Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38701 | ||
Entity Registrant Name | SI-BONE, Inc. | ||
Entity Central Index Key | 0001459839 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2216351 | ||
Entity Address, Address Line One | 471 El Camino Real | ||
Entity Address, Address Line Two | Suite 101 | ||
Entity Address, City or Town | Santa Clara | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95050 | ||
City Area Code | 408 | ||
Local Phone Number | 207-0700 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | SIBN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 394.1 | ||
Entity Common Stock, Shares Outstanding | 32,727,666 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year ended December 31, 2020, are incorporated by reference into Part III of this Report . |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 53,581 | $ 10,435 |
Short-term investments | 142,851 | 81,345 |
Accounts receivable, net of allowance for doubtful accounts of $263 and $238, respectively | 13,611 | 11,720 |
Inventory | 5,633 | 5,452 |
Prepaid expenses and other current assets | 2,565 | 2,510 |
Total current assets | 218,241 | 111,462 |
Long-term investments | 0 | 1,278 |
Property and equipment, net | 4,527 | 3,954 |
Other non-current assets | 374 | 315 |
TOTAL ASSETS | 223,142 | 117,009 |
CURRENT LIABILITIES | ||
Accounts payable | 3,271 | 2,811 |
Accrued liabilities and other | 10,199 | 11,605 |
Current portion of long-term borrowings | 0 | 4,358 |
Total current liabilities | 13,470 | 18,774 |
Long-term borrowings | 39,455 | 34,865 |
Other long-term liabilities | 854 | 362 |
TOTAL LIABILITIES | 53,779 | 54,001 |
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; 32,583,220 and 25,163,803 shares issued and outstanding, respectively | 3 | 3 |
Additional paid-in capital | 408,113 | 258,121 |
Accumulated other comprehensive income | 524 | 464 |
Accumulated deficit | (239,277) | (195,580) |
TOTAL STOCKHOLDERS’ EQUITY | 169,363 | 63,008 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 223,142 | $ 117,009 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 263 | $ 238 |
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) | 32,583,220 | 25,163,803 |
Common stock outstanding (in shares) | 32,583,220 | 25,163,803 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 73,387 | $ 67,301 |
Cost of goods sold | 8,902 | 6,790 |
Gross profit | 64,485 | 60,511 |
Operating expenses: | ||
Sales and marketing | 73,790 | 68,251 |
Research and development | 9,459 | 7,279 |
General and administrative | 19,803 | 20,984 |
Total operating expenses | 103,052 | 96,514 |
Loss from operations | (38,567) | (36,003) |
Interest and other income (expense), net: | ||
Interest income | 1,097 | 2,551 |
Interest expense | (6,101) | (4,949) |
Other expense, net | (126) | (2) |
Net loss | (43,697) | (38,403) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) of marketable securities | (59) | 44 |
Changes in foreign currency translation | 119 | (19) |
Comprehensive loss | $ (43,637) | $ (38,378) |
Net loss per share, basic and diluted (in dollars per share) | $ (1.50) | $ (1.55) |
Weighted-average number of common shares used to compute basic and diluted net loss per share (in shares) | 29,059,171 | 24,705,980 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018 | 24,450,757 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | $ 90,192 | $ 3 | $ 246,927 | $ 439 | $ (157,177) |
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 | 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) | |||
Net unrealized gain (loss) on marketable securities | 44 | 44 | |||
Net loss | (38,403) | (38,403) | |||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 25,163,803 | ||||
Stockholders' equity, ending balance at Dec. 31, 2019 | 63,008 | $ 3 | 258,121 | 464 | (195,580) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock from public offerings, net of underwriting discounts, commissions and offering costs (in shares) | 6,613,560 | ||||
Issuance of common stock from public offerings, net of underwriting discounts, commissions and offering costs | $ 134,616 | $ 0 | 134,616 | ||
Issuance of common stock upon exercise of stock options, net of shares withheld (in shares) | 323,701 | 323,701 | |||
Issuance of common stock upon exercise of stock options, net of shares withheld | $ 1,463 | 1,463 | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 137,377 | 137,377 | |||
Issuance of common stock related to employee stock purchase plan | $ 1,915 | 1,915 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 344,779 | ||||
Issuance of common stock upon vesting of restricted stock units | 0 | ||||
Stock-based compensation | 11,927 | 11,927 | |||
Vesting of early exercised stock options | 71 | 71 | |||
Foreign currency translation | 119 | 119 | |||
Net unrealized gain (loss) on marketable securities | (59) | (59) | |||
Net loss | (43,697) | (43,697) | |||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2020 | 32,583,220 | ||||
Stockholders' equity, ending balance at Dec. 31, 2020 | $ 169,363 | $ 3 | $ 408,113 | $ 524 | $ (239,277) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (43,697) | $ (38,403) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 11,927 | 7,464 |
Depreciation and amortization | 1,130 | 774 |
Bad debt expense | 234 | 0 |
Accretion of discount on marketable securities | 115 | (1,413) |
Realized gain on marketable securities | (46) | 0 |
Amortization of debt issuance costs | 292 | 259 |
Loss on extinguishment of debt | 1,534 | 0 |
Loss on sale and disposal of property and equipment | 376 | 171 |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,186) | (3,236) |
Inventory | (274) | (2,105) |
Prepaid expenses and other assets | (136) | (515) |
Accounts payable | 835 | 383 |
Accrued liabilities and other | (766) | 4,994 |
Net cash used in operating activities | (30,662) | (31,627) |
Cash flows from investing activities | ||
Maturities of marketable securities | 104,716 | 159,800 |
Sales of marketable securities | 14,095 | 0 |
Purchases of marketable securities | (179,166) | (143,864) |
Purchases of property and equipment | (2,561) | (2,445) |
Net cash (used in) provided by investing activities | (62,916) | 13,491 |
Cash flows from financing activities | ||
Proceeds from follow-on public offering, net of underwriting discounts, commissions and offering costs | 134,616 | 0 |
Proceeds from debt financing | 45,297 | 0 |
Principal repayments of debt financing | (45,297) | 0 |
Payments of debt issuance costs | (750) | 0 |
Payments of prepayment penalty and lender fees | (843) | 0 |
Proceeds from the exercise of common stock options | 1,463 | 1,490 |
Proceeds from issuance of common stock under employee stock purchase plan | 1,915 | 2,203 |
Repurchase of unvested early exercised stock options | 0 | (38) |
Payments of initial public offering costs | 0 | (167) |
Net cash provided by financing activities | 136,401 | 3,488 |
Effect of exchange rate changes on cash and cash equivalents | 323 | (37) |
Net increase (decrease) in cash and cash equivalents | 43,146 | (14,685) |
Cash and cash equivalents at | ||
Beginning of year | 10,435 | 25,120 |
End of year | 53,581 | 10,435 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 4,276 | 4,949 |
Supplemental disclosure of non-cash information | ||
Vesting of early exercised stock options | 71 | 197 |
Unpaid purchases of property and equipment | $ 26 | $ 375 |
The Company and Nature of Busin
The Company and Nature of Business | 12 Months Ended |
Dec. 31, 2020 | |
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. Public Offerings of Common Stock In October 2018, the Company completed its initial public offering (“IPO”) by issuing 8,280,000 shares of common stock, at an 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. In January 2020, the Company received $50.0 million net proceeds, after deducting the underwriting discounts and commissions, from its public offering of 4,300,000 shares of the Company's common stock at a public offering price of $21.50 per share, of which 2,490,053 shares were offered and sold by the Company. Further, in February 2020, the underwriters fully exercised its option to purchase 645,000 shares of the Company's common stock at a public offering price of $21.50 per share for an additional net proceeds of $13.0 million to the Company, after deducting the underwriting discounts and commissions. The total public offering costs incurred in connection with the follow-on offering were allocated based on the gross proceeds received by the Company and the other selling shareholders on a pro-rated basis. Public offering cost of $0.4 million allocated to selling of shares by the Company was charged against the gross proceeds received from the follow-on offering. Public offering costs of $0.2 million allocated to selling of shares by the selling shareholders was recognized as transaction costs within general and administrative expenses on the consolidated statements of operations in the year ended December 31, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 primarily includes the fair value of stock options. 