Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SI-BONE, Inc. | ||
Entity Central Index Key | 0001459839 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 28,384,633 | ||
Entity Public Float | $ 391.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,435 | $ 25,120 |
Short-term investments | 81,345 | 97,103 |
Accounts receivable, net of allowance for doubtful accounts of $238 and $263, respectively | 11,720 | 8,486 |
Inventory | 5,452 | 3,343 |
Prepaid expenses and other current assets | 2,510 | 1,990 |
Total current assets | 111,462 | 136,042 |
Long-term investments | 1,278 | 0 |
Property and equipment, net | 3,954 | 2,154 |
Other non-current assets | 315 | 325 |
TOTAL ASSETS | 117,009 | 138,521 |
CURRENT LIABILITIES | ||
Accounts payable | 2,811 | 2,146 |
Accrued liabilities and other | 11,605 | 6,860 |
Current portion of long-term borrowings | 4,358 | 0 |
Total current liabilities | 18,774 | 9,006 |
Long-term borrowings | 34,865 | 38,963 |
Other long-term liabilities | 362 | 360 |
TOTAL LIABILITIES | 54,001 | 48,329 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 25,163,803 and 24,450,757 shares issued and outstanding, respectively | 3 | 3 |
Additional paid-in capital | 258,121 | 246,927 |
Accumulated other comprehensive income | 464 | 439 |
Accumulated deficit | (195,580) | (157,177) |
TOTAL STOCKHOLDERS’ EQUITY | 63,008 | 90,192 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 117,009 | $ 138,521 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 238 | $ 263 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 25,163,803 | 24,450,757 |
Common stock outstanding (in shares) | 25,163,803 | 24,450,757 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 67,301 | |
Revenue | $ 55,380 | |
Cost of goods sold | 6,790 | 4,833 |
Gross profit | 60,511 | 50,547 |
Operating expenses: | ||
Sales and marketing | 68,251 | 44,497 |
Research and development | 7,279 | 5,376 |
General and administrative | 20,984 | 12,639 |
Total operating expenses | 96,514 | 62,512 |
Loss from operations | (36,003) | (11,965) |
Interest and other income (expense), net: | ||
Interest income | 2,551 | 769 |
Interest expense | (4,949) | (5,108) |
Other expense, net | (2) | (1,149) |
Net loss | (38,403) | (17,453) |
Other comprehensive income (loss): | ||
Unrealized gain of marketable securities | 44 | 10 |
Changes in foreign currency translation | (19) | 27 |
Comprehensive loss | $ (38,378) | $ (17,416) |
Net loss per share, basic and diluted (in dollars per share) | $ (1.55) | $ (2.20) |
Weighted-average number of common shares used to compute basic and diluted net loss per share (in shares) | 24,705,980 | 7,950,284 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Temporary equity, beginning balance (shares) at Dec. 31, 2017 | 11,871,578 | ||||
Temporary equity, beginning balance at Dec. 31, 2017 | $ 118,548 | ||||
Increase (Decrease) in Temporary Equity | |||||
Conversion from preferred stock to common stock (shares) | (11,871,578) | ||||
Conversion from preferred stock to common stock | $ (118,548) | ||||
Temporary equity, ending balance (shares) at Dec. 31, 2018 | 0 | ||||
Temporary equity, ending balance at Dec. 31, 2018 | $ 0 | ||||
Stockholders' equity (deficit), beginning balance (in shares) at Dec. 31, 2017 | 3,603,140 | ||||
Stockholders' equity (deficit), beginning balance at Dec. 31, 2017 | $ (129,378) | $ 1 | $ 9,943 | $ 402 | $ (139,724) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options, net of shares withheld (in shares) | 395,117 | 289,077 | |||
Issuance of common stock upon exercise of stock options, net of shares withheld | $ 1,136 | 1,136 | |||
Issuance of common stock upon exercise of unvested stock options (in shares) | 106,028 | ||||
Issuance of common stock upon exercise of unvested stock options | 0 | ||||
Conversion from preferred stock to common stock (in shares) | 12,066,654 | ||||
Conversion from preferred stock to common stock | 118,548 | $ 1 | 118,547 | ||
Conversion from preferred stock warrants to common stock warrants | 1,248 | 1,248 | |||
Issuance of common stock from warrants exercise (in shares) | 121,486 | ||||
Issuance of common stock from warrants exercise | 0 | ||||
Issuance of common stock from IPO proceeds, net (in shares) | 8,280,000 | ||||
Issuance of common stock from IPO proceeds, net | 113,603 | $ 1 | 113,602 | ||
Repurchase of unvested early exercised stock options (in shares) | (15,628) | ||||
Repurchase of unvested early exercised stock options | 0 | ||||
Stock-based compensation | 2,312 | 2,312 | |||
Vesting of early exercised stock options | 139 | 139 | |||
Foreign currency translation | 27 | 27 | |||
Unrealized gain on marketable securities | 10 | 10 | |||
Net loss | (17,453) | (17,453) | |||
Stockholders' equity (deficit), ending balance (in shares) at Dec. 31, 2018 | 24,450,757 | ||||
Stockholders' equity (deficit), ending balance at Dec. 31, 2018 | $ 90,192 | $ 3 | 246,927 | 439 | (157,177) |
Temporary equity, ending balance (shares) at Dec. 31, 2019 | 0 | ||||
Temporary equity, ending balance at Dec. 31, 2019 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options, net of shares withheld (in shares) | 444,924 | 444,788 | |||
Issuance of common stock upon exercise of stock options, net of shares withheld | $ 1,490 | 1,490 | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 168,457 | ||||
Issuance of common stock related to employee stock purchase plan | 2,203 | 2,203 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 108,631 | ||||
Issuance of common stock upon vesting of restricted stock units | 0 | ||||
Repurchase of unvested early exercised stock options (in shares) | (8,830) | ||||
Repurchase of unvested early exercised stock options | 0 | ||||
Stock-based compensation | 7,464 | 7,464 | |||
Vesting of early exercised stock options | 197 | 197 | |||
Additional accrual of IPO related costs | (160) | (160) | |||
Foreign currency translation | (19) | (19) | |||
Unrealized gain on marketable securities | 44 | 44 | |||
Net loss | (38,403) | (38,403) | |||
Stockholders' equity (deficit), ending balance (in shares) at Dec. 31, 2019 | 25,163,803 | ||||
Stockholders' equity (deficit), ending balance at Dec. 31, 2019 | $ 63,008 | $ 3 | $ 258,121 | $ 464 | $ (195,580) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (38,403) | $ (17,453) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 7,464 | 2,312 |
Depreciation and amortization | 774 | 722 |
Accretion on marketable securities | (1,413) | (209) |
Amortization of debt issuance costs | 259 | 259 |
Change in fair value of redeemable convertible preferred stock warrants | 0 | 826 |
Loss on sale and disposal of property and equipment | 171 | 52 |
Changes in operating assets and liabilities | ||
Accounts receivable | (3,236) | (1,028) |
Inventory | (2,105) | (759) |
Prepaid expenses and other assets | (515) | (752) |
Accounts payable | 383 | 251 |
Accrued liabilities and other | 4,994 | 1,260 |
Net cash used in operating activities | (31,627) | (14,519) |
Cash flows from investing activities | ||
Maturities of marketable securities | 159,800 | 0 |
Purchases of marketable securities | (143,864) | (96,883) |
Purchases of property and equipment | (2,445) | (942) |
Net cash provided by (used in) investing activities | 13,491 | (97,825) |
Cash flows from financing activities | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 0 | 115,506 |
Proceeds from the exercise of common stock options | 1,490 | 1,614 |
Proceeds from issuance of common stock under employee stock purchase plan | 2,203 | 0 |
Repurchase of unvested early exercised stock options | (38) | (73) |
Payments of public offering costs | (167) | (1,897) |
Net cash provided by financing activities | 3,488 | 115,150 |
Effect of exchange rate changes on cash and cash equivalents | (37) | (94) |
Net (decrease) increase in cash and cash equivalents | (14,685) | 2,712 |
Cash and cash equivalents at | ||
Beginning of year | 25,120 | 22,408 |
End of year | 10,435 | 25,120 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 4,949 | 5,500 |
Supplemental disclosure of non-cash information | ||
Conversion of redeemable convertible preferred stock to common stock | 0 | 118,547 |
Conversion of preferred stock warrants to common stock warrants | 0 | 1,248 |
Vesting of early exercised stock options | 197 | 139 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 375 | 82 |
Public offering costs included in accounts payable | $ 0 | $ 7 |
The Company and Nature of Busin
The Company and Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Nature of Business | The Company and Nature of Business SI-BONE, Inc. (the “Company”) was incorporated in the state of Delaware on March 18, 2008 and is headquartered in Santa Clara, California. The Company is a medical device company that has pioneered a proprietary minimally invasive surgical implant system to fuse the sacroiliac joint for treatment of the most common types of sacroiliac joint disorders that cause lower back pain. The Company introduced its primary product, the iFuse Implant System, or iFuse, in 2009 in the U.S., in 2010 in certain countries in the European Union, and in 2015 in certain countries in the rest of the world. Reverse Stock Split In October 2018, the Company's board of directors and stockholders approved a 1-for-18 reverse stock split of the Company's common stock and redeemable convertible preferred stock, which was effected on October 4, 2018. The par value of the common stock and redeemable convertible preferred stock was not adjusted as a result of the reverse split. All issued and outstanding share and per share amounts of common stock, redeemable convertible preferred stock, stock options, and warrants included in the accompanying consolidated financial statements have been adjusted to reflect this reverse stock split for all periods presented. Initial Public Offering On October 16, 2018, the Company’s Registration Statement on Form S-1 (File No. 333-227445) 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 sold 8,280,000 shares at an initial public offering price of $15.00 per share for net proceeds of $113.4 million to the Company, net of underwriting discounts and commissions and offering costs. Upon the closing of the IPO, all of the Company's outstanding shares of redeemable convertible preferred stock were automatically converted into an aggregate of 12,066,654 shares of common stock and the Company's outstanding warrants to purchase 156,550 shares of redeemable convertible preferred stock were automatically converted into warrants to purchase an aggregate of 160,657 shares of common stock, resulting in reclassification of the related redeemable convertible preferred stock warrant liability of $1.2 million to additional paid-in-capital. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the Company's accounts, as well as those of the Company's wholly-owned international subsidiaries. All inter-company accounts and transactions have been eliminated. Use of Estimates The preparation of 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates and management judgments reflected in the consolidated financial statements include: fair value of assets and liabilities; analysis of the allowance for doubtful accounts; inventory valuation; valuation of deferred tax assets, including related valuation allowances; fair value of common stock and redeemable convertible preferred stock warrants; stock-based compensation; and useful lives of long-lived assets. Estimates are based on historical experience, where applicable and other assumptions believed to be reasonable by the management. Actual results could differ from those estimates. JOBS Act Accounting Election As an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), the Company is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. The Company has elected to take advantage of the extended transition period for adopting new or revised accounting standards that have different effective dates for public and private companies. Those standards apply to 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 consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company continues to be an emerging growth company until December 31, 2023, unless one of the following occurs: (i) if the Company's total annual gross revenues are $1.07 billion or more; or (ii) the Company has issued more than $1.0 billion in non-convertible debt in the past three years; or (iii) the Company becomes a "large accelerated filer," as defined in Rule 12b-2 of the Exchange Act. Segments Operating segments are based on components of the Company that engage in business activities that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker ("CODM"), to make decisions about resource allocation and performance and (b) for which discrete financial information is available. The CODM for the Company are the Chief Executive Officer ("CEO") and Chief Operating Officer & Chief Financial Officer ("COO/CFO"). The CEO and the COO/CFO review financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company derives substantially all of its revenue from sales to customers in the U.S. Revenue by geography is based on billing address of the customer. No single country outside the U.S. accounts for more than 10% of the total revenue during the periods presented. Long-lived assets held outside the U.S. are immaterial. Following table summarizes the Company's revenue by geography: Year ended December 31, 2019 2018 (in thousands) United States $ 61,843 $ 50,137 International 5,458 5,243 $ 67,301 $ 55,380 Foreign Currency The Company’s foreign subsidiaries use local currency as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenue, costs and expenses are translated into U.S. dollars using average exchange rates for the period. Gains and losses from foreign currency translation are recorded as a component of accumulated other comprehensive income (loss). Gains and losses from foreign currency transactions are recognized as a component of other income (expense), net. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and marketable securities. The Company’s cash and marketable securities are deposited with financial institutions in the U.S. and in Europe. The majority of the Company’s cash and marketable securities are deposited with a single financial institution in the U.S. Deposits in this institution exceed the amount of insurance provided on such deposits. The Company has not experienced any net losses on its deposits of cash and marketable securities. The Company’s revenue and accounts receivable are spread across a large number of customers, primarily in the U.S., and no customer accounts for more than 10% of total revenue or gross accounts receivable in any period presented. Other Risks and Uncertainties The Company is subject to risks common to medical device companies including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, the ability to obtain adequate coverage and reimbursement from third-party payors and uncertainty of market acceptance of products. The Company is dependent on third-party manufacturers and suppliers, in some cases single source suppliers. The Company currently has limited long term contracts with its key suppliers and is subject to risks such as manufacturing failures, non-compliance with regulatory requirements, price fluctuations, inability to properly meet demand and third-party supplier discontinuation of operations. Liquidity As of December 31, 2019 , the Company had cash and marketable securities of $93.1 million compared to $122.2 million as of December 31, 2018 . Since inception, the Company financed its operations through its initial public offering, private placements of preferred stock, debt financing arrangements, and the sale of products. As of December 31, 2019 , the Company's accumulated deficit was $195.6 million . During the years ended December 31, 2019 and 2018 , the Company incurred a net loss of $38.4 million and $17.5 million , respectively. The Company also has certain debt covenants associated with its current debt agreement. These covenants include a $5.0 million minimum cash balance and revenue targets, which if not met would result in the debt becoming immediately due. The Company is required to meet either minimum net sales or trailing 12-month consolidated earnings before interest, taxes, depreciation, and amortization ("EBITDA") targets. The Company was in compliance with all debt covenants as of December 31, 2019 and 2018 . Based upon the Company's current operating plan, the Company believes that its existing cash and marketable securities will enable the Company to fund its operating expenses and capital expenditure requirements through at least the next 12 months. The Company continues to face challenges and uncertainties and, as a result, its available capital resources may be consumed more rapidly than currently expected due to: (a) decreases in sales of our products and the uncertainty of future revenues from new products; (b) changes that the Company may make to the business that affect ongoing operating expenses; (c) changes that the Company may make in its business strategy; (d) regulatory developments affecting the Company's existing products; (e) changes that the Company may make in its research and development spending plans; and (f) other items affecting the Company's forecasted level of expenditures and use of cash resources. Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due to their relatively short maturities and market interest rates, if applicable. The Company's marketable securities are classified as Level 1 or Level 2 of the fair value hierarchy as defined below. The carrying value of the Company’s long-term debt also approximates fair value based on management’s estimation that a current interest rate would not differ materially from the stated rate. The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices (unadjusted) in active market that are accessible at measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and considers factors specific to the asset or liability. Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at the date of purchase of three months or less to be cash equivalents. Marketable Securities The Company's marketable securities primarily consist of investments in money market funds, U.S. treasury securities, corporate bonds and commercial paper. All of the Company's marketable securities are available-for-sale and are classified based on their maturities. Marketable securities with remaining maturities at the date of purchase of three months or less are classified as cash equivalents. Short term investments are securities that original or remaining maturity is greater than three months and not more than twelve months. Long-term investments are securities that original or remaining maturity is more than twelve months. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss) ("OCI") on the consolidated balance sheets. The Company evaluates its investments to assess whether those in unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other-than-temporary if they are related to deterioration in credit risk or if it is likely the Company will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net on the consolidated statements of operations. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers broad factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Inventory Inventory is stated at lower of cost or net realizable value. The Company establishes the inventory basis by determining the cost based on standard costs approximating the purchase costs on a first-in, first-out basis. The excess and obsolete inventory is estimated based on future demand and market conditions. Inventory write-downs are charged to cost of goods sold. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. All property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, which are as follows: Computer and office equipment 3 – 5 years Machinery and equipment 3 – 5 years Furniture and fixtures 7 years Leasehold improvements are amortized over the lesser of their useful lives or the life of the lease. Upon sale or retirement of the assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is recognized in the consolidated statement of operations. Maintenance and repairs are charged to operations as incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be fully recoverable. Whenever events or changes in circumstances suggest that the carrying amount of long-lived assets may not be recoverable, the Company estimates the future cash flows expected to be generated by the assets (or asset group) from its use or eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Significant management judgment is required in the grouping of long-lived assets and forecasts of future operating results that are used in the discounted cash flow method of valuation. Through December 31, 2019 and 2018 , the Company has not experienced impairment losses on its long-lived assets. Revenue Recognition The Company’s revenue is derived from the sale of its products to medical groups and hospitals through its direct sales force and distributors throughout the U.S. and Europe. Through the year ended December 31, 2018, in accordance with ASC Topic 605, Revenue Recognition ("ASC 605"), the Company recognized revenue when persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. As a result of the adoption of the new revenue standard in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") effective for the fiscal year ended December 31, 2019, the Company now recognizes the revenue when control is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. There had been no material differences in the Company’s revenue recognition accounted for under ASC 605 and ASC 606. As it relates to product sales where the Company's sales representative delivers the product at the point of implantation at the hospital or medical facilities, the Company continues to recognize the revenue upon completion of the procedure and authorization by the customer, net of rebates and price discounts. This represents the majority of the Company's consolidated revenue. The Company also generates a small portion of revenue from the sale of products through distributors and to certain hospital or medical facilities where the products are ordered in advance of a procedure. The performance obligation is the delivery of the products and therefore, revenue is recognized upon shipment to the customers, net of rebates and price discounts. The Company accounts for rebates and price discounts as reduction to revenue, calculated based on the terms agreed to with the customer. Historically, there had been no significant price discounts. Sales prices are specified in either the customer contract, agreed price list, or purchase order, which is executed prior to the transfer of control to the customer. For certain hospitals and medical facilities, the Company has agreements in place consists of either a master services agreement or an approved price list, which defines the terms and conditions of the arrangement, including the pricing information, payment terms and pertinent aspects of the relationship between the parties. The Company also has agreements in place with its distributors, which include standard terms that do not allow for payment contingent on resale of the product, obtaining financing, or other terms that could impact the distributor’s payment obligation. The Company's standard payment terms are generally net 30 to 90 days. Shipping and Handling Costs Shipping and handling costs are treated as fulfillment costs, which are expensed as incurred and are included in cost of goods sold. Costs to Obtain Customer Contracts Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. The Company’s sales commissions paid to its sales representatives is generally based on the surgeries performed. The Company applied the practical expedient that permits an entity to expense the cost to obtain a contract as incurred when the expected amortization is one year or less. The period of benefit is concurrent with when the Company recognizes its revenue and as such, the Company recognizes sales commission as expense when incurred. Warranty The Company has a warranty program that provides a purchaser a one-time replacement of any iFuse implant at no additional cost for a revision procedure within a one -year period following the original procedure and is accounted for as a warranty accrual. The Company also provides a purchaser with a one-time credit equal to the purchase price paid for use on future purchases for any revision procedure within the one -year period following an original procedure where an implant is not required. The warranty is not priced or sold separately and is intended to safeguard the customer against defects and it does not provide incremental service to the customer. As such, it is considered an assurance type warranty and is not accounted as a service type warranty, which could represent a separate performance obligation. The Company accounts for these one-time credits as sales reserves and is included in accrued liabilities and other in the consolidated balance sheets. Sales and warranty reserves from the warranty program were immaterial as of December 31, 2019 and 2018 . Medical Device Excise Tax In accordance with the Patient Protection and Affordable Care Act, effective January 1, 2013, the Company began to incur an excise tax on sales of medical devices in the U.S. The Company recorded the medical device excise tax within the cost of goods sold in the consolidated statements of operations and comprehensive loss when incurred. Effective January 1, 2016, the Consolidated Appropriations Act of 2016, which was signed into law in December 2015, included a two-year suspension on the medical device excise tax. In January 2018, the suspension on the tax on medical devices was further extended through January 1, 2020. In December 2019, the U.S. Senate passed a bipartisan legislation to permanently repeal the medical device excise tax. Research and Development Research and development costs are charged to operations as incurred and consist of costs incurred by the Company for the development of the Company’s product which primarily include (1) employee-related expenses, including salaries, benefits, travel and non-cash stock-based compensation expense (2) external research and development expenses (3) other expenses, which include direct and allocated expenses for facilities and other costs. Advertising Expenditures The cost of advertising is expensed as incurred and is included under sales and marketing expense in the consolidated statements of operations. Advertising expenses were $0.4 million and $0.7 million for the year ended December 31, 2019 and 2018 , respectively. Loss Contingency The Company is subject to various potential loss contingencies arising in the ordinary course of business. From time to time, the Company may be involved in certain proceedings, legal actions, and claims. Such matters are subject to many uncertainties, and the outcomes of these matters are not within the Company's control and may not be known for prolonged periods of time. In some actions, the claimants may seek damages, as well as other relief, including injunctions which may prohibit the Company to engage in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues. The Company records a liability in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. Stock-Based Compensation The Company applies the fair value recognition provisions of stock-based compensation. Stock-based compensation expense is recognized over the requisite service period using the straight-line method and is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period that the estimates are revised. The Company estimates the grant date fair value of stock options using the Black-Scholes option valuation model. The model requires management to make a number of assumptions including expected volatility, expected term, risk-free interest rate and expected dividends. A number of these assumptions are subjective, and their determination generally require judgment. • Expected Term - The expected term represents the period that the share-based awards are expected to be outstanding. The Company uses the simplified method to determine the expected term as permitted by the guidance since the Company has no sufficient historical exercise patterns to estimate the expected life. The simplified method is calculated as the average of the time to vesting and the contractual life of the options. • Expected Volatility - Since the Company became public in October 2018 and has no sufficient trading history, the Company uses stock price volatility using the average historical volatilities of publicly traded companies within its industry that the Company considers to be comparable to its business over a period approximately equal to the expected term for its stock options. • Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury zero coupon issued in effect at the time of grant for periods corresponding with the expected term of the option. • Dividend Yield - The Company has not paid any dividends and has no current plans to pay dividends on its common stock. As such, the Company uses expected dividend yield of zero. The fair value of the restricted stock unit ("RSU") grant is based on the market price of the Company’s common stock on the date of grant. Prior to IPO, the fair value of the shares of the Company's common stock has historically been determined by its Board of Directors since there were no public market information available for the Company's common stock. The estimated fair value of the Company's common stock was determined at each valuation date in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation . The Company's Board of Directors, with the assistance of management and independent third-party valuations, developed these valuations and took into account numerous factors, including developments of the Company, market conditions, and contemporaneous independent third-party valuations. In valuing the Company's common stock, the fair value of its business, or enterprise value, was determined using both the income approach and market approach. The income approach estimates value based on the expectation of future cash flows. The market approach estimates value based on a comparison of the subject company to comparable public companies in a similar line of business. The assumptions used in determining the fair value of the Company's common stock involved management's best estimates and judgments at the time the valuation was performed. Subsequent to its IPO, the Company uses the market closing price for its common stock as reported on the Nasdaq Global Market on the date of grant. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The Company believes that the estimated fair value of the stock options is more readily measurable than the fair value of the services received. Stock-based compensation related to stock options granted to non-employees is recognized as the stock options are earned. In the event the underlying terms of stock options are modified on which stock-based compensation was granted, additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement at the modification date. Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company recognizes uncertain tax positions when it meets a more-likely-than-not threshold. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as income tax expense. Net Loss per Share of Common Stock The Company calculates basic and diluted net loss per common share attributable to shareholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of redeemable convertible preferred stock and early exercised stock options to be participating securities as the holders are entitled to receive dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stock is not allocated to the redeemable convertible preferred stock and early exercised stock options as the holders of redeemable convertible preferred stock and early exercised stock options do not have a contractual obligation to share in losses. Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, redeemable convertible preferred stock and common stock options and warrants are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, redeemable convertible preferred stock and common stock options and warrants are anti-dilutive and therefore diluted net loss per common share is the same as basic net loss per common share for those periods. Comprehensive Loss Comprehensive loss represents all changes in the stockholders’ equity (deficit) except those resulting from distributions to stockholders. The Company’s unrealized foreign currency translation income (losses) and unrealized gains (losses) on marketable securities represent the two components of other comprehensive income that are excluded from the reported net loss for each of the reporting periods and has been presented in the consolidated statements of operations and comprehensive loss. Public Offering Costs Specific incremental costs (i.e. consisting of legal, accounting and other fees and costs) directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. In the event a planned offering of securities does not occur or is significantly delayed, all of the costs will be expensed. Upon completion of the IPO on October 16, 2018, the previously deferred and capitalized public offering costs incurred which were recorded within prepaid expenses and other current assets were charged against the gross proceeds of the offering. No public offering cost was deferred as of December 31, 2018 . On November 13, 2019, the Company filed a Shelf Registration Statement on Form S-3 with the SEC that was declared effective by the SEC on November 25, 2019, registering a proposed maximum aggregate primary offering of $200.0 million of unspecified number of shares of common stock; shares of preferred stock; debt securities; or warrants to purchase shares of common stock that the Company may offer in one or more offerings on terms to be determined at the time of sale (the "Prior Registration Statement"). On December 27, 2019, the Company filed a Shelf Registration Statement on Form S-3 with the SEC that was declared effective by the SEC on January 2, 2020, registering the unsold maximum aggregate primary offering under the Prior Registration Statement and additional 2,000,000 shares of the Company's common stock held by the selling stockholders to be named in a prospectus supplement, that may, from time to time, offer or sell in a secondary offering. The incremental costs incurred directly attributable to the shelf filing of $0.1 million were deferred within prepaid expenses and other current assets as of December 31, 2019 . See “Note 14 - Subsequent Events” in |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The table below summarizes the marketable securities: December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 3,068 $ — $ — $ 3,068 Commercial paper 2,495 — — 2,495 Cash equivalents 5,563 — — 5,563 U.S. treasury securities 67,051 34 (2 ) 67,083 Corporate bonds 9,075 24 (2 ) 9,097 Commercial paper 5,165 — — 5,165 Short-term investments 81,291 58 (4 ) 81,345 Corporate bonds 1,278 — — 1,278 Long-term investments 1,278 — — 1,278 Total marketable securities $ 88,132 $ 58 $ (4 ) $ 88,186 The long-term investments outstanding as of December 31, 2019 mature in April 2021. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 15,223 $ — $ — $ 15,223 U.S. treasury securities 1,000 — — 1,000 Commercial paper 6,635 — — 6,635 Cash equivalents 22,858 — — 22,858 U.S. treasury securities 65,491 2 (4 ) 65,489 Corporate bonds 19,708 15 (3 ) 19,720 Commercial paper 11,894 — — 11,894 Short-term investments 97,093 17 (7 ) 97,103 Total marketable securities $ 119,951 $ 17 $ (7 ) $ 119,961 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities and market interest rates, if applicable. The carrying value of the Company’s long-term debt also approximates fair value based on management’s estimation that a current interest rate would not differ materially from the stated rate. There were no other financial assets and liabilities that requires fair value hierarchy measurements and disclosures for the periods presented. The table below summarizes the fair value of the Company’s marketable securities measured at fair value on a recurring basis based on the three-tier fair value hierarchy: December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 3,068 $ — $ — $ 3,068 U.S. treasury securities 67,083 — — 67,083 Corporate bonds — 10,375 — 10,375 Commercial paper — 7,660 — 7,660 Total marketable securities $ 70,151 $ 18,035 $ — $ 88,186 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 15,223 $ — $ — $ 15,223 U.S. treasury securities 66,489 — — 66,489 Corporate bonds — 19,720 — 19,720 Commercial paper — 18,529 — 18,529 Total marketable securities $ 81,712 $ 38,249 $ — $ 119,961 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory As of December 31, 2019 and 2018 , inventory consisted entirely of finished goods. Property and Equipment, net : December 31, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 4,613 $ 3,785 Construction in progress 1,854 730 Computer and office equipment 598 407 Leasehold improvements 497 448 Furniture and fixtures 187 148 7,749 5,518 Less: Accumulated depreciation and amortization (3,795 ) (3,364 ) $ 3,954 $ 2,154 Depreciation expense was $0.8 million and $0.7 million for the years ended December 31, 2019 and 2018 , respectively. Accrued Liabilities and Other : December 31, 2019 December 31, 2018 (in thousands) Accrued compensation and related expenses $ 7,274 $ 5,425 Accrued litigation expense 3,200 — Accrued professional services 392 583 Sales tax payable 370 388 Liability for early exercise of unvested stock options 97 331 Others 272 133 $ 11,605 $ 6,860 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has an existing seven -year non-cancelable operating lease for an office building space of approximately 21,848 square feet, located in Santa Clara, California which lease commenced in April 2018. The Company also have non-cancelable operating leases for its office building spaces in Gallarate, Italy and Mannheim, Germany which both expire in November 2024 and in Knaresborough, United Kingdom, which expires in December 2026. Further, the Company also leases vehicles under operating lease arrangements for certain of its sales personnel in Europe which expire various times in 2020 to 2022. Rent expense is recorded over the lease terms on a straight-line basis. Rent expense charged to operations under operating leases totaled approximately $1.2 million and $1.2 million for the years ended December 31, 2019 and 2018 , respectively. The aggregate future minimum lease payments under all leases as of December 31, 2019 are as follows: Year Ending December 31, (in thousands) 2020 $ 1,102 2021 1,003 2022 929 2023 860 2024 869 Thereafter 365 $ 5,128 Purchase Commitments and Obligations The Company has certain purchase commitments related to its inventory management with certain manufacturing suppliers wherein the Company is required to purchase the amounts forecasted in a blanket purchase order. These outstanding commitments amounted to $0.4 million and $0.2 million as of December 31, 2019 and 2018 , respectively. In addition, the Company also has other obligations for goods and services entered into in the normal course of business. These obligations, however, are either not enforceable or legally binding or are subject to change based on the Company's business decisions. Legal Proceedings On February 6, 2019, a putative class action captioned Eric B. Fromer Chiropractic, Inc. ("Plaintiff") v. SI-BONE, Inc. (Civil Action No. 5:19-cv-633-SVK), was filed in the U.S. District Court, Northern District of California. The complaint alleges violations of the Telephone Consumer Protection Act (the “TCPA”) on behalf of an individual and a putative class of persons alleged to be similarly situated. The complaint alleges that the Company sent invitations to an educational dinner event to health care providers by way of facsimile transmission. The TCPA prohibits using a fax machine to send unsolicited advertisements not including proper opt-out instructions or to send unsolicited advertisements to persons with whom the sender did not have an established business relationship. The plaintiff sought various forms of relief, including statutory damages of $500 for each violation of the TCPA or, in the alternative, treble damages of up to $1,500 for each knowing and willful violation of the TCPA and a permanent injunction prohibiting the Company from sending or having sent advertisements by way of facsimile transmission. On December 23, 2019 the parties filed a joint stipulation of dismissal of the case in the District Court in the Northern District of California and on January 14, 2020, the parties executed a definitive settlement agreement (the "Settlement Agreement"), pursuant to which, the Company agreed to settle all disputes regarding the advertising faxes to the settlement class. As this lawsuit is being resolved through a negotiated settlement and class resolution process, the Company believes that it will incur a loss associated with resolution of the claims against it. The Company has accrued litigation expense of $3.2 million during the year ended December 31, 2019 within general and administrative expenses in the consolidated financial statements. The accrual reflects the estimable and probable costs that the Company may incur based on estimated claims submitted by members of the settlement class, as defined in the Settlement Agreement. The final disposition of the lawsuit may result in a loss in excess of the aggregate recorded amount. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following table summarizes the outstanding borrowings from the term loan as of the periods presented: December 31, 2019 December 31, 2018 (in thousands) Principal outstanding $ 40,000 $ 40,000 Less: unamortized debt issuance costs (777 ) (1,037 ) Outstanding debt, net of debt issuance costs $ 39,223 $ 38,963 Classified as: Current portion of long-term borrowings $ 4,358 $ — Long-term borrowings $ 34,865 $ 38,963 The outstanding debt is related to a term loan entered by the Company with Biopharma Credit Investments IV Sub LP, or Pharmakon, in October 2017 for total loan proceeds of $40.0 million . The total debt issuance costs of $1.3 million were recorded as a direct deduction from the carrying amount of the term loan on the consolidated balance sheet and are being amortized over the period of the term loan using the effective interest method to interest expense in the consolidated statement of operations. The term loan includes an interest-only period for 35 months through September 2020 and is then repaid in equal quarterly principal payments plus interest through December 2022. The New Term Loan is collateralized by all of the Company's assets, including intellectual property. The term loan carries a fixed interest rate of 11.5% and a closing fee of 1.5% of the funded amount, or $0.6 million . The term loan includes a pre-payment fee equal to the interest due for the first 30 months of the agreement if it is prepaid within the first 30 months, a 2% prepayment penalty for months 31-48, and a 1% penalty for months 49-60. The loan is a senior obligation secured with a blanket first lien on the assets of the Company. The effective interest rate for the year ended December 31, 2019 and 2018 was 12.3% and 12.3% , respectively. The table below summarizes annual future minimum principal payments under the loan agreement as of December 31, 2019 : Year ending December 31, (in thousands) 2020 $ 4,444 2021 17,778 2022 17,778 Total minimum principal payments $ 40,000 The term loan requires the Company to maintain a minimum cash balance of $5.0 million and to achieve certain revenue targets. Beginning with the first quart of 2019, the Company is required to meet either minimum net sales or trailing 12-month consolidated EBITDA targets. The Company needs to meet one or the other, but not both. If the Company does not meet either the minimum net sales or trailing 12-month consolidated EBITDA targets, the debt will immediately become due. The remaining minimum net sales and trailing 12-month consolidated EBITDA targets are as follows: Twelve Months Ending Minimum Net Sales Trailing 12-Month Consolidated EBITDA (in thousands) March 31, 2020 $57,500 or $1,000 June 30, 2020 $58,500 or $2,000 thereafter, as applicable $60,000 or $3,000 The Company was in compliance with all debt covenants as of December 31, 2019 and 2018 . |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Warrants | Warrants The table below summarizes common stock warrants issued and outstanding at both December 31, 2019 and 2018 : Date Number of Price per Fair Value (in thousands) Issuance Expiration 3/1/2017 3/1/2027 [a] 1,388 $5.94 $ 5 [b] 7/22/2013 7/22/2023 [a] 32,983 $9.10 122 [b] 11/26/2014 11/26/2024 [a] 6,680 $16.47 49 [b] 10/20/2015 10/20/2025 [a] 41,650 $16.47 396 [c] 11/9/2015 11/9/2025 [a] 25,709 $16.47 244 [c] 12/22/2016 12/22/2026 [a] 9,712 $10.03 45 [c] 118,122 $ 861 [a] Common stock warrants will remain outstanding until the earlier of the expiration date or the date exercised by the holder. [b] Fair value at the date of issuance. [c] Fair value at the date of conversion from redeemable convertible preferred stock to common stock warrants in conjunction with the IPO on October 16, 2018. |
Common and Preferred Stock
Common and Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common and Preferred Stock | Common and Preferred Stock The Company's certificate of incorporate as amended and restated in October 2018, authorizes the Company to issue 100,000,000 shares of common stock and 5,000,000 shares of preferred stock, each having a par value of $0.0001 . Common stock issued and outstanding as of December 31, 2019 and 2018 were 25,163,803 shares and 24,450,757 shares, respectively. As of December 31, 2019 and 2018 , there was no preferred stock issued and outstanding. See “Note 14 - Subsequent Events” in the accompanying Notes to Consolidated Financial Statements for discussions regarding issuance of additional common stock through a subsequent public offering. The holders of common stock are entitled to receive dividends whenever funds are legally available, as, when, and if declared by the Board of Directors. There have been no dividends declared to date. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2008 Stock Option Plan and 2018 Equity Incentive Plan In April 2008, the Company adopted the 2008 Stock Option Plan (the "2008 SOP"), as amended, under which the Board of Directors may issue incentive and non-qualified stock options to employees, directors and consultants. In October 2018, the Company adopted the 2018 Equity Incentive Plan (the "2018 EIP"), which serves as the successor to the 2008 SOP, under which the Board of Directors may issue incentive and non-qualified stock options and RSUs to employees, directors and consultants. No new options have been granted under the 2008 SOP since August 2018. Outstanding options under the 2008 SOP continue to be subject to the terms and conditions of that plan. The number of shares of common stock reserved for issuance under the 2018 EIP will automatically increase on January 1 of each year, beginning January 1, 2019, and continuing through and including January 1, 2028, by 5% of the total number of shares of the Company's capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company's Board of Directors. On January 1, 2019, the total number of shares of common stock reserved for issuance increased by 1,222,538 shares. The Company filed a Registration Statement on Form S-8 on March 22, 2019 to register these additional shares reserved for issuance under the 2018 EIP. As of December 31, 2019 , a total of 2,567,295 shares of common stock are available for future grants under the 2018 EIP. On January 1, 2020, the total number of shares of common stock reserved for issuance under the 2018 EIP automatically increased by 1,258,190 shares. The Board of Directors has the authority to determine to whom options will be granted, the number of shares, the term and the exercise price. If an individual owns stock representing more than 10% of the outstanding shares, the price of each share shall be at least 110% of the fair market value, as determined by the Board of Directors. The exercise price of an incentive stock option and a non-qualified stock option shall not be less than 100% and 85% , respectively, of the fair market value on the date of grant. Options granted have a term of 10 years , except, options granted to individuals holding more than 10% of the outstanding shares have a term of five years . Options generally vest over a four -year period. Certain shares issued under the Plan are exercisable immediately, but subject to a right of repurchase by the Company of any unvested shares. RSUs granted under the 2018 Equity Incentive Plan generally vest over two to four years based upon continued services and are settled at vesting in shares of the Company's common stock. Stock Options The following table summarizes stock option activity for the years ended December 31, 2019 and 2018 : Options Outstanding Number of Shares Weighted-Average Exercise Price Weighted-Average Contractual Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 3,001,929 $4.15 Granted 100,080 $8.88 Exercised (395,117 ) $4.08 Canceled and forfeited (65,694 ) $4.81 Outstanding as of December 31, 2018 2,641,198 $4.27 Granted 638,983 $20.89 Exercised (444,924 ) $3.36 Canceled and forfeited (116,286 ) $11.30 Outstanding as of December 31, 2019 2,718,971 $8.02 6.83 $ 36,872 Options vested and exercisable as of December 31, 2019 2,126,781 $5.32 6.27 $ 34,463 Options vested and expected to vest as of December 31, 2019 2,652,883 $7.80 6.76 $ 36,540 The aggregate intrinsic value of options exercised during the years ended December 31, 2019 and 2018 amounted to $6.8 million and $3.6 million , respectively, representing the difference between the fair value of the Company's common stock at the date of exercise and the exercise price paid. The fair value of the Company's common stock prior to the IPO was based on the third-party valuations as determined by the Company's Board of Directors. Subsequent to IPO, the Company uses market price at for its common stock as reported on the Nasdaq Global Market. The aggregate intrinsic values of options outstanding, options vested and exercisable, and options vested and expected to vest as of December 31, 2019 represents the difference between the weighted average exercise price and the closing price of the Company’s common stock on the last trading day of the year. Outstanding options and exercisable options information by range of exercise prices as of December 31, 2019 was as follows: Exercise Price Options Outstanding Options Vested and Exercisable Number of Shares Average Weighted- Number of Shares Weighted- $0.84 - $2.11 87,394 1.52 $1.56 87,394 $1.52 $3.24 - $3.98 564,938 4.35 $3.47 564,938 $3.50 $4.32 - $5.94 1,409,650 7.11 $4.63 1,306,033 $4.61 $6.84 - $7.92 39,844 7.96 $7.32 20,298 $7.20 $17.72 - $18.96 154,189 9.37 $17.85 51,110 $17.82 $19.02 - $22.00 462,956 9.05 $21.91 97,008 $21.94 2,718,971 6.83 $8.02 2,126,781 $5.32 The weighted average grant date fair value of all options granted were $9.78 per share and $3.98 per share for the years ended December 31, 2019 and 2018 , respectively. The