Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HAIR | |
Entity Registrant Name | Restoration Robotics, Inc. | |
Entity Central Index Key | 1,409,269 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,133,289 |
Condensed Consolidated Balance
Condensed Consolidated Balance sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 16,530 | $ 23,545 |
Accounts receivable, net of allowance of $429 and $229 as of March 31, 2018 and December 31, 2017, respectively | 4,478 | 3,864 |
Inventory | 2,222 | 2,761 |
Prepaid expenses and other current assets | 1,233 | 1,562 |
Total current assets | 24,463 | 31,732 |
Property and equipment, net | 1,217 | 1,138 |
Restricted cash | 100 | 100 |
Other assets | 100 | |
TOTAL ASSETS | 25,880 | 32,970 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,296 | 2,044 |
Accrued compensation | 1,648 | 1,630 |
Other accrued liabilities | 2,199 | 1,125 |
Deferred revenue | 1,884 | 1,517 |
Current portion of long-term debt, net of discount of $199 and $270 as of March 31, 2018 and December 31, 2017 | 7,801 | 7,730 |
Total current liabilities | 15,828 | 14,046 |
Other long-term liabilities | 670 | 459 |
Long-term debt, net of discount of $6 and $29 as of March 31, 2018 and December 31, 2017 | 3,294 | 5,271 |
TOTAL LIABILITIES | 19,792 | 19,776 |
Commitments and Contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.0001 par value; 350,490,000 shares authorized as of March 31, 2018 and December 31, 2017; 29,046,156 and 28,940,282 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 3 | 3 |
Additional paid-in capital | 178,078 | 177,757 |
Accumulated other comprehensive loss | (75) | (79) |
Accumulated deficit | (171,918) | (164,487) |
TOTAL STOCKHOLDERS’ EQUITY | 6,088 | 13,194 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 25,880 | $ 32,970 |
Condensed Consolidated Balance3
Condensed Consolidated Balance sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 429 | $ 229 |
Current portion of long-term debt, discount | 199 | 270 |
Long-term debt, discount | $ 6 | $ 29 |
Convertible preferred stock at liquidation preference par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 236,154,444 | 236,154,444 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 350,490,000 | 350,490,000 |
Common stock, shares issued | 29,046,156 | 28,940,282 |
Common stock, shares outstanding | 29,046,156 | 28,940,282 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 5,005,000 | $ 5,475,000 |
Cost of revenue | 3,185,000 | 3,091,000 |
Gross profit | 1,820,000 | 2,384,000 |
Operating expenses: | ||
Sales and marketing | 4,384,000 | 3,966,000 |
Research and development | 2,125,000 | 1,916,000 |
General and administrative | 2,351,000 | 926,000 |
Total operating expenses | 8,860,000 | 6,808,000 |
Loss from operations | (7,040,000) | (4,424,000) |
Other expense, net: | ||
Interest expense | (358,000) | (586,000) |
Other expense, net | (20,000) | (149,000) |
Total other expense, net | (378,000) | (735,000) |
Net loss before provision for income taxes | (7,418,000) | (5,159,000) |
Provision for income taxes | 13,000 | 16,000 |
Net loss attributable to common stockholders | $ (7,431,000) | $ (5,175,000) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.26) | $ (0.32) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 28,962,269 | 16,183,178 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (7,431) | $ (5,175) |
Other comprehensive income (loss): | ||
Cumulative translation adjustment | 4 | (59) |
Comprehensive loss | $ (7,427) | $ (5,234) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Convertible Preferred Stock and Stockholders' Deficit (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance, value at Dec. 31, 2017 | $ 13,194 | $ 3 | $ 177,757 | $ (79) | $ (164,487) |
Beginning balance, shares at Dec. 31, 2017 | 28,940,282 | ||||
Issuance of common stock pursuant to stock option exercises of vested options | $ 196 | 196 | |||
Issuance of common stock pursuant to stock option exercises of vested options, shares | 105,874 | 105,874 | |||
Stock-based compensation | $ 125 | 125 | |||
Other comprehensive gain | 4 | 4 | |||
Net loss | (7,431) | (7,431) | |||
Ending balance, value at Mar. 31, 2018 | $ 6,088 | $ 3 | $ 178,078 | $ (75) | $ (171,918) |
Ending balance, shares at Mar. 31, 2018 | 29,046,156 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,431) | $ (5,175) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 132 | 142 |
Amortization of debt issuance costs | 94 | 164 |
Stock-based compensation | 125 | 106 |
Changes in fair value of preferred stock warrant liabilities | 193 | |
Provision for bad debt | 263 | |
Provision for excess and obsolete inventory | 93 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (876) | (41) |
Inventory | 446 | 752 |
Prepaid expenses and other assets | 230 | (147) |
Accounts payable | 300 | 346 |
Accrued and other liabilities | 1,062 | 385 |
Deferred revenue | 607 | 18 |
Net cash used in operating activities | (4,955) | (3,257) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (260) | (98) |
Net cash used in investing activities | (260) | (98) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercised stock options | 196 | 8 |
Principal payments on long-term debt | (2,000) | (2,000) |
Net cash used in financing activities | (1,804) | (1,992) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4 | (59) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (7,015) | (5,406) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 23,645 | 11,906 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | 16,630 | 6,500 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 4 | |
Interest paid during the period | 275 | $ 434 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Purchase of property and equipment included in accounts payable | $ 10 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations Restoration Robotics, Inc. is a medical technology company incorporated in the state of Delaware on November 22, 2002 and headquartered in San Jose, California. The Company develops an image-guided robotic system that enables follicular unit extraction (FUE) for use in the field of hair transplantation and markets the ARTAS® Robotic System in the United States and other countries. In these notes to the unaudited condensed consolidated financial statements, the “Company,” “Restoration Robotics,” “we,” “us,” and “our” refers to Restoration Robotics, Inc. and its subsidiaries on a consolidated basis. Initial Public Offering On October 11, 2017, the Company’s Registration Statement on Form S-1 (File No. 333-220303) relating to the initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, the