1,019) Total present value of lease liabilities $ 7,898 Maturities of the Company’s financing lease liability as of December 31, 2022 were as follows (in thousands): Financing Lease Maturities 2023 $ 75 2024 75 2025 75 2026 75 2027 75 Thereafter 113 Total lease payments $ 488 Less imputed interest (147) Total present value of lease liabilities $ 341 Maturities of the Company’s operating lease liabilities as of December 31, 2021 were as follows (in thousands): Year Ended 2022 $ 1,139 2023 1,169 2024 1,199 2025 1,229 2026 1,044 Thereafter 1,953 Total minimum lease commitments $ 7,733 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Software subscription During the year ended December 31, 2020, the Company entered into a non-cancelable agreement with a service provider for software as a service and cloud hosting services. As of December 31, 2022, the Company had committed to minimum payments under this arrangement totaling $0.8 million through January 31, 2026. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. The Company had $0.1 million accrued for the software subscription as of December 31, 2022 and December 31, 2021. Indemnification agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and certain of its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and has not accrued any liabilities related to such obligations in its consolidated financial statements as of December 31, 2022 and December 31, 2021. Legal proceedings The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to legal proceedings. |
Benefit plans
Benefit plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit plans | Benefit plansThe Company established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Matching contributions to the plan may be made at the discretion of the Company’s board of directors. The Company made contributions of $0.8 million and $0.3 million to the plan during the years ended December 31, 2022 and 2021, respectively. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries in Germany and Switzerland. All intercompany accounts and transactions have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, calculating the standalone selling price of products and services for revenue recognition, the valuation of inventory, and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific and relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when 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 those estimates. |
Risk of concentrations of credit, significant customers and significant suppliers | Risk of concentrations of credit, significant customers and significant suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term and long-term investments and accounts receivable. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company maintains its cash and cash equivalents with financial institutions that management believes to be of high credit quality. The Company has not experienced any losses on such accounts or any other-than-temporary losses with respect to its cash equivalents and investments and does not believe it is exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each respective balance sheet date. The following table presents customers that represent 10% or more of the Company’s total revenue: Year Ended December 31, 2022 2021 Customer A 22.8 % 16.7 % 22.8 % 16.7 % The following table presents customers that represent 10% or more of the Company’s accounts receivable: Year Ended December 31, 2022 2021 Customer A 21.4 % 19.5 % Customer B 16.7 % * Customer C 11.8 % * Customer D * 12.6 % Customer E * 10.6 % Customer F * 10.0 % 49.9 % 52.7 % ______________________________ * – less than 10% The Company relies on third parties for the supply and manufacture of certain of its products as well as logistics. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers to satisfactorily deliver its products to its customers on time, if at all, which could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. There are no significant concentrations around a single third-party supplier or manufacturer for the year ended December 31, 2022 or 2021. |
Debt issuance costs | Debt issuance costsThe Company capitalizes certain legal and other third-party fees that are directly associated with the issuance of debt as debt issuance costs. Debt issuance costs are recorded as a direct reduction of the carrying amount of the associated debt on the consolidated balance sheets and amortized as interest expense on the consolidated statement of operations using the effective interest method, which approximates the straight-line method. |
Cash equivalents | Cash equivalentsThe Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents that are readily convertible to cash are stated at cost, which approximates fair value. |
Restricted cash | Restricted cash As of December 31, 2022 and 2021, the Company was required to maintain guaranteed investment certificates of $0.3 million, with maturities of three months to one year that are subject to an insignificant risk of changes in value. The guaranteed investment certificates are held for the benefit of landlords in connection with operating leases which have remaining terms of greater than one year and are classified as restricted cash (non-current) on the Company’s consolidated balance sheet. |
Investments | Investments The Company’s short-term and long-term investments are classified as available-for-sale and recorded at fair value based upon market prices at period end. Unrealized gains and losses are recorded in accumulated other comprehensive income as a separate component of stockholders’ equity. Realized gains and losses and declines in value of investments determined to be other than temporary are included as a component of interest income (expense), net in the consolidated statement of operations. The costs of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. The Company evaluates its short-term and long-term investments with unrealized losses for other-than-temporary impairment. When assessing investments for other-than-temporary declines in value, the Company considers such factors as, among other things, how significant the decline in value is as a percentage of the original cost, how long the market value of the investment has been less than its original cost, the Company’s ability and intent to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value and market conditions in general. If any adjustment to fair value reflects a decline in the value of the investment that the Company considers to be other-than-temporary, the Company reduces the investment to fair value through a charge to the consolidated statement of operations. No such adjustments were necessary during the periods presented. |
Accounts receivable | Accounts receivableAccounts receivable are customer obligations that are unconditional. Accounts receivable are presented net of an allowance for doubtful accounts, which represents an estimate of amounts that may not be collectible. The Company performs ongoing credit evaluations of its customers and, if necessary, provides an allowance for doubtful accounts and expected losses. The Company writes off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. The Company does not have any off-balance-sheet credit exposure related to customers. |
Inventory | Inventory Inventory is valued at the lower of cost or net realizable value. Cost is computed using the first-in, first-out method. The Company regularly reviews inventory quantities on-hand for excess and obsolete inventory and, when circumstances indicate, records charges to write down inventories to their estimated net realizable value, after evaluating historical sales, future demand, market conditions and expected product life cycles. Such charges are classified as cost of product revenue in the consolidated statements of operations. Any write-down of inventory to net realizable value creates a new cost basis. |
Property and equipment | Property and equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Manufacturing and laboratory equipment 5-10 years Computer hardware and software 3 years Office furniture and fixtures 5-7 years Leasehold improvements Shorter of remaining life of lease or useful life Estimated useful lives are periodically assessed to determine if changes are appropriate. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation or amortization are eliminated from the consolidated balance sheet and any resulting gains or losses are included in the consolidated statement of operations in the period of disposal. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. |
Software Development Costs | Software development costsThe Company accounts for software development costs for internal-use software under the provisions of ASC 350-40, “Internal-Use Software” (“ASC 350”). Accordingly, certain costs to develop internal-use computer software are capitalized, provided these costs are expected to be recoverable. |
Impairment of long-lived assets | Impairment of long-lived assetsLong-lived assets consist of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss is based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. |
Fair value measurements | Fair value measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
Product warranties | Product warrantiesThe Company offers a one-year limited assurance warranty on system sales, which is included in the selling price. Product warranties provide assurance that the Company’s product functions in accordance with standard specifications. Warranties cover for repairs and replacements when the product does not function in accordance with agreed specifications. The standard assurance warranty does not cover, and no warranty is provided for, parts which by their nature are normally required to be replaced periodically. The accrued warranty cost is based on estimated material, labor and other costs that the Company expects to incur to fulfill the warranty obligation. Estimates are primarily based on historical information, current cost data and future forecasts. The Company periodically assesses the adequacy of the warranty accrual and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty accrual are not indicative of future requirements, additional or reduced warranty accrual may be required. The warranty accrual is included in accrued expenses and other current liabilities in the consolidated balance sheets. |