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. International revenue accounted for less 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, 2020 2019 (in thousands) United States $ 68,118 $ 61,843 International 5,269 5,458 $ 73,387 $ 67,301 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. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic and the information surrounding the pandemic is rapidly evolving. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, excess and obsolete inventory, and the impact of any initiatives and programs that the Company may undertake to address financial and operations challenges faced by its customers. The Company is also 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, 2020, the Company had cash and marketable securities of $196.4 million compared to $93.1 million as of December 31, 2019. The Company has financed its operations through our public offerings, debt financing arrangements, and the sale of its products. As of December 31, 2020 and 2019 the Company had $39.5 million and $39.2 million outstanding debt, respectively. As of December 31, 2020, the Company's accumulated deficit was $239.3 million. During the years ended December 31, 2020 and 2019, the Company incurred a net loss of $43.7 million and $38.4 million, respectively. The Company has not achieved positive cash flow from operations to date. 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. However, the economic impact of the duration and severity of the COVID-19 pandemic, and the Company's responses thereto (including such actions that the Company had taken or may take in the future as disclosed elsewhere in this Report) poses risk and uncertainties in its future available capital resources. Further, the Company may face challenges and uncertainties and, as a result, its available capital resources may be consumed more rapidly than currently expected due to, but not limited to, the following as a result of the COVID-19 pandemic or otherwise: (a) decreases in sales of its 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 its existing products; (e) changes 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 in 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 such 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, 2020 and 2019, 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. The Company adopted 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. Revenue is recognized 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. 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 a 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 agreed 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 are 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, 2020 and 2019. 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; and (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 $0.3 million and $0.4 million for the year ended December 31, 2020 and 2019, 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 . 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 i n conformity with the two-class method required for companies with participating securities. The Company considers all ea rly 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 early exercised stock options as the holders 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, common stock options and warrants are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, 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 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. 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’ equity 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. Adoption of New Revenue Recognition Standard The Company adopted the new revenue recognition standards (“ASC 606”) 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 previous revenue recognition standards (“ASC 605”). The adoption of ASC 606 did not result in 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. 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 continues to recognize the revenue upon shipments to the customers, net of rebates and price discounts. Additionally, ASC 606 requires the capitalization of costs to |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The table below summarizes the marketable securities: December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 45,948 $ — $ — $ 45,948 Commercial paper 1,400 — — 1,400 Cash equivalents 47,348 — — 47,348 U.S. treasury securities 74,779 4 (7) 74,776 Corporate bonds 8,940 4 (6) 8,938 Commercial paper 59,137 — — 59,137 Short-term investments 142,856 8 (13) 142,851 Total marketable securities $ 190,204 $ 8 $ (13) $ 190,199 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 matured in April 2020. The Company did not identify any of its marketable securities as other-than-temporarily impaired as of December 31, 2020 and 2019. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 45,948 $ — $ — $ 45,948 U.S. treasury securities 74,776 — — 74,776 Corporate bonds — 8,938 — 8,938 Commercial paper — 60,537 — 60,537 Total marketable securities $ 120,724 $ 69,475 $ — $ 190,199 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 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory As of December 31, 2020 and 2019, inventory consisted entirely of finished goods. Property and Equipment, net : December 31, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 6,342 $ 4,613 Construction in progress 1,692 1,854 Computer and office equipment 714 598 Leasehold improvements 503 497 Furniture and fixtures 233 187 9,484 7,749 Less: Accumulated depreciation and amortization (4,957) (3,795) $ 4,527 $ 3,954 Construction in progress pertains to cost of individual components of a custom instrument set used for surgical placement of iFuse implants that have not yet been placed into service. Depreciation expense was $1.1 million and $0.8 million for the years ended December 31, 2020 and 2019, respectively. Accrued Liabilities and Other : December 31, 2020 December 31, 2019 (in thousands) Accrued compensation and related expenses $ 9,175 $ 7,274 Accrued litigation expense — 3,200 Accrued professional services 511 392 Others 513 739 $ 10,199 $ 11,605 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has a non-cancelable operating lease for an office building space, located in Santa Clara, California which expires in May 2025. The Company also has 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 2025. Further, the Company also leases vehicles under operating lease arrangements for certain of its sales personnel in Europe which expire various times in 2021 to 2023. 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, 2020 and 2019, respectively. The aggregate future minimum lease payments under all leases as of December 31, 2020 are as follows: Year Ending December 31, (in thousands) 2021 $ 1,081 2022 1,001 2023 908 2024 893 2025 381 Thereafter 24 $ 4,288 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. The contractual obligations represent future cash commitments and liabilities under agreements with third parties and exclude orders for goods and services entered into in the normal course of business that are not enforceable or legally binding. These outstanding commitments amounted to $0.3 million and $0.4 million as of December 31, 2020 and 2019, respectively. 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 “California Action”). 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. Subsequently on December 20, 2019, Plaintiff the filed a putative class action captioned Eric B. Fromer Chiropractic, Inc. v. SI-BONE, Inc. (Case No. 1922-CC12323), in the Circuit Court of the City of St. Louis, State of Missouri (the “Missouri Action”). The Missouri Action alleges the same TCPA violations as the California Action. On December 23, 2019 the parties filed a joint stipulation of dismissal of the California Action 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. The Company accrued litigation expense of $3.2 million during the year ended December 31, 2019 within general and administrative expenses in the consolidated financial statements, which was the Company's estimated cost to resolve the matter pursuant to the Settlement Agreement and based on the estimated class members' claim submission rate. Following the notice and claims submission process, on June 22, 2020, the Circuit Court of the City of St. Louis, State of Missouri, approved a final order to pay the approved claims submitted by class members, fees, expenses and incentive awards totaling $2.6 million as final settlement. Accordingly, the Company recorded a reversal of accrued litigation expense of $0.6 million in year ended December 31, 2020 within general and administrative expenses in the consolidated financial statements. The Company made the final settlement payment on July 1, 2020. 