Company completed its IPO of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22,114, after deducting underwriting discounts and commissions, and offering costs of $5,171. Immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock converted into 22,671,601 shares of common stock and all the outstanding convertible preferred stock warrants converted into common stock warrants resulting in the reclassification of our preferred stock warrant liabilities to additional paid-in capital. In addition, the principal and accrued interest on the outstanding Convertible Notes converted into 718,184 shares of common stock. The IPO closed on October 16, 2017. Reverse Stock Split On September 15, 2017, the Company effected a 1-for-10 reverse stock split of its common stock. Upon the effectiveness of the reverse stock split, (i) every 10 shares of outstanding common stock were combined into one share of common stock, (ii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable was proportionately decreased on a 1-for-10 basis, (iii) the exercise price of each outstanding option to purchase common stock was proportionally increased on a l-for-10 basis, and (iv) the conversion ratio for each share of outstanding preferred stock which is convertible into our common stock was proportionately reduced on a 1-for-10 basis. All of the outstanding common stock share numbers (including shares of common stock into which our outstanding convertible preferred stock shares are convertible), share prices, exercise prices and per share amounts have been adjusted in these consolidated statements, on a retroactive basis, to reflect this l-for-10 reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and convertible preferred stock were not adjusted because of the reverse stock split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Liquidity These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company has incurred net operating losses and negative cash flows from operations since inception. As of March 31, 2018, and December 31, 2017, the Company has an accumulated deficit of $171,918 and $164,487 and, as of such dates, did not have sufficient capital to fund its planned operations. Because of the Company’s recurring losses from operations and negative cash flows, the Company’s independent registered public accounting firm included an explanatory paragraph in its report on the Company’s consolidated financial statements as of, and for the year ended, December 31, 2017 that such factors raise substantial doubt about the Company’s ability to continue as a going concern. To continue its operations, the Company must achieve profitable operations and/or obtain additional financing. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. The Company may never become profitable and even if it does attain profitable operations, it may not be able to sustain profitability or positive cash flows on a recurring basis. The Company will need to raise further capital in the future to service its debt or fund its operations until the time it can sustain positive cash flows. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient additional capital, it may be compelled to reduce the scope of its operations and planned capital expenditures or sell certain assets, including intellectual property assets. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and, as such, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Basis of Presentation The condensed consolidated balance sheet as of March 31, 2018, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three months ended March 31, 2018 and 2017 and the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017 and the condensed consolidated statement of stockholders’ deficit for the three months ended March 31, 2018 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted counting principles in the United States (U.S. GAAP) and in the opinion of management, reflect all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three-month period are also unaudited. The condensed consolidated results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report filed on Form 10-K for the year ended December 31, 2017, with the SEC on March 5, 2018. Principles of Consolidation The accompanying condensed c n s l i a e f i a c i a s t m n i c l u t u Restoration Robotics, Inc. A l i e rc m a n cc u n t r a s c i o a v b e l i m i a i o s l i a t i n Use of Estimates The preparation of the condensed 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to revenue recognition, the fair value of common stock, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. Reclassification Certain amounts in the prior year's condensed consolidated balance sheet have been reclassified to conform to the current period's presentation. These reclassifications had no impact on the previously reported consolidated financial statements for the year ended December 31, 2017. Concentration of Customers For the three months ended March 31, 2018, no customers accounted for more than 10% of the Company’s revenue. For the three months ended March 31, 2017, two customers accounted for 13% and 16% of the Company’s revenue. As of March 31, 2018, no customers accounted for more than 10% of the Company’s accounts receivable. As of December 31, 2017, two customers accounted for 10% and 11% of the Company’s accounts receivable. JOBS Act Accounting Election The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014‑09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842) |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. NET LOSS PER SHARE Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, convertible preferred stock, preferred stock warrants and stock options are common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: As of March 31, 2018 2017 Options to purchase common stock 1,950,853 1,814,546 Convertible preferred stock — 21,142,375 Warrants for preferred stock — 385,141 Warrants for common stock 306,456 — Total potential dilutive shares 2,257,309 23,342,062 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. FAIR Cash and cash The Company’s lease obligation, term loan and Convertible Notes have fair values that approximate their carrying value. U.S. condensed consolidated condensed consolidated Observable Level - Quoted prices are available in active markets for identical assets or liabilities as of the report date. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market. Level - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the report date. The nature of these securities includes investments for which quoted prices are available but traded less frequently and investments that are fair valued using other securities, the parameters of which can be directly observed. Level - Securities that have little to no pricing observability as of the report date. These securities are measured using management’s best estimate of fair value, where the inputs into the determination of fair value are not observable and require significant management judgment or estimation. A financial The following Fair Value Measurements as of March 31, 2018 Quoted Prices in Active Markets using Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Cash Equivalents: Money market account $ 14,339 $ — $ — $ 14,339 Restricted cash: Money market account 100 — — 100 Total assets $ 14,439 $ — $ — $ 14,439 Fair Value Measurements as of December 31, 2017 Quoted Prices in Active Markets using Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Cash Equivalents: (1) Money market account $ 18,728 $ — $ — $ 18,728 Restricted cash: Money market account 100 — — 100 Total assets $ 18,828 $ — $ — $ 18,828 (1) The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 5. BALANCE Inventory Inventory March 31, December 31, 2018 2017 Finished goods $ 2,222 $ 2,761 Raw materials — — Total inventory $ 2,222 $ 2,761 Property Property March 31, December 31, 2018 2017 Equipment $ 2,935 $ 2,929 Computer hardware and software 739 721 Leasehold improvements 874 869 Furniture and fixtures 453 270 Total property and equipment 5,001 4,789 Less: Accumulated depreciation and amortization (3,784 ) (3,651 ) Total property and equipment, net $ 1,217 $ 1,138 Depreciation and amortization expense was $132 and $142 for three months ended March 31, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS Operating The Company has various operating leases including 23,000 square feet of office space in San Jose, California, which expires in April 2022. Aggregate future minimum lease payments required under the Company’s operating leases as of March 31, 2018 are as follows: Years Ending December 31, 2018 (remaining 9 months) $ 378 2019 518 2020 534 2021 550 2022 188 Thereafter — Total future minimum lease payments $ 2,168 Total rent expense was $103 and $105 for three months ended March 31, 2018 and 2017. Commitments The Company has two master agreements and a component pricing agreement with Evolve Manufacturing Technologies, Inc. (Evolve) for the supply of the ARTAS System and consumable products. The terms of these master agreements are substantially similar. The master agreement for the sale of ARTAS Systems was effective beginning on April 1, 2016 and the master agreement for the sale of kits used with the ARTAS System was effective beginning on March 1, 2016. Both agreements are effective for an initial term of two years and will continue to automatically renew for additional twelve-month periods, subject to either party’s right to terminate the agreement upon 180 days advance notice during the initial term, if our quarterly forecasted demand falls below 75% of our historical forecasted demand for the same period in the previous year or upon 120 days’ advance notice after the initial term. Under the agreements, the Company has future purchase commitments totaling $2,200 as of March 31, 2018. In March 2018, the Company received U.S. FDA 510(k) clearance to expand the ARTAS System technology to include an implantation functionality. Based on manufacturing changes associated with the ARTAS system, the Company determined that certain components procured or expected to be procured by Evolve, will be in excess of expected demand or usage. Although the Company will be taking steps to minimize the adverse impact on the Company’s business, based on information available as of March 31, 2018, the Company’s management recorded a loss contingency accrual of $715 which is reported in “Cost of revenue” in the condensed consolidated statements of operations for the three-month ended March 31, 2018 and included in “Other accrued liabilities” on the condensed consolidated balance sheets as of March 31, 2018. Licensing In July 2006, the Company entered into a license agreement with Rassman Licensing, LLC (Rassman) for non-exclusive, royalty bearing, non-transferable, perpetual, world-wide rights for use on approved fields relating to robotically controlled hair removal and implantation procedures. In consideration for this license, the Company paid Rassman a one-time payment of $1,000. The agreement terminates on May 9, 2020. In February 2012, the Company amended its license agreement with Rassman. In exchange for a one-time $400 payment to Rassman, the Company now has a fully paid royalty-free license to a patent subject to this license agreement. Royalties for the three months ended March 31, 2018 and 2017 were $0. In July 2006, the Company entered into a license agreement with HSC Development, LLC for exclusive non-transferable, royalty-free worldwide rights for use in approved fields relating to a computer-controlled system in which a device is carried on a mechanized arm for extraction or implantation of a follicular unit without manual manipulation. In consideration for this license, the Company paid HSC Development, LLC a one-time payment of $25 and issued 2,500 shares of the Company’s common stock. The agreement terminates on July 27, 2024. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. LONG-TERM Loan and Security Agreement In May 2015, the Company entered into a loan and security agreement with Oxford Finance, LLC (Oxford) (the Oxford Agreement). Under the terms of the loan and security agreement, the Company borrowed $20,000 with an interest rate at the greater of (i) 8.5% per annum or (ii) U.S. Dollar LIBOR rate plus 8.0% per annum, which is collateralized by all personal property of the Company, excluding intellectual property, and issued 10-year warrants to purchase 110,486 shares of Series C Preferred Stock at $7.15 per share. No warrants were exercised in the first quarter of 2018. The estimated fair value of the warrants at issuance was recorded as a discount on the loan and amortized into interest expense over the expected life of the loan. In connection with the loan agreement, the Company recorded $246 of credit facility fees and $153 of debt issuance cost as of January 31, 2015. The credit facility fees and debt issuance costs are a discount on the debt and are being amortized to interest expense over the term of the loan using the effective-interest method. The loan will mature in July 2019, at which time the Company must repay the outstanding principal balance which includes