Classification and accretion of redeemable convertible preferred stock | Classification and accretion of redeemable convertible preferred stock Prior to the IPO and the conversion of redeemable convertible preferred stock to Class A and Class B common stock, the Company had classified redeemable convertible preferred stock outside of stockholders’ equity because the shares contained certain redemption features that were not solely within the control of the Company. Costs incurred in connection with the issuance of each series of redeemable convertible preferred stock was recorded as a reduction of gross proceeds from issuance. The Company recorded periodic accretion to the carrying values of its outstanding redeemable convertible preferred stock such that the carrying value of the redeemable convertible preferred stock would have been equal to the redemption value at the earliest date of redemption. Adjustments to the carrying values of the redeemable convertible preferred stock to record this accretion at each reporting date were considered deemed dividends, which adjusted retained earnings (or in the absence of retained earnings, additional paid-in capital) and increased or decreased net loss attributable to common stockholders in computing basic and diluted earnings per share. |
Preferred stock warrant liability | Preferred stock warrant liability Prior to the IPO and the conversion of redeemable convertible preferred stock warrant liabilities to Class A common stock warrants, the Company classified warrants for the purchase of shares of its redeemable convertible preferred stock (see Notes 3 and 10) as a liability on its consolidated balance sheets as these warrants were freestanding financial instruments that may have required the Company to transfer assets upon exercise. The warrant liability was initially recorded at fair value on the issuance date of each warrant and was subsequently remeasured to fair value at each reporting date using the Black-Scholes pricing model. Changes in the fair value of the warrant liability were recognized as a component of other income (expense) in the consolidated statements of operations. Changes in the fair value of the preferred stock warrant liability were recognized up until the warrants qualified for equity classification upon IPO. |
Segment information | Segment information The Company determined its operating segment after considering the Company’s organizational structure and the information regularly reviewed and evaluated by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company has determined that its CODM is its Chief Executive Officer. The CODM reviews the financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. On the basis of these factors, the Company determined that it operates and manages its business as one operating segment, that develops, manufactures, markets and sells systems and related LIMS connection software, consumables and services; and, accordingly, has one reportable segment for financial reporting purposes. Substantially all of the Company’s long-lived assets are held in the United States. |
Revenue recognition | Revenue recognition Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In order to achieve this core principle, the Company applies the following five steps when recording revenue: (1) identify the contract, or contracts, with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when, or as, performance obligations are satisfied. The Company derives revenue from the sale of its products and services through direct sales representatives and distributors. The Company’s arrangements are generally noncancelable and nonrefundable after ownership passes to the customer or distributor. Product revenue The Company derives product revenue primarily from the sale of its systems, optional LIMS connection software, which facilitates the transfer of data captured by the system to the customer’s existing LIMS software, and proprietary consumables. Revenue is recognized when control of the products is transferred to the customer. Transfer of control is generally at shipment or delivery, depending on contractual terms, and occurs when title and risk of loss transfers to the customer, which represents the point in time when the customer obtains the use of and substantially all of the benefits of the product. Upon delivery, the System is fully functional for use by the customer. As such, the Company’s performance obligation related to product sales is satisfied at a point in time. The Company’s principal terms of sale are free carrier shipping point. Service revenue The Company derives service revenue primarily from validation services, service contracts and field service (including installation). The Company’s validation services include validation and documentation services performed utilizing systems purchased by the customer. Service contracts are around-the-clock maintenance support which can be purchased by the customer after the expiration of the one-year assurance warranty included with each system purchase. Field service revenue primarily consists of services provided by field service engineers to install the system at the customer site and perform two preventative maintenance services during the warranty period. Service revenue is recognized over time using an input method based on time lapsed for service contracts and output method based on milestone achieved for validation services and field service. Performance obligations A performance obligation is a promise in a contract to transfer a distinct product or service to a customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the product or service is separately identifiable from other promises in the contract. The Company’s main performance obligations in customer arrangements are systems, LIMS connection software, consumables, validation services, service contracts, and field service. Payment terms Payment terms for customer orders are typically between 30 to 90 days after the shipment or delivery of the product. For certain products, services and customer types, the Company requires payment before the products or services are delivered to, or performed for, the customer. None of the Company’s contracts contain a significant financing component. Multiple performance obligations with an arrangement The Company’s contracts may include multiple performance obligations when customers purchase a combination of products and services such as system sold together with the LIMS connection software, consumables or services. For these arrangements, the Company allocates the contract’s transaction price to each performance obligation 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. The primary methods used to estimate standalone selling prices are based on the prices observed in standalone sales to customers or cost-plus margin depending on the nature of the obligation and available evidence of fair value. Allocation of the transaction price is determined at contract’s inception. Remaining performance obligations The Company does not disclose the value of remaining performance obligations for (i) contracts with an original contract term of one year or less, (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice when that amount corresponds directly with the value of services performed, and (iii) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct service that forms part of a single performance obligation. The Company does not have material remaining performance obligations associated with contracts with terms greater than one year. Contract balances from contracts with customers Contract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is conditional and not only subject to the passage of time. The Company had $0.1 million and $0.3 million in contract assets as of December 31, 2022 and 2021, respectively, included in prepaid expenses and other current assets. These balances relate to unbilled amounts with commercial customers as well as an amount in the prior year related to the BARDA agreement. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has a contract liability related to service revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as noncurrent deferred revenue. The Company did not record any non-current deferred revenue as of December 31, 2022 or 2021. Deferred revenue was $4.7 million and $3.3 million at December 31, 2022 and 2021, respectively. Revenue recognized during the year ended December 31, 2022 that was included in deferred revenue at the prior year-end was $2.7 million. Revenue recognized during the year ended December 31, 2021 that was included in deferred revenue at the prior year-end was $3.8 million. Non-commercial revenue The Company has historically generated revenue from a long-term contract with the U.S. Department of Health and Human Services Biomedical Advanced Research and Development Authority (“BARDA”) a part of the U.S. government. The Company’s contracts with the U.S. government are typically subject to the Federal Acquisition Regulation (“FAR”) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods or services provided under U.S. government contracts. In September 2017, the Company signed a contract with BARDA, which was subsequently modified on multiple occasions to increase the contract value and adjust the cost share reimbursement rate. Modifications were accounted for in accordance with the contract modification framework. The contract is a cost-reimbursable, cost-sharing arrangement, whereby BARDA reimburses the Company for a percentage of the total costs that have been incurred including indirect allowable costs. All funding under this contract was fully earned by the fourth quarter of 2021. However, the Company is now in the process of closing out its BARDA contract, which includes a true-up of actual reimbursable costs to those previously billed at provisional rates for each year of performance. Any true-up will be recognized as non-commercial revenue once finalized. Disaggregated revenue The Company disaggregates revenue based on the recurring and non-recurring, and commercial and non-commercial, nature of the underlying sale. Recurring revenue includes sales of consumables and service contracts. Non-recurring revenue includes sales of systems, LIMS connection software, validation services, field service, and revenue under the Company’s contract with BARDA. The following table presents the Company’s revenue by the recurring or non-recurring and commercial or non-commercial nature of the revenue stream (in thousands): Year Ended December 31, 2022 2021 Product and service revenue — recurring $ 10,983 $ 7,819 Product and service revenue — non-recurring 6,150 13,818 Non-commercial revenue — non-recurring — 1,595 Total revenue $ 17,133 $ 23,232 The following table presents the Company’s revenue by customer geography (in thousands): Year Ended December 31, 2022 2021 United States $ 8,767 $ 12,892 Germany 2,649 1,695 Switzerland 2,756 4,314 All other countries 2,961 4,331 Total revenue $ 17,133 $ 23,232 |
