Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40378 | ||
Entity Registrant Name | The Honest Company, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0750205 | ||
Entity Address, Address Line One | 12130 Millennium Drive | ||
Entity Address, Address Line Two | #500 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90094 | ||
City Area Code | 888 | ||
Local Phone Number | 862-8818 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | HNST | ||
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 | 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 | $ 188,904,751 | ||
Entity Common Stock, Shares Outstanding | 93,345,305 | ||
Entity Central Index Key | 0001530979 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement relating to the 2023 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended December 31, 2022. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 9,517 | $ 50,791 |
Short-term investments | 5,650 | 42,388 |
Accounts receivable, net | 42,334 | 31,784 |
Inventories | 115,664 | 75,668 |
Prepaid expenses and other current assets | 15,982 | 13,165 |
Total current assets | 189,147 | 213,796 |
Operating lease right-of-use asset | 29,947 | |
Property and equipment, net | 14,327 | |
Property and equipment, net | 52,952 | |
Goodwill | 2,230 | 2,230 |
Intangible assets, net | 370 | 440 |
Other assets | 4,578 | 3,179 |
Total assets | 240,599 | 272,597 |
Current liabilities | ||
Accounts payable | 24,755 | 28,743 |
Accrued expenses | 38,010 | 19,003 |
Deferred revenue | 815 | 731 |
Total current liabilities | 63,580 | 48,477 |
Long term liabilities | ||
Lease financing obligation, net of current portion | 37,527 | |
Operating lease liabilities, net of current portion | 29,842 | |
Other long-term liabilities | 817 | 7,487 |
Total liabilities | 94,239 | 93,491 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at December 31, 2022 and 2021, none issued or outstanding as of December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.0001 par value, 1,000,000,000 shares authorized at December 31, 2022 and 2021; 92,896,736 and 91,512,140 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 9 | 9 |
Additional paid-in capital | 586,213 | 570,794 |
Accumulated deficit | (439,830) | (391,656) |
Accumulated other comprehensive loss | (32) | (41) |
Total stockholders’ equity | 146,360 | 179,106 |
Total liabilities and stockholders’ equity | $ 240,599 | $ 272,597 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 92,896,736 | 91,512,140 |
Common stock outstanding (in shares) | 92,896,736 | 91,512,140 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 313,651 | $ 318,639 | $ 300,522 |
Cost of revenue | 221,336 | 209,467 | 192,626 |
Gross profit | 92,315 | 109,172 | 107,896 |
Operating expenses | |||
Selling, general and administrative | 87,317 | 84,059 | 71,253 |
Marketing | 47,782 | 54,260 | 44,478 |
Research and development | 6,996 | 7,679 | 5,705 |
Total operating expenses | 142,095 | 145,998 | 121,436 |
Operating loss | (49,780) | (36,826) | (13,540) |
Interest and other income (expense), net | 871 | (1,776) | (837) |
Loss before provision for income taxes | (48,909) | (38,602) | (14,377) |
Income tax provision | 110 | 77 | 89 |
Net loss | $ (49,019) | $ (38,679) | $ (14,466) |
Net loss per share attributable to common stockholders: | |||
Basic (in USD per share) | $ (0.53) | $ (0.43) | $ (0.43) |
Diluted (in USD per share) | $ (0.53) | $ (0.43) | $ (0.43) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | |||
Basic (in shares) | 92,201,806 | 71,126,218 | 34,075,572 |
Diluted (in shares) | 92,201,806 | 71,126,218 | 34,075,572 |
Other comprehensive income (loss) | |||
Unrealized gain (loss) on short-term investments, net of taxes | $ 9 | $ (135) | $ (28) |
Comprehensive loss | $ (49,010) | $ (38,814) | $ (14,494) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 34,033,074 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 49,100,928 | ||||||
Beginning balance at Dec. 31, 2019 | $ 376,404 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 49,100,928 | ||||||
Ending balance at Dec. 31, 2020 | $ 376,404 | ||||||
Beginning balance at Dec. 31, 2019 | (230,277) | $ 3 | $ 108,109 | $ (338,511) | $ 122 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (14,466) | (14,466) | |||||
Other comprehensive loss | (28) | (28) | |||||
Stock options exercised (in shares) | 56,112 | ||||||
Stock options exercised | 41 | 41 | |||||
Stock-based compensation | 7,905 | 7,905 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 34,089,186 | ||||||
Ending balance at Dec. 31, 2020 | $ (236,825) | $ 3 | 116,055 | (352,977) | 94 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 34,089,186 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (49,100,928) | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (376,404) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Ending balance at Dec. 31, 2021 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (38,679) | (38,679) | |||||
Other comprehensive loss | (135) | (135) | |||||
Stock options exercised (in shares) | 1,170,803 | ||||||
Stock options exercised | 5,730 | 5,730 | |||||
Stock-based compensation | 16,847 | 16,847 | |||||
Vested restricted stock units (in shares) | 173,835 | ||||||
Dividends paid | (35,000) | (35,000) | |||||
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $12.2 million (in shares) | 6,451,613 | ||||||
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $12.2 million | 91,039 | $ 1 | 91,038 | ||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 49,649,023 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 376,405 | $ 5 | 376,400 | ||||
Shares withheld related to net share settlement of equity awards (in shares) | (61,810) | ||||||