a final payment of $1,300. The outstanding balance on the loan was $11,300 and accrued interest totaled $83 as of March 31, 2018. The interest rate was 10.3% at March 31, 2018. Borrowings under the Oxford Agreement are collateralized by all personal property of the Company, excluding intellectual property. The Agreement includes customary restrictive covenants that impose operating and financial restrictions on the Company, including restrictions on our ability to take actions that could be in the Company’s best interests. These restrictive covenants include operating covenants restricting, among other things, the Company’s ability to incur additional indebtedness, effect certain acquisitions or make other fundamental changes. The Company was in compliance with all of the covenants as of March 31, 2018 and December 31, 2017. The scheduled principal payments on the outstanding borrowings as of March 31, 2018 are as follows: As of March 31, 2018 2018 (remaining 9 months) $ 8,000 2019 3,300 Total 11,300 Less debt discount (205 ) Less current portion (7,801 ) Non-current portion $ 3,294 The entire outstanding principal balance plus accrued interest was paid off by the Company on May 10, 2018 in connection with the Company’s debt financing transactions in May 2018. Refer to Note 12 for additional information. |
Common Stock Reserved For Issua
Common Stock Reserved For Issuance | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Common Stock Reserved For Issuance | 8. COMMON STOCK RESERVED The Company is of which, there are none, March 31, December 31, 2018 2017 Outstanding common stock warrants 306,456 306,456 Outstanding and issued stock options 1,950,953 1,930,752 Shares reserved for future option grants 2 3,086,049 2,162,037 Total common stock reserved for issuance 5,343,458 4,399,245 ( 2 ) |
Stock Option Plan
Stock Option Plan | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plan | 9. STOCK OPTION PLAN 2005 and 2015 Plan The Company granted incentive stock options (ISOs) and non-statutory stock options (NSOs) pursuant to its 2005 Stock Option Plan (the 2005 Plan) until the Board of Directors approved the 2015 Stock Option Plan (the 2015 Plan), and all remaining shares available for future award under the 2005 Plan were transferred to the 2015 Plan and the 2005 Plan was terminated. The Company granted ISOs and NSOs pursuant to its 2015 Plan until the 2017 Equity Incentive Plan (the 2017 Plan) was approved by the Board of Directors and became effective on October 11, 2017. As a result of the 2017 Plan becoming effective, all remaining shares available for future award under the 2015 Plan were transferred to the 2017 Plan, the 2015 Plan was terminated, and no further grants will be made under the Company’s 2005 Plan and the 2015 Plan. Any outstanding stock awards granted under the 2005 Plan and the 2015 Plan will remain outstanding, subject to the terms of the Company’s 2005 Plan and 2015 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated or forfeited. 2017 Plan The Company’s 2017 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of equity compensation to employees, directors and consultants. In addition, the Company’s 2017 Plan provides for the grant of performance cash awards to employees, directors and consultants. The Company recognized Three Months Ended March 31, 2018 2017 Cost of revenue $ 4 $ 5 Sales and marketing 22 15 Research and development 15 21 General and administrative 84 65 Total stock-based compensation $ 125 $ 106 Determination The estimated Three Months Ended March 31, 2018 2017 Expected term (years) 6.1 * Risk-free interest rate 2.4% * Expected volatility 55.5% * Dividend yield 0% * * No stock options were issued during the three months ended March 31, 2017. The following table summarizes stock option activity under the Company’s stock option plan: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Price Contractual Intrinsic Shares per Share Term Value Outstanding — December 31, 2017 1,930,752 $ 1.90 7.9 $ 5,322 Options granted 233,600 5.07 Options exercised (105,874 ) 1.84 Options cancelled (107,525 ) 1.73 Outstanding — March 31, 2018 1,950,953 $ 2.29 8.0 $ 7,695 Vested and expected to vest — March 31, 2018 1,742,479 $ 2.33 7.9 $ 6,794 Exercisable — March 31, 2018 941,344 $ 1.78 7.2 $ 4,707 The weighted-average grant date fair value of options granted was $2.75 per share for three months ended March 31, 2018. There were no options granted for the three months ended March 31, 2017. The total intrinsic value of options exercised was $14.8 and $0 for three months ended March 31, 2018 and 2017, respectively. Unamortized stock-based compensation was $1.200 as of March 31, 2018, which is expected to be recognized over a weighted-average period of approximately 3.10 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES The Company generated a loss for the three months ended March 31, 2018 and incurred $13.0 of tax expense for the three months ended March 31, 2018. The Company’s effective tax rate is (0.17)% for income tax for the three months ended March 31, 2018 and the Company expects that its effective tax rate for the full year 2018 will be (0.17)%. Based on available evidence, including cumulative losses since inception and expected future losses, the Company has determined that it is more likely than not that the Company’s U.S. federal, U.S. state and Korea deferred tax assets will not be realized and therefore a valuation allowance has been provided on these net deferred tax assets. The Company has substantial net operating loss carry forwards available to offset future taxable income for U.S. federal and state income tax purposes. The Company’s ability to utilize its net operating losses may be limited due to changes in its ownership as defined by Section 382 of the Internal Revenue Code (the Code). Under the provisions of Sections 382 and 383 of the Code, a change of control, as defined in the Code, may impose an annual limitation on the amount of the Company’s net operating loss and tax credit carryforwards, and other tax attributes that can be used to reduce future tax liabilities. The Company files tax returns for U.S. federal and state tax returns along with tax returns in the United Kingdom, Hong Kong, Spain and South Korea. The Company is not currently subject to any income tax examinations. Since the Company’s inception, the Company had incurred losses from its U.S. operations, which generally allows all tax years to remain open. Beginning in first quarter of 2018, the Company is subject to new provisions of the tax law, including provisions related to Global Low Taxed