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, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Term Loan The following table summarizes the outstanding borrowings from the term loan as of the periods presented: December 31, 2020 December 31, 2019 (in thousands) Principal outstanding and final fee $ 41,000 $ 40,000 Less: Unamortized debt issuance costs (661) (777) Unaccreted value of final fee (884) — Outstanding debt, net of debt issuance costs and unaccreted value of final fee $ 39,455 $ 39,223 Classified as: Current portion of long-term borrowings $ — $ 4,358 Long-term borrowings $ 39,455 $ 34,865 The outstanding debt as of December 31, 2019 related to a term loan entered by the Company with Biopharma Credit Investments IV Sub LP (“Pharmakon”) in October 2017 for total loan proceeds of $40.0 million (the “Pharmakon Term Loan”). The Pharmakon Term Loan included an interest-only period for 35 months through September 2020 and then equal quarterly principal payments plus interest through December 2022. The Pharmakon Term Loan carried a fixed interest rate of 11.5% and allowed for early prepayment. The prepayment penalty fee was equal to the remaining interest due if prepaid within the first 30 months, a 2% penalty for months 31-48, and a 1% penalty for months 49-60. On May 29, 2020, the Company entered into a Loan and Security Agreement with Solar Capital Partners (“Solar”) providing for a term loan of an aggregate principal amount of $40.0 million to the Company (the “Solar Term Loan”). In accordance with the Loan and Security Agreement, the Company paid in full and terminated the Pharmakon Term Loan, which was accounted for as debt extinguishment in accordance with the accounting standards. The Company recognized the unamortized debt issuance costs of $0.7 million and the prepayment penalty and lender fees of $0.8 million related to Pharmakon Term Loan as a loss on debt extinguishment. The costs and fees are reflected as interest expense in the consolidated statement of operations for the year ended December 31, 2020. The total debt issuance costs of $0.8 million associated with the Solar Term Loan were recorded in the consolidated balance sheet as a direct deduction from the carrying amount of the loan, and are amortized as a component of interest expense using straight-line method over the life of the term loan. The Solar Term Loan bears interest at a rate per annum equal to 9.40% plus the greater London Interbank Offered Rate (“LIBOR”), payable monthly in arrears. LIBOR means the greater of (i) 0.33% or (ii) one-month LIBOR (or a comparable replacement rate to be determined by the collateral agent if the LIBOR is no longer available), which rate shall reset monthly. The Solar Term Loan matures in 60 months on June 1, 2025 (“Maturity Date”), with an interest-only period of 36 months through June 2023, and then repaid in equal monthly principal payments plus interest through maturity date. Pursuant to the Loan and Security Agreement, the Company may voluntarily prepay the Solar Term Loan, in full or in part, but only in increments of $10.0 million, for a prepayment premium in an amount equal to 3.00% of the principal if prepaid in year one, 1.25% of the principal if prepaid in year two, and 0.50% of the principal if prepaid in year three or later. The prepayment premium will be waived if the Company voluntarily prepays and refinances the outstanding balance with Solar. The Solar Term Loan is secured by substantially all of the Company’s assets. The Company is also obligated to pay a final fee equal to $1.0 million or 2.5% of the aggregate principal amount of the Solar Term Loan, which was fully earned by Solar on the effective date of the Loan and Security Agreement. With respect to the Solar Term Loan, this final fee shall be due and payable on the earliest of (i) the maturity date, (ii) the acceleration of the loan balance or (iii) its full prepayment, refinancing, substitution or replacement. The final fee was included within the long-term borrowings and is accreted to interest expense using straight-line method over the life of the term loan. The effective interest rate related to the Pharmakon Term Loan was 12.4% and 12.3% for the term loan's outstanding periods for the years ended December 31, 2020 and 2019, respectively. The effective interest rate related to the Solar Term Loan was 10.6% for the term loan's outstanding period for year ended December 31, 2020. The table below summarizes the future principal and final fee payments under the Solar Term Loan as of December 31, 2020: Year ending December 31, (in thousands) 2021 $ — 2022 — 2023 11,667 2024 20,000 2025 9,333 Total principal and final fee payments $ 41,000 Subject to other customary covenants set forth in the Loan and Security Agreement with Solar, the Company is required to maintain unrestricted cash and cash equivalents based on the trailing 12-month net products revenues tested on a monthly basis as follows: (a) $15.0 million if net product revenue is less than $75.0 million; or (b) $7.5 million if net product revenue is greater than or equal to $75.0 million, but less than $100.0 million (the “minimum liquidity requirement”). The Company is not subject to minimum liquidity requirement when trailing twelve-month net product revenues exceeds $100.0 million. Upon the occurrence of an event of default of certain customary covenants, including the minimum liquidity requirements, as specified in the Loan and Security Agreement, subject to specified cure periods, all amounts owed by the Company would begin to bear interest at a rate that is 5.00% above the rate effective immediately before the event of default and may be declared immediately due and payable by Solar. As of December 31, 2020, the Company was in compliance with all debt covenants. Though there are uncertainties surrounding the impact of the COVID-19 pandemic that may impact our future revenue, the Company believes that it has sufficient cash and cash equivalents to meet the minimum liquidity requirements in the foreseeable succeeding periods. CARES Act On March 27, 2020, the U.S. federal government enacted the “Coronavirus Aid, Relief and Economic Security (CARES) Act,” and among other things, established the Paycheck Protection Program (“PPP”), administered by the Small Business Administration (“SBA”), whereby certain small businesses were eligible for a loan to fund payroll expenses, rent, and related costs. The loan may be forgiven if the funds are used for payroll and other qualified expenses. The Company met the requirements to apply for the PPP loan given that the Company has less than 500 employees and the business was negatively impacted by COVID-19. The Company submitted its application and was approved for the SBA program and received the proceeds from the PPP loan amounting to $5.3 million on April 21, 2020, pursuant to a Promissory Note with Silicon Valley Bank (“SVB”). In light of the subsequent clarifications from the U.S. government on the eligibility criteria, the Company determined it was appropriate to repay the entire amount of the PPP loan. Accordingly, on April 29, 2020, the Company repaid in full the PPP loan and correspondingly terminated the Promissory Note. The CARES Act allows employers to defer the deposit and payment of an employer's share of social security taxes through December 31, 2020. The Company recorded a total liability of $1.0 million related to the deferral of the social security taxes of which $0.5 million is included in each accrued liabilities and other and other long-term liabilities in the consolidated balance sheets as of December 31, 2020. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Warrants | Warrants The table below summarizes common stock warrants issued and outstanding at both December 31, 2020 and 2019: Date Number of Price per Fair Value 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, 2020 | |
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, 2020 and 2019 were 32,583,220 shares and 25,163,803 shares, respectively. As of December 31, 2020 and 2019, there was no preferred stock issued and outstanding. 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, 2020 | |
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 and 2020, the total number of shares of common stock reserved for issuance increased by 1,222,538 and 1,258,190 shares respectively. As of December 31, 2020, a total of 2,843,814 shares of common stock are available for future grants under the 2018 EIP. On January 1, 2021, the total number of shares of common stock reserved for issuance under the 2018 EIP automatically increased by 1,629,161 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 stock options are exercisable immediately, but are subject to a right of repurchase by the Company for any unvested shares. RSUs granted under the 2018 EIP generally vest over two Stock Options The following table summarizes stock option activity for the years ended December 31, 2020 and 2019: 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, 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 Granted 26,236 $17.31 Exercised (323,701) $4.52 Canceled and forfeited (15,549) $17.07 Outstanding as of December 31, 2020 2,405,957 $8.54 5.80 $ 51,402 Options vested and exercisable as of December 31, 2020 2,069,020 $6.85 5.40 $ 47,689 Options vested and expected to vest as of December 31, 2020 2,390,755 $8.36 6.00 $ 51,493 The aggregate intrinsic value of options exercised during the years ended December 31, 2020 and 2019 amounted to $5.6 million and $6.8 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 aggregate intrinsic values of options outstanding, options vested