table below summarizes the assumptions used to estimate the grant date fair value of the stock options granted during the respective periods using the Black-Scholes option-pricing model: Year ended December 31, 2019 2018 Expected term (years) 5.0 to 7.0 5.0 to 7.0 Expected volatility 41.7% to 47.3% 42.0% to 47.0% Risk-free interest rate 1.3% to 2.6% 2.4% to 3.0% Dividend yield —% —% As of December 31, 2019 , there was $5.5 million of unrecognized compensation cost related to stock options granted. These costs are expected to be recognized over a period of approximately 2.6 years. Early Exercise of Unvested Stock Options Early exercises of stock options are subject to a right of repurchase by the Company of any unvested shares. The repurchase rights lapse over the original vesting period of the options. The Company accounts for the cash received in consideration for the early exercised options as a liability included in accrued liabilities, which is then reclassified to stockholders’ equity (deficit) as the options vest. As of December 31, 2019 and 2018 , the Company had a total of 21,404 and 74,019 shares of common stock, respectively, subject to repurchase under the Plan and $0.1 million and $0.3 million , respectively, of associated liabilities for the repurchase. Restricted Stock Units The following table summarizes restricted stock units activity for the years ended December 31, 2019 and 2018 : Number of Weighted- Outstanding as of December 31, 2017 — $— Granted 54,036 $11.79 Canceled and forfeited (600 ) $20.60 Outstanding as of December 31, 2018 53,436 $11.69 Granted 639,726 $20.14 Vested (108,631 ) $19.10 Canceled and forfeited (41,490 ) $18.48 Outstanding as of December 31, 2019 543,041 $19.72 As of December 31, 2019 , there was a total unrecognized compensation cost of $8.6 million . These costs are expected to be recognized over a period of approximately 3.1 years. Employee Stock Purchase Plan Under the Company's 2018 Employee Stock Purchase Plan (the "ESPP") adopted in October 2018, the Company allows eligible employees to purchase shares of the Company's common stock through payroll deductions at the price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six month offering period. There were 515,307 shares of common stock originally reserved for issuance under the ESPP. Under the ESPP, the number of shares reserved for issuance under the ESPP automatically increases on January 1st of each year, starting on January 1, 2019, and continuing through January 1, 2029, by an amount equal to (i) the lesser of 1% of the total number of shares of the Registrant’s common stock outstanding on December 31st of the preceding calendar year, and (ii) 555,555 shares of common stock. On March 22, 2019, the Company filed a Registration Statement on Form S-8 to register 244,507 additional shares of common stock for issuance under the ESPP. As of December 31, 2019 , a total of 591,357 shares of common stock are available for future grants under the 2018 EIP. On January 1, 2020, the total number of shares of common stock reserved for issuance under the ESPP Plan increased by 251,638 shares. As of December 31, 2019 and 2018 , total accumulated ESPP related employee payroll deductions amounted to $0.2 million and $0.4 million , respectively, which were included within accrued compensation and related expenses in the consolidated balance sheets. For the year ended December 31, 2019 and 2018 , the Company recognized $0.8 million and $0.2 million , respectively, of stock-based compensation expense related to ESPP. As of December 31, 2019 , the unrecognized compensation cost for the ESPP was $0.3 million . The Company estimated the fair value of ESPP purchase rights during the offer period using a Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2019 2018 Expected term (years) 0.5 0.5 Expected volatility 38.3% to 58.4% 44.0% Risk-free interest rate 1.6% to 2.4% 2.5% Dividend yield —% —% Stock-Based Compensation The following table sets forth stock-based compensation expense recognized for the periods presented: Year ended December 31, 2019 2018 (in thousands) Cost of goods sold $ 185 $ 34 Sales and marketing 3,335 651 Research and development 516 156 General and administrative 3,428 1,471 $ 7,464 $ 2,312 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a 401(k) plan covering all employees. Contributions made by the Company are discretionary and are determined annually by the Board of Directors. The Company has made no contributions to the 401(k) plan since its inception up to December 31, 2018. Effective January 1, 2019, the Company made a discretionary matching contribution equal to dollar for dollar employee contribution, up to 3% eligible compensation of the employee, with a maximum annual contribution from the Company of one thousand dollars per employee. Further, in order for an employee to receive the matching contribution, the employee must be at least 21 years old, work at least 1,000 hours per year, and must be employed by the Company from January 2, 2019 through December 31, 2019. For the year ended December 31, 2019 , the Company made $0.1 million contributions to the 401(k) plan. |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock The following table summarizes the computation of basic and diluted net loss per share: Year ended December 31, 2019 2018 (in thousands, except share and per share data) Net loss $ (38,403 ) $ (17,453 ) Weighted-average shares used to compute basic and diluted net loss per share 24,705,980 7,950,284 * Net loss per share, basic and diluted $ (1.55 ) $ (2.20 ) * Calculated based on the 1-for-18 reverse stock split effected October 4, 2018. Because the Company has reported a net loss in all periods presented, outstanding stock options, restricted stock units, shares subject to repurchase, ESPP purchase rights and common stock warrants are anti-dilutive and therefore diluted net loss per common share is the same as basic net loss per common share for the periods presented. The following anti-dilutive common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented: Year ended December 31, 2019 2018 Stock options 2,718,971 2,641,198 Restricted stock units 543,041 53,436 Shares subject to repurchase 21,404 74,019 ESPP purchase rights 65,442 89,606 Common stock warrants 118,122 118,122 3,466,980 2,976,381 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the Company’s loss before income taxes are as follows: Year ended December 31, 2019 2018 (in thousands) Domestic $ (37,709 ) $ (16,835 ) Foreign (694 ) (618 ) Loss before income taxes $ (38,403 ) $ (17,453 ) There was no provision for income taxes recorded for the years ended December 31, 2019 and 2018 . The Company continues to maintain a full valuation allowance against its net deferred tax assets due to the uncertainty surrounding realization of such assets. The Company periodically evaluates the realizability of its net deferred tax assets based on the expected realization and is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. On December 22, 2017, the U.S. enacted a law commonly known as the Tax Cuts and Jobs Act (the “Act”) which makes widespread changes to the Internal Revenue Code, including a reduction in the federal corporate tax rate from 35.0% to 21.0%, and move from a worldwide tax system to territorial system. As a result of the enactment of the Act, during the year ended December 31, 2018, the Company recognized a reduction to its deferred tax assets of approximately $15.8 million . The reduction to Company's deferred tax assets did not result in the recognition of provision for income taxes as the Company maintains full valuation allowance on its net deferred tax assets. The components of deferred income taxes are as follows: Year ended December 31, 2019 2018 (in thousands) Federal $ 8,523 $ 3,555 State 1,569 822 Foreign (200 ) 200 Total deferred income taxes 9,892 4,577 Change in deferred tax valuation allowance (9,892 ) (4,577 ) Net deferred income tax $ — $ — Income tax expense differs from the amount computed by applying the statutory federal income tax rate due to the following: Year ended December 31, 2019 2018 Tax at statutory federal rate (21.0 )% (21.0 )% State tax, net of federal benefit (4.1 )% (5.3 )% Tax credits (0.7 )% (0.7 )% Change in deferred tax valuation allowance 25.8 % 26.2 % Other — % 0.8 % Total income tax expense — % — % The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are presented below: Year ended December 31, 2019 2018 (in thousands) Net operating loss carryforwards $ 42,032 $ 35,067 Research and development credits 2,428 2,255 Accruals and reserves 4,222 2,059 Stock compensation 1,512 899 Depreciation and amortization 110 132 Total deferred tax assets 50,304 40,412 Less: Valuation allowance (50,304 ) (40,412 ) Total deferred tax asset, net of valuation allowance $ — $ — The following table summarizes changes in the valuation allowance for the year ended December 31, 2019 and 2018 : Year ended December 31, 2019 2018 (in thousands) Beginning balance $ 40,412 $ 35,835 Additions during the period 9,892 4,577 Ending balance $ 50,304 $ 40,412 As of December 31, 2019 , the Company had net operating loss (“NOL”) carryforwards of approximately $164.4 million and $129.6 million available to reduce future taxable income, if any, for federal and state income tax purposes, respectively. If not utilized, the Company’s federal NOL carryforward begins to expire in 2028 , and the state NOL carryforward begins to expire in 2020 . As of December 31, 2019 , the Company had credit carryforwards of approximately $2.1 million and $2.2 million available to reduce future taxable income, if any, for both federal and state income tax purposes, respectively. The federal credits begin to expire in 2029 , and the state credits have no expiration date. The Tax Reform Act of 1986 limits the use of NOL and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. In general, if the Company experiences a greater than 50% aggregate change in ownership over a three-year period (a Section 382 ownership change), utilization of its pre-change NOL carryforwards are subject to an annual limitation under Section 382 of the Internal Revenue Code (California has similar laws). The annual limitation generally is determined by multiplying the value of the Company’s stock at the time of such ownership change (subject to certain adjustments) by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards before utilization. The Company has not utilized any NOL carryovers through December 31, 2019 . In addition, the Company’s deferred tax assets are subject to full valuation allowance, and thus no benefit for deferred tax assets have been recorded. The Company has determined that it experienced Section 382 ownership changes in 2010 and $1.4 million of its NOL carryforwards are limited. The Company also updated its Section 382 ownership change analysis through June 30, 2019, considering the recent changes in ownership following its IPO in October 2018. Based on the result of the analysis, the Company concluded that it did not undergo ownership change that would require additional limitations on its NOL carryforwards. The Company further concluded that the equity shift between June 30, 2019 to December 31, 2019 was not material, considering the changes in the outstanding number of shares at each respective period. The Company will continually assess the need to update its Section 382 ownership change analysis, as the Company may experience ownership changes in the future that could materially limit its ability to use its NOL carryforwards. The Company accounts for the uncertainty in income taxes by utilizing a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of any uncertain tax positions that have been taken or are expected to be taken on an income tax return. The changes in the Company’s uncertain income tax positions for the years ended December 31, 2019 and 2018 consisted of the following: Year ended December 31, 2019 2018 (in thousands) Balance at beginning of the year $ 1,084 $ 993 Increases related to current year's tax positions 203 91 Balance at end of the year $ 1,287 $ 1,084 The Company has elected to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. The Company has no accrued interest related to unrecognized tax benefits as of December 31, 2019 and 2018 . None of the Company’s unrecognized tax benefits that, if recognized, would affect its effective tax rates for the years ended December 31, 2019 and 2018 . The Company does not anticipate the total amounts of unrecognized tax benefits will significantly increase or decrease in the next 12 months. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state examinations since inception. As a result of the Company’s net operating loss carry forwards, all of its tax years are subject to federal and state tax examinations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Public Offering of Common Stock Pursuant to the Shelf Registration Statement on Form S-3 which was declared effective by the SEC on January 2, 2020 and the Final Prospectus Supplement dated January 22, 2020 , on January 27, 2020 , the Company sold 2,490,053 shares at a follow-on public offering price of $21.50 per share for a net proceeds of $50.3 million to the Company, after deducting the underwriting discounts and commissions but before offering expenses. Upon completion of the offering and issuance of common stock, the Company had 27,708,111 shares of common stock outstanding. The Company also granted the underwriters an option for a period of 30 days from the date of filing the prospectus supplement to purchase up to 645,000 additional shares of the Company's common stock at a public offering price of $21.50 per share. On February 24, 2020, the underwriters fully exercised its option to purchase additional shares of the Company's common stock for an additional net proceeds of $13.0 million to the Company, after deducting the underwriting discounts and commissions. The Company intends to use the net proceeds from this offering to support the continued commercial expansion of its iFuse system, sales and marketing, surgeon training and clinical studies, as well as working capital and general corporate purposes. The Company may also use a portion of the net proceeds to acquire or invest in complementary products, technologies, or businesses; however, the Company currently has no agreements or commitments to complete any such transactions. In addition to the shares sold by the Company in the public offering, on January 27, 2020 , the selling stockholders sold 1,809,947 shares of the Company’s common stock previously held by the selling shareholders at a price to the public of $21.50 per share. The Company did not receive any proceeds from the sales by the selling shareholders. In conjunction with the sales by the selling shareholders, the Company incurred offering costs associated with the selling of shares by the selling shareholders, which will be recognized as transaction costs within general and administrative expenses on consolidated statement of operations in the first quarter of 2020. Settlement Agreement On January 14, 2020, the Company entered into a definitive settlement agreement related to an outstanding legal proceeding. For information regarding this legal proceeding, refer to Legal Proceedings in “Note 6 - Commitments and Contingencies” in the accompanying Notes to Consolidated Financial Statements. Joint Development Agreement with a Related Party On February 24, 2020, the Company entered into a joint development agreement (the "Development Agreement") with SeaSpine Orthopedics Corporation ("SeaSpine") to develop a next generation device for sacropelvic fixation. Mr. Keith Valentine, who serves as the President, Chief Executive Officer and a member of the board of directors of SeaSpine, also serves as a member of the Company's Board of Directors since August 2015. Pursuant to the development Plan, SeaSpine shall use reasonable efforts to assist in the develop of the potential product offering, including licensing certain existing intellectual property to be incorporated into such product. Under the terms of the Development Agreement, the Company agreed to make monthly payments of approximately $10,000 to SeaSpine to reimburse for full time resources employed by SeaSpine responsible to conduct the development activities. Certain intellectual property developed pursuant to the project plan will be owned by the Company, certain intellectual property developed pursuant to the project plan will be owned by SeaSpine, and other intellectual property developed pursuant to the project plan will be jointly owned by SeaSpine and the Company. The Company also agreed to provide SeaSpine a royalty-free, worldwide, perpetual, non-exclusive license of certain of the Company's intellectual property incorporated into the product to be developed. The Company also agreed to pay SeaSpine a product royalty, in an amount specified in the Development Agreement, for each resulting product sold for a period of 10 years beginning on the initial market launch. The term of the Development Agreement shall continue until the expiration of all royalty terms, unless earlier terminated by either parties, in situations defined in the Development Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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”). |