Intangible Income (GILTI), Foreign Derived Intangible Income deductions (FDII), and other changes. However, due to the Company’s losses and full valuation allowance in the U.S., these were determined to have no material impact to the Estimated Annual Effective Tax Rate due to the full Valuation Allowance in the U.S. Uncertain Tax Positions Effective January 1, 2009, the Company adopted ASC 740-10, which requires that the Company recognize the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, that the position will be sustained upon examination. The gross amount of unrecognized tax benefits as of March 31, 2018 is approximately $1,400 and related to the reserve on R&D credits, none of which will affect the effective tax rate if recognized due to the valuation allowance. The Company does not expect any material changes in the next 12 months in unrecognized tax benefits. The Company recognizes interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense and not tax expense. The Company currently has no interest and penalties related to uncertain tax positions. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 11. SEGMENT AND GEOGRAPHIC INFORMATION The Company has determined that it operates in a single operating segment and has one reportable segment, as its Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company does not assess the performance of individual product line on measures of profit or loss, or asset-based metrics. Therefore, the information below is presented only for revenues by geography. The following Three Months Ended March 31, 2018 2017 United States $ 2,255 $ 2,544 Europe and Middle East 973 1,553 Asia Pacific 1,104 1,165 Rest of World 673 213 Total revenue $ 5,005 $ 5,475 As of March 31, 2018, and December 31, 2017, all long-lived assets were located within the United States. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS On May 10, 2018, the Company entered into a Loan and Security Agreement with Solar Capital Ltd. and certain other lenders (collectively, the “Lenders”) thereunder (the “Solar Agreement”). Under the terms of the Solar Agreement, the Company borrowed $20,000 with an interest rate at U.S. Dollar LIBOR plus 7.95% per annum. All amounts borrowed pursuant to the Solar Agreement are secured by liens on all personal property of the Company, excluding intellectual property. Monthly payments on any amounts drawn shall consist of the interest only payments for the first 18 months, followed by payments of principal and accrued interest on a monthly basis thereafter until April 2022, which is the four year anniversary of the date of the Solar Agreement. The Company used approximately $10,100 of the net proceeds to repay the entire outstanding principal balance and accrued interest under its existing loan agreement with Oxford Finance LLC and terminated the loan agreement with Oxford. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company has incurred net operating losses and negative cash flows from operations since inception. As of March 31, 2018, and December 31, 2017, the Company has an accumulated deficit of $171,918 and $164,487 and, as of such dates, did not have sufficient capital to fund its planned operations. Because of the Company’s recurring losses from operations and negative cash flows, the Company’s independent registered public accounting firm included an explanatory paragraph in its report on the Company’s consolidated financial statements as of, and for the year ended, December 31, 2017 that such factors raise substantial doubt about the Company’s ability to continue as a going concern. To continue its operations, the Company must achieve profitable operations and/or obtain additional financing. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. The Company may never become profitable and even if it does attain profitable operations, it may not be able to sustain profitability or positive cash flows on a recurring basis. The Company will need to raise further capital in the future to service its debt or fund its operations until the time it can sustain positive cash flows. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient additional capital, it may be compelled to reduce the scope of its operations and planned capital expenditures or sell certain assets, including intellectual property assets. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and, as such, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet as of March 31, 2018, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three months ended March 31, 2018 and 2017 and the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017 and the condensed consolidated statement of stockholders’ deficit for the three months ended March 31, 2018 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted counting principles in the United States (U.S. GAAP) and in the opinion of management, reflect all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three-month period are also unaudited. The condensed consolidated results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report filed on Form 10-K for the year ended December 31, 2017, with the SEC on March 5, 2018. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed c n s l i a e f i a c i a s t m n i c l u t u Restoration Robotics, Inc. A l i e rc m a n cc u n t r a s c i o a v b e l i m i a i o s l i a t i n |
Use of Estimates | Use of Estimates The preparation of the condensed 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to revenue recognition, the fair value of common stock, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. |
Reclassification | Reclassification Certain amounts in the prior year's condensed consolidated balance sheet have been reclassified to conform to the current period's presentation. These reclassifications had no impact on the previously reported consolidated financial statements for the year ended December 31, 2017. |
Concentration of Customers | Concentration of Customers For the three months ended March 31, 2018, no customers accounted for more than 10% of the Company’s revenue. For the three months ended March 31, 2017, two customers accounted for 13% and 16% of the Company’s revenue. As of March 31, 2018, no customers accounted for more than 10% of the Company’s accounts receivable. As of December 31, 2017, two customers accounted for 10% and 11% of the Company’s accounts receivable. |