and exercisable, and options vested and expected to vest as of December 31, 2020 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, 2020 was as follows: Exercise Price Options Outstanding Options Vested and Exercisable Number of Shares Average Weighted- Number of Shares Weighted- $0.84 - $3.69 465,071 3.40 $3.31 465,071 $3.31 $3.70 - $4.41 689,903 4.80 $4.29 689,903 $4.29 $4.42 - $5.31 458,812 6.40 $4.67 422,974 $4.67 $5.32 - $20.51 356,271 7.50 $12.08 282,203 $11.00 $20.52 - $22.00 435,900 8.00 $22.00 208,869 $22.00 2,405,957 5.80 $8.54 2,069,020 $6.85 The table below summarizes the weighted average grant date fair value per share and the assumptions used to estimate the grant date fair value using the Black-Scholes option-pricing model of the stock options granted during the periods presented: Year ended December 31, 2020 2019 Weighted average grant date fair value per share $8.16 $9.78 Expected term (years) 5.5 to 7.0 5.0 to 7.0 Expected volatility 46.7% to 47.2% 41.7% to 47.3% Risk-free interest rate 1.6% to 1.6% 1.3% to 2.6% Dividend yield —% —% As of December 31, 2020, there was $3.2 million of unrecognized compensation cost related to stock options granted. These costs are expected to be recognized over a period of approximately 1.9 years. Early Exercise of Unvested Stock Options Early exercises of stock options under the Company's 2008 SOP 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 as the options vest. As of December 31, 2020 and 2019, the Company had a total of 5,836 and 21,404 shares of common stock, respectively, subject to repurchase under the 2008 SOP. Restricted Stock Units The following table summarizes restricted stock units activity for the years ended December 31, 2020 and 2019: Number of Weighted- 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 Granted 1,016,432 $20.17 Vested (344,779) $19.87 Canceled and forfeited (49,399) $19.73 Outstanding as of December 31, 2020 1,165,295 $20.07 As of December 31, 2020, there was a total unrecognized compensation cost of $19.3 million. These costs are expected to be recognized over a period of approximately 2.9 years. Employee Stock Purchase Plan The Company's 2018 Employee Stock Purchase Plan (the “ESPP”) 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 The fair value of the ESPP shares is estimated using the Black-Scholes option pricing model, which is being amortized over the requisite service period. The Company issued 137,377 shares and 168,457 shares under the ESPP during the years ended December 31, 2020 and 2019, respectively, representing approximately $1.9 million and $2.2 million in employee contributions. As of December 31, 2020 and 2019, total accumulated ESPP related employee payroll deductions amounted to $0.4 million and $0.2 million, respectively, which were included within accrued compensation and related expenses in the consolidated balance sheets. For the years ended December 31, 2020 and 2019, the Company recognized $1.2 million and $0.8 million, respectively, of stock-based compensation expense related to ESPP. As of December 31, 2020, the unrecognized compensation cost for the ESPP was $0.2 million. The Company estimated the fair value of ESPP purchase rights during the offering period using a Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2020 2019 Expected term (years) 0.5 to 1.0 0.5 Expected volatility 38.3% to 79.4% 38.3% to 58.4% Risk-free interest rate 0.1% to 1.6% 1.6% to 2.4% Dividend yield —% —% Stock-Based Compensation The following table sets forth stock-based compensation expense recognized for the periods presented: Year ended December 31, 2020 2019 (in thousands) Cost of goods sold $ 331 $ 185 Sales and marketing 5,527 3,335 Research and development 1,139 516 General and administrative 4,930 3,428 $ 11,927 $ 7,464 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe 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. 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 at the beginning through the end of the year. For the years ended December 31, 2020 and 2019, the Company made $0.2 million and $0.1 million, respectively, 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, 2020 | |
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, 2020 2019 (in thousands, except share and per share data) Net loss $ (43,697) $ (38,403) Weighted-average shares used to compute basic and diluted net loss per share 29,059,171 24,705,980 Net loss per share, basic and diluted $ (1.50) $ (1.55) 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, 2020 2019 Stock options 2,405,957 2,718,971 Restricted stock units 1,165,295 543,041 Shares subject to repurchase 5,836 21,404 ESPP purchase rights 83,040 65,442 Common stock warrants 118,122 118,122 3,778,250 3,466,980 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (in thousands) Domestic $ (41,708) $ (37,709) Foreign (1,989) (694) Loss before income taxes $ (43,697) $ (38,403) There was no provision for income taxes recorded for the years ended December 31, 2020 and 2019. 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. The components of deferred income taxes are as follows: Year ended December 31, 2020 2019 (in thousands) Federal $ 9,855 $ 8,523 State 2,711 1,569 Foreign 583 (200) Total deferred income taxes 13,149 9,892 Change in deferred tax valuation allowance (13,149) (9,892) 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, 2020 2019 Tax at statutory federal rate (21.0) % (21.0) % State tax, net of federal benefit (6.2) % (4.1) % Tax credits (0.7) % (0.7) % Change in deferred tax valuation allowance 30.1 % 25.8 % Stock compensation (1.2) % (1.5) % Foreign rate differences (1.3) % 0.5 % Other 0.3 % 1.0 % 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, 2020 2019 (in thousands) Net operating loss carryforwards $ 52,331 $ 42,032 Research and development credits 3,160 2,428 Accruals and reserves 5,450 4,222 Stock compensation 2,395 1,512 Depreciation and amortization 117 110 Total deferred tax assets 63,453 50,304 Less: Valuation allowance (63,453) (50,304) Total deferred tax asset, net of valuation allowance $ — $ — The following table summarizes changes in the valuation allowance for the years ended December 31, 2020 and 2019: Year ended December 31, 2020 2019 (in thousands) Beginning balance $ 50,304 $ 40,412 Additions during the period 13,149 9,892 Ending balance $ 63,453 $ 50,304 As of December 31, 2020, the Company had net operating loss (“NOL”) carryforwards of approximately $200.5 million and $165.0 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 2021. As of December 31, 2020, the Company had credit carryforwards of approximately $2.5 million and $2.5 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 Company updated its Section 382 ownership change analysis through December 31, 2020 a nd determined that the last ownership change was in February 2020 due to the follow-offering. The analysis concluded that no additional NOL carryforwards will expire due to the Section 382 limitation from the ownership change for both federal and state tax purposes. The Company maintains the reduction of $1.4 million of its NOL carryforwards from the previous ownership change. The Com pany 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 CARES Act includes provisions relating to refundable payroll tax credits, deferment of employer's social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company deferred the payment of an employer's share of social security taxes through December 31, 2020 of $1.0 million. On June 29, 2020, Governor Gavin Newsom signed California Assembly Bill 85 (AB 85) into law. The legislation suspends the California net operating loss deductions for 2020, 2021, and 2022 for certain taxpayers and imposes a limitation of certain California Tax Credits for 2020, 2021, and 2022. The legislation disallows the use of California net operating loss deductions if the taxpayer recognizes business income and its adjusted gross income is greater than $1.0 million. The carryover periods for net operating loss deductions disallowed by this provision will be extended. Additionally, any business credit will only offset a maximum of $5.0 million of California tax. Given the Company’s loss position for the year ended December 31, 2020, the new legislation did not impact the current year provision. The Company will continue to monitor the possible California net operating loss and credit limitations in future periods. 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, 2020 and 2019 consisted of the following: Year ended December 31, 2020 2019 (in thousands) Balance at beginning of the year $ 1,287 $ 1,084 Increases related to current year's tax positions 226 203 Balance at end of the year $ 1,513 $ 1,287 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, 2020 and 2019. None of the Company’s unrecognized tax benefits that, if recognized, would affect its effective tax rates for the years ended December 31, 2020 and 2019. 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, state or foreign 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions 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 development 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 to SeaSpine to reimburse for full time resources employed by SeaSpine responsible to conduct the development activities. For the year ended December 31, 2020, the Company expensed $118,000 of the reimbursement charges from SeaSpine, which was recorded within research and development expense in the consolidated statement of operations. There was no outstanding liabilities to SeaSpine as of December 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 primarily includes the fair value of stock options. |
