Significant Accounting Policies [Text Block] | 2. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and with the instructions to Form 10 X. The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company as of December 31, 2022 not Amounts reported in thousands within this report are computed based on the amounts in dollars. As a result, the sum of the components reported in thousands may not may not In the Form 10 March 31, 2021, May 17, 2021, 10 June 30, 2021, August 17, 2021, 10 September 30, 2021, November 12, 2021 10 December 31, 2021, March 28, 2022, 18 Reclassification Adjustment Three Months Ended Year Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31, 2021 United States $ (362 ) $ (615 ) $ (703 ) $ (440 ) $ (2,120 ) International 362 615 703 440 2,120 Total revenue $ — $ — $ — $ — $ — Additionally, the Company performed reclassifications within the Operating Expenses section of the Statements of Operations. The intent was to reclassify clinical affairs costs and clinical training costs previously presented within general and administrative expenses into research and development and selling and marketing expenses, respectively. The following table summarizes the impact of the reclassification adjustment on the Company's Annual Report on Form 10 March 28, 2022, 10 2021 2022: As previously reported Adjustment As reclassified Consolidated statements of operations: For the year ended December 31, 2021 Selling and marketing $ 37,438 $ 4,482 $ 41,920 General and administrative 45,940 (5,870 ) 40,070 Research and development 8,258 1,388 9,646 Condensed consolidated statements of operations for the three months ended: March 31, 2022 Selling and marketing 9,903 1,181 11,084 General and administrative 13,094 (1,622 ) 11,472 Research and development 2,202 441 2,643 March 31, 2021 Selling and marketing 7,854 1,052 8,906 General and administrative 12,165 (1,408 ) 10,757 Research and development 2,051 356 2,407 June 30, 2022 Selling and marketing 9,487 1,036 10,523 General and administrative 14,249 (1,312 ) 12,937 Research and development 2,436 276 2,712 June 30, 2021 Selling and marketing 10,114 1,139 11,253 General and administrative 7,828 (1,468 ) 6,360 Research and development 2,024 329 2,353 September 30, 2022 Selling and marketing 8,094 1,275 9,369 General and administrative 14,128 (1,723 ) 12,405 Research and development 2,576 448 3,024 September 30, 2021 Selling and marketing 8,775 1,035 9,810 General and administrative 11,990 (1,337 ) 10,653 Research and development 1,930 302 2,232 Reclassification of Comparative Amounts The Company previously offset certain Trade Payables with Advances to Suppliers associated with one no not The following table summarizes the impact of the reclassification adjustments on the Company's Form 10 March 28, 2022 2022: As previously reported Adjustment As reclassified Consolidated balance sheets: December 31, 2021 Advances to suppliers $ 2,162 $ 3,505 $ 5,667 Trade payables 4,913 3,505 8,418 March 31, 2022 Advances to suppliers 3,532 2,856 6,388 Trade payables 4,788 2,856 7,644 June 30, 2022 Advances to suppliers 2,869 3,090 5,959 Trade payables 4,184 3,090 7,274 September 30, 2022 Advances to suppliers 3,605 2,186 5,791 Trade payables 6,093 2,186 8,279 The following table summarizes the impact of the reclassification adjustments on the Company's Form 10 March 28, 2022 2022: As previously reported Adjustment As reclassified Consolidated statements of cash flows: For the year ended December 31, 2021 Changes in operating assets and liabilities: Advances to suppliers $ 425 $ (3,505 ) $ (3,080 ) Trade payables (1,409 ) 3,505 2,096 For the three months ended March 31, 2022 Changes in operating assets and liabilities: Advances to suppliers (1,370 ) (2,856 ) (4,226 ) Trade payables (125 ) 2,856 2,731 For the three months ended March 31, 2021 Changes in operating assets and liabilities: Advances to suppliers (1,417 ) (1,680 ) (3,097 ) Trade payables (178 ) 1,680 1,502 For the six months ended June 30, 2022 Changes in operating assets and liabilities: Advances to suppliers (707 ) (3,090 ) (3,797 ) Trade payables (729 ) 3,090 2,361 For the six months ended June 30, 2021 Changes in operating assets and liabilities: Advances to suppliers (772 ) (2,291 ) (3,063 ) Trade payables (640 ) 2,291 1,651 For the nine months ended September 30, 2022 Changes in operating assets and liabilities: Advances to suppliers (1,443 ) (2,186 ) (3,629 ) Trade payables 1,180 2,186 3,366 For the nine months ended September 30, 2021 Changes in operating assets and liabilities: Advances to suppliers (142 ) (2,500 ) (2,642 ) Trade payables (1,573 ) 2,500 927 Principles of Consolidation The accompanying consolidated financial statements include the accounts of Venus Concept Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated on consolidation. Where the Company does not 100% Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not Foreign Currency The consolidated financial statements are presented in U.S. dollars. Amounts reported in thousands within this report are computed based on the amounts in dollars. As a result, the sum of the components reported in thousands may not may not All exchange gains and losses from remeasurement of monetary balance sheet items resulting from transactions in