Common stock withheld for tax obligation and net settlement | (567) | (567) | |||||
Shares issued under employee stock purchase plan (in shares) | 39,490 | ||||||
Shares issued under employee stock purchase plan | 291 | 291 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 91,512,140 | ||||||
Ending balance at Dec. 31, 2021 | $ 179,106 | $ 9 | 570,794 | (391,656) | (41) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-02 | ||||||
Beginning balance (in shares) | 91,512,140 | ||||||
Net loss | $ (49,019) | (49,019) | |||||
Other comprehensive loss | $ 9 | 9 | |||||
Stock options exercised (in shares) | 43,556 | 43,556 | |||||
Stock options exercised | $ 122 | 122 | |||||
Stock-based compensation | 15,078 | 15,078 | |||||
Vested restricted stock units (in shares) | 1,253,348 | ||||||
Shares withheld related to net share settlement of equity awards (in shares) | (8,050) | ||||||
Common stock withheld for tax obligation and net settlement | (37) | (37) | |||||
Shares issued under employee stock purchase plan (in shares) | 95,742 | ||||||
Shares issued under employee stock purchase plan | 256 | 256 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 92,896,736 | ||||||
Ending balance at Dec. 31, 2022 | $ 146,360 | $ 845 | $ 9 | $ 586,213 | $ (439,830) | $ 845 | $ (32) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 92,896,736 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends paid (in USD per share) | $ / shares | $ 0.42 |
Underwriting commissions, discounts, and offering costs | $ | $ 12.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (49,019) | $ (38,679) | $ (14,466) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 2,753 | 4,146 | 4,854 |
Stock-based compensation | 15,078 | 16,847 | 7,905 |
Other | 6,345 | 311 | 166 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (10,550) | (8,989) | 1,461 |
Inventories | (39,996) | 1,001 | (24,129) |
Prepaid expenses and other assets | (4,358) | (6,114) | (1,496) |
Accounts payable, accrued expenses and other long-term liabilities | 10,396 | (6,691) | 13,748 |
Deferred revenue | 83 | 14 | (109) |
Operating lease liabilities | (7,007) | ||
Net cash used in operating activities | (76,275) | (38,154) | (12,066) |
Cash flows from investing activities | |||
Purchases of short-term investments | (12,782) | (65,267) | (22,462) |
Proceeds from sales of short-term investments | 0 | 27,394 | 5,830 |
Proceeds from maturities of short-term investments | 49,362 | 29,470 | 53,528 |
Purchases of property and equipment | (1,617) | (220) | (200) |
Net cash provided by (used in) investing activities | 34,963 | (8,623) | 36,696 |
Cash flows from financing activities | |||
Proceeds from initial public offering, net of underwriting commissions and discounts | 0 | 96,517 | 0 |
Dividends paid | 0 | (35,000) | 0 |
Proceeds from exercise of stock options | 122 | 5,730 | 41 |
Payment of initial public offering costs | 0 | (5,477) | 0 |
Taxes paid related to net share settlement of equity awards | (37) | (567) | 0 |
Proceeds from ESPP | 256 | 291 | 0 |
Payments on finance lease liabilities | (303) | ||
Payments on finance lease liabilities | (1,126) | (1,014) | |
Net cash provided by (used in) financing activities | 38 | 60,368 | (973) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (41,274) | 13,591 | 23,657 |
Cash, cash equivalents and restricted cash | |||
Beginning of the period | 50,791 | 37,200 | 13,543 |
End of the period | 9,517 | 50,791 | 37,200 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets | |||
Cash and cash equivalents | 9,517 | 50,791 | 29,259 |
Restricted cash, current | 0 | 0 | 1,752 |
Restricted cash, non-current | 0 | 0 | 6,189 |
Total cash, cash equivalents and restricted cash | 9,517 | 50,791 | 37,200 |
Supplemental disclosures of cash flow information | |||
Cash paid during the period for interest | 8 | 1,797 | 1,844 |
Cash paid during the period for income taxes | 101 | 76 | 102 |
Supplemental disclosures of noncash activities | |||
Equipment acquired under capital lease obligations | 123 | 71 | |
Deferred IPO costs included in accounts payable and accrued expenses | 0 | 0 | 533 |
Capital expenditures included in accounts payable and accrued expenses | $ 54 | $ 33 | $ 44 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business The Honest Company, Inc. (the “Company”) was incorporated in the State of California on July 19, 2011 and on May 23, 2012 was re-incorporated in the State of Delaware under the same name. The Company is a digitally-native consumer products company born in the Gen Z era to make purpose-driven consumer products designed for all people. The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness. Initial Public Offering The Company’s registration statement on Form S-1 (“IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on May 4, 2021, and the Company’s common stock began trading on the Nasdaq Global Select Market on May 5, 2021. On May 7, 2021, the Company completed its IPO of 25,807,000 shares of the Company's common stock, $0.0001 par value per share at an offering price of $16.00 per share. The Company sold 6,451,613 shares and certain existing stockholders sold an aggregate of 19,355,387 shares. The Company received aggregate net proceeds of approximately $91.0 million after deducting underwriting discounts and commissions of $6.7 million and other offering expenses of $5.5 million. The Company granted the underwriters an option for a period of 30 days to purchase up to an additional 3,871,050 shares of common stock from the selling stockholders at $16.00 per share less the underwriting discounts and commissions. In May 2021, the underwriters