JOBS Act Accounting Election | 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 | 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 in the consolidated statements of operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsAccounts 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 such 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 | InventoryInventory 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 AssetsThe 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. The Company adopted 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. Revenue is recognized 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. 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 a 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 agreed 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 |
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 TaxIn 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; and (3) other expenses, which include direct and allocated expenses for facilities and other costs. |
Advertising Expenditures | Advertising ExpendituresThe cost of advertising is expensed as incurred and is included under sales and marketing expense in the consolidated statements of operations. |
Loss Contingency | Loss ContingencyThe 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 . 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. |
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 i n conformity with the two-class method required for companies with participating securities. The Company considers all ea rly 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 early exercised stock options as the holders 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, common stock options and warrants are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, 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 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. |
Warrants | WarrantsThe 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’ equity 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. |
Recent Accounting Pronouncements | Adoption of New Revenue Recognition Standard The Company adopted the new revenue recognition standards (“ASC 606”) 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 previous revenue recognition standards (“ASC 605”). The adoption of ASC 606 did not result in 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. 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 continues to recognize the revenue upon shipments to the customers, net of rebates and price discounts. Additionally, ASC 606 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 June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“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-Based Payments to Non-Employees. The Company adopted this standard effective for the year ended December 31, 2020, and the adoption did not have any material impact on the Company’s consolidated financial statements. 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 has adopted this standard effective for the year ended December 31, 2020, 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 leases standard. Further, due to the impact of the COVID-19, in June 2020, the FASB issued ASU 2020-05 to further defer the effective date for one year for entities in the “all other” categories. For public companies, the new guidance became 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, 2021 and interim periods within fiscal years beginning after December 15, 2022. Early adoption is still permitted for any interim or annual financial statements not yet issued. As an emerging growth company, the new leases standard is now effective for the Company for the fiscal year ending December 31, 2022 and interim periods within fiscal year ending December 31, 2023. 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 on 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 does not expect the adoption of the standard will have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Geography | Following table summarizes the Company's revenue by geography: Year ended December 31, 2020 2019 (in thousands) United States $ 68,118 $ 61,843 International 5,269 5,458 $ 73,387 $ 67,301 |
Schedule of Property and Equipment | 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, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 6,342 $ 4,613 Construction in progress 1,692 1,854 Computer and office equipment 714 598 Leasehold improvements 503 497 Furniture and fixtures 233 187 9,484 7,749 Less: Accumulated depreciation and amortization (4,957) (3,795) $ 4,527 $ 3,954 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The table below summarizes the marketable securities: December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 45,948 $ — $ — $ 45,948 Commercial paper 1,400 — — 1,400 Cash equivalents 47,348 — — 47,348 U.S. treasury securities 74,779 4 (7) 74,776 Corporate bonds 8,940 4 (6) 8,938 Commercial paper 59,137 — — 59,137 Short-term investments 142,856 8 (13) 142,851 Total marketable securities $ 190,204 $ 8 $ (13) $ 190,199 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 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 45,948 $ — $ — $ 45,948 U.S. treasury securities 74,776 — — 74,776 Corporate bonds — 8,938 — 8,938 Commercial paper — 60,537 — 60,537 Total marketable securities $ 120,724 $ 69,475 $ — $ 190,199 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 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 6,342 $ 4,613 Construction in progress 1,692 1,854 Computer and office equipment 714 598 Leasehold improvements 503 497 Furniture and fixtures 233 187 9,484 7,749 Less: Accumulated depreciation and amortization (4,957) (3,795) $ 4,527 $ 3,954 |
Schedule of Accrued Liabilities and Other | Accrued Liabilities and Other : December 31, 2020 December 31, 2019 (in thousands) Accrued compensation and related expenses $ 9,175 $ 7,274 Accrued litigation expense — 3,200 Accrued professional services 511 392 Others 513 739 $ 10,199 $ 11,605 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 are as follows: Year Ending December 31, (in thousands) 2021 $ 1,081 2022 1,001 2023 908 2024 893 2025 381 Thereafter 24 $ 4,288 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 (in thousands) Principal outstanding and final fee $ 41,000 $ 40,000 Less: Unamortized debt issuance costs (661) (777) Unaccreted value of final fee (884) — Outstanding debt, net of debt issuance costs and unaccreted value of final fee $ 39,455 $ 39,223 Classified as: Current portion of long-term borrowings $ — $ 4,358 Long-term borrowings $ 39,455 $ 34,865 |
Schedule of Annual Future Minimum Principal Payments Under Loan Agreements | Year ending December 31, (in thousands) 2021 $ — 2022 — 2023 11,667 2024 20,000 2025 9,333 Total principal and final fee payments $ 41,000 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Warrants Issued and Outstanding | The table below summarizes common stock warrants issued and outstanding at both December 31, 2020 and 2019: Date Number of Price per Fair Value 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, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2020 and 2019: 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, 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 Granted 26,236 $17.31 Exercised (323,701) $4.52 Canceled and forfeited (15,549) $17.07 Outstanding as of December 31, 2020 2,405,957 $8.54 5.80 $ 51,402 Options vested and exercisable as of December 31, 2020 2,069,020 $6.85 5.40 $ 47,689 Options vested and expected to vest as of December 31, 2020 2,390,755 $8.36 6.00 $ 51,493 |
Schedule of Options by Range of Exercise Price | Outstanding options and exercisable options information by range of exercise prices as of December 31, 2020 was as follows: Exercise Price Options Outstanding Options Vested and Exercisable Number of Shares Average Weighted- Number of Shares Weighted- $0.84 - $3.69 465,071 3.40 $3.31 465,071 $3.31 $3.70 - $4.41 689,903 4.80 $4.29 689,903 $4.29 $4.42 - $5.31 458,812 6.40 $4.67 422,974 $4.67 $5.32 - $20.51 356,271 7.50 $12.08 282,203 $11.00 $20.52 - $22.00 435,900 8.00 $22.00 208,869 $22.00 2,405,957 5.80 $8.54 2,069,020 $6.85 |
Schedule of Valuation Assumptions Related to Stock Option Awards | Year ended December 31, 2020 2019 Weighted average grant date fair value per share $8.16 $9.78 Expected term (years) 5.5 to 7.0 5.0 to 7.0 Expected volatility 46.7% to 47.2% 41.7% to 47.3% Risk-free interest rate 1.6% to 1.6% 1.3% to 2.6% Dividend yield —% —% |