Cost of revenue | Cost of revenue Cost of product revenue primarily consists of costs for raw material parts and associated freight, shipping and handling costs, royalties, contract manufacturer costs, salaries and other personnel costs including stock-based compensation expense, depreciation and amortization expense, scrap, warranty cost, inventory reserves, allocated information technology and facility-related costs, overhead and other costs related to those sales recognized as product revenue in the period. Cost of service revenue primarily consists of salaries and other personnel costs including stock-based compensation expense, travel costs, materials consumed when performing installations, validations and other services, allocated information technology and facility-related costs, costs associated with training and other expenses related to service revenue recognized in the period. Cost of non-commercial revenue primarily consists of salaries and other personnel costs including stock-based compensation expense, consulting expense, materials, travel and other costs related to revenue recognized as non-commercial revenue during the period. |
Research and development costs | Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities including, employee-related expenses, such as salaries, bonuses and other personnel costs including stock-based compensation expense, the cost of developing maintaining and improving new and existing products designs, the cost of hardware and software engineering, the cost of research materials and supplies, external costs of outside consultants engaged to conduct research and development services associated with the Company’s technology and products, and information technology and facilities expenses, which include direct and allocated expenses for rent, maintenance of facilities and insurance, as well as related depreciation and amortization. The costs incurred for the development of system software that will be sold are capitalized when technological feasibility has been established. The Company has continued to develop the software associated with its platform and products, and the associated costs have been expensed as incurred, when the nature of improvements did not significantly improve the performance or functionality of the software. |
Advertising costs | Advertising costsAdvertising costs are expensed as incurred and are included in sales and marketing expenses in the consolidated statements of operations. |
Patent costs | Patent costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditures. Amounts incurred are classified within general and administrative expense in the consolidated statement of operations. |
Stock-based compensation | Stock-based compensation The Company measures all stock-based awards granted to employees, officers and directors based on their fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method. Forfeitures are accounted for as they occur. The Company has not issued any stock-based awards with performance-based vesting conditions. The Company measures all restricted common stock and restricted stock units granted to employees based on the common stock value on the date of grant. The purchase price of the restricted common stock is the common stock value on the date of grant. The Company classifies stock-based compensation expense in its consolidated statement of operations in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which uses the following inputs: (i) the fair value per share of the common stock issuable upon exercise of the option, (ii) the expected term of the option, (iii) expected volatility of the price of the common stock, (iv) the risk-free interest rate, and (v) the expected dividend yield. The exercise price of the option cannot be less than the fair market value of a share of common stock on the date of grant. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla”. The Company historically has been a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, the Company estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact |
Income taxes | Income taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are determined on the basis of the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company has determined that the functional and reporting currency for its operations in Germany and Switzerland is the U.S. Dollar. Gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in other income (expense), net. |
Comprehensive loss | Comprehensive loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For the years ended December 31, 2022 and 2021, comprehensive loss included $1.1 million and less than $0.1 million, respectively, of unrealized gains and losses on investments, net of tax. |
Net loss per share attributable to common stockholders | Net loss per share attributable to common stockholders The Company follows the two-class method when computing net loss per share as the Company has issued shares that meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. 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 common shares outstanding for the period. Diluted net loss attributable to common stockholders is computed by adjusting net loss attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net loss per share attributable to common stockholders is computed by dividing the diluted net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period, including potential dilutive common shares. For purpose of this calculation, outstanding stock options, shares expected to be purchased under the employee stock purchase plan, unvested restricted stock units, and warrants to purchase common stock are considered potential dilutive common shares. In periods in which the Company reports a net loss attributable to common stockholders diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations related to their leasing arrangements. The update requires lessees to recognize most leases, with the exception of short-term leases if a policy election is made, on their balance sheets as a right-of-use ("ROU") asset representing the right to use an underlying asset and a lease liability representing the obligation to make lease payments over the lease term, measured on a discounted basis, while recognizing lease expense on their income statements in a manner similar to current GAAP. The guidance also requires entities to disclose key quantitative and qualitative information about its leasing arrangements. The Company leases office and manufacturing space under operating lease agreements. The Company leases furniture under a financing agreement. The Company adopted Topic 842 on January 1, 2022 using the optional transition method to the modified retrospective approach. Under this transition provision, results for reporting periods beginning on January 1, 2022 are presented under Topic 842 while prior period amounts continue to be reported and disclosed in accordance with the Company’s historical accounting treatment under ASC Topic 840, Leases. The Company elected the “package of practical expedients” permitted under the transition guidance, which among other things, does not require reassessment of whether contracts entered into prior to adoption are or contain leases, and allows carryforward of the historical lease classification for existing leases. The Company did not elect the “hindsight” practical expedient, and therefore measured the ROU assets and lease liabilities using the remaining portion of the lease term at adoption on January 1, 2022. The Company made an accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. For all other leases, the Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease (or January 1, 2022 for existing leases upon the adoption of ASC 842). Lease payments may include fixed rent escalation clauses or payments that depend on an index (such as the consumer price index). Subsequent changes to an index and any other periodic market-rate adjustments to base rent are recorded in variable lease expense in the period incurred. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by any lease incentives. The Company has made an accounting policy election to account for lease and non-lease components in its contracts as single lease components for all asset classes. The non-lease components typically represent additional services transferred to the Company, such as common area maintenance for real estate, which are variable in nature and recorded in variable lease expense in the period incurred. The Company uses its incremental borrowing rate which is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount in a similar economic environment to determine the present value of lease payments as the Company’s leases do not have a readily determinable implicit discount rate. Judgment is applied in assessing factors such as Company specific credit risk, lease term, nature, and quality of the underlying collateral, currency, and economic environment in determining the incremental borrowing rate to apply to each lease. Upon adoption, the Company recorded operating lease ROU assets and lease liabilities of $6.0 million and $7.0 million, respectively, the difference relating to deferred rent. The Company recorded financing lease ROU assets and lease liabilities of approximately $0.4 million. The adoption of the new lease standard on January 1, 2022 did not materially impact our consolidated statements of operations, comprehensive loss or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various areas related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted this guidance effective January 1, 2022, and the adoption had no material impact on its consolidated financial statements and related disclosures. Recently issued accounting pronouncements The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected not to “opt out” of the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the newer revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for nonpublic companies. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016- 13”). The new standard adjusts the accounting for assets held at amortized costs basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. The new standard will be effective for the Company beginning January 1, 2023. The FASB subsequently issued other related ASUs that amend ASU No. 2016-13 to provide clarification and additional guidance. The Company evaluated the impact of the new standard concluding that it will not have a material impact on its consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk | The following table presents customers that represent 10% or more of the Company’s total revenue: Year Ended December 31, 2022 2021 Customer A 22.8 % 16.7 % 22.8 % 16.7 % The following table presents customers that represent 10% or more of the Company’s accounts receivable: Year Ended December 31, 2022 2021 Customer A 21.4 % 19.5 % Customer B 16.7 % * Customer C 11.8 % * Customer D * 12.6 % Customer E * 10.6 % Customer F * 10.0 % 49.9 % 52.7 % ______________________________ * – less than 10% |