Principles of Consolidation | The consolidated financial statements include the Company's accounts, as well as those of the Company's wholly-owned international subsidiaries. All inter-company accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates and management judgments reflected in the consolidated financial statements include: fair value of assets and liabilities; analysis of the allowance for doubtful accounts; inventory valuation; valuation of deferred tax assets, including related valuation allowances; fair value of common stock and redeemable convertible preferred stock warrants; stock-based compensation; and useful lives of long-lived assets. Estimates are based on historical experience, where applicable and other assumptions believed to be reasonable by the management. Actual results could differ from those estimates. |
Segments | Segments Operating segments are based on components of the Company that engage in business activities that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by the Company’s chief operating decision maker ("CODM"), to make decisions about resource allocation and performance and (b) for which discrete financial information is available. The CODM for the Company are the Chief Executive Officer ("CEO") and Chief Operating Officer & Chief Financial Officer ("COO/CFO"). The CEO and the COO/CFO review financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure. |
Foreign Currency | Foreign Currency The Company’s foreign subsidiaries use local currency as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenue, costs and expenses are translated into U.S. dollars using average exchange rates for the period. Gains and losses from foreign currency translation are recorded as a component of accumulated other comprehensive income (loss). Gains and losses from foreign currency transactions are recognized as a component of other income (expense), net. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and marketable securities. The Company’s cash and marketable securities are deposited with financial institutions in the U.S. and in Europe. The majority of the Company’s cash and marketable securities are deposited with a single financial institution in the U.S. Deposits in this institution exceed the amount of insurance provided on such deposits. The Company has not experienced any net losses on its deposits of cash and marketable securities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due to their relatively short maturities and market interest rates, if applicable. The Company's marketable securities are classified as Level 1 or Level 2 of the fair value hierarchy as defined below. The carrying value of the Company’s long-term debt also approximates fair value based on management’s estimation that a current interest rate would not differ materially from the stated rate. The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices (unadjusted) in active market that are accessible at measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and considers factors specific to the asset or liability. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at the date of purchase of three months or less to be cash equivalents. |
Marketable Securities | Marketable Securities The Company's marketable securities primarily consist of investments in money market funds, U.S. treasury securities, corporate bonds and commercial paper. All of the Company's marketable securities are available-for-sale and are classified based on their maturities. Marketable securities with remaining maturities at the date of purchase of three months or less are classified as cash equivalents. Short term investments are securities that original or remaining maturity is greater than three months and not more than twelve months. Long-term investments are securities that original or remaining maturity is more than twelve months. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss) ("OCI") on the consolidated balance sheets. The Company evaluates its investments to assess whether those in unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other-than-temporary if they are related to deterioration in credit risk or if it is likely the Company will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net on the consolidated statements of operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers broad factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventory | Inventory Inventory is stated at lower of cost or net realizable value. The Company establishes the inventory basis by determining the cost based on standard costs approximating the purchase costs on a first-in, first-out basis. The excess and obsolete inventory is estimated based on future demand and market conditions. Inventory write-downs are charged to cost of goods sold. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. All property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, which are as follows: Computer and office equipment 3 – 5 years Machinery and equipment 3 – 5 years Furniture and fixtures 7 years Leasehold improvements are amortized over the lesser of their useful lives or the life of the lease. Upon sale or retirement of the assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is recognized in the consolidated statement of operations. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be fully recoverable. Whenever events or changes in circumstances suggest that the carrying amount of long-lived assets may not be recoverable, the Company estimates the future cash flows expected to be generated by the assets (or asset group) from its use or eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Significant management judgment is required in the grouping of long-lived assets and forecasts of future operating results that are used in the discounted cash flow method of valuation. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived from the sale of its products to medical groups and hospitals through its direct sales force and distributors throughout the U.S. and Europe. Through the year ended December 31, 2018, in accordance with ASC Topic 605, Revenue Recognition ("ASC 605"), the Company recognized revenue when persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. As a result of the adoption of the new revenue standard in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") effective for the fiscal year ended December 31, 2019, the Company now recognizes the revenue when control is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. There had been no material differences in the Company’s revenue recognition accounted for under ASC 605 and ASC 606. As it relates to product sales where the Company's sales representative delivers the product at the point of implantation at the hospital or medical facilities, the Company continues to recognize the revenue upon completion of the procedure and authorization by the customer, net of rebates and price discounts. This represents the majority of the Company's consolidated revenue. The Company also generates a small portion of revenue from the sale of products through distributors and to certain hospital or medical facilities where the products are ordered in advance of a procedure. The performance obligation is the delivery of the products and therefore, revenue is recognized upon shipment to the customers, net of rebates and price discounts. The Company accounts for rebates and price discounts as reduction to revenue, calculated based on the terms agreed to with the customer. Historically, there had been no significant price discounts. Sales prices are specified in either the customer contract, agreed price list, or purchase order, which is executed prior to the transfer of control to the customer. For certain hospitals and medical facilities, the Company has agreements in place consists of either a master services agreement or an approved price list, which defines the terms and conditions of the arrangement, including the pricing information, payment terms and pertinent aspects of the relationship between the parties. The Company also has agreements in place with its distributors, which include standard terms that do not allow for payment contingent on resale of the product, obtaining financing, or other terms that could impact the distributor’s payment obligation. The Company's standard payment terms are generally net 30 to 90 days. Shipping and Handling Costs Shipping and handling costs are treated as fulfillment costs, which are expensed as incurred and are included in cost of goods sold. Costs to Obtain Customer Contracts Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. The Company’s sales commissions paid to its sales representatives is generally based on the surgeries performed. The Company applied the practical expedient that permits an entity to expense the cost to obtain a contract as incurred when the expected amortization is one year or less. The period of benefit is concurrent with when the Company recognizes its revenue and as such, the Company recognizes sales commission as expense when incurred. |
Warranty Program | Warranty The Company has a warranty program that provides a purchaser a one-time replacement of any iFuse implant at no additional cost for a revision procedure within a one -year period following the original procedure and is accounted for as a warranty accrual. The Company also provides a purchaser with a one-time credit equal to the purchase price paid for use on future purchases for any revision procedure within the one -year period following an original procedure where an implant is not required. The warranty is not priced or sold separately and is intended to safeguard the customer against defects and it does not provide incremental service to the customer. As such, it is considered an assurance type warranty and is not accounted as a service type warranty, which could represent a separate performance obligation. The Company accounts for these one-time credits as sales reserves and is included in accrued liabilities and other in the consolidated balance sheets. |
Medical Device Excise Tax | Medical Device Excise Tax In accordance with the Patient Protection and Affordable Care Act, effective January 1, 2013, the Company began to incur an excise tax on sales of medical devices in the U.S. The Company recorded the medical device excise tax within the cost of goods sold in the consolidated statements of operations and comprehensive loss when incurred. Effective January 1, 2016, the Consolidated Appropriations Act of 2016, which was signed into law in December 2015, included a two-year suspension on the medical device excise tax. In January 2018, the suspension on the tax on medical devices was further extended through January 1, 2020. |
Research and Development | Research and Development Research and development costs are charged to operations as incurred and consist of costs incurred by the Company for the development of the Company’s product which primarily include (1) employee-related expenses, including salaries, benefits, travel and non-cash stock-based compensation expense (2) external research and development expenses (3) other expenses, which include direct and allocated expenses for facilities and other costs. |
Advertising Expenditures | Advertising Expenditures The cost of advertising is expensed as incurred and is included under sales and marketing expense in the consolidated statements of operations. |
Loss Contingency | Loss Contingency The Company is subject to various potential loss contingencies arising in the ordinary course of business. From time to time, the Company may be involved in certain proceedings, legal actions, and claims. Such matters are subject to many uncertainties, and the outcomes of these matters are not within the Company's control and may not be known for prolonged periods of time. In some actions, the claimants may seek damages, as well as other relief, including injunctions which may prohibit the Company to engage in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues. The Company records a liability in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provisions of stock-based compensation. Stock-based compensation expense is recognized over the requisite service period using the straight-line method and is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period that the estimates are revised. The Company estimates the grant date fair value of stock options using the Black-Scholes option valuation model. The model requires management to make a number of assumptions including expected volatility, expected term, risk-free interest rate and expected dividends. A number of these assumptions are subjective, and their determination generally require judgment. • Expected Term - The expected term represents the period that the share-based awards are expected to be outstanding. The Company uses the simplified method to determine the expected term as permitted by the guidance since the Company has no sufficient historical exercise patterns to estimate the expected life. The simplified method is calculated as the average of the time to vesting and the contractual life of the options. • Expected Volatility - Since the Company became public in October 2018 and has no sufficient trading history, the Company uses stock price volatility using the average historical volatilities of publicly traded companies within its industry that the Company considers to be comparable to its business over a period approximately equal to the expected term for its stock options. • Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury zero coupon issued in effect at the time of grant for periods corresponding with the expected term of the option. • Dividend Yield - The Company has not paid any dividends and has no current plans to pay dividends on its common stock. As such, the Company uses expected dividend yield of zero. The fair value of the restricted stock unit ("RSU") grant is based on the market price of the Company’s common stock on the date of grant. Prior to IPO, the fair value of the shares of the Company's common stock has historically been determined by its Board of Directors since there were no public market information available for the Company's common stock. The estimated fair value of the Company's common stock was determined at each valuation date in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation . The Company's Board of Directors, with the assistance of management and independent third-party valuations, developed these valuations and took into account numerous factors, including developments of the Company, market conditions, and contemporaneous independent third-party valuations. In valuing the Company's common stock, the fair value of its business, or enterprise value, was determined using both the income approach and market approach. The income approach estimates value based on the expectation of future cash flows. The market approach estimates value based on a comparison of the subject company to comparable public companies in a similar line of business. The assumptions used in determining the fair value of the Company's common stock involved management's best estimates and judgments at the time the valuation was performed. Subsequent to its IPO, the Company uses the market closing price for its common stock as reported on the Nasdaq Global Market on the date of grant. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The Company believes that the estimated fair value of the stock options is more readily measurable than the fair value of the services received. Stock-based compensation related to stock options granted to non-employees is recognized as the stock options are earned. In the event the underlying terms of stock options are modified on which stock-based compensation was granted, additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement at the modification date. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company recognizes uncertain tax positions when it meets a more-likely-than-not threshold. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as income tax expense. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock The Company calculates basic and diluted net loss per common share attributable to shareholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of redeemable convertible preferred stock and early exercised stock options to be participating securities as the holders are entitled to receive dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stock is not allocated to the redeemable convertible preferred stock and early exercised stock options as the holders of redeemable convertible preferred stock and early exercised stock options do not have a contractual obligation to share in losses. Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, redeemable convertible preferred stock and common stock options and warrants are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, redeemable convertible preferred stock and common stock options and warrants are anti-dilutive and therefore diluted net loss per common share is the same as basic net loss per common share for those periods. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss represents all changes in the stockholders’ equity (deficit) except those resulting from distributions to stockholders. The Company’s unrealized foreign currency translation income (losses) and unrealized gains (losses) on marketable securities represent the two components of other comprehensive income that are excluded from the reported net loss for each of the reporting periods and has been presented in the consolidated statements of operations and comprehensive loss. |