Schedule of Restricted Stock Unit Activity | The following table summarizes restricted stock units activity for the years ended December 31, 2020 and 2019: Number of Weighted- 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 Granted 1,016,432 $20.17 Vested (344,779) $19.87 Canceled and forfeited (49,399) $19.73 Outstanding as of December 31, 2020 1,165,295 $20.07 |
Schedule of Valuation Assumptions Related to ESPP Purchase Rights | The Company estimated the fair value of ESPP purchase rights during the offering period using a Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2020 2019 Expected term (years) 0.5 to 1.0 0.5 Expected volatility 38.3% to 79.4% 38.3% to 58.4% Risk-free interest rate 0.1% to 1.6% 1.6% to 2.4% 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, 2020 2019 (in thousands) Cost of goods sold $ 331 $ 185 Sales and marketing 5,527 3,335 Research and development 1,139 516 General and administrative 4,930 3,428 $ 11,927 $ 7,464 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (in thousands, except share and per share data) Net loss $ (43,697) $ (38,403) Weighted-average shares used to compute basic and diluted net loss per share 29,059,171 24,705,980 Net loss per share, basic and diluted $ (1.50) $ (1.55) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss per Share | Year ended December 31, 2020 2019 Stock options 2,405,957 2,718,971 Restricted stock units 1,165,295 543,041 Shares subject to repurchase 5,836 21,404 ESPP purchase rights 83,040 65,442 Common stock warrants 118,122 118,122 3,778,250 3,466,980 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (in thousands) Domestic $ (41,708) $ (37,709) Foreign (1,989) (694) Loss before income taxes $ (43,697) $ (38,403) |
Schedule of Components of Income Tax Expense | The components of deferred income taxes are as follows: Year ended December 31, 2020 2019 (in thousands) Federal $ 9,855 $ 8,523 State 2,711 1,569 Foreign 583 (200) Total deferred income taxes 13,149 9,892 Change in deferred tax valuation allowance (13,149) (9,892) 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, 2020 2019 Tax at statutory federal rate (21.0) % (21.0) % State tax, net of federal benefit (6.2) % (4.1) % Tax credits (0.7) % (0.7) % Change in deferred tax valuation allowance 30.1 % 25.8 % Stock compensation (1.2) % (1.5) % Foreign rate differences (1.3) % 0.5 % Other 0.3 % 1.0 % 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, 2020 2019 (in thousands) Net operating loss carryforwards $ 52,331 $ 42,032 Research and development credits 3,160 2,428 Accruals and reserves 5,450 4,222 Stock compensation 2,395 1,512 Depreciation and amortization 117 110 Total deferred tax assets 63,453 50,304 Less: Valuation allowance (63,453) (50,304) 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 years ended December 31, 2020 and 2019: Year ended December 31, 2020 2019 (in thousands) Beginning balance $ 50,304 $ 40,412 Additions during the period 13,149 9,892 Ending balance $ 63,453 $ 50,304 |
Schedule of Uncertain Income Tax Positions | The changes in the Company’s uncertain income tax positions for the years ended December 31, 2020 and 2019 consisted of the following: Year ended December 31, 2020 2019 (in thousands) Balance at beginning of the year $ 1,287 $ 1,084 Increases related to current year's tax positions 226 203 Balance at end of the year $ 1,513 $ 1,287 |
The Company and Nature of Bus_2
The Company and Nature of Business (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Oct. 31, 2018 | Dec. 31, 2020 | |
IPO | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares issued (in shares) | 8,280,000 | ||||
Public offering price (in dollars per share) | $ 15 | ||||
Net proceeds from sale of stock | $ 113.4 | ||||
First follow-on public offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares issued (in shares) | 2,490,053 | ||||
Public offering price (in dollars per share) | $ 21.50 | ||||
Net proceeds from sale of stock | $ 50 | ||||
Allocated public offering costs | $ 0.4 | ||||
First follow-on public offering and secondary offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares in transaction, including shares in secondary offering (in shares) | 4,300,000 | ||||
Underwriters option | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares issued (in shares) | 478,507 | 645,000 | |||
Public offering price (in dollars per share) | $ 21.50 | ||||
Net proceeds from sale of stock | $ 13 | ||||
Second follow-on public offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares issued (in shares) | 3,000,000 | ||||
Public offering price (in dollars per share) | $ 22 | ||||
Net proceeds from sale of stock | $ 71.6 | ||||
Secondary offering by selling shareholders | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares issued (in shares) | 190,053 | ||||
Public offering price (in dollars per share) | $ 22 | ||||
Allocated public offering costs | $ 0.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Segments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 1 | |
Number of operating segments | segment | 1 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 73,387 | $ 67,301 |
Revenue | 67,301 | |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 68,118 | |
Revenue | 61,843 | |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,269 | |
Revenue | $ 5,458 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Liquidity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Cash and marketable securities | $ 196,400 | $ 93,100 |
Long-term debt | 39,455 | 39,223 |
Accumulated deficit | 239,277 | 195,580 |
Net loss | $ (43,697) | $ (38,403) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 | |
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 ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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, 2020 | |
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, 2020 | |
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, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Advertising expenses | $ 0.3 | $ 0.4 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash equivalents | ||
Carrying Value | $ 47,348 | $ 5,563 |
Short-term investments | ||
Amortized Cost | 142,856 | 81,291 |
Unrealized Gains | 8 | 58 |
Unrealized Losses | (13) | (4) |
Aggregate Fair Value | 142,851 | 81,345 |
Long-term investments | ||
Amortized Cost | 1,278 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 0 | 1,278 |
Total marketable securities, Amortized Cost | 190,204 | 88,132 |
Total marketable securities, Unrealized Gains | 8 | 58 |
Total marketable securities, Unrealized Losses | (13) | (4) |
Total marketable securities, Aggregate Fair Value | 190,199 | 88,186 |
Money market funds | ||
Cash equivalents | ||
Carrying Value | 45,948 | 3,068 |
U.S. treasury securities | ||
Short-term investments | ||
Amortized Cost | 74,779 | 67,051 |
Unrealized Gains | 4 | 34 |
Unrealized Losses | (7) | (2) |
Aggregate Fair Value | 74,776 | 67,083 |
Corporate bonds | ||
Short-term investments | ||
Amortized Cost | 8,940 | 9,075 |
Unrealized Gains | 4 | 24 |
Unrealized Losses | (6) | (2) |
Aggregate Fair Value | 8,938 | 9,097 |
Long-term investments | ||
Amortized Cost | 1,278 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 1,278 | |
Commercial paper | ||
Cash equivalents | ||
Carrying Value | 1,400 | 2,495 |
Short-term investments | ||
Amortized Cost | 59,137 | 5,165 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | $ 59,137 | $ 5,165 |
Fair Value Measurement - Market
Fair Value Measurement - Marketable Securities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable securities | ||
Marketable securities | $ 190,199 | $ 88,186 |
Money market funds | ||
Marketable securities | ||
Marketable securities | 45,948 | 3,068 |
U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 74,776 | 67,083 |
Corporate bonds | ||
Marketable securities | ||
Marketable securities | 8,938 | 10,375 |
Commercial paper | ||
Marketable securities | ||
Marketable securities | 60,537 | 7,660 |
Level 1 | ||
Marketable securities | ||
Marketable securities | 120,724 | 70,151 |
Level 1 | Money market funds | ||
Marketable securities | ||
Marketable securities | 45,948 | 3,068 |
Level 1 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 74,776 | 67,083 |
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 | 69,475 | 18,035 |
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 | 8,938 | 10,375 |
Level 2 | Commercial paper | ||
Marketable securities | ||
Marketable securities | 60,537 | 7,660 |
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, 2020 | Dec. 31, 2019 | |
Property and Equipment, Net | ||
Property and equipment, gross | $ 9,484 | $ 7,749 |
Less: Accumulated depreciation and amortization | (4,957) | (3,795) |
Property and equipment, net | 4,527 | 3,954 |
Depreciation expense | 1,100 | 800 |
Machinery and equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 6,342 | 4,613 |
Construction in progress | ||
Property and Equipment, Net | ||
Property and equipment, gross | 1,692 | 1,854 |
Computer and office equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 714 | 598 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Property and equipment, gross | 503 | 497 |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 233 | $ 187 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities and Other | ||