Summary of Estimated Useful Life of Assets | Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Manufacturing and laboratory equipment 5-10 years Computer hardware and software 3 years Office furniture and fixtures 5-7 years Leasehold improvements Shorter of remaining life of lease or useful life |
Summary of Changes in Amount Reserved for Warranty Cost | The following table presents a summary of changes in the amount reserved for warranty cost (in thousands): Year Ended December 31, 2022 2021 Balance, beginning of the period $ 598 $ 637 Warranty provisions 646 — Warranty repairs (372) (39) Balance, end of the year $ 872 $ 598 |
Schedule of Disaggregated Revenue by Nature and Geographic Location | The following table presents the Company’s revenue by the recurring or non-recurring and commercial or non-commercial nature of the revenue stream (in thousands): Year Ended December 31, 2022 2021 Product and service revenue — recurring $ 10,983 $ 7,819 Product and service revenue — non-recurring 6,150 13,818 Non-commercial revenue — non-recurring — 1,595 Total revenue $ 17,133 $ 23,232 The following table presents the Company’s revenue by customer geography (in thousands): Year Ended December 31, 2022 2021 United States $ 8,767 $ 12,892 Germany 2,649 1,695 Switzerland 2,756 4,314 All other countries 2,961 4,331 Total revenue $ 17,133 $ 23,232 |
Fair value of financial asset_2
Fair value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on a Recurring Basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands): Fair value measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 22,072 $ — $ — $ 22,072 Short-term investments 81,093 491 — 81,584 Long-term investments 26,431 3,359 — 29,790 $ 129,596 $ 3,850 $ — $ 133,446 Fair value measurements at December 31, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 173,755 $ — $ — $ 173,755 Short-term investments 15,110 — — 15,110 Long term investments 9,966 — — 9,966 $ 198,831 $ — $ — $ 198,831 |
Schedule of Unobservable Inputs of Preferred Stock Warrant Liability | The table below quantifies the weighted average of the unobservable inputs used to fair value the preferred stock warrant liability prior to their conversion into common stock warrants in connection with the Company’s IPO in July 2021: Year Ended December 31, 2021 Fair value of Series A1 preferred stock $ 3.01 Fair value of Series B1 preferred stock $ 3.26 Fair value of Series C1 preferred stock $ 3.30 Remaining contractual term (in years) 6.8 Risk-free interest rate 1.2% Expected dividend yield — % Expected volatility 42.0% |
Schedule of Fair Values of Preferred Stock Warrant Liability | The following table provides a rollforward of the aggregate fair values of the Company’s preferred stock warrant liability, for which fair values are determined using Level 3 inputs (in thousands): Year Ended December 31, 2021 Balance, beginning of period $ 4,117 Initial fair value of Series C1 preferred stock warrants — Change in fair value of preferred stock warrants 19,643 Conversion of preferred stock warrants to common stock warrants (23,760) Balance, end of period $ — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | Short-term and long-term investments by investment type consisted of the following (in thousands): December 31, 2022 Amortized Gross Gross Fair Short-term investments Certificates of Deposit $ 491 $ — $ — $ 491 U.S. Government Treasury Bills $ 32,115 $ 1 $ (40) $ 32,076 U.S. Government Treasury Notes 49,625 (608) 49,017 $ 82,231 $ 1 $ (648) $ 81,584 Long-term Investments Certificates of Deposit 3,391 4 (36) 3,359 U.S. Government Treasury Notes - Maturity Up To Two Years 26,861 1 (431) 26,431 $ 30,252 $ 5 $ (467) $ 29,790 December 31, 2021 Short-term investments Amortized Gross Gross Fair U.S. Government Treasury Bills $ 4,983 $ — $ (2) $ 4,981 U.S. Government Treasury Notes $ 10,142 $ — $ (13) $ 10,129 $ 15,125 $ — $ (15) $ 15,110 Long-term Investments U.S. Government Treasury Notes - Maturity Up To Two Years $ 9,966 $ — $ — $ 9,966 $ 9,966 $ — $ — $ 9,966 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consisted of the following (in thousands): December 31, December 31, 2022 2021 Raw materials $ 15,014 $ 10,135 Work in process 1,599 1,235 Finished goods 4,574 4,301 Total $ 21,187 $ 15,671 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Prepaid insurance $ 1,500 $ 1,622 Contract asset 112 396 Deposits 1,055 1,262 Lease receivables, current portion — 231 Other 705 440 $ 3,372 $ 3,951 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Manufacturing and laboratory equipment $ 13,408 $ 13,277 Computer hardware and software 1,651 1,742 Office furniture and fixtures 589 745 Leasehold improvements 8,260 3,012 Construction-in-process 1,712 4,313 25,620 23,089 Less: Accumulated depreciation (11,802) (11,785) $ 13,818 $ 11,304 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, December 31, 2022 2021 Accrued employee compensation and benefits expense $ 3,217 $ 3,569 Accrued vendor expenses 3,212 5,500 Accrued warranty expense 872 598 Deferred rent, current portion — 131 Accrued taxes 329 781 Other 520 338 $ 8,150 $ 10,917 |
Common stock and common stock_2
Common stock and common stock warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Common stock and common stock warrants | |
Schedule of Outstanding Common Stock Warrants | As of December 31, 2022 and 2021, warrants to purchase the Class A common stock outstanding consisted of the following: December 31, 2022 Issuance date Contractual term Balance sheet Shares of Weighted average (in years) July 24, 2017 10 Equity 17,194 $ 292.81 April 12, 2018 10 Equity 30,000 $ 1.00 July 14, 2021 10 Equity 975,109 $ 1.46 1,022,303 December 31, 2021 Issuance date Contractual term Balance sheet Shares of Weighted average (in years) July 24, 2017 10 Equity 25,835 $ 295.15 April 12, 2018 10 Equity 30,000 $ 1.00 July 14, 2021 10 Equity 975,109 $ 1.46 1,030,944 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Black-Scholes Option-Pricing Model | The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option- pricing model to determine the grant-date fair value of stock options granted to employees and directors: Year Ended December 31, 2022 2021 Risk-free interest rate 2.14 % 1.02 % Expected term (in years) 6.0 6.0 Expected volatility 43.3 % 44.4 % Expected dividend yield 0 % 0 % |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activity since December 31, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2021 4,823,100 $ 5.06 7.62 $ 31,041 Granted 1,708,293 7.11 Exercised (572,932) 0.99 Expired (71,521) 11.04 Forfeited (845,632) 11.40 Outstanding as of December 31, 2022 5,041,308 $ 5.05 7.55 $ 532 Options vested and expected to vest as of December 31, 2022 5,041,308 $ 5.05 7.55 $ 532 Options exercisable as of December 31, 2022 2,745,821 $ 3.38 6.58 $ 393 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table summarizes the Company’s restricted stock activity since December 31, 2021: Number of Weighted (in years) Unvested as of December 31, 2021 248,903 $ 2.10 Granted — Vested (93,338) $ 2.10 Forfeited — Unvested as of December 31, 2022 155,565 $ 2.10 The following table summarizes restricted stock units granted to Company employees during the year ended December 31, 2022: Number of Weighted Unvested as of December 31, 2021 — Granted 668,246 $ 7.12 Vested — Forfeited (136,125) 7.35 Unvested as of December 31, 2022 532,121 $ 7.06 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense was classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2022 2021 Cost of revenue $ 530 $ 329 General and administrative 2,630 1,025 Sales and marketing 475 346 Research and development 384 143 Total stock-based compensation expense $ 4,019 $ 1,843 |
Schedule of ESPP Black-Scholes Option-Pricing Model | The following weighted average assumptions were used in the calculation of fair value of shares under the 2021 ESPP at the grant date for the year ended December 31, 2022 (there were no offering periods for the year ended December 31, 2021 ): Year Ended December 31, 2022 Risk-free interest rate 2.60 % Expected term (in years) 0.5 Expected volatility 49.1 % Expected dividend yield 0 % |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Company's Loss Before Income Tax Expense | The components of the Company’s loss before income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2022 2021 United States $ (61,396) $ (73,643) Foreign 14 $ 210 Loss before income tax provision $ (61,382) $ (73,433) |
Schedule of Components of Income Tax Expense | The components of income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2022 2021 Current income tax provision: Federal $ — $ — State — — Foreign (576) 91 Total current income tax (benefit) expense (576) 91 Deferred income tax provision: Federal (13,347) 17,099 State (2,824) 2,923 Foreign — — Total deferred income tax provision (16,171) 20,022 Change in deferred tax asset valuation allowance 16,171 (20,022) Total (benefit) expense for income taxes $ (576) $ 91 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 3.6 (3.1) Federal and state research and development tax credits 0.6 0.5 Unrecognized tax benefits reserve and interest change 1.0 (0.1) Change in valuation allowance (25.3) 26.4 Permanent differences 0.1 (0.5) Section 382/383 limitation — (38.7) Unrealized gain (loss) on value of warrants — (5.6) Effective income tax rate 1.0 % (0.1) % |
Schedule of Net Deferred Tax Assets | Net deferred tax assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 46,387 $ 33,663 Research and development credit carryforwards 4,403 3,605 Research and development capitalized costs 6,119 4,041 Inventories 390 196 Lease liability 1,858 — Accrued expenses 778 1,076 Unrealized loss 270 — Other 712 139 Total deferred tax assets 60,917 42,720 Deferred tax liabilities: Right-of-use assets (1,644) — Depreciation (340) (229) Total deferred tax liabilities (1,984) (229) Valuation allowance (58,933) (42,491) Net deferred tax assets $ — $ — |
Schedule of Changes in the Valuation Allowance for Deferred Tax Assets | Changes in the valuation allowance for deferred tax assets relates primarily to the decrease in NOL carryforwards and research and development tax credit carryforwards and were as follows (in thousands): December 31, December 31, 2022 2021 Valuation allowance as of beginning of year $ 42,491 $ 62,513 Increases recorded to income tax provision 17,726 13,067 Decreases recorded as a benefit to income tax provision (1,284) (33,089) Valuation allowance as of end of year $ 58,933 $ 42,491 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): December 31, December 31, 2022 2021 Unrecognized tax benefits as of beginning of year $ 623 $ 569 Additions for tax positions of prior years — 54 Reductions for tax positions of prior years (623) — Unrecognized tax benefits as of end of year $ — $ 623 |