non-functional currencies are recorded in the consolidated statements of operations as they arise. In respect of transactions denominated in currencies other than the Company and its subsidiaries’ functional currencies, the monetary assets and liabilities are remeasured at the period end rates. Revenue and expenses are remeasured at rates of exchange prevailing on the transaction dates. All of the exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, accounts receivable and long-term receivables. The Company’s cash and cash equivalents are invested primarily in deposits with major banks worldwide, as such minimal credit risk exists with respect to such investments. The Company’s trade receivables are derived from global sales to customers. An allowance for doubtful accounts is provided with respect to all balances for which collection is deemed to be doubtful. Risks and Uncertainties While the impact of COVID- 19 19 Besides COVID- 19, not may may The Company has borrowings with interest rates that are subject to fluctuations as charged by the lender. The Company does not December 31, 2022 2021 Concentration of Customers For the years ended December 31, 2022 2021 10% 10% Allowance for Doubtful Accounts Trade accounts receivable do not not may December 31, 2022 2021 Inventory Inventories are stated at the lower of cost or net realizable value and include raw materials, work in progress and finished goods. Cost is determined as follows: Raw Materials and Work in Progress (“WIP”) – Cost is determined on a standard cost basis utilizing the weighted average cost of historical purchases, which approximates actual cost. The cost of WIP and finished goods includes the cost of raw materials and the applicable share of the cost of labor and fixed and variable production overheads. The Company regularly evaluates the value of inventory based on a combination of factors including the following: historical usage rates, product end of life dates, technological obsolescence and product introductions. The Company includes demonstration units within inventories. Proceeds from the sale of demonstration units are recorded as revenue. Long-term Receivables Long-term receivables relate to the Company’s subscription revenue or contracts which stipulate payment terms which exceed one December 31, 2022 December 31, 2021. Deferred revenues represent payments received prior to the income being earned. Once the equipment has been delivered or the services have been rendered, these amounts are recognized in income. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is between three ten Leases The Company determines if an agreement is, or contains, a lease at inception. An agreement is, or contains, a lease if the contact conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company leases assets including land and buildings, vehicles, and equipment. For leases with a term of 12 The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. An operating lease is a lease in which a lessor transfers the use of an asset to a lessee for a period of time but does not five i. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. ii. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. iii. The lease term is for a major part (generally 75% iv. The sum of the lease payments and the present value of any residual value guaranteed by the lessee amounts to or exceeds substantially all (generally 90% v. The underlying asset is of such a specialized nature that it is expected to have no For a finance lease, the right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. For an operating lease, amortization of the right-of-use asset is calculated as the difference between the straight-line rent expense and the interest expense on the lease liability for a given period. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not no The lease liabilities are subsequently measured at amortized cost using the effective interest method. They are remeasured when there is a change in future lease payments arising from a change in the lease term, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. All of our leases for which we are the lessee are operating leases and are included within operating lease right-of-use assets, net, operating lease liabilities, and long-term operating lease liabilities in our Consolidated Balance Sheets. Intangible Assets Intangible assets consist of customer relationships, brand, technology and supplier agreement. Intangible assets are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the respective assets, which range from approximately six fifteen The useful lives of intangible assets are based on the Company’s assessment of various factors impacting estimated cash flows, such as the product’s position in its lifecycle, the existence or absence of like products in the market, various other competitive and regulatory issues, and contractual terms. Impairment of Long-Lived Assets The Company accounts for the impairment of long-lived assets in accordance with FASB, ASC 360 10, may not December 31, 2022 2021 Debt Issuance Costs Costs related to the issuance of debt are presented as a direct deduction to the carrying value of the debt and are amortized to accretion expenses using the effective interest rate method over the