Public Offering Costs | Public Offering Costs Specific incremental costs (i.e. consisting of legal, accounting and other fees and costs) directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. In the event a planned offering of securities does not occur or is significantly delayed, all of the costs will be expensed. Upon completion of the IPO on October 16, 2018, the previously deferred and capitalized public offering costs incurred which were recorded within prepaid expenses and other current assets were charged against the gross proceeds of the offering. No public offering cost was deferred as of December 31, 2018 . On November 13, 2019, the Company filed a Shelf Registration Statement on Form S-3 with the SEC that was declared effective by the SEC on November 25, 2019, registering a proposed maximum aggregate primary offering of $200.0 million of unspecified number of shares of common stock; shares of preferred stock; debt securities; or warrants to purchase shares of common stock that the Company may offer in one or more offerings on terms to be determined at the time of sale (the "Prior Registration Statement"). On December 27, 2019, the Company filed a Shelf Registration Statement on Form S-3 with the SEC that was declared effective by the SEC on January 2, 2020, registering the unsold maximum aggregate primary offering under the Prior Registration Statement and additional 2,000,000 shares of the Company's common stock held by the selling stockholders to be named in a prospectus supplement, that may, from time to time, offer or sell in a secondary offering. The incremental costs incurred directly attributable to the shelf filing of $0.1 million were deferred within prepaid expenses and other current assets as of December 31, 2019 . |
Warrants | Warrants The Company accounts for warrants for shares of common stock as equity in accordance with the accounting guidance for derivatives. The accounting guidance provides a scope exception from classifying and measuring as a financial liability a contract that would otherwise meet the definition of a derivative if the contract is both (i) indexed to the entity’s own stock and (ii) classified in the stockholders’ deficit section of the consolidated balance sheet. The Company determined that the warrants for shares of common stock issued in connection with its prior debt arrangements are required to be classified in equity. Warrants classified as equity are recorded as additional paid-in capital on the consolidated balance sheet and no further adjustments to their valuation are made. In connection with the IPO, all of the Company's redeemable convertible preferred stock warrants were automatically converted into common stock warrants. The redeemable convertible preferred stock warrants were classified as liabilities on the consolidated balance sheet at their estimated fair value because the shares underlying the warrants required the Company to transfer assets to the holders at a future date. The redeemable convertible preferred stock warrants were measured at fair value and were subjected to re-measurement at each balance sheet date. The change in fair value were recognized in other income (expense), net on the consolidated statements of operations. The Company estimated the fair value of these liabilities using option pricing models and assumptions that were based on the individual characteristics of the warrants on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. |
Recent Accounting Pronouncements | Adoption of New Revenue Recognition Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard is effective for fiscal years beginning after December 15, 2017 for public companies, and for fiscal years beginning after December 15, 2018, and interim periods beginning after December 15, 2019, for private companies. Early application is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, which relates to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In November 2018, the FASB issued ASU 2018-18 , which clarifies when transactions between participants in a collaborative arrangement are within the scope of the FASB’s new revenue standard. The Company adopted this standard using the modified retrospective method effective for the year ended December 31, 2019.This approach was applied to all contracts that were not completed as of January 1, 2019. As an emerging growth company that elected to take advantage of the JOBS Act accounting election, the Company was not required to adopt the new revenue standard in the interim reporting periods on the year of adoption and is not required, and intends not, to revise its 2019 interim periods which were reported under ASC 605. The adoption of the new revenue standard did not result to a material impact on the Company’s consolidated financial statements and no adjustment was made to the opening balance of accumulated deficit at January 1, 2019. The comparative 2018 period has not been adjusted and continued to be reported under ASC 605. ASC 606's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As it relates to product sales where the Company's sales representative delivers the product at the point of implantation at hospital or medical facilities, which represents majority of the Company's revenue, the Company continues to recognize the revenue upon completion of the procedure and authorization by the customer, net of rebates and price discounts. As it relates to sale of products through distributors and hospitals where product is ordered in advance of the procedure, the Company expects to continue to recognize the revenue upon shipments to the customers, net of rebates and price discounts. Additionally, the new standard requires the capitalization of costs to obtain a contract, primarily sales commissions, and amortization of these costs over the contract period or estimated customer life. The Company’s sales commissions paid to its sales representatives is generally based on the surgeries performed. The Company applied the practical expedient that permits an entity to expense the cost to obtain a contract as incurred when the expected amortization is one year or less. As such, the Company recognize sales commission as expense when incurred. The Company disaggregates revenues from contracts with customers into geographical regions. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. For information revenue by geography, refer to Segments in “Note 2 - Summary of Significant Accounting Policies" in the accompanying Notes to Consolidated Financial Statements. Other Recently Adopted Accounting Standards In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. This update clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This update is effective upon issuance. The Company does not expect the disclosure and presentation amendments included in this update, which are to be applied prospectively, to have a material impact on its consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220). This update provides companies with the option to reclassify stranded tax effects caused by the 2017 Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This standard is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company has adopted this standard effective January 1, 2019, and the adoption did not have any material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which provides guidance on the following eight specific cash flow classification issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. This update is effective for reporting periods beginning after December 15, 2017 for public companies, and fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019 for private companies, with early adoption permitted. The Company has adopted this standard effective January 1, 2019, and the adoption did not have any material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires that lessee's recognize a right-of-use asset and a lease liability for all leases with lease terms greater than twelve months in the balance sheet. A lease liability is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset is an asset that represents the lessee’s right to use, or control use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the adoption date. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11, which provides clarification on the narrow aspects of the guidance and provide an additional transition method to adopt the new leases standard. The new transition method allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In March 2019, the FASB issued ASU 2019-01, which provides clarification on implementation issues associated with adopting ASU 2016-02. The new leases standard must be adopted using a modified retrospective transition method and allows for the application of the new guidance at the beginning of the earliest comparative period presented or at the adoption date. In November 2019, the FASB issued ASU 2019-10, which revised the mandatory effective dates of the new lease standard. For public companies, the new guidance remained effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the new guidance is now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Early adoption is still permitted for any interim or annual financial statements not yet issued. As an emerging growth company, the new lease standard is now effective for the Company for the fiscal year ending December 31, 2021 and interim periods within fiscal year ending December 31, 2022. The Company is currently evaluating the impact of this standard on its consolidated financial statements including the timing of its adoption. The Company anticipates electing several practical expedients that permit the Company not to reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. The Company expects that the adoption of this new standard will have a material impact on its balance sheet. The most significant impact would be the recognition of operating lease right-of-use assets and liability. The standard is not expected to have a material impact to the Company's consolidated statements of income and cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. FASB issued ASU 2019-05 in May 2019 and ASU 2019-08 in November 2019 for codification improvements of Topic 326. The new standard revises the accounting requirements related to the measurement of credit losses and will require organizations to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable and supportable forecasts about collectability. Assets must be presented in the financial statements at the net amount expected to be collected. In November 2019, the FASB issued ASU 2019-10, which defers the effective date of ASU 2016-13 for public companies that are eligible to be smaller reporting companies and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The Company is currently evaluating the impact of this standard on its consolidated financial statements, but do not expect the standard will have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting. ASU 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation, to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. ASU 2018-07 supersedes Subtopic 505-50, Equity-Equity-Based Payments to Non-Employees. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of ASC 606. The Company is currently evaluating the impact that the adoption of this standard will have on the consolidated financial statements and anticipates adopting the standard for the fiscal year ending December 31, 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements, which eliminates, adds or modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year, with early adoption permitted to adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company is currently evaluating the impact that the adoption of this standard will have on the consolidated financial statements and anticipates adopting the standard for the fiscal year ending December 31, 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Geography | Following table summarizes the Company's revenue by geography: Year ended December 31, 2019 2018 (in thousands) United States $ 61,843 $ 50,137 International 5,458 5,243 $ 67,301 $ 55,380 |
Schedule of Property and Equipment Useful Lives | All property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, which are as follows: Computer and office equipment 3 – 5 years Machinery and equipment 3 – 5 years Furniture and fixtures 7 years Property and Equipment, net : December 31, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 4,613 $ 3,785 Construction in progress 1,854 730 Computer and office equipment 598 407 Leasehold improvements 497 448 Furniture and fixtures 187 148 7,749 5,518 Less: Accumulated depreciation and amortization (3,795 ) (3,364 ) $ 3,954 $ 2,154 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The table below summarizes the marketable securities: December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 3,068 $ — $ — $ 3,068 Commercial paper 2,495 — — 2,495 Cash equivalents 5,563 — — 5,563 U.S. treasury securities 67,051 34 (2 ) 67,083 Corporate bonds 9,075 24 (2 ) 9,097 Commercial paper 5,165 — — 5,165 Short-term investments 81,291 58 (4 ) 81,345 Corporate bonds 1,278 — — 1,278 Long-term investments 1,278 — — 1,278 Total marketable securities $ 88,132 $ 58 $ (4 ) $ 88,186 The long-term investments outstanding as of December 31, 2019 mature in April 2021. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 15,223 $ — $ — $ 15,223 U.S. treasury securities 1,000 — — 1,000 Commercial paper 6,635 — — 6,635 Cash equivalents 22,858 — — 22,858 U.S. treasury securities 65,491 2 (4 ) 65,489 Corporate bonds 19,708 15 (3 ) 19,720 Commercial paper 11,894 — — 11,894 Short-term investments 97,093 17 (7 ) 97,103 Total marketable securities $ 119,951 $ 17 $ (7 ) $ 119,961 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below summarizes the fair value of the Company’s marketable securities measured at fair value on a recurring basis based on the three-tier fair value hierarchy: December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 3,068 $ — $ — $ 3,068 U.S. treasury securities 67,083 — — 67,083 Corporate bonds — 10,375 — 10,375 Commercial paper — 7,660 — 7,660 Total marketable securities $ 70,151 $ 18,035 $ — $ 88,186 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 15,223 $ — $ — $ 15,223 U.S. treasury securities 66,489 — — 66,489 Corporate bonds — 19,720 — 19,720 Commercial paper — 18,529 — 18,529 Total marketable securities $ 81,712 $ 38,249 $ — $ 119,961 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment, Net | All property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, which are as follows: Computer and office equipment 3 – 5 years Machinery and equipment 3 – 5 years Furniture and fixtures 7 years Property and Equipment, net : December 31, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 4,613 $ 3,785 Construction in progress 1,854 730 Computer and office equipment 598 407 Leasehold improvements 497 448 Furniture and fixtures 187 148 7,749 5,518 Less: Accumulated depreciation and amortization (3,795 ) (3,364 ) $ 3,954 $ 2,154 |
Schedule of Accrued Liabilities and Other | Accrued Liabilities and Other : December 31, 2019 December 31, 2018 (in thousands) Accrued compensation and related expenses $ 7,274 $ 5,425 Accrued litigation expense 3,200 — Accrued professional services 392 583 Sales tax payable 370 388 Liability for early exercise of unvested stock options 97 331 Others 272 133 $ 11,605 $ 6,860 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Aggregate Future Minimum Lease Payments | The aggregate future minimum lease payments under all leases as of December 31, 2019 are as follows: Year Ending December 31, (in thousands) 2020 $ 1,102 2021 1,003 2022 929 2023 860 2024 869 Thereafter 365 $ 5,128 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table summarizes the outstanding borrowings from the term loan as of the periods presented: December 31, 2019 December 31, 2018 (in thousands) Principal outstanding $ 40,000 $ 40,000 Less: unamortized debt issuance costs (777 ) (1,037 ) Outstanding debt, net of debt issuance costs $ 39,223 $ 38,963 Classified as: Current portion of long-term borrowings $ 4,358 $ — Long-term borrowings $ 34,865 $ 38,963 |
Schedule of Annual Future Minimum Principal Payments Under Loan Agreements | Year ending December 31, (in thousands) 2020 $ 4,444 2021 17,778 2022 17,778 Total minimum principal payments $ 40,000 |