Net loss per share (Tables)
Net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share attributable to common stockholders was calculated as follow (in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 Numerator: Net loss $ (60,806) $ (73,524) Accretion of redeemable convertible preferred stock to redemption value — (1,761) Cumulative redeemable convertible preferred stock dividends — (2,747) Net loss attributable to common stockholders—basic and diluted $ (60,806) $ (78,032) Denominator: Weighted average Class A common shares outstanding—basic and diluted 36,727,742 16,568,267 Weighted average Class B common shares outstanding—basic and diluted 5,726,661 3,215,272 Total shares for EPS—basic and diluted 42,454,403 19,783,539 Net loss per share attributable to Class A common stockholders—basic and diluted $ (1.43) $ (3.94) Net loss per share attributable to Class B common stockholders—basic and diluted $ (1.43) $ (3.94) |
Schedule of Anti-Dilutive Shares Excluded from Computation of Diluted Net Let per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2022 2021 Options to purchase common stock 5,076,650 4,823,100 Warrants to purchase common stock 286,324 294,964 Unvested restricted common stock 697,361 — Options to purchase common stock under ESPP 181,558 — 6,241,893 5,118,064 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Impact from Adoption of Topic 842 | The impact of the adoption of Topic 842 to the Company's applicable balance sheet items as of January 1, 2022 is presented in the table below (in thousands). The standard did not have a material impact to the Company's consolidated statements of operations, comprehensive loss or cash flows. As Reported Adjustments Adjusted Assets Right-of-use assets, net, operating $ — $ 6,039 $ 6,039 Right-of-use assets, net, financing — 366 366 Property and equipment, net 11,304 (351) 10,953 Total $ 11,304 $ 6,054 $ 17,358 Total assets $ 241,169 $ 6,054 $ 247,223 Liabilities and Stockholders' Equity Current liabilities: Lease liabilities, short-term, operating $ — $ 1,023 $ 1,023 Lease liabilities, short-term, financing — 33 33 Accrued expenses 10,917 (160) 10,757 Total $ 10,917 $ 896 $ 11,813 Total current liabilities $ 18,166 $ 896 $ 19,062 Lease liabilities, long-term, operating — 5,960 5,960 Lease liabilities, long-term, financing — 341 341 Deferred rent, long-term 813 (813) — Other long-term liabilities 1,210 (330) 880 Total $ 2,023 $ 5,158 $ 7,181 Total liabilities $ 20,189 $ 6,054 $ 26,243 Total stockholders' equity $ 220,980 $ — $ 220,980 Total liabilities and stockholders' equity $ 241,169 $ 6,054 $ 247,223 |
Schedule of Supplemental Cash Flow Information and Lease Expense | Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows - payments on operating leases $ 1,207 Operating cash outflows - payments on financing leases $ 42 Financing cash outflows - payments on financing leases $ 33 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 7,605 Financing leases $ 366 The components of lease expense were as follows (in thousands): Year Ended December 31, 2022 Operating lease cost $ 1,144 Financing lease cost - amortization of right-of-use asset 49 Financing lease cost - interest on lease liability 42 Short-term lease cost 59 Variable lease cost 617 Total lease cost $ 1,911 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to the Company’s operating and financing leases is as follows (in thousands): December 31, 2022 Operating Leases: Operating lease assets $ 6,746 Operating lease liabilities, short-term $ 729 Operating lease liabilities, long-term 6,898 Total operating lease liabilities $ 7,627 Financing Leases: Office furniture and fixtures $ 386 Accumulated depreciation (69) Net property, plant and equipment $ 317 Current portion of long-term debt $ 37 Long-term debt 304 Total financing lease liabilities $ 341 Weighted-average remaining lease term - operating leases (in years): 6.54 Weighted-average remaining lease term - financing leases (in years): 6.50 Weighted-average discount rate - operating leases: 3.7 % Weighted-average discount rate - financing leases: 12.0 % |
Schedule of Future Minimum Lease Commitments Under Operating Leases | Maturities of the Company’s operating lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Lease Maturities 2023 $ 1,273 2024 1,306 2025 1,339 2026 1,372 2027 1,404 Thereafter 2,223 Total lease payments $ 8,917 Less imputed interest (1,019) Total present value of lease liabilities $ 7,898 |
Schedule of Finance Lease Liability Maturities | Maturities of the Company’s financing lease liability as of December 31, 2022 were as follows (in thousands): Financing Lease Maturities 2023 $ 75 2024 75 2025 75 2026 75 2027 75 Thereafter 113 Total lease payments $ 488 Less imputed interest (147) Total present value of lease liabilities $ 341 |
Schedule of Pre-Adoption Operating Lease Liability Maturities | Maturities of the Company’s operating lease liabilities as of December 31, 2021 were as follows (in thousands): Year Ended 2022 $ 1,139 2023 1,169 2024 1,199 2025 1,229 2026 1,044 Thereafter 1,953 Total minimum lease commitments $ 7,733 |
Nature of the business and ba_2
Nature of the business and basis of presentation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Aug. 04, 2021 USD ($) $ / shares shares | Jul. 19, 2021 USD ($) $ / shares shares | Jul. 09, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Gross proceeds from transaction | $ 0 | $ 164,100 | |||
Reverse stock split ratio | 0.2 | ||||
IPO | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Number of shares sold (in shares) | shares | 7,920,000 | ||||
Price per share of shares sold (in dollars per share) | $ / shares | $ 20 | ||||
Gross proceeds from transaction | $ 158,400 | ||||
Net proceeds from transaction | $ 143,800 | ||||
Over-Allotment Option | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||||
Number of shares sold (in shares) | shares | 1,086,604 | ||||
Price per share of shares sold (in dollars per share) | $ / shares | $ 20 | ||||
Net proceeds from transaction | $ 20,200 |
Summary of significant accoun_4
Summary of significant accounting policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Benchmark | Major Customers | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 22.80% | 16.70% |
Revenue Benchmark | Customer A | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 22.80% | 16.70% |
Accounts Receivable | Major Customers | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 49.90% | 52.70% |
Accounts Receivable | Customer A | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 21.40% | 19.50% |
Accounts Receivable | Customer B | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 16.70% | |
Accounts Receivable | Customer C | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 11.80% | |
Accounts Receivable | Customer D | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 12.60% | |
Accounts Receivable | Customer E | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 10.60% | |
Accounts Receivable | Customer F | ||
Concentration Risk [Line Items] | ||
Customer concentration risk | 10% |
Summary of significant accoun_5
Summary of significant accounting policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment item | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Accounting Policies [Line Items] | |||
Amortization of debt issuance costs | $ 0 | $ 400,000 | |
Cash held in banks outside of the US | 200,000 | 300,000 | |
Guaranteed investment certificates | 284,000 | 284,000 | |
Allowance for doubtful accounts | 0 | 0 | |
Provision for bad debts or recoveries | 0 | 0 | |
Software development costs, net of amortization | 1,400,000 | 1,300,000 | |
Amortization of software development costs | 400,000 | 100,000 | |
Software development amortization expense | 300,000 | 100,000 | |
Impairment losses on long-lived assets | $ 0 | 0 | |
Product warranty term | 1 year | ||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Assurance warranty term | 1 year | ||
Number of preventative maintenance services during the warranty period | item | 2 | ||
Contract assets | $ 100,000 | 300,000 | |
Non-current deferred revenue | 0 | ||
Current deferred revenue | 4,700,000 | 3,300,000 | |
Revenue recognized which was included in deferred revenue in prior period | 2,700,000 | 3,800,000 | |
Advertising costs | 100,000 | 100,000 | |
Unrealized loss on investments, net of tax | 1,093,000 | 17,000 | |
Right-of-use assets, net, operating | 6,746,000 | ||
Operating lease liabilities | 7,627,000 | ||
Right-of-use assets, net, financing | 317,000 | ||
Finance lease liabilities | $ 341,000 | ||
Accounting Standards Update 2016-02 | |||
Accounting Policies [Line Items] | |||
Right-of-use assets, net, operating | $ 6,000,000 | ||
Operating lease liabilities | 7,000,000 | ||
Right-of-use assets, net, financing | 400,000 | ||
Finance lease liabilities | $ 400,000 | ||
Minimum | |||
Accounting Policies [Line Items] | |||
Payment term | 30 days | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Payment term | 90 days | ||
Unrealized loss on investments, net of tax | $ 100,000 | ||
Software Development | |||
Accounting Policies [Line Items] | |||
Amortization period of capitalized software costs | 5 years |
Summary of significant accoun_6
Summary of significant accounting policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Manufacturing and laboratory equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Manufacturing and laboratory equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Computer hardware and software | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Office furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Office furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Summary of significant accoun_7
Summary of significant accounting policies - Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 598 | $ 637 |
Warranty provisions | 646 | 0 |
Warranty repairs | (372) | (39) |
Balance at end of period | $ 872 | $ 598 |
Summary of significant accoun_8
Summary of significant accounting policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 17,133 | $ 23,232 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 8,767 | 12,892 |
Germany | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,649 | 1,695 |
Switzerland | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,756 | 4,314 |
All other countries | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,961 | 4,331 |