Jobs Act Accounting Election | JOBS Act Accounting Election The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014‑09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Outstanding Shares of Common Stock Equivalents Excluded from Calculation of Diluted Net Loss per Share Attributable to Common Stockholders | The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: As of March 31, 2018 2017 Options to purchase common stock 1,950,853 1,814,546 Convertible preferred stock — 21,142,375 Warrants for preferred stock — 385,141 Warrants for common stock 306,456 — Total potential dilutive shares 2,257,309 23,342,062 |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule for Levels of Fair Value Measurements of Cash Equivalents | The following Fair Value Measurements as of March 31, 2018 Quoted Prices in Active Markets using Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Cash Equivalents: Money market account $ 14,339 $ — $ — $ 14,339 Restricted cash: Money market account 100 — — 100 Total assets $ 14,439 $ — $ — $ 14,439 Fair Value Measurements as of December 31, 2017 Quoted Prices in Active Markets using Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Cash Equivalents: (1) Money market account $ 18,728 $ — $ — $ 18,728 Restricted cash: Money market account 100 — — 100 Total assets $ 18,828 $ — $ — $ 18,828 (1) The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Components [Abstract] | |
Schedule of Inventory | Inventory March 31, December 31, 2018 2017 Finished goods $ 2,222 $ 2,761 Raw materials — — Total inventory $ 2,222 $ 2,761 |
Schedule of Property and Equipment, Net | Property March 31, December 31, 2018 2017 Equipment $ 2,935 $ 2,929 Computer hardware and software 739 721 Leasehold improvements 874 869 Furniture and fixtures 453 270 Total property and equipment 5,001 4,789 Less: Accumulated depreciation and amortization (3,784 ) (3,651 ) Total property and equipment, net $ 1,217 $ 1,138 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Aggregate Future Minimum Lease Payments under Operating Leases | Aggregate future minimum lease payments required under the Company’s operating leases as of March 31, 2018 are as follows: Years Ending December 31, 2018 (remaining 9 months) $ 378 2019 518 2020 534 2021 550 2022 188 Thereafter — Total future minimum lease payments $ 2,168 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Principal Payments on Outstanding Borrowings | The scheduled principal payments on the outstanding borrowings as of March 31, 2018 are as follows: As of March 31, 2018 2018 (remaining 9 months) $ 8,000 2019 3,300 Total 11,300 Less debt discount (205 ) Less current portion (7,801 ) Non-current portion $ 3,294 |
Common Stock Reserved For Iss26
Common Stock Reserved For Issuance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Common Stock Available for Grant Under Employee Stock Incentive Plans and Reserves for Warrants | The Company is of which, there are none, March 31, December 31, 2018 2017 Outstanding common stock warrants 306,456 306,456 Outstanding and issued stock options 1,950,953 1,930,752 Shares reserved for future option grants 2 3,086,049 2,162,037 Total common stock reserved for issuance 5,343,458 4,399,245 ( 2 ) |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Recognized Stock-based Compensation Expense for Employees and Non-employees | The Company recognized Three Months Ended March 31, 2018 2017 Cost of revenue $ 4 $ 5 Sales and marketing 22 15 Research and development 15 21 General and administrative 84 65 Total stock-based compensation $ 125 $ 106 |
Fair Value of Stock Options Granted to Employees | The estimated Three Months Ended March 31, 2018 2017 Expected term (years) 6.1 * Risk-free interest rate 2.4% * Expected volatility 55.5% * Dividend yield 0% * * No stock options were issued during the three months ended March 31, 2017. |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Company’s stock option plan: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Price Contractual Intrinsic Shares per Share Term Value Outstanding — December 31, 2017 1,930,752 $ 1.90 7.9 $ 5,322 Options granted 233,600 5.07 Options exercised (105,874 ) 1.84 Options cancelled (107,525 ) 1.73 Outstanding — March 31, 2018 1,950,953 $ 2.29 8.0 $ 7,695 Vested and expected to vest — March 31, 2018 1,742,479 $ 2.33 7.9 $ 6,794 Exercisable — March 31, 2018 941,344 $ 1.78 7.2 $ 4,707 |
Segment and Geographic Inform28
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following Three Months Ended March 31, 2018 2017 United States $ 2,255 $ 2,544 Europe and Middle East 973 1,553 Asia Pacific 1,104 1,165 Rest of World 673 213 Total revenue $ 5,005 $ 5,475 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 16, 2017USD ($)$ / sharesshares | Sep. 15, 2017 |
Nature of Operations [Line Items] | ||
Reverse stock split of common stock, description | 1-for-10 reverse stock split | |
Reverse stock split of common stock, ratio | 0.1 | |
IPO | ||
Nature of Operations [Line Items] | ||
Number of common stock shares issued | 3,897,910 | |
Shares issued price per share | $ / shares | $ 7 | |
Aggregate proceeds from initial public offering, after deducting underwriter discounts and commission | $ | $ 22,114 | |
Offering costs | $ | $ 5,171 | |
Outstanding shares of convertible preferred stock converted into common stock | 22,671,601 | |
IPO | Subordinated Convertible Notes | ||
Nature of Operations [Line Items] | ||
Outstanding convertible notes converted into common stock | 718,184 | |
Over-Allotment Option | ||
Nature of Operations [Line Items] | ||
Number of common stock shares issued | 322,910 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Customer | Mar. 31, 2017Customer | Dec. 31, 2017USD ($)Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit | $ | $ (171,918) | $ (164,487) | |
Customer Concentration Risk | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of major customers | 0 | 2 | |
Customer Concentration Risk | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of major customers | 0 | 2 | |
Customer Concentration Risk | Customer One | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Customer Concentration Risk | Customer One | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Customer Concentration Risk | Customer Two | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 16.00% | ||
Customer Concentration Risk | Customer Two | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 11.00% |
Net Loss Per Share - Outstandin
Net Loss Per Share - Outstanding Shares of Common Stock Equivalents Excluded from Calculation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 2,257,309 | 23,342,062 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 1,950,853 | 1,814,546 |
Warrants for Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 385,141 | |