Schedule of Debt Covenant EBITDA Targets | The remaining minimum net sales and trailing 12-month consolidated EBITDA targets are as follows: Twelve Months Ending Minimum Net Sales Trailing 12-Month Consolidated EBITDA (in thousands) March 31, 2020 $57,500 or $1,000 June 30, 2020 $58,500 or $2,000 thereafter, as applicable $60,000 or $3,000 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Warrants Issued and Outstanding | The table below summarizes common stock warrants issued and outstanding at both December 31, 2019 and 2018 : Date Number of Price per Fair Value (in thousands) Issuance Expiration 3/1/2017 3/1/2027 [a] 1,388 $5.94 $ 5 [b] 7/22/2013 7/22/2023 [a] 32,983 $9.10 122 [b] 11/26/2014 11/26/2024 [a] 6,680 $16.47 49 [b] 10/20/2015 10/20/2025 [a] 41,650 $16.47 396 [c] 11/9/2015 11/9/2025 [a] 25,709 $16.47 244 [c] 12/22/2016 12/22/2026 [a] 9,712 $10.03 45 [c] 118,122 $ 861 [a] Common stock warrants will remain outstanding until the earlier of the expiration date or the date exercised by the holder. [b] Fair value at the date of issuance. [c] Fair value at the date of conversion from redeemable convertible preferred stock to common stock warrants in conjunction with the IPO on October 16, 2018. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2019 and 2018 : Options Outstanding Number of Shares Weighted-Average Exercise Price Weighted-Average Contractual Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 3,001,929 $4.15 Granted 100,080 $8.88 Exercised (395,117 ) $4.08 Canceled and forfeited (65,694 ) $4.81 Outstanding as of December 31, 2018 2,641,198 $4.27 Granted 638,983 $20.89 Exercised (444,924 ) $3.36 Canceled and forfeited (116,286 ) $11.30 Outstanding as of December 31, 2019 2,718,971 $8.02 6.83 $ 36,872 Options vested and exercisable as of December 31, 2019 2,126,781 $5.32 6.27 $ 34,463 Options vested and expected to vest as of December 31, 2019 2,652,883 $7.80 6.76 $ 36,540 |
Schedule of Options by Range of Exercise Price | Outstanding options and exercisable options information by range of exercise prices as of December 31, 2019 was as follows: Exercise Price Options Outstanding Options Vested and Exercisable Number of Shares Average Weighted- Number of Shares Weighted- $0.84 - $2.11 87,394 1.52 $1.56 87,394 $1.52 $3.24 - $3.98 564,938 4.35 $3.47 564,938 $3.50 $4.32 - $5.94 1,409,650 7.11 $4.63 1,306,033 $4.61 $6.84 - $7.92 39,844 7.96 $7.32 20,298 $7.20 $17.72 - $18.96 154,189 9.37 $17.85 51,110 $17.82 $19.02 - $22.00 462,956 9.05 $21.91 97,008 $21.94 2,718,971 6.83 $8.02 2,126,781 $5.32 |
Schedule of Valuation Assumptions Related to Stock Option Awards | The table below summarizes the assumptions used to estimate the grant date fair value of the stock options granted during the respective periods using the Black-Scholes option-pricing model: Year ended December 31, 2019 2018 Expected term (years) 5.0 to 7.0 5.0 to 7.0 Expected volatility 41.7% to 47.3% 42.0% to 47.0% Risk-free interest rate 1.3% to 2.6% 2.4% to 3.0% Dividend yield —% —% |
Schedule of Restricted Stock Unit Activity | The following table summarizes restricted stock units activity for the years ended December 31, 2019 and 2018 : Number of Weighted- Outstanding as of December 31, 2017 — $— Granted 54,036 $11.79 Canceled and forfeited (600 ) $20.60 Outstanding as of December 31, 2018 53,436 $11.69 Granted 639,726 $20.14 Vested (108,631 ) $19.10 Canceled and forfeited (41,490 ) $18.48 Outstanding as of December 31, 2019 543,041 $19.72 |
Schedule of Valuation Assumptions Related to ESPP Purchase Rights | The Company estimated the fair value of ESPP purchase rights during the offer period using a Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2019 2018 Expected term (years) 0.5 0.5 Expected volatility 38.3% to 58.4% 44.0% Risk-free interest rate 1.6% to 2.4% 2.5% Dividend yield —% —% |
Schedule of Stock-Based Compensation Expense | Stock-Based Compensation The following table sets forth stock-based compensation expense recognized for the periods presented: Year ended December 31, 2019 2018 (in thousands) Cost of goods sold $ 185 $ 34 Sales and marketing 3,335 651 Research and development 516 156 General and administrative 3,428 1,471 $ 7,464 $ 2,312 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | The following table summarizes the computation of basic and diluted net loss per share: Year ended December 31, 2019 2018 (in thousands, except share and per share data) Net loss $ (38,403 ) $ (17,453 ) Weighted-average shares used to compute basic and diluted net loss per share 24,705,980 7,950,284 * Net loss per share, basic and diluted $ (1.55 ) $ (2.20 ) * Calculated based on the 1-for-18 reverse stock split effected October 4, 2018. |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss per Share | Year ended December 31, 2019 2018 Stock options 2,718,971 2,641,198 Restricted stock units 543,041 53,436 Shares subject to repurchase 21,404 74,019 ESPP purchase rights 65,442 89,606 Common stock warrants 118,122 118,122 3,466,980 2,976,381 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss Before Income Taxes | The components of the Company’s loss before income taxes are as follows: Year ended December 31, 2019 2018 (in thousands) Domestic $ (37,709 ) $ (16,835 ) Foreign (694 ) (618 ) Loss before income taxes $ (38,403 ) $ (17,453 ) |
Schedule of Components of Income Tax Expense | The components of deferred income taxes are as follows: Year ended December 31, 2019 2018 (in thousands) Federal $ 8,523 $ 3,555 State 1,569 822 Foreign (200 ) 200 Total deferred income taxes 9,892 4,577 Change in deferred tax valuation allowance (9,892 ) (4,577 ) Net deferred income tax $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amount computed by applying the statutory federal income tax rate due to the following: Year ended December 31, 2019 2018 Tax at statutory federal rate (21.0 )% (21.0 )% State tax, net of federal benefit (4.1 )% (5.3 )% Tax credits (0.7 )% (0.7 )% Change in deferred tax valuation allowance 25.8 % 26.2 % Other — % 0.8 % Total income tax expense — % — % |
Schedule of Deferred Tax Assets | The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are presented below: Year ended December 31, 2019 2018 (in thousands) Net operating loss carryforwards $ 42,032 $ 35,067 Research and development credits 2,428 2,255 Accruals and reserves 4,222 2,059 Stock compensation 1,512 899 Depreciation and amortization 110 132 Total deferred tax assets 50,304 40,412 Less: Valuation allowance (50,304 ) (40,412 ) Total deferred tax asset, net of valuation allowance $ — $ — |
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance for the year ended December 31, 2019 and 2018 : Year ended December 31, 2019 2018 (in thousands) Beginning balance $ 40,412 $ 35,835 Additions during the period 9,892 4,577 Ending balance $ 50,304 $ 40,412 |
Schedule of Uncertain Income Tax Positions | The changes in the Company’s uncertain income tax positions for the years ended December 31, 2019 and 2018 consisted of the following: Year ended December 31, 2019 2018 (in thousands) Balance at beginning of the year $ 1,084 $ 993 Increases related to current year's tax positions 203 91 Balance at end of the year $ 1,287 $ 1,084 |
The Company and Nature of Bus_2
The Company and Nature of Business (Details) $ / shares in Units, $ in Millions | Oct. 16, 2018USD ($)$ / sharesshares | Oct. 04, 2018 | Dec. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||
Reverse stock split ratio | 0.0556 | 0.0556 | |
Common stock issued upon conversion of redeemable convertible preferred stock (in shares) | 12,066,654 | ||
Adjustments to additional paid-in capital related to warrants | $ | $ 1.2 | ||
IPO | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares issued in IPO (in shares) | 8,280,000 | ||
IPO share price (in dollars per share) | $ / shares | $ 15 | ||
Net proceeds from IPO | $ | $ 113.4 | ||
Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Warrants to purchase shares of stock (in shares) | 160,657 | ||
Preferred Stock Warrants | Redeemable Convertible Preferred Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of warrants converted (in shares) | 156,550 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Segments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 1 | |
Number of operating segments | segment | 1 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 67,301 | |
Revenue | $ 55,380 | |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 61,843 | |
Revenue | 50,137 | |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,458 | |
Revenue | $ 5,243 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Liquidity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Cash and marketable securities | $ 93,100 | $ 122,200 |
Accumulated deficit | 195,580 | 157,177 |
Net loss | (38,403) | $ (17,453) |
Debt covenant minimum cash balance | $ 5,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Computer and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Computer and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Impairment losses on long-lived assets | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Standard payment terms per agreements (in days) | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Standard payment terms per agreements (in days) | 90 days |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Warranty Program (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Warranty term (in years) | 1 year |
Sales credit reserve term (in years) | 1 year |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Advertising Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Advertising expenses | $ 0.4 | $ 0.7 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Public Offering Costs (Details) - USD ($) | Dec. 31, 2019 | Dec. 27, 2019 | Nov. 13, 2019 |
Accounting Policies [Abstract] | |||
Maximum aggregate primary offering of unspecified number of common shares, preferred shares, debt securities, or warrants | $ 200,000,000 | ||
Shares held by selling stockholders registered for offer in secondary offerings | 2,000,000 | ||
Offering costs capitalized | $ 100,000 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash equivalents | ||
Carrying Value | $ 5,563 | $ 22,858 |
Short-term investments | ||
Amortized Cost | 81,291 | 97,093 |
Unrealized Gains | 58 | 17 |
Unrealized Losses | (4) | (7) |
Aggregate Fair Value | 81,345 | 97,103 |
Long-term investments | ||
Amortized Cost | 1,278 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 1,278 | 0 |
Total marketable securities, Amortized Cost | 88,132 | 119,951 |
Total marketable securities, Unrealized Gains | 58 | 17 |
Total marketable securities, Unrealized Losses | (4) | (7) |
Total marketable securities, Aggregate Fair Value | 88,186 | 119,961 |
Money market funds | ||
Cash equivalents | ||
Carrying Value | 3,068 | 15,223 |
U.S. treasury securities | ||
Cash equivalents | ||
Carrying Value | 1,000 | |
Short-term investments | ||
Amortized Cost | 67,051 | 65,491 |
Unrealized Gains | 34 | 2 |
Unrealized Losses | (2) | (4) |
Aggregate Fair Value | 67,083 | 65,489 |
Corporate bonds | ||
Short-term investments | ||
Amortized Cost | 9,075 | 19,708 |
Unrealized Gains | 24 | 15 |
Unrealized Losses | (2) | (3) |
Aggregate Fair Value | 9,097 | 19,720 |
Long-term investments | ||
Amortized Cost | 1,278 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 1,278 | |
Commercial paper | ||
Cash equivalents | ||
Carrying Value | 2,495 | 6,635 |
Short-term investments | ||
Amortized Cost | 5,165 | 11,894 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | $ 5,165 | $ 11,894 |
Fair Value Measurement - Market
Fair Value Measurement - Marketable Securities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable securities | ||
Marketable securities | $ 88,186 | $ 119,961 |
Money market funds | ||
Marketable securities | ||
Marketable securities | 3,068 | 15,223 |
U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 67,083 | 66,489 |
Corporate bonds | ||
Marketable securities | ||
Marketable securities | 10,375 | 19,720 |
Commercial paper | ||
Marketable securities | ||
Marketable securities | 7,660 | 18,529 |
Level 1 | ||
Marketable securities | ||
Marketable securities | 70,151 | 81,712 |
Level 1 | Money market funds | ||
Marketable securities | ||
Marketable securities | 3,068 | 15,223 |
Level 1 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 67,083 | 66,489 |
Level 1 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 1 | Commercial paper | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Marketable securities | ||
Marketable securities | 18,035 | 38,249 |
Level 2 | Money market funds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 10,375 | 19,720 |
Level 2 | Commercial paper | ||
Marketable securities | ||
Marketable securities | 7,660 | 18,529 |
Level 3 | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Money market funds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Commercial paper | ||
Marketable securities | ||
Marketable securities | $ 0 | $ 0 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment, Net | ||
Property and equipment, gross | $ 7,749 | $ 5,518 |
Less: Accumulated depreciation and amortization | (3,795) | (3,364) |
Property and equipment, net | 3,954 | 2,154 |
Depreciation expense | 800 | 700 |
Machinery and equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 4,613 | 3,785 |
Construction in progress | ||
Property and Equipment, Net | ||
Property and equipment, gross | 1,854 | 730 |
Computer and office equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 598 | 407 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Property and equipment, gross | 497 | 448 |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 187 | $ 148 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities and Other | ||
Accrued compensation and related expenses | $ 7,274 | $ 5,425 |
Accrued litigation expense | 3,200 | 0 |
Accrued professional services | 392 | 583 |
Sales tax payable | 370 | 388 |
Sales tax payable | 97 | 331 |
Others | 272 | 133 |
Accrued liabilities and other | $ 11,605 | $ 6,860 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Feb. 06, 2019USD ($) | Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 1,200,000 | $ 1,200,000 | |
Purchase commitments related to inventory | 400,000 | 200,000 | |
Accrued litigation expense | 3,200,000 | $ 0 | |
Statutory damages sought per violation of TCPA | Class action Eric B. Fromer Chiropractic Inc. | |||
Operating Leased Assets [Line Items] | |||
Damages sought | $ 500 | ||
Treble damages sought per violation of TCPA | Class action Eric B. Fromer Chiropractic Inc. | |||
Operating Leased Assets [Line Items] | |||
Damages sought | $ 1,500 | ||
Indemnification Agreement | |||
Operating Leased Assets [Line Items] | |||
Costs to defend lawsuits or settle claims | 0 | ||
Costs accrued to defend lawsuits | $ 0 | ||
Office building, Santa Clara CA | |||
Operating Leased Assets [Line Items] | |||
Non-cancelable operating lease term | 7 years | ||
Area of property (sq ft) | ft² | 21,848 |
Commitments and Contingencies_2
Commitments and Contingencies - Aggregate Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Aggregate Future Minimum Lease Payments | |
2020 | $ 1,102 |
2021 | 1,003 |
2022 | 929 |
2023 | 860 |
2024 | 869 |
Thereafter | 365 |
Total | $ 5,128 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt covenant minimum cash balance | $ 5 | ||
Term Loan | Pharmakon Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan proceeds | $ 40 | ||
Debt issuance costs | $ 1.3 | ||
Debt period payment, interest only period | 35 months | ||
Fixed interest rate (percent) | 11.50% | ||
Debt closing fee percentage (percent) | 1.50% | ||
Debt instrument fee amount | $ 0.6 | ||
Effective interest rate during the period (percent) | 12.30% | 12.30% | |
Term Loan | Pharmakon Term Loan | Prepayment Penalty, 31-48 Months | |||
Debt Instrument [Line Items] | |||
Debt prepayment penalty percentage (percent) | 2.00% | ||
Term Loan | Pharmakon Term Loan | Prepayment Penalty, 49-60 Months | |||
Debt Instrument [Line Items] | |||
Debt prepayment penalty percentage (percent) | 1.00% |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Principal outstanding | $ 40,000 | $ 40,000 |
Less: unamortized debt issuance costs | (777) | (1,037) |
Outstanding debt, net of debt issuance costs | 39,223 | 38,963 |
Current portion of long-term borrowings | 4,358 | 0 |
Long-term borrowings | $ 34,865 | $ 38,963 |
Borrowings - Annual Future Mini
Borrowings - Annual Future Minimum Principal Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of Long-term Debt [Abstract] | ||
2020 | $ 4,444 | |
2021 | 17,778 | |
2022 | 17,778 | |
Total minimum principal payments | $ 40,000 | $ 40,000 |
Borrowings - EBITDA Targets (De
Borrowings - EBITDA Targets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Period One | |
Debt Instrument [Line Items] | |
Debt Covenant, Minimum Net Sales | $ 57,500 |
Debt Covenant, Trailing 12-Month Consolidated EBITDA | 1,000 |
Period Two | |
Debt Instrument [Line Items] | |
Debt Covenant, Minimum Net Sales | 58,500 |
Debt Covenant, Trailing 12-Month Consolidated EBITDA | 2,000 |
Period Three | |
Debt Instrument [Line Items] | |
Debt Covenant, Minimum Net Sales | 60,000 |
Debt Covenant, Trailing 12-Month Consolidated EBITDA | $ 3,000 |