Product and Service Revenue | Recurring | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10,983 | 7,819 |
Product and Service Revenue | Non-Recurring | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 6,150 | 13,818 |
Non-Commercial Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 1,595 |
Non-Commercial Revenue | Non-Recurring | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 | $ 1,595 |
Fair value of financial asset_3
Fair value of financial assets and liabilities - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term investments | ||
Assets | ||
Investments | $ 81,584 | $ 15,110 |
Long-term investments | ||
Assets | ||
Investments | 29,790 | 9,966 |
Fair Value, Recurring | ||
Assets | ||
Cash equivalents | 22,072 | 173,755 |
Assets | 133,446 | 198,831 |
Fair Value, Recurring | Short-term investments | ||
Assets | ||
Investments | 81,584 | 15,110 |
Fair Value, Recurring | Long-term investments | ||
Assets | ||
Investments | 29,790 | 9,966 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Cash equivalents | 22,072 | 173,755 |
Assets | 129,596 | 198,831 |
Fair Value, Recurring | Level 1 | Short-term investments | ||
Assets | ||
Investments | 81,093 | 15,110 |
Fair Value, Recurring | Level 1 | Long-term investments | ||
Assets | ||
Investments | 26,431 | 9,966 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets | 3,850 | 0 |
Fair Value, Recurring | Level 2 | Short-term investments | ||
Assets | ||
Investments | 491 | 0 |
Fair Value, Recurring | Level 2 | Long-term investments | ||
Assets | ||
Investments | 3,359 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Short-term investments | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Long-term investments | ||
Assets | ||
Investments | $ 0 | $ 0 |
Fair value of financial asset_4
Fair value of financial assets and liabilities - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value assessment charges | $ 8.2 |
Fair value of financial asset_5
Fair value of financial assets and liabilities - Weighted Average of the Unobservable Inputs Used to Fair Value (Details) | Dec. 31, 2021 $ / shares yr |
Fair value | Series A1 Preferred Stock | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 3.01 |
Fair value | Series B1 Preferred Stock | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 3.26 |
Fair value | Series C1 Preferred Stock | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 3.30 |
Remaining contractual term (in years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | yr | 6.8 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 1.2 |
Expected dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 0 |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Preferred stock warrant liability, measurement input | 42 |
Fair value of financial asset_6
Fair value of financial assets and liabilities - Rollforward of the Aggregate Fair Values (Details) - Preferred stock warrant liability $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning of period | $ 4,117 |
Change in fair value of preferred stock warrants | 19,643 |
Conversion of preferred stock warrants to common stock warrants | (23,760) |
Balance, end of period | 0 |
Series C1 preferred Stock Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Initial fair value of Series C1 preferred stock warrants | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 82,231 | $ 15,125 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (648) | (15) |
Fair value | 81,584 | 15,110 |
Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 491 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 491 | |
U.S. Government Treasury Bills | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 32,115 | 4,983 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (40) | (2) |
Fair value | 32,076 | 4,981 |
U.S. Government Treasury Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 49,625 | 10,142 |
Gross unrealized gains | 0 | |
Gross unrealized losses | (608) | (13) |
Fair value | 49,017 | 10,129 |
Long-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 30,252 | 9,966 |
Gross unrealized gains | 5 | 0 |
Gross unrealized losses | (467) | 0 |
Fair value | 29,790 | 9,966 |
Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 3,391 | |
Gross unrealized gains | 4 | |
Gross unrealized losses | (36) | |
Fair value | 3,359 | |
U.S. Government Treasury Notes - Maturity Up To Two Years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 26,861 | 9,966 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (431) | 0 |
Fair value | $ 26,431 | $ 9,966 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 15,014 | $ 10,135 |
Work in process | 1,599 | 1,235 |
Finished goods | 4,574 | 4,301 |
Total | 21,187 | 15,671 |
Inventory adjustments | $ 1,100 | $ 1,200 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid insurance | $ 1,500 | $ 1,622 |
Contract asset | 112 | 396 |
Deposits | 1,055 | 1,262 |
Lease receivables, current portion | 0 | 231 |
Other | 705 | 440 |
Prepaid expenses and other current assets | $ 3,372 | $ 3,951 |
Property and equipment, net - S
Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 25,620 | $ 23,089 |
Less: Accumulated depreciation | (11,802) | (11,785) |
Property plant and equipment, net | 13,818 | 11,304 |
Manufacturing and laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 13,408 | 13,277 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,651 | 1,742 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 589 | 745 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 8,260 | 3,012 |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 1,712 | $ 4,313 |
Property and equipment, net - N
Property and equipment, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2.5 | $ 1.5 |
Fully depreciated assets disposed of | $ 2.3 | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fully depreciated assets disposed of | $ 0.1 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued employee compensation and benefits expense | $ 3,217 | $ 3,569 |
Accrued vendor expenses | 3,212 | 5,500 |
Accrued warranty expense | 872 | 598 |
Deferred rent, current portion | 131 | |
Accrued taxes | 329 | 781 |
Other | 520 | 338 |
Accrued expenses and other current liabilities | $ 8,150 | $ 10,917 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
Restructuring costs | $ 1.1 | |
Payments for restructuring | $ 0.6 | |
Restructuring related accrued expenses | $ 0.5 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2020 | |
Debt Instrument [Line Items] | ||||
Long-term debt outstanding | $ 0 | $ 0 | ||
Loss on extinguishment of debt | $ 0 | 3,100,000 | ||
2020 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Loan face amount | $ 60,000,000 | |||
Facility fees | 800,000 | |||
Debt issuance costs | 1,500,000 | |||
Professional fees | 900,000 | |||
Fair value of warrants issued with debt | $ 600,000 | |||
Interest expense | 2,500,000 | |||
Amortization of debt discount | $ 300,000 | |||
Loss on extinguishment of debt | $ 3,100,000 | |||
Prepayment penalty | 1,800,000 | |||
Expense to unamortized discounts | 1,100,000 | |||
Unamortized prepaid facility fees and other charges | $ 200,000 | |||
2020 Term Loan | Series C1 Preferred Stock | ||||
Debt Instrument [Line Items] | ||||
Warrants issued (in shares) | 1,195,652 | |||
Exercise price of warrants (in dollars per share) | $ 1.15 | |||
2020 Term Loan | Debt Instrument, Tranche One | ||||
Debt Instrument [Line Items] | ||||
Loan face amount | $ 25,000,000 | |||
Facility fees | 300,000 | |||
2020 Term Loan | Debt Instrument, Tranche Two | ||||
Debt Instrument [Line Items] | ||||
Loan face amount | 35,000,000 | |||
Term B Loan | Debt Instrument, Tranche Two | ||||
Debt Instrument [Line Items] | ||||
Loan face amount | 20,000,000 | |||
Facility fees | 300,000 | |||
Term C Loan | Debt Instrument, Tranche Two | ||||
Debt Instrument [Line Items] | ||||
Loan face amount | 15,000,000 | |||
Facility fees | $ 200,000 |
Redeemable convertible prefer_2
Redeemable convertible preferred stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 14, 2021 | Jun. 25, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 19, 2021 | |
Redeemable convertible preferred stock | ||||||
Gross proceeds of shares issued | $ 0 | $ 79,743 | ||||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Series D1 Preferred Stock | ||||||
Redeemable convertible preferred stock | ||||||
Shares issued (in shares) | 22,086,725 | 22,086,725 | ||||
Share price of shares issued (in dollars per share) | $ 3.60 | |||||
Gross proceeds of shares issued | $ 79,500 | |||||
Series D2 Preferred Stock | ||||||
Redeemable convertible preferred stock | ||||||
Shares issued (in shares) | 413,268 | 413,268 | ||||
Share price of shares issued (in dollars per share) | $ 3.60 | |||||
Gross proceeds of shares issued | $ 1,500 | |||||
Number of shares exchanged (in shares) | 2,364,509 | |||||
Series D1 and D2 Preferred Stock | ||||||
Redeemable convertible preferred stock | ||||||
Issuance costs | $ 2,700 | |||||
Series C2 Redeemable Convertible Preferred Stock | ||||||
Redeemable convertible preferred stock | ||||||
Number of shares exchanged (in shares) | 11,437,301 | |||||
Class A Common stock | ||||||
Redeemable convertible preferred stock | ||||||
Conversion of stock (in shares) | 24,200,920 | |||||
Class B Common stock | ||||||
Redeemable convertible preferred stock | ||||||
Conversion of stock (in shares) | 6,903,379 |
Preferred stock warrants (Detai
Preferred stock warrants (Details) - Series C1 Preferred Stock $ / shares in Units, $ in Millions | May 31, 2020 USD ($) $ / shares shares |
Preferred stock warrants | |
Warrant term | 10 years |
Warrant fair value | $ | $ 0.7 |
2020 Term Loan | |
Preferred stock warrants | |
Warrants issued (in shares) | shares | 1,195,652 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 1.15 |
Common stock and common stock_3
Common stock and common stock warrants - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) vote $ / shares shares | Dec. 31, 2021 $ / shares shares | Jul. 19, 2021 shares | |
Common stock and common stock warrants | |||
Cash dividends | $ | $ 0 | ||
Class A Common stock | |||
Common stock and common stock warrants | |||
Common stock, authorized (in shares) | 210,000,000 | 210,000,000 | 210,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, issued (in shares) | 36,538,805 | 34,564,040 | |
Common stock, outstanding (in shares) | 36,538,805 | 34,564,040 | |
Number of votes per share held | vote | 1 | ||
Shares reserved (in shares) | 20,118,778 | ||
Class B Common stock | |||
Common stock and common stock warrants | |||
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, issued (in shares) | 5,553,379 | 6,903,379 | |
Common stock, outstanding (in shares) | 5,553,379 | 6,903,379 |
Common stock and common stock_4