Warrants for Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 306,456 | |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 21,142,375 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule for Levels of Fair Value Measurements of Cash Equivalents - (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total assets | $ 14,439 | $ 18,828 | |
Quoted Prices in Active Markets using Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total assets | 14,439 | 18,828 | |
Money Market Account | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash Equivalents | 14,339 | 18,728 | [1] |
Restricted cash | 100 | 100 | |
Money Market Account | Quoted Prices in Active Markets using Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash Equivalents | 14,339 | 18,728 | [1] |
Restricted cash | $ 100 | $ 100 | |
[1] | The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017. |
Fair Value Measurements - Sch33
Fair Value Measurements - Schedule for Levels of Fair Value Measurements of Cash Equivalents - (Parenthetical) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Cash equivalents | $ 18,728 |
Cash | 4,817 |
Overstated | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Cash equivalents | $ 4,817 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,222 | $ 2,761 |
Total inventory | $ 2,222 | $ 2,761 |
Balance Sheet Components - Sc35
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Equipment | $ 2,935 | $ 2,929 |
Computer hardware and software | 739 | 721 |
Leasehold improvements | 874 | 869 |
Furniture and fixtures | 453 | 270 |
Total property and equipment | 5,001 | 4,789 |
Less: Accumulated depreciation and amortization | (3,784) | (3,651) |
Total property and equipment, net | $ 1,217 | $ 1,138 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 132 | $ 142 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2012USD ($) | Jul. 31, 2006USD ($)shares | Mar. 31, 2018USD ($)ft²Agreement | Mar. 31, 2017USD ($) | |
Commitment And Contingencies [Line Items] | ||||
Rent expense | $ 103 | $ 105 | ||
Loss contingency accrual | 715 | |||
Rassman Licensing, LLC | ||||
Commitment And Contingencies [Line Items] | ||||
License agreement termination date | May 9, 2020 | |||
Rassman Licensing, LLC | License Agreement | ||||
Commitment And Contingencies [Line Items] | ||||
One time payment of royalty related to license | $ 400 | $ 1,000 | ||
Royalty expense | $ 0 | $ 0 | ||
HSC Development, LLC | ||||
Commitment And Contingencies [Line Items] | ||||
License agreement termination date | Jul. 27, 2024 | |||
HSC Development, LLC | License Agreement | ||||
Commitment And Contingencies [Line Items] | ||||
One time payment of royalty related to license | $ 25 | |||
Number of common stock shares issued | shares | 2,500 | |||
Evolve Manufacturing Technologies, Inc. | ARTAS Systems | ||||
Commitment And Contingencies [Line Items] | ||||
Number of master agreements | Agreement | 2 | |||
Master agreement for purchase of robotic device, effective date | Apr. 1, 2016 | |||
Master agreement for purchase of kits used with robotic device, effective date | Mar. 1, 2016 | |||
Initial term of master agreements | 2 years | |||
Master agreements, renewal term | 12 months | |||
Master agreements, term description | Both agreements are effective for an initial term of two years and will continue to automatically renew for additional twelve-month periods, subject to either party’s right to terminate the agreement upon 180 days advance notice during the initial term, if our quarterly forecasted demand falls below 75% of our historical forecasted demand for the same period in the previous year or upon 120 days’ advance notice after the initial term. | |||
Future purchase commitments | $ 2,200 | |||
San Jose, California | ||||
Commitment And Contingencies [Line Items] | ||||
Operating lease office space area | ft² | 23,000 | |||
Operating lease expiration date | 2022-04 |
Commitments and Contingencies38
Commitments and Contingencies - Summary of Aggregate Future Minimum Lease Payments under Operating Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2018 (remaining 9 months) | $ 378 |
2,019 | 518 |
2,020 | 534 |
2,021 | 550 |
2,022 | 188 |
Total future minimum lease payments | $ 2,168 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||
May 31, 2015 | Mar. 31, 2018 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||
Net deferred debt costs | $ 205 | ||
Loan and Security Agreement | Oxford Finance, LLC | |||
Debt Instrument [Line Items] | |||
Debt instrument, borrowed amount | $ 20,000 | ||
Debt instrument, stated Interest rate | 8.50% | ||
Warrants exercised | 0 | ||
Credit facility fees | $ 246 | ||
Net deferred debt costs | $ 153 | ||
Debt Instrument, maturity month and year | 2019-07 | ||
Debt instrument, final payment amount upon maturity | $ 1,300 | ||
Debt instrument, outstanding balance | $ 11,300 | ||
Debt instrument, accrued interest | $ 83 | ||
Debt instrument, interest rate | 10.30% | ||
Loan and Security Agreement | Oxford Finance, LLC | Series C Convertible Preferred Stock | |||
Debt Instrument [Line Items] | |||
Debt conversion, warrants issued | 110,486 | ||
Shares issued price per share | $ 7.15 | ||
Loan and Security Agreement | Oxford Finance, LLC | Warrants for Preferred Stock | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 10 years | ||
Loan and Security Agreement | Oxford Finance, LLC | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated Interest rate | 8.00% |
Long-Term Debt - Schedule Princ
Long-Term Debt - Schedule Principal Payments on Outstanding Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2018 (remaining 9 months) | $ 8,000 | |
2,019 | 3,300 | |
Total | 11,300 | |
Less debt discount | (205) | |
Less current portion | (7,801) | $ (7,730) |
Non-current portion | $ 3,294 | $ 5,271 |
Schedule of Common Stock Availa
Schedule of Common Stock Available for Grant Under Employee Stock Incentive Plans and Reserves for Warrants (Details) - shares | Mar. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | |||
Outstanding and issued stock options | 1,950,953 | 1,930,752 | |
Shares reserved for future option grants | [1] | 3,086,049 | 2,162,037 |
Total common stock reserved for issuance | 5,343,458 | 4,399,245 | |
Common Stock | |||
Class Of Stock [Line Items] | |||
Outstanding common stock warrants | 306,456 | 306,456 | |
[1] | The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017 |
Schedule of Common Stock Avai42
Schedule of Common Stock Available for Grant Under Employee Stock Incentive Plans and Reserves for Warrants (Parenthetical) (Details) - shares | Mar. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | |||