term of the related debt. Derivatives The Company reviews the terms of convertible notes, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Derivative financial instruments are initially measured at their fair value. Derivative financial instruments that are accounted for as liabilities, are initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value recognized in the consolidated statements of operations. Revenue Recognition The Company adopted ASC 606 606” January 1, 2019 not 606 The Company generates revenue from ( 1 2 3 fourth 2021. Many of the Company’s products are sold under subscription contracts with control passing to the customer at the earlier of the end of the term and when the payment is received in full. The subscription contracts include an initial deposit followed by monthly installments typically over a period of 36 months. In accordance with ASC 840 840” The Company recognizes revenues on other products and services in accordance with ASC 606. five 1 2 3 4 5 The Company does not Cost of Goods For subscription sales (qualifying as sales-type lease arrangements) and product sales, the costs are recognized upon shipment to the customer or distributor. Advertising Costs The cost of advertising and media is expensed as incurred. For the years ended December 31, 2022 2021 Research and Development Research and development costs are charged to operations as incurred. Major components of research and development expenses consist of personnel costs, including salaries and benefits, hardware and software research and development costs, and clinical studies. Warranty The Company provides a standard warranty against defects for all of its systems. The warranty period begins upon shipment and is for a period of one three The Company records a liability for accrued warranty costs at the time of sale of a system, which consists of the warranty on products sold based on historical warranty costs and management’s estimates. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary. The Company also provides an extended warranty service. Extended warranty can be purchased at any time after the purchase of a system and prior to the expiration of the standard warranty provided with the sale of the system. Extended warranty services include standard warranty services. The Company recognizes the revenue from the sale of an extended warranty over the period of the extended warranty and accounts it for separately from the standard warranty. Income Taxes The Company follows the deferred income taxes method of accounting for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying values of accounts and their respective income tax basis. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years during which the temporary differences are expected to be realized or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income in the period that includes the enactment date. The Company establishes valuation allowances when necessary to reduce deferred tax assets to the amounts that are more likely than not not” not not” not Uncertain Tax Positions The Company recognizes the effect of income tax positions only if those positions are more likely than not first not second 50% The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, 718” 718 The fair value of stock options (“options”) on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock, to determine the fair value of the award. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards. The Company has made a policy choice to account for forfeitures when they occur. Net Loss Per Share The Company computes net (loss) income per share in accordance with ASC Topic 260, 260” two two not Diluted net (loss) income per share is the same as basic net (loss) income per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive. Recently Adopted Accounting Standards In November 2021, No. 2021 10, 832 December 31, 2021. 14 In February 2016, No. 2016 02 842 2016 02” On January 1, 2022, not The Company elected the optional package of practical expedients to not not As a result of the adoption of ASU 2016 02, no Operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Upon adoption of ASU 2016 02, January 1, 2022. 2016 02, January 1, 2022. All real estate leases are recorded on the balance sheet. Equipment and other non-real estate leases with an initial term of twelve not one not may no not The Company determines if an arrangement is a lease at inception. The Company must consider whether the contract conveys the right to control the use of an identified asset. Certain arrangements require significant judgment to determine if an asset is specified in the contract and if the Company directs how and for what purpose the asset is used during the term of the contract. In October 2021, No. 2021 08, 805 606, December 15, 2022, not In May 2021, 2021 04, 260 470 50 718 815 40 1 2 December 15, 2021, not In March 2020, 2020 04 848 2021, March 12, 2020 December 31, 2022. may no December 31, 2022. January 2021, may 848. not In December 2019, 2019 12 740 first 2022, not Recently Issued Accounting Standards Not Yet Adopted In August 2020, No. 2020 06 2020 06” 470 20 815 40 2020 06 2020 06 January 1, 2024, No. 2020 06 In February 2020, 2020 02 326 842 326 842. 326, 326 January 1, 2023, |