Warrants - Issued and Outstandi
Warrants - Issued and Outstanding (Details) - Common Stock - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 16, 2018 |
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 160,657 | ||
Warrants Issued 3/1/2017 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 1,388 | 1,388 | |
Price per Share (in dollars per share) | $ 5.94 | $ 5.94 | |
Fair Value | $ 5 | $ 5 | |
Warrants Issued 7/22/2013 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 32,983 | 32,983 | |
Price per Share (in dollars per share) | $ 9.1 | $ 9.1 | |
Fair Value | $ 122 | $ 122 | |
Warrants Issued 11/26/2014 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 6,680 | 6,680 | |
Price per Share (in dollars per share) | $ 16.47 | $ 16.47 | |
Fair Value | $ 49 | $ 49 | |
Warrants Issued 10/20/2015 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 41,650 | 41,650 | |
Price per Share (in dollars per share) | $ 16.47 | $ 16.47 | |
Fair Value | $ 396 | $ 396 | |
Warrants Issued 11/9/2015 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 25,709 | 25,709 | |
Price per Share (in dollars per share) | $ 16.47 | $ 16.47 | |
Fair Value | $ 244 | $ 244 | |
Warrants Issued 12/22/2016 | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 9,712 | 9,712 | |
Price per Share (in dollars per share) | $ 10.03 | $ 10.03 | |
Fair Value | $ 45 | $ 45 | |
Common Stock Warrants | |||
Class of Warrant or Right [Line Items] | |||
Number of Shares Underlying Warrants (in shares) | 118,122 | 118,122 | |
Fair Value | $ 861 | $ 861 |
Common and Preferred Stock - Na
Common and Preferred Stock - Narrative (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock issued (in shares) | 25,163,803 | 24,450,757 |
Common stock outstanding (in shares) | 25,163,803 | 24,450,757 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, dividends declared (in dollars per share) | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2020 | Mar. 22, 2019 | Jan. 01, 2019 | Oct. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value of options exercised | $ 6,800 | $ 3,600 | ||||
Weighted-average grant date fair value of options granted (in dollars per share) | $ 9.78 | $ 3.98 | ||||
Unrecognized compensation costs | $ 5,500 | |||||
Early exercise of stock options, share subject to repurchase (in shares) | 21,404 | 74,019 | ||||
Liability for early exercise of unvested stock options | $ 97 | $ 331 | ||||
Stock-based compensation expense | $ 7,464 | 2,312 | ||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of option as percent of fair market value when individual owns more than 10% of shares outstanding (percent) | 110.00% | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option term (in years) | 10 years | |||||
Stock option term when grantee holds more than 10% of shares outstanding (in years) | 5 years | |||||
Award vesting period (in years) | 4 years | |||||
Unrecognized compensation cost, expected period for recognition (in years) | 2 years 7 months 6 days | |||||
Incentive Stock Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of option as percent of fair market value (percent) | 100.00% | |||||
Nonqualified Stock Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of option as percent of fair market value (percent) | 85.00% | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost, expected period for recognition (in years) | 3 years 1 month 6 days | |||||
Unrecognized compensation cost | $ 8,600 | |||||
Restricted Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 2 years | |||||
Restricted Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual increase in shares reserved as percentage of prior year-end shares outstanding (percent) | 5.00% | |||||
Increase in number of shares reserved for future issuance (in shares) | 1,222,538 | |||||
Shares available for future grants (in shares) | 2,567,295 | |||||
2018 Equity Incentive Plan | Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in number of shares reserved for future issuance (in shares) | 1,258,190 | |||||
2018 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual increase in shares reserved as percentage of prior year-end shares outstanding (percent) | 1.00% | |||||
Annual increase in shares reserved, maximum (in shares) | 555,555 | |||||
Increase in number of shares reserved for future issuance (in shares) | 244,507 | |||||
Unrecognized compensation cost | $ 300 | |||||
Purchase price of common stock as a percent of fair market value (percent) | 85.00% | |||||
Employees stock purchase program offering period interval (in months) | 6 months | |||||
Number of shares reserved for issuance (in shares) | 515,307 | 591,357 | ||||
Accrued compensation and related expenses for employee payroll deductions | $ 200 | 400 | ||||
Stock-based compensation expense | $ 800 | $ 200 | ||||
2018 Employee Stock Purchase Plan | Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in number of shares reserved for future issuance (in shares) | 251,638 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 2,641,198 | 3,001,929 |
Options granted (in shares) | 638,983 | 100,080 |
Options exercised (in shares) | (444,924) | (395,117) |
Options canceled and forfeited (in shares) | (116,286) | (65,694) |
Ending balance (in shares) | 2,718,971 | 2,641,198 |
Options vested and exercisable (in shares) | 2,126,781 | |
Options vested and expected to vest (in shares) | 2,652,883 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 4.27 | $ 4.15 |
Options granted (in dollars per share) | 20.89 | 8.88 |
Options exercised (in dollars per share) | 3.36 | 4.08 |
Options canceled and forfeited (in dollars per share) | 11.30 | 4.81 |
Ending balance (in dollars per share) | 8.02 | $ 4.27 |
Options vested and exercisable (in dollars per share) | 5.32 | |
Options vested and expected to vest (in dollars per share) | $ 7.80 | |
Weighted-Average Remaining Contractual Life and Aggregate Intrinsic Value | ||
Weighted-average remaining contractual life, options outstanding (in years) | 6 years 9 months 29 days | |
Weighted-average remaining contractual life, options vested and exercisable (in years) | 6 years 3 months 8 days | |
Weighted-average remaining contractual life, options vested and expected to vest (in years) | 6 years 9 months 3 days | |
Aggregate intrinsic value, options outstanding | $ 36,872 | |
Aggregate intrinsic value, options vested and exercisable | 34,463 | |
Aggregate intrinsic value, options vested and expected to vest | $ 36,540 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Options and Exercisable Options Information by Range of Exercise Prices (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number of shares (in shares) | shares | 2,718,971 |
Options outstanding, average remaining contractual life (years) | 6 years 9 months 29 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 8.02 |
Options vested and exercisable, number of shares (in shares) | shares | 2,126,781 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 5.32 |
$0.84-$2.11 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 0.84 |
Exercise price, upper limit (in dollars per share) | $ 2.11 |
Options outstanding, number of shares (in shares) | shares | 87,394 |
Options outstanding, average remaining contractual life (years) | 1 year 6 months 7 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 1.56 |
Options vested and exercisable, number of shares (in shares) | shares | 87,394 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 1.52 |
$3.24-$3.98 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 3.24 |
Exercise price, upper limit (in dollars per share) | $ 3.98 |
Options outstanding, number of shares (in shares) | shares | 564,938 |
Options outstanding, average remaining contractual life (years) | 4 years 4 months 6 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 3.47 |
Options vested and exercisable, number of shares (in shares) | shares | 564,938 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 3.50 |
$4.32-$5.94 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 4.32 |
Exercise price, upper limit (in dollars per share) | $ 5.94 |
Options outstanding, number of shares (in shares) | shares | 1,409,650 |
Options outstanding, average remaining contractual life (years) | 7 years 1 month 9 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 4.63 |
Options vested and exercisable, number of shares (in shares) | shares | 1,306,033 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 4.61 |
$6.84-$7.92 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 6.84 |
Exercise price, upper limit (in dollars per share) | $ 7.92 |
Options outstanding, number of shares (in shares) | shares | 39,844 |
Options outstanding, average remaining contractual life (years) | 7 years 11 months 15 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 7.32 |
Options vested and exercisable, number of shares (in shares) | shares | 20,298 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 7.20 |
$17.72-$18.96 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 17.72 |
Exercise price, upper limit (in dollars per share) | $ 18.96 |
Options outstanding, number of shares (in shares) | shares | 154,189 |
Options outstanding, average remaining contractual life (years) | 9 years 4 months 13 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 17.85 |
Options vested and exercisable, number of shares (in shares) | shares | 51,110 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 17.82 |
$19.02-$22.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 19.02 |
Exercise price, upper limit (in dollars per share) | $ 22 |
Options outstanding, number of shares (in shares) | shares | 462,956 |
Options outstanding, average remaining contractual life (years) | 9 years 18 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 21.91 |
Options vested and exercisable, number of shares (in shares) | shares | 97,008 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 21.94 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions for Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Black-Scholes option-pricing model assumptions | ||
Expected term (in years) | 6 months | 6 months |
Stock Options | ||
Black-Scholes option-pricing model assumptions | ||
Expected volatility, minimum (percent) | 41.70% | 42.00% |
Expected volatility, maximum (percent) | 47.30% | 47.00% |
Risk-free interest rate, minimum (percent) | 1.30% | 2.40% |
Risk-free interest rate, maximum (percent) | 2.60% | 3.00% |
Dividend yield (percent) | 0.00% | 0.00% |
Stock Options | Minimum | ||
Black-Scholes option-pricing model assumptions | ||
Expected term (in years) | 5 years | 5 years |
Stock Options | Maximum | ||
Black-Scholes option-pricing model assumptions | ||
Expected term (in years) | 7 years | 7 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 53,436 | 0 |
Granted (in shares) | 639,726 | 54,036 |
Vested (in shares) | (108,631) | |
Canceled and forfeited (in shares) | (41,490) | (600) |
Ending balance (in shares) | 543,041 | 53,436 |
Weighted- Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 11.69 | $ 0 |
Granted (in dollars per share) | 20.14 | 11.79 |
Vested (in dollars per share) | 19.10 | |
Canceled and forfeited (in dollars per share) | 18.48 | 20.60 |
Ending balance (in dollars per share) | $ 19.72 | $ 11.69 |
Stock-Based Compensation - Va_2
Stock-Based Compensation - Valuation Assumptions for ESPP Purchase Rights (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
ESPP Purchase Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum (percent) | 38.30% | |
Expected volatility, maximum (percent) | 58.40% | |
Expected volatility (percent) | 44.00% | |
Risk-free interest rate, minimum (percent) | 1.60% | |
Risk-free interest rate, maximum (percent) | 2.40% | |
Risk-free interest rate (percent) | 2.50% | |
Dividend yield (percent) | 0.00% | 0.00% |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,464 | $ 2,312 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 185 | 34 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 3,335 | 651 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 516 | 156 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3,428 | $ 1,471 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - 401(k) Plan | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |
Employer matching contribution, percentage of eligible compensation | 3.00% |
Employer matching contribution, maximum amount per employee | $ 1,000 |
Employer contributions | $ 100,000 |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock - Schedule of Earnings Per Share (Details) $ / shares in Units, $ in Thousands | Oct. 04, 2018 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares |
Earnings Per Share [Abstract] | |||
Net loss | $ | $ (38,403) | $ (17,453) | |
Weighted-average number of common shares used to compute basic and diluted net loss per share (in shares) | shares | 24,705,980 | 7,950,284 | |
Net loss per share, basic and diluted (in dollars per share) | $ / shares | $ (1.55) | $ (2.20) | |
Reverse stock split ratio | 0.0556 | 0.0556 |
Net Loss Per Share of Common _4
Net Loss Per Share of Common Stock - Antidilutive Securities Excluding from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 3,466,980 | 2,976,381 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 2,718,971 | 2,641,198 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 543,041 | 53,436 |
Shares subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 21,404 | 74,019 |
ESPP purchase rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 65,442 | 89,606 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 118,122 | 118,122 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of loss before income taxes | ||
Domestic | $ (37,709) | $ (16,835) |
Foreign | (694) | (618) |
Loss before income taxes | $ (38,403) | $ (17,453) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax expense: | ||
Federal | $ 8,523 | $ 3,555 |
State | 1,569 | 822 |
Foreign | (200) | 200 |
Total deferred income taxes | 9,892 | 4,577 |
Change in deferred tax valuation allowance | (9,892) | (4,577) |
Net deferred income tax | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation | ||
Tax at statutory federal rate (percent) | (21.00%) | (21.00%) |
State tax, net of federal benefit (percent) | (4.10%) | (5.30%) |
Tax credits (percent) | (0.70%) | (0.70%) |
Change in deferred tax valuation allowance (percent) | 25.80% | 26.20% |
Other (percent) | (0.00%) | 0.80% |
Total income tax expense (percent) | (0.00%) | (0.00%) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences and Carryforwards and Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | |||
Net operating loss carryforwards | $ 42,032 | $ 35,067 | |
Research and development credits | 2,428 | 2,255 | |
Accruals and reserves | 4,222 | 2,059 | |
Stock compensation | 1,512 | 899 | |
Depreciation and amortization | 110 | 132 | |
Total deferred tax assets | 50,304 | 40,412 | |
Less: Valuation allowance | (50,304) | (40,412) | $ (35,835) |
Total deferred tax asset, net of valuation allowance | $ 0 | $ 0 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Valuation Allowance | ||
Valuation allowance, beginning balance | $ 40,412 | $ 35,835 |
Additions during the period | 9,892 | 4,577 |
Valuation allowance, ending balance | $ 50,304 | $ 40,412 |
Income Taxes - Uncertain Income
Income Taxes - Uncertain Income Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Uncertain income tax positions [Roll Forward] | ||
Balance at beginning of the year | $ 1,084 | $ 993 |
Increases related to current year's tax positions | 203 | 91 |
Balance at end of the year | $ 1,287 | $ 1,084 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||
Decrease in net deferred tax asset position due to change in tax rate | $ 15,800,000 | |
Limited net operating loss carryforwards | $ 1,400,000 | |
Accrued interest related to unrecognized tax benefits | $ 0 | 0 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 164,400,000 | |
Credit carryforwards | 2,100,000 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 129,600,000 | |
Credit carryforwards | $ 2,200,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 24, 2020 | Jan. 27, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||
Common stock outstanding (in shares) | 25,163,803 | 24,450,757 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock outstanding (in shares) | 27,708,111 | |||
Subsequent Event | SeaSpine | Joint development agreement | ||||
Subsequent Event [Line Items] | ||||
Approximate monthly payments due per agreement | $ 10,000 | |||
Term of agreement (in years) | 10 years | |||
Subsequent Event | Follow-on public offering | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold (in shares) | 2,490,053 | |||
Public offering price (in dollars per share) | $ 21.5 | |||
Net proceeds from sale of stock | $ 50,300,000 | |||
Subsequent Event | Underwriters option | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold (in shares) | 645,000 | |||
Public offering price (in dollars per share) | $ 21.50 | |||
Net proceeds from sale of stock | $ 13,000,000 | |||
Subsequent Event | Secondary offering by selling shareholders | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold (in shares) | 1,809,947 | |||
Public offering price (in dollars per share) | $ 21.5 |