Shares reserved for future option grants | [1] | 3,086,049 | 2,162,037 |
Scenario, Previously Reported | |||
Class Of Stock [Line Items] | |||
Shares reserved for future option grants | 271,490 | ||
Error Correction of Shares Reserved for Future Option Grants Understated | |||
Class Of Stock [Line Items] | |||
Shares reserved for future option grants | 1,890,547 | ||
[1] | The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017 |
Stock Option Plan - Additional
Stock Option Plan - Additional Information (Details) - USD ($) | Oct. 11, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted | [1] | 3,086,049 | 2,162,037 | ||
Weighted-average grant date fair value of options granted | $ 2.75 | ||||
Stock options granted | 0 | ||||
Total intrinsic value of options exercised | $ 14,800 | $ 0 | |||
Unamortized stock-based compensation | $ 1,200 | ||||
Unamortized stock-based compensation, weighted-average period | 3 years 1 month 6 days | ||||
2017 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Effective date of plan | Oct. 11, 2017 | ||||
2005 Plan and 2015 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares granted | 0 | ||||
[1] | The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017 |
Stock Option Plan - Summary of
Stock Option Plan - Summary of Recognized Stock-based Compensation Expense for Employees and Non-employees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 125 | $ 106 |
Employees and Non-employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | 125 | 106 |
Cost of Revenue | Employees and Non-employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | 4 | 5 |
Sales and Marketing | Employees and Non-employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | 22 | 15 |
Research and Development | Employees and Non-employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | 15 | 21 |
General and Administrative | Employees and Non-employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 84 | $ 65 |
Stock Option Plan - Estimated G
Stock Option Plan - Estimated Grant-Date Fair Value of Stock-Based Awards Calculated Using Black-Scholes-Merton Option Pricing Model (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |
Expected term (years) | 6 years 1 month 6 days |
Risk-free interest rate | 2.40% |
Expected volatility | 55.50% |
Dividend yield | 0.00% |
Stock Option Plan - Estimated46
Stock Option Plan - Estimated Grant-Date Fair Value of Stock-Based Awards Calculated Using Black-Scholes-Merton Option Pricing Model (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options issued | 0 |
Stock Option Plan - Summary o47
Stock Option Plan - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Outstanding, Beginning Balance | 1,930,752 | |
Number of Shares, Options granted | 233,600 | |
Number of Shares, Options exercised | (105,874) | |
Number of Shares, Options cancelled | (107,525) | |
Number of Shares, Outstanding, Ending Balance | 1,950,953 | 1,930,752 |
Number of Shares, Vested and expected to vest | 1,742,479 | |
Number of Shares, Exercisable | 941,344 | |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning Balance | $ 1.90 | |
Weighted-Average Exercise Price Per Share, Options granted | 5.07 | |
Weighted-Average Exercise Price Per Share, Options exercised | 1.84 | |
Weighted-Average Exercise Price Per Share, Options cancelled | 1.73 | |
Weighted-Average Exercise Price Per Share, Outstanding, Ending Balance | 2.29 | $ 1.90 |
Weighted-Average Exercise Price Per Share, Vested and expected to vest | 2.33 | |
Weighted-Average Exercise Price Per Share, Exercisable | $ 1.78 | |
Weighted-Average Remaining Contractual Term, Outstanding | 8 years | 7 years 10 months 24 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 7 years 10 months 24 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 7 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 7,695 | $ 5,322 |
Aggregate Intrinsic Value, Vested and expected to vest | 6,794 | |
Aggregate Intrinsic Value, Exercisable | $ 4,707 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 13,000 | $ 16,000 |
Effective income tax rate | (0.17%) | |
Unrecognized tax benefits | $ 1,400,000 | |
Interest and penalties related to uncertain tax positions | $ 0 |
Segment and Geographic Inform49
Segment and Geographic Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Schedule of Revenue by Geograph
Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 5,005 | $ 5,475 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 2,255 | 2,544 |
Europe and Middle East | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 973 | 1,553 |
Asia Pacific | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | 1,104 | 1,165 |
Rest of World | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total revenue | $ 673 | $ 213 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Loan and Security Agreement - USD ($) | May 10, 2018 | May 31, 2015 |
Oxford Finance, LLC | ||
Subsequent Event [Line Items] | ||
Debt instrument, borrowed amount | $ 20,000,000 | |
Debt Instrument, maturity month and year | 2019-07 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of period from the agreement date | 4 years | |
Subsequent Event | Solar Capital Ltd | ||
Subsequent Event [Line Items] | ||
Debt instrument, borrowed amount | $ 20,000,000 | |
Debt instrument, collateral description | All amounts borrowed pursuant to the Solar Agreement are secured by liens on all personal property of the Company, excluding intellectual property. | |
Debt instrument, payment terms | Monthly payments on any amounts drawn shall consist of the interest only payments for the first 18 months, followed by payments of principal and accrued interest on a monthly basis thereafter until April 2022, which is the four year anniversary of the date of the Solar Agreement. | |
Debt instrument, frequency of periodic payment | Monthly | |
Debt instrument, periodic interest payments period | 18 months | |
Debt instrument, periodic payment principal and accrued interest period description | on a monthly basis | |
Debt Instrument, maturity month and year | 2022-04 | |
Subsequent Event | Solar Capital Ltd | Common Stock | ||
Subsequent Event [Line Items] | ||
Debt conversion, warrants issued | 161,725 | |
Warrants exercisable, price per share | $ 3.71 | |
Subsequent Event | Solar Capital Ltd | LIBOR | ||
Subsequent Event [Line Items] | ||
Debt instrument, description of variable rate basis | U.S. Dollar LIBOR | |
Debt instrument, basis spread on variable rate | 7.95% | |
Subsequent Event | Oxford Finance, LLC | ||
Subsequent Event [Line Items] | ||
Repayment of outstanding balance and accrued interest | $ 10,100,000 |