Common stock and common stock warrants - Warrants (Details) - Common Stock Warrant - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common stock and common stock warrants | ||
Shares of common stock issuable upon exercise of warrant (in shares) | 1,022,303 | 1,030,944 |
July 24, 2017 | ||
Common stock and common stock warrants | ||
Contractual term | 10 years | 10 years |
Shares of common stock issuable upon exercise of warrant (in shares) | 17,194 | 25,835 |
Weighted average exercise price (in dollars per share) | $ 292.81 | $ 295.15 |
April 12, 2018 | ||
Common stock and common stock warrants | ||
Contractual term | 10 years | 10 years |
Shares of common stock issuable upon exercise of warrant (in shares) | 30,000 | 30,000 |
Weighted average exercise price (in dollars per share) | $ 1 | $ 1 |
July 14, 2021 | ||
Common stock and common stock warrants | ||
Contractual term | 10 years | 10 years |
Shares of common stock issuable upon exercise of warrant (in shares) | 975,109 | 975,109 |
Weighted average exercise price (in dollars per share) | $ 1.46 | $ 1.46 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 19, 2021 | |
Share-based compensation | ||||||
Granted (in shares) | 1,708,293 | |||||
Stock-based compensation expense | $ 4,019 | $ 1,843 | ||||
Intrinsic value of stock options exercised | $ 2,900 | $ 1,600 | ||||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 3.13 | $ 4.89 | ||||
Employee payments for shares granted | $ 160 | $ 0 | ||||
Unrecognized compensation expense | $ 6,800 | |||||
Share-Based Payment Arrangement, Option | ||||||
Share-based compensation | ||||||
Weighted average period for unrecognized compensation expense | 2 years 4 months 24 days | |||||
Restricted Stock | ||||||
Share-based compensation | ||||||
Vesting period | 4 years | |||||
Units granted (in shares) | 248,903 | 0 | ||||
Employee payments for shares granted | $ 500 | |||||
Weighted average grant-date fair value per share of units granted (in dollars per share) | $ 2.10 | $ 2.10 | ||||
Unvested stock liability | $ 300 | 500 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based compensation | ||||||
Vesting period | 3 years | |||||
Stock-based compensation expense | $ 1,000 | $ 0 | ||||
Units granted (in shares) | 668,246 | 0 | ||||
Weighted average grant-date fair value per share of units granted (in dollars per share) | $ 7.12 | |||||
Weighted average period for unrecognized compensation expense | 2 years 2 months 12 days | |||||
Unrecognized compensation expense related to units | $ 2,700 | |||||
Class A Common stock | ||||||
Share-based compensation | ||||||
Shares available for future issuance (in shares) | 20,118,778 | |||||
2010 Plan | ||||||
Share-based compensation | ||||||
Additional shares authorized (in shares) | 382,889 | |||||
Shares authorized (in shares) | 0 | |||||
2021 Incentive Award Plan | ||||||
Share-based compensation | ||||||
Plan term | 10 years | |||||
Number of shares available for grant (in shares) | 4,179,239 | |||||
2021 Incentive Award Plan | Share-Based Payment Arrangement, Option | ||||||
Share-based compensation | ||||||
Plan term | 10 years | |||||
Percentage at market fair value | 100% | |||||
2021 Incentive Award Plan | Share-Based Payment Arrangement, Option | Employees, Officers and Consultant | ||||||
Share-based compensation | ||||||
Vesting period | 4 years | |||||
2021 Incentive Award Plan | Share-Based Payment Arrangement, Option | Board of Directors | ||||||
Share-based compensation | ||||||
Vesting period | 3 years | |||||
2021 Incentive Award Plan | Share-Based Payment Arrangement, Option | Employees, Officers and Directors | ||||||
Share-based compensation | ||||||
Granted (in shares) | 1,708,293 | 2,011,479 | ||||
Stock-based compensation expense | $ 2,800 | $ 1,800 | ||||
2021 Incentive Award Plan | Class A Common stock | ||||||
Share-based compensation | ||||||
Shares authorized (in shares) | 4,200,000 | |||||
Percentage of aggregate number of shares outstanding | 5% | |||||
Maximum number of shares issuable upon exercise of stock option (in shares) | 33,900,000 | |||||
2021 Employee Stock Purchase Plan | ||||||
Share-based compensation | ||||||
Shares authorized (in shares) | 400,000 | |||||
Plan term | 10 years | |||||
Percentage of aggregate number of shares outstanding | 1% | |||||
Maximum number of shares issuable upon exercise of stock option (in shares) | 6,300,000 | |||||
2021 ESPP | Maximum | ||||||
Share-based compensation | ||||||
Stock-based compensation expense | $ 100 | |||||
2021 ESPP | Options to purchase common stock under ESPP | ||||||
Share-based compensation | ||||||
Maximum percentage of payroll deduction | 15% | |||||
Offering period | 6 months | |||||
Maximum shares available for purchase per employee (in shares) | 100,000 | |||||
Maximum value of shares available for purchase per employee | $ 25 | |||||
Discount percentage from market price | 85% | |||||
2021 ESPP | Class A Common stock | ||||||
Share-based compensation | ||||||
Shares purchased under plan (in shares) | 51,833 | |||||
Shares available for future issuance (in shares) | 693,807 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Black-Scholes Option-Pricing Model (Details) - 2021 Incentive Award Plan - Share-Based Payment Arrangement, Option | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation | ||
Risk-free interest rate | 2.14% | 1.02% |
Expected term (in years) | 6 years | 6 years |
Expected volatility | 43.30% | 44.40% |
Expected dividend yield | 0% | 0% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of shares | ||
Outstanding at beginning of period (in shares) | 4,823,100 | |
Granted (in shares) | 1,708,293 | |
Exercised (in shares) | (572,932) | |
Expired (in shares) | (71,521) | |
Forfeited (in shares) | (845,632) | |
Outstanding at end of period (in shares) | 5,041,308 | 4,823,100 |
Options vested and expected to vest (in shares) | 5,041,308 | |
Options exercisable (in shares) | 2,745,821 | |
Weighted average exercise price | ||
Outstanding at beginning of period (in dollars per share) | $ 5.06 | |
Granted (in dollars per share) | 7.11 | |
Exercised (in dollars per share) | 0.99 | |
Expired (in dollars per share) | 11.04 | |
Forfeited (in dollars per share) | 11.40 | |
Outstanding at end of period (in dollars per share) | 5.05 | $ 5.06 |
Options vested and expected to vest (in dollars per share) | 5.05 | |
Options exercisable (in dollars per share) | $ 3.38 | |
Weighted average remaining contractual term | ||
Options outstanding | 7 years 6 months 18 days | 7 years 7 months 13 days |
Options vested and expected to vest | 7 years 6 months 18 days | |
Options exercisable | 6 years 6 months 29 days | |
Aggregate intrinsic value | ||
Options outstanding | $ 532 | $ 31,041 |
Options vested and expected to vest | 532 | |
Options exercisable | $ 393 |
Stock-based compensation - Sc_2
Stock-based compensation - Schedule of Restricted Stock Activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | |||
Number of shares | |||
Unvested at beginning of period (in shares) | 248,903 | ||
Granted (in shares) | 248,903 | 0 | |
Vested (in shares) | (93,338) | ||
Forfeited (in shares) | 0 | ||
Unvested at end of period (in shares) | 155,565 | 248,903 | |
Weighted average fair value | |||
Unvested at beginning of period (in dollars per share) | $ 2.10 | ||
Granted (in dollars per share) | $ 2.10 | 2.10 | |
Vested (in dollars per share) | 2.10 | ||
Forfeited (in shares) | |||
Unvested at end of period (in dollars per share) | $ 2.10 | $ 2.10 | |
Restricted Stock Units (RSUs) | |||
Number of shares | |||
Unvested at beginning of period (in shares) | 0 | ||
Granted (in shares) | 668,246 | 0 | |
Vested (in shares) | 0 | ||
Forfeited (in shares) | (136,125) | ||
Unvested at end of period (in shares) | 532,121 | 0 | |
Weighted average fair value | |||
Unvested at beginning of period (in dollars per share) | |||
Granted (in dollars per share) | 7.12 | ||
Vested (in dollars per share) | |||
Forfeited (in shares) | 7.35 | ||
Unvested at end of period (in dollars per share) | $ 7.06 |
Stock-based compensation - Sc_3
Stock-based compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 4,019 | $ 1,843 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 530 | 329 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 384 | 143 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 475 | 346 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 2,630 | $ 1,025 |
Stock-based compensation - Sc_4
Stock-based compensation - Schedule of ESPP Black-Scholes Option-Pricing Model (Details) - Employee Stock - 2021 ESPP | 12 Months Ended |
Dec. 31, 2022 | |
Share-based compensation | |
Risk-free interest rate | 2.60% |
Expected term (in years) | 6 months |
Expected volatility | 49.10% |
Expected dividend yield | 0% |
Income taxes - Loss Before Inco
Income taxes - Loss Before Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (61,396) | $ (73,643) |
Foreign | 14 | 210 |
Loss before income tax provision | $ (61,382) | $ (73,433) |
Income taxes - Components of in
Income taxes - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax provision: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Foreign | (576) | 91 |
Total current income tax (benefit) expense | (576) | 91 |
Deferred income tax provision: | ||
Federal | (13,347) | 17,099 |
State | (2,824) | 2,923 |
Foreign | 0 | 0 |
Total deferred income tax provision | (16,171) | 20,022 |
Change in deferred tax asset valuation allowance | 16,171 | (20,022) |
Total (benefit) expense for income taxes | $ (576) | $ 91 |
Income taxes - Effective Income
Income taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21% | 21% |
State income taxes, net of federal benefit | 3.60% | (3.10%) |
Federal and state research and development tax credits | 0.60% | 0.50% |
Unrecognized tax benefits reserve and interest change | 1% | (0.10%) |
Change in valuation allowance | (25.30%) | 26.40% |
Permanent differences | 0.10% | (0.50%) |
Section 382/383 limitation | 0% | (38.70%) |
Unrealized gain (loss) on value of warrants | 0% | (5.60%) |
Effective income tax rate | 1% | (0.10%) |
Income taxes - Net Deferred Tax
Income taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 46,387 | $ 33,663 | |
Research and development credit carryforwards | 4,403 | 3,605 | |
Research and development capitalized costs | 6,119 | 4,041 | |
Inventories | 390 | 196 | |
Lease liability | 1,858 | ||
Accrued expenses | 778 | 1,076 | |
Unrealized loss | 270 | 0 | |
Other | 712 | 139 | |
Total deferred tax assets | 60,917 | 42,720 | |
Deferred tax liabilities: | |||
Right-of-use assets | (1,644) | ||
Depreciation | (340) | (229) | |
Total deferred tax liabilities | (1,984) | (229) | |
Valuation allowance | (58,933) | (42,491) | $ (62,513) |
Net deferred tax assets | $ 0 | $ 0 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||