Accrued compensation and related expenses | $ 9,175 | $ 7,274 |
Accrued litigation expense | 0 | 3,200 |
Accrued professional services | 511 | 392 |
Others | 513 | 739 |
Accrued liabilities and other | $ 10,199 | $ 11,605 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Jun. 22, 2020 | Feb. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leased Assets [Line Items] | ||||
Rent expense | $ 1,200,000 | $ 1,200,000 | ||
Purchase commitments related to inventory | 300,000 | 400,000 | ||
Accrued litigation expense | 0 | 3,200,000 | ||
Class action Eric B. Fromer Chiropractic Inc. | ||||
Operating Leased Assets [Line Items] | ||||
Accrued litigation expense | $ 3,200,000 | |||
Settlement of approved claims by class members, fees, expenses and incentive awards | $ 2,600,000 | |||
Reversal of accrued litigation expense | 600,000 | |||
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 |
Commitments and Contingencies_2
Commitments and Contingencies - Aggregate Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Aggregate Future Minimum Lease Payments | |
2021 | $ 1,081 |
2022 | 1,001 |
2023 | 908 |
2024 | 893 |
2025 | 381 |
Thereafter | 24 |
Total | $ 4,288 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Principal outstanding and final fee | $ 41,000 | $ 40,000 |
Less: Unamortized debt issuance costs | (661) | (777) |
Less: Unaccreted value of final fee | (884) | 0 |
Outstanding debt, net of debt issuance costs and unaccreted value of final fee | 39,455 | 39,223 |
Current portion of long-term borrowings | 0 | 4,358 |
Long-term borrowings | $ 39,455 | $ 34,865 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | May 29, 2020 | Apr. 29, 2020 | Apr. 21, 2020 | Oct. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Proceeds from debt financing | $ 45,297,000 | $ 0 | ||||
Recognition of unamortized debt discount and issuance costs on debt extinguishment | 700,000 | |||||
Prepayment penalty and lender fees on debt extinguishment | 800,000 | |||||
Final fee | 884,000 | $ 0 | ||||
Deferred liability for social security taxes, CARES Act | 1,000,000 | |||||
Accrued liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Deferred liability for social security taxes, CARES Act | 500,000 | |||||
Other long-term liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Deferred liability for social security taxes, CARES Act | $ 500,000 | |||||
PPP Loan, CARES Act | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from PPP loan | $ 5,300,000 | |||||
Repayment of PPP loan | $ 5,300,000 | |||||
Term Loan | Pharmakon Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from debt financing | $ 40,000,000 | |||||
Debt period payment, interest only period | 35 months | |||||
Fixed interest rate (percent) | 11.50% | |||||
Effective interest rate during the period (percent) | 12.40% | 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% | |||||
Term Loan | Solar Loan And Security Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt period payment, interest only period | 36 months | |||||
Fixed interest rate (percent) | 9.40% | |||||
Aggregate principal amount | $ 40,000,000 | |||||
Unamortized debt discount and issuance cost | $ 800,000 | |||||
Debt maturity term (in months) | 60 months | |||||
Allowable prepayment increments per agreement | $ 10,000,000 | |||||
Prepayment premium in year one (percent) | 3.00% | |||||
Prepayment premium in year two (percent) | 1.25% | |||||
Prepayment premium in year three or later (percent) | 0.50% | |||||
Final fee | $ 1,000,000 | |||||
Final fee as percentage of aggregate principal amount (percent) | 2.50% | |||||
Effective interest rate during the period (percent) | 10.60% | |||||
Incremental interest rate increase upon default of minimum liquidity covenant (percent) | 5.00% | |||||
Term Loan | Solar Loan And Security Agreement | Variable Option One | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 0.33% | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche One | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant minimum cash balance | $ 15,000,000 | |||||
Product revenue threshold for minimum liquidity covenant | 75,000,000 | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche One | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Product revenue threshold for minimum liquidity covenant | 75,000,000 | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche One | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Product revenue threshold for minimum liquidity covenant | 100,000,000 | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant minimum cash balance | 7,500,000 | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche Three | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant minimum cash balance | 0 | |||||
Term Loan | Solar Loan And Security Agreement | Debt Covenant Tranche Three | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Product revenue threshold for minimum liquidity covenant | $ 100,000,000 |
Borrowings - Annual Future Mini
Borrowings - Annual Future Minimum Principal Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 11,667 | |
2024 | 20,000 | |
2025 | 9,333 | |
Total principal and final fee payments | $ 41,000 | $ 40,000 |
Warrants - Issued and Outstandi
Warrants - Issued and Outstanding (Details) - Common Stock - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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) | $ 9.10 | $ 9.10 |
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, 2020 | Dec. 31, 2019 | |
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) | 32,583,220 | 25,163,803 |
Common stock outstanding (in shares) | 32,583,220 | 25,163,803 |
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) $ in Thousands | Jan. 01, 2021shares | Jan. 01, 2020shares | Jan. 01, 2019shares | Apr. 30, 2020 | Dec. 31, 2020USD ($)purchase_periodshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Oct. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of options exercised | $ | $ 5,600 | $ 6,800 | ||||||
Unrecognized compensation costs | $ | $ 3,200 | $ 3,200 | ||||||
Early exercise of stock options, share subject to repurchase (in shares) | shares | 5,836 | 5,836 | 21,404 | |||||
Issuance of common stock related to employee stock purchase plan (in shares) | shares | 137,377 | 168,457 | ||||||
Issuance of common stock related to employee stock purchase plan | $ | $ 1,915 | $ 2,203 | ||||||
Stock-based compensation expense | $ | $ 11,927 | 7,464 | ||||||
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] | ||||||||
Percentage of ownership of outstanding shares for alternate terms | 10.00% | |||||||
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) | 1 year 10 months 24 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) | 2 years 10 months 24 days | |||||||
Unrecognized compensation cost | $ | $ 19,300 | $ 19,300 | ||||||
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% | 5.00% | ||||||
Increase in number of shares reserved for future issuance (in shares) | shares | 1,222,538 | 1,258,190 | ||||||
Shares available for future grants (in shares) | shares | 2,843,814 | 2,843,814 | ||||||
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) | shares | 1,629,161 | |||||||
2018 ESPP | ||||||||
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% | 1.00% | ||||||
Annual increase in shares reserved, maximum (in shares) | shares | 555,555 | 555,555 | ||||||
Unrecognized compensation cost | $ | $ 200 | $ 200 | ||||||
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 | 12 months | ||||||
Number of purchase periods in offering interval | purchase_period | 2 | |||||||
Number of shares reserved for issuance (in shares) | shares | 705,618 | 705,618 | 515,307 | |||||
Accrued compensation and related expenses for employee payroll deductions | $ | $ 400 | $ 400 | 200 | |||||
Stock-based compensation expense | $ | $ 1,200 | $ 800 | ||||||
2018 ESPP | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in number of shares reserved for future issuance (in shares) | shares | 325,832 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Beginning balance (in shares) | 2,718,971 | 2,641,198 |
Options granted (in shares) | 26,236 | 638,983 |
Options exercised (in shares) | (323,701) | (444,924) |
Options canceled and forfeited (in shares) | (15,549) | (116,286) |
Ending balance (in shares) | 2,405,957 | 2,718,971 |
Options vested and exercisable (in shares) | 2,069,020 | |
Options vested and expected to vest (in shares) | 2,390,755 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 8.02 | $ 4.27 |
Options granted (in dollars per share) | 17.31 | 20.89 |
Options exercised (in dollars per share) | 4.52 | 3.36 |
Options canceled and forfeited (in dollars per share) | 17.07 | 11.30 |
Ending balance (in dollars per share) | 8.54 | $ 8.02 |
Options vested and exercisable (in dollars per share) | 6.85 | |
Options vested and expected to vest (in dollars per share) | $ 8.36 | |
Weighted-Average Remaining Contractual Life and Aggregate Intrinsic Value | ||
Weighted-average remaining contractual life, options outstanding (in years) | 5 years 9 months 18 days | |
Weighted-average remaining contractual life, options vested and exercisable (in years) | 5 years 4 months 24 days | |