fully exercised the option to purchase these additional shares from the selling stockholders. The Company did not receive any proceeds from the sale of shares of its common stock by the selling stockholders. Upon completion of the IPO, the Company paid $9.5 million in cash bonuses to certain employees including members of management, as well as $0.2 million in related payroll taxes and expenses. Cash bonuses of $9.1 million were recorded in sales, general and administrative expenses and $0.4 million were recorded in research and development expenses in the accompanying consolidated statements of comprehensive loss upon completion of the IPO. In April 2021, the Company's board of directors declared a cash dividend of $35.0 million to the holders of record of its common stock and its redeemable convertible preferred stock as of May 3, 2021, which the Company paid on June 29, 2021 Immediately prior to the completion of the IPO, the Company filed an Amended and Restated Certificate of Incorporation, which authorized a total of 1,000,000,000 shares of common stock and 20,000,000 shares of preferred stock. Upon the filing of the Amended and Restated Certificate of Incorporation, 49,100,928 shares of the Company’s redeemable convertible preferred stock then outstanding with a carrying value of $376.4 million were automatically converted into 49,649,023 shares of the Company’s common stock. Upon completion of the IPO, the Company recognized a gain on extinguishment of the redeemable convertible preferred stock for earnings per share purposes of $29.0 million from the conversion of redeemable convertible preferred stock to common stock. Following the completion of the IPO, the Company has one class of authorized and outstanding common stock. See Note 10 " Redeemable Convertible Preferred Stock and Stockholders’ Deficit " for more information on the Company’s redeemable convertible preferred stock as of December 31, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. Stock Split In April 2021, the Company effected a 1-for-2 forward stock split of its common and redeemable convertible preferred stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the holders, became two shares of common stock and each issued and outstanding share of redeemable convertible preferred stock, automatically and without action on the part of the holders, became two shares of redeemable convertible preferred stock. The par value per share of common and redeemable convertible preferred stock was not adjusted. All share, per share and related information presented in the consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split. Segment Reporting and Geographic Information The Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for doubtful accounts, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation and for the periods prior to the Company's IPO, the fair value of common stock. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus disease (“COVID-19”) a pandemic. The full extent to which the outbreak of the COVID-19 pandemic and any COVID-19 variants will impact the Company’s business, results of operations and financial condition is still unknown and will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the COVID-19 outbreak and its variants, their severity, the actions to contain the virus and its variants or treat their impact, and how quickly and to what extent normal economic and operating conditions can resume. In light of the unknown ultimate duration and severity of COVID-19 and the impact of any COVID-19 variants, the Company faces a greater degree of uncertainty than normal in making certain judgments and estimates needed to apply significant accounting policies. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of December 31, 2022 and through the date these consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. For example, based on macro trends within our Household and Wellness product category, consumer demand for sanitizing and disinfecting products has decelerated at a more rapid than expected rate as more consumers are vaccinated and retailers continue to manage heavy inventories of sanitization and disinfecting products in stores. The Company recorded an inventory write-down, inclusive of overhead costs and tariffs, of $4.3 million and $5.6 million, during the year ended December 31, 2022 and 2021, respectively, relating to certain sanitization and disinfecting products as the amount of inventory was significantly in excess of the decreasing demand. Included in these inventory write-down is $1.0 million and $0.7 million of Company earmarked donations of excess sanitization products during the year ended December 31, 2022 and 2021, respectively, which is included in selling, general and administrative expense on the consolidated statements of comprehensive loss. The amount of excess sanitization products donated in future periods may differ from those earmarked for donations. The Company will continue to monitor and evaluate the uncertainty and volatility of these conditions, in particular, the impact on the amount and valuation of the Company’s inventory in the future. Cash and Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. Investments Investments consist of highly liquid investments in debt securities. Investments comprises commercial paper, certificates of deposit, corporate bonds and U.S. government and agency securities, which are classified as available-for-sale investments. The Company includes its available-for-sale investments in current assets because the securities represent investments of cash available for current operations. Available-for-sale investments are