Federal net operating loss carryforwards | $ 189,300,000 | ||
State net operating loss carryforwards | 87,100,000 | ||
Operating loss carryforward not subject to expiry | 176,600,000 | ||
Interest and penalties | 100,000 | $ 100,000 | |
Accrued interest and penalties | 100,000 | 0 | |
Income tax (benefit) expense | (576,000) | $ 91,000 | |
Domestic Tax Authority | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards | 1,500,000 | ||
Operating loss carryforward not utilized and expected to expire | 121,500,000 | ||
Domestic Tax Authority | Research Tax Credit Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforward not utilized and expected to expire | 2,400,000 | ||
State and Local Jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards | 2,900,000 | ||
Operating loss carryforward not utilized and expected to expire | $ 58,400,000 | ||
Foreign Tax Authority | Federal Ministry of Finance, Germany | |||
Income Tax Disclosure [Line Items] | |||
Income tax (benefit) expense | $ 600,000 |
Income taxes - Valuation Allowa
Income taxes - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation allowance at beginning of period | $ 42,491 | $ 62,513 |
Increases recorded to income tax provision | 17,726 | 13,067 |
Decreases recorded as a benefit to income tax provision | (1,284) | (33,089) |
Valuation allowance at end of period | $ 58,933 | $ 42,491 |
Income taxes - Unrecognized Tax
Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of period | $ 623 | $ 569 |
Additions for tax positions of prior years | 0 | 54 |
Reductions for tax positions of prior years | (623) | 0 |
Unrecognized tax benefits at end of period | $ 0 | $ 623 |
Net loss per share - Basic and
Net loss per share - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||
Net loss | $ (60,806) | $ (73,524) |
Accretion of redeemable convertible preferred stock to redemption value | 0 | (1,761) |
Cumulative redeemable convertible preferred stock dividends | 0 | (2,747) |
Net loss attributable to common stockholders - basic | (60,806) | (78,032) |
Net loss attributable to common stockholders - diluted | $ (60,806) | $ (78,032) |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 42,454,403 | 19,783,539 |
Weighted average common shares outstanding - diluted (in shares) | 42,454,403 | 19,783,539 |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (1.43) | $ (3.94) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (1.43) | $ (3.94) |
Class A Common stock | ||
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 36,727,742 | 16,568,267 |
Weighted average common shares outstanding - diluted (in shares) | 36,727,742 | 16,568,267 |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (1.43) | $ (3.94) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (1.43) | $ (3.94) |
Class B Common stock | ||
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 5,726,661 | 3,215,272 |
Weighted average common shares outstanding - diluted (in shares) | 5,726,661 | 3,215,272 |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (1.43) | $ (3.94) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (1.43) | $ (3.94) |
Net loss per share - Schedule o
Net loss per share - Schedule of Common Stock Excluded From Computation of Diluted Net Loss per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted net loss per share attributable to common stockholders (in shares) | 6,241,893 | 5,118,064 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted net loss per share attributable to common stockholders (in shares) | 5,076,650 | 4,823,100 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted net loss per share attributable to common stockholders (in shares) | 286,324 | 294,964 |
Unvested restricted common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted net loss per share attributable to common stockholders (in shares) | 697,361 | 0 |
Options to purchase common stock under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted net loss per share attributable to common stockholders (in shares) | 181,558 | 0 |
Leases - Schedule of Impacts of
Leases - Schedule of Impacts of Topic 842 (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Right-of-use assets, net, operating | $ 6,746 | |||
Right-of-use assets, net, financing | 317 | |||
Property and equipment, net | 13,818 | $ 11,304 | ||
Total | 11,304 | |||
Total assets | 190,650 | 241,169 | ||
Current liabilities: | ||||
Lease liabilities, short-term, operating | 729 | |||
Lease liabilities, short-term, financing | 37 | |||
Accrued expenses | 8,150 | 10,917 | ||
Total | 10,917 | |||
Total current liabilities | 19,050 | 18,166 | ||
Lease liabilities, long-term, operating | 6,898 | |||
Lease liabilities, long-term, financing | 304 | |||
Deferred rent, long-term | 813 | |||
Other long-term liabilities | 229 | 1,210 | ||
Total | 2,023 | |||
Total liabilities | 26,481 | 20,189 | ||
Total stockholders' equity | 164,169 | 220,980 | $ (127,006) | |
Total liabilities and stockholders' equity | $ 190,650 | $ 241,169 | ||
Adjusted Balance | ||||
Assets | ||||
Right-of-use assets, net, operating | $ 6,039 | |||
Right-of-use assets, net, financing | 366 | |||
Property and equipment, net | 10,953 | |||
Total | 17,358 | |||
Total assets | 247,223 | |||
Current liabilities: | ||||
Lease liabilities, short-term, operating | 1,023 | |||
Lease liabilities, short-term, financing | 33 | |||
Accrued expenses | 10,757 | |||
Total | 11,813 | |||
Total current liabilities | 19,062 | |||
Lease liabilities, long-term, operating | 5,960 | |||
Lease liabilities, long-term, financing | 341 | |||
Other long-term liabilities | 880 | |||
Total | 7,181 | |||
Total liabilities | 26,243 | |||
Total stockholders' equity | 220,980 | |||
Total liabilities and stockholders' equity | 247,223 | |||
Accounting Standards Update 2016-02 | ||||
Assets | ||||
Right-of-use assets, net, operating | 6,000 | |||
Right-of-use assets, net, financing | 400 | |||
Accounting Standards Update 2016-02 | Adjustments ASC 842 Adoption | ||||
Assets | ||||
Right-of-use assets, net, operating | 6,039 | |||
Right-of-use assets, net, financing | 366 | |||
Property and equipment, net | (351) | |||
Total | 6,054 | |||
Total assets | 6,054 | |||
Current liabilities: | ||||
Lease liabilities, short-term, operating | 1,023 | |||
Lease liabilities, short-term, financing | 33 | |||
Accrued expenses | (160) | |||
Total | 896 | |||
Total current liabilities | 896 | |||
Lease liabilities, long-term, operating | 5,960 | |||
Lease liabilities, long-term, financing | 341 | |||
Deferred rent, long-term | (813) | |||
Other long-term liabilities | (330) | |||
Total | 5,158 | |||
Total liabilities | 6,054 | |||
Total liabilities and stockholders' equity | $ 6,054 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2022 USD ($) renewalOption | Dec. 31, 2022 USD ($) renewalOption | May 31, 2022 USD ($) | |
Leases | |||
Finance lease term | 8 years | ||
Finance lease renewal term | 5 years | ||
Rent expense | $ 1,800 | ||
Depreciation and interest expense | 100 | ||
Right-of-use assets | 6,746 | ||
Operating lease liabilities | 7,627 | ||
Lowell, Massachussetts Lease Amendment | |||
Leases | |||
Number of operating lease renew options | renewalOption | 1 | ||
Renewal term | 5 years | ||
Tenant improvement allowance | $ 300 | ||
Future minimum lease payments, including leases with commencement dates expected in 2023 | 4,600 | ||
Future minimum lease payments for leases not yet commenced | $ 900 | ||
Right-of-use assets | 1,200 | $ 700 | |
Operating lease liabilities | $ 1,300 | $ 700 | |
Minimum | |||
Leases | |||
Operating lease term | 8 years | ||
Number of finance lease renew options | renewalOption | 1 | ||
Maximum | |||
Leases | |||
Operating lease term | 10 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash outflows - payments on operating leases | $ 1,207 |
Operating cash outflows - payments on financing leases | 42 |
Financing cash outflows - payments on financing leases | 33 |
Right-of-use assets obtained in exchange for new lease obligations: | |
Operating leases | 7,605 |
Financing leases | $ 366 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases: | |
Right-of-use assets, net, operating | $ 6,746 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Lease, Right-Of-Use Asset |
Accrued expenses and other current liabilities | $ 729 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, short-term |
Operating lease liabilities | $ 6,898 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, long-term |
Total operating lease liabilities | $ 7,627 |
Financing Leases: | |
Office furniture and fixtures | 386 |
Accumulated depreciation | (69) |
Net property, plant and equipment | $ 317 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Lease, Right-Of-Use Asset |
Current portion of long-term debt | $ 37 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, short-term |
Long-term debt | $ 304 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, long-term |
Total financing lease liabilities | $ 341 |
Weighted-average remaining lease term - operating leases (in years): | 6 years 6 months 14 days |
Weighted-average remaining lease term - financing leases (in years): | 6 years 6 months |
Weighted-average discount rate - operating leases: | 3.70% |
Weighted-average discount rate - financing leases: | 12% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,144 |
Financing lease cost - amortization of right-of-use asset | 49 |
Financing lease cost - interest on lease liability | 42 |
Short-term lease cost | 59 |
Variable lease cost | 617 |
Total lease cost | $ 1,911 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 1,273 |
2024 | 1,306 |
2025 | 1,339 |
2026 | 1,372 |
2027 | 1,404 |
Thereafter | 2,223 |
Total lease payments | 8,917 |
Less imputed interest | (1,019) |
Total present value of lease liabilities | $ 7,898 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Liability Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 75 |
2024 | 75 |
2025 | 75 |
2026 | 75 |
2027 | 75 |
Thereafter | 113 |
Total lease payments | 488 |
Less imputed interest | (147) |
Total present value of lease liabilities | $ 341 |
Leases - Schedule of Pre-Adopti
Leases - Schedule of Pre-Adoption Operating Lease Liability Maturities (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Leases [Abstract] | |
2022 | $ 1,139 |
2023 | 1,169 |
2024 | 1,199 |
2025 | 1,229 |
2026 | 1,044 |
Thereafter | 1,953 |
Total minimum lease commitments | $ 7,733 |
Commitments and contingencies (
Commitments and contingencies (Details) - Software subscription - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Purchase Commitment [Line Items] | ||
Purchase obligation | $ 0.8 | |
Accrued liability | $ 0.1 | $ 0.1 |
Benefit plans (Details)
Benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Company contributions to plan | $ 0.8 | $ 0.3 |