Weighted-average remaining contractual life, options vested and expected to vest (in years) | 6 years | |
Aggregate intrinsic value, options outstanding | $ 51,402 | |
Aggregate intrinsic value, options vested and exercisable | 47,689 | |
Aggregate intrinsic value, options vested and expected to vest | $ 51,493 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Options and Exercisable Options Information by Range of Exercise Prices (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number of shares (in shares) | shares | 2,405,957 |
Options outstanding, average remaining contractual life (years) | 5 years 9 months 18 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 8.54 |
Options vested and exercisable, number of shares (in shares) | shares | 2,069,020 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 6.85 |
$0.84-$3.69 | |
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) | $ 3.69 |
Options outstanding, number of shares (in shares) | shares | 465,071 |
Options outstanding, average remaining contractual life (years) | 3 years 4 months 24 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 3.31 |
Options vested and exercisable, number of shares (in shares) | shares | 465,071 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 3.31 |
$3.70-$4.41 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 3.70 |
Exercise price, upper limit (in dollars per share) | $ 4.41 |
Options outstanding, number of shares (in shares) | shares | 689,903 |
Options outstanding, average remaining contractual life (years) | 4 years 9 months 18 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 4.29 |
Options vested and exercisable, number of shares (in shares) | shares | 689,903 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 4.29 |
$4.42-$5.31 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 4.42 |
Exercise price, upper limit (in dollars per share) | $ 5.31 |
Options outstanding, number of shares (in shares) | shares | 458,812 |
Options outstanding, average remaining contractual life (years) | 6 years 4 months 24 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 4.67 |
Options vested and exercisable, number of shares (in shares) | shares | 422,974 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 4.67 |
$5.32-$20.51 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 5.32 |
Exercise price, upper limit (in dollars per share) | $ 20.51 |
Options outstanding, number of shares (in shares) | shares | 356,271 |
Options outstanding, average remaining contractual life (years) | 7 years 6 months |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 12.08 |
Options vested and exercisable, number of shares (in shares) | shares | 282,203 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 11 |
$20.52-$22.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit (in dollars per share) | 20.52 |
Exercise price, upper limit (in dollars per share) | $ 22 |
Options outstanding, number of shares (in shares) | shares | 435,900 |
Options outstanding, average remaining contractual life (years) | 8 years |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 22 |
Options vested and exercisable, number of shares (in shares) | shares | 208,869 |
Options vested and exercisable, weighted-average exercise price (in dollars per share) | $ 22 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions for Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Black-Scholes option-pricing model assumptions | ||
Weighted-average grant date fair value of options granted (in dollars per share) | $ 8.16 | $ 9.78 |
Stock Options | ||
Black-Scholes option-pricing model assumptions | ||
Expected volatility, minimum (percent) | 46.70% | 41.70% |
Expected volatility, maximum (percent) | 47.20% | 47.30% |
Risk-free interest rate, minimum (percent) | 1.60% | 1.30% |
Risk-free interest rate, maximum (percent) | 1.60% | 2.60% |
Dividend yield (percent) | 0.00% | 0.00% |
Stock Options | Minimum | ||
Black-Scholes option-pricing model assumptions | ||
Expected term (in years) | 5 years 6 months | 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, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Beginning balance (in shares) | 543,041 | 53,436 |
Granted (in shares) | 1,016,432 | 639,726 |
Vested (in shares) | (344,779) | (108,631) |
Canceled and forfeited (in shares) | (49,399) | (41,490) |
Ending balance (in shares) | 1,165,295 | 543,041 |
Weighted- Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 19.72 | $ 11.69 |
Granted (in dollars per share) | 20.17 | 20.14 |
Vested (in dollars per share) | 19.87 | 19.10 |
Canceled and forfeited (in dollars per share) | 19.73 | 18.48 |
Ending balance (in dollars per share) | $ 20.07 | $ 19.72 |
Stock-Based Compensation - Va_2
Stock-Based Compensation - Valuation Assumptions for ESPP Purchase Rights (Details) - ESPP Purchase Rights | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | |
Expected volatility, minimum (percent) | 38.30% | 38.30% |
Expected volatility, maximum (percent) | 79.40% | 58.40% |
Risk-free interest rate, minimum (percent) | 0.10% | 1.60% |
Risk-free interest rate, maximum (percent) | 1.60% | 2.40% |
Dividend yield (percent) | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 1 year |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 11,927 | $ 7,464 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 331 | 185 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 5,527 | 3,335 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,139 | 516 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4,930 | $ 3,428 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - 401(k) Plan - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 200,000 | $ 100,000 |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (43,697) | $ (38,403) |
Weighted-average number of common shares used to compute basic and diluted net loss per share (in shares) | 29,059,171 | 24,705,980 |
Net loss per share, basic and diluted (in dollars per share) | $ (1.50) | $ (1.55) |
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, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from the computation of diluted net loss per share | 3,778,250 | 3,466,980 |
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 | 2,405,957 | 2,718,971 |
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 | 1,165,295 | 543,041 |
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 | 5,836 | 21,404 |
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 | 83,040 | 65,442 |
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, 2020 | Dec. 31, 2019 | |
Components of loss before income taxes | ||
Domestic | $ (41,708) | $ (37,709) |
Foreign | (1,989) | (694) |
Loss before income taxes | $ (43,697) | $ (38,403) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax expense: | ||
Federal | $ 9,855 | $ 8,523 |
State | 2,711 | 1,569 |
Foreign | 583 | (200) |
Total deferred income taxes | 13,149 | 9,892 |
Change in deferred tax valuation allowance | (13,149) | (9,892) |
Net deferred income tax | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation | ||
Tax at statutory federal rate (percent) | (21.00%) | (21.00%) |
State tax, net of federal benefit (percent) | (6.20%) | (4.10%) |
Tax credits (percent) | (0.70%) | (0.70%) |
Change in deferred tax valuation allowance (percent) | 30.10% | 25.80% |
Stock compensation (percent) | (1.20%) | (1.50%) |
Foreign rate differences (percent) | (1.30%) | 0.50% |
Other (percent) | 0.30% | 1.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | |||
Net operating loss carryforwards | $ 52,331 | $ 42,032 | |
Research and development credits | 3,160 | 2,428 | |
Accruals and reserves | 5,450 | 4,222 | |
Stock compensation | 2,395 | 1,512 | |
Depreciation and amortization | 117 | 110 | |
Total deferred tax assets | 63,453 | 50,304 | |
Less: Valuation allowance | (63,453) | (50,304) | $ (40,412) |
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, 2020 | Dec. 31, 2019 | |
Changes in Valuation Allowance | ||
Valuation allowance, beginning balance | $ 50,304 | $ 40,412 |
Additions during the period | 13,149 | 9,892 |
Valuation allowance, ending balance | $ 63,453 | $ 50,304 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Line Items] | ||
Limited net operating loss carryforwards | $ 1,400,000 | |
Deferred liability for social security taxes, CARES Act | 1,000,000 | |
Accrued interest related to unrecognized tax benefits | 0 | $ 0 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 200,500,000 | |
Credit carryforwards | 2,500,000 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 165,000,000 | |
Credit carryforwards | $ 2,500,000 |
Income Taxes - Uncertain Income
Income Taxes - Uncertain Income Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Uncertain income tax positions [Roll Forward] | ||
Balance at beginning of the year | $ 1,287 | $ 1,084 |
Increases related to current year's tax positions | 226 | 203 |
Balance at end of the year | $ 1,513 | $ 1,287 |
Related Party Transactions (Det
Related Party Transactions (Details) - SeaSpine - Joint development agreement - USD ($) | Feb. 24, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Reimbursement charges expensed | $ 118,000 | |
Outstanding liability to SeaSpine | $ 0 | |
Term of product royalty sales period (in years) | 10 years |