recorded at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Unrealized holding gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains or losses are recorded in interest and other income (expense), net. The Company evaluates the potential impairment through review of unrealized losses associated with its investments to determine if the impairment is “temporary” or “other-than-temporary.” A “temporary” unrealized loss is recorded in the accumulated other comprehensive loss component of stockholders’ deficit. Such an unrealized loss does not reduce net income for the applicable accounting period because the loss is not viewed as “other-than-temporary”. If the impairment is determined to be “other-than-temporary” the loss is recorded as an impairment charge in the period any such determination is made. The factors evaluated to differentiate between “temporary” and “other-than-temporary” include the projected future cash flows, credit rating actions, and assessment of the credit quality of the underlying collateral, as well as other factors. Concentrations Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, short-term investments and accounts receivable. The Company places its cash with high credit quality financial institutions, which typically exceed federally insured limits. The Company invests its excess cash primarily in highly rated money market funds and short-term debt instruments, diversifies its investments and, by policy, invests only in highly rated securities to minimize credit risk. The Company’s customers that accounted for 10% or more of total accounts receivable, net, were as follows: As of December 31, 2022 2021 Customer A 44 % 48 % Customer B 15 % 24 % The Company’s customers that accounted for 10% or more of total revenue were as follows: For the Year Ended December 31, 2022 2021 2020 Customer A 31 % 28 % 23 % Customer B 19 % 22 % 22 % The Company currently buys all of its diapers from one supplier. Additionally, the Company currently buys substantially all of its wipes from one supplier. Management believes that other suppliers could provide similar products on reasonable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible inventory shortage and loss of revenue, which would adversely affect the Company's operations. Accounts Receivable Sales made to consumers through the Company’s Honest.com website are conducted with credit cards, and the Company records its credit card sales in transit as accounts receivable at selling price less applicable deductions. The Company also extends credit in the normal course of business to its third-party ecommerce customers and retailers and performs credit evaluations on a case-by-case basis. The Company does not obtain collateral or other security related to its accounts receivable. Accounts receivable is presented net of allowances. The Company does not accrue interest on its trade receivables. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, and provides allowances as necessary for doubtful accounts. The allowance for doubtful accounts was $0.5 million and $0.2 million, respectively, as of December 31, 2022 and 2021. Inventories Inventories consist of finished goods and are stated at the lower of cost or estimated net realizable value. Cost is computed based on weighted average historical costs. The Company allocates certain overhead costs to the carrying value of its finished goods. The carrying value of inventories is reduced for any excess and obsolete inventory. Excess and obsolete inventory reductions are determined based on assumptions about future demand and sales prices, estimates of the impact of competition, and the age of inventory. If actual conditions are less favorable than those previously estimated by management, additional inventory write-downs could be required. Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Repairs and maintenance costs are expensed as incurred. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive loss. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the assets as follows: Machinery and equipment 3-20 years Computer and office equipment 3-5 years Capitalized software and website development costs 1-5 years Furniture and fixtures 3-5 years Building 40 years Leasehold improvements Lesser of the estimated useful life or the remaining lease term Deferred IPO Costs Deferred offering costs consisted of costs incurred in connection with the sale of the Company’s common stock in its IPO, including certain legal, accounting, and other IPO-related expenses. Immediately upon the completion of the Company's IPO, deferred offering costs of $5.5 million were reclassified into stockholders’ equity from other assets as a reduction from the proceeds of the offering. Leases Beginning with the year ended December 31, 2022, the Company accounts for leases in accordance with Accounting Standards Codification No. 842, Leases (“ASC 842”). The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one Operating lease ROU assets and lease liabilities are recorded on the date the Company takes possession of the leased assets with expense recognized on a straight-line basis over the lease term. Leases with an estimated total term of 12 months or less are not recorded on the balance sheet and the lease expense is recognized on a straight-line basis over the lease term. Deferred rent represented the difference between rent amounts paid and amounts recognized as straight-line expense. The excess of straight-line rent expense over lease payments due was recorded as a deferred rent liability in accrued expenses, for the current portion, and other long-term liabilities, for the noncurrent portion, in the consolidated balance sheets. With the adoption of ASC 842, deferred rent is no longer recorded. As of December 31, 2021, the Company recorded deferred rent liabilities of $1.0 million in accrued expenses and $7.4 million in other long-term liabilities. Generally, the Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. Capitalized Software and Website Development Costs The Company accounts for its internal-use software costs and website development costs in accordance with ASC No. 350-40, Internal-Use Software , and ASC No. 350-50, Website Development Costs , respectively. The Company capitalizes costs to purchase and develop its websites and internal-use software and amortizes such costs on a straight-line basis over the estimated useful life of the software once it is available for its intended use. Capitalization of internal-use costs begins when the preliminary project stage is completed, management with the relevant authority authorizes and commits to the funding of the project, and it is probable that the project will be completed and will be used to perform the function intended. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Capitalized internal-use software and website development costs, including purchased software, is recorded in property and equipment, net in the consolidated balance sheets. For cloud-computing service arrangements, the Company capitalizes implementation costs consistent with internal-use software costs. Such capitalized costs are included within prepaid expenses and other current assets, for the current portion, and other assets, for the noncurrent portion, in the consolidated balance sheets and are expensed on a straight-line basis over the term of the service arrangement as selling, general and administrative expense. Capitalized implementation costs from cloud computing service arrangements was $1.0 million, net of $1.8 million of accumulated amortization as of December 31, 2022 and $0.9 million, net of $1.2 million of accumulated amortization as of December 31, 2021. Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized but evaluated for impairment at least annually at the reporting unit level or whenever events or changes in circumstances indicate that the value may not be recoverable. Events or changes in circumstances which could trigger an impairment review include significant adverse changes in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner in which the Company uses the acquired assets or the strategy for the Company’s overall business, significant industry or economic trends, or significant underperformance relevant to expected historical or projected future results of operations. Goodwill is assessed for possible impairment by performing a qualitative analysis to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if the Company concludes otherwise, then the Company is required to perform the first of a two-step impairment test. The first step involves comparing the estimated fair value of a reporting unit with its respective book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than its book value, then the carrying amount of the goodwill is compared with its implied fair value. The estimate of implied fair value of goodwill may require valuations of certain internally generated and unrecognized intangible assets. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The Company tests goodwill for impairment annually at October 31. The Company performed its annual goodwill impairment test as of October 31, 2022 and no impairment was identified. Intangible Assets, Net Intangible assets are stated at cost, net of accumulated amortization. Intangible assets consist of tradenames and domain names. Tradenames and domain names are amortized on a straight-line basis, which approximates the pattern in which the economic benefits are consumed, over the estimated useful lives of the assets of 15 years. Impairment of Long-Lived Assets The Company assesses the carrying value of its long-lived assets, consisting primarily of property and equipment and intangible assets, when there is evidence that events or changes in circumstances indicate that the carrying value of an asset or group of assets may not be recoverable. Such events or changes in circumstances may include a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which an asset is used, a significant change in legal factors or in the business climate, a significant deterioration in the amount of revenue or cash flows expected to be generated from a group of assets, a current expectation that, more likely than not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or any other significant adverse change that would indicate that the carrying value of an asset or group of assets may not be recoverable. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable and the expected undiscounted future cash flows attributable to the asset group are less than the carrying amount of the asset group, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Income Taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates or tax law on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided on deferred tax assets when it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. Foreign Currency Transactions The Company records foreign currency gains or losses in other income, net in the consolidated statements of comprehensive loss, related to transactions denominated in currencies other than the U.S. dollar. During the years ended December 31, 2022, 2021 and 2020, realized and unrealized foreign currency (losses) and gains, net were $(0.2) million, $(0.1) million and $0.1 million, respectively. Contingent Liabilities If a potential loss contingency is considered probable, and the amount can be reasonably estimated, the Company accrues a liability for an estimated loss. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible. However, if the Company determines that a contingent loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the consolidated financial statements. Legal costs are expensed as incurred. Stock-Based Compensation The Company recognizes stock-based compensation expense for employees and non-employees based on the grant-date fair value of stock award over the applicable service period. For awards that vest based on continued service, stock-based compensation cost is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the awards. For awards with performance vesting conditions, stock-based compensation cost is recognized on a graded vesting basis over the requisite service period when it is probable the performance condition will be achieved. The grant date fair value of restricted stock awards that contain service vesting conditions is estimated based on the fair value of the underlying shares on grant date, with a cumulative adjustment for the portion of the service period that occurred for the period prior to the performance condition becoming probable of being achieved. For awards that contain service, performance or a combination of both vesting conditions, the grant date fair value of restricted stock award is estimated based on the fair value of the underlying shares on grant date while the Black-Scholes option-pricing model is used to estimate the grant date fair value of stock option awards. For stock option awards that contain service, performance and market vesting conditions, where the performance condition is an initial public offering or a change in control event, performance condition is not probable of being achieved for accounting purposes until the event occurs. Thereafter, stock-based compensation expense is recognized when the event occurs even if the market condition was not or is not achieved, provided the employee continues to satisfy the service condition. The Monte Carlo simulation model is used to estimate the fair value of stock options that have market vesting conditions. Determining the fair value of stock option awards requires judgment and the assumptions used in the option-pricing models require the input of subjective assumptions which are as follows: • Fair value - Prior to the Company's IPO, the fair value of the common stock underlying the Company’s stock-based awards was determined by the Company’s Board of Directors (the “Board”). The Company’s Board determined the common stock fair value at the stock option grant date by considering several objective and subjective factors, including the price paid for its common and preferred stock, actual and forecasted operating and financial performance, market conditions and performance of comparable publicly traded companies, developments and milestones within the Company, the rights, preferences, and privileges of its common and preferred stock, and the likelihood of achieving a liquidity event. Subsequent to the Company's IPO, the fair value of the Company's common stock is determined based on the closing stock price on the date of grant. • Expected volatility - Expected volatility is based on historical volatilities of a publicly traded peer group based on weekly price observations over a period equivalent to the expected term of the stock option grants. • Expected term - For stock options with only service vesting conditions the expected term is determined using the simplified method, which estimates the expected term using the contractual life of the option and the vesting period. For stock options with performance or market conditions, the term is estimated in consideration of the time period expected to achieve the performance or market condition, the contractual term of the award, and estimates of future exercise behavior. • Risk-free interest rate - The risk-free interest rate is based on the U.S. Treasury yield of treasury bonds with a maturity that approximates the expected term of the options. • Expected dividend yield - The dividend yield is based on the Company’s current expectations of dividend payouts. The Company has never declared or paid any cash dividends on its common stock, and the Company does not anticipate paying any cash dividends in the foreseeable future. The determination of stock-based compensation cost is inherently uncertain and subjective and involves the application of valuation models and assumptions requiring the use of judgment. If the Company had made different assumptions, its stock-based compensation expense and its net loss could have been significantly different. New shares are issued from authorized shares of common stock upon the exercise of stock options. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. Revenue Recognition The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness. The digital sales channel includes direct-to-consumer sales through the Company’s website and sales to third-party ecommerce customers, who resell the Company’s products through their own online platforms. The retail sales channel includes sales to traditional brick and mortar retailers, who may also resell the Company’s products through their own online platforms. The Company accounts for revenue contracts with customers by applying the following steps in accordance with ASC No. 606, Revenue from Contracts with Customers : • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company elected as an accounting policy to record all shipping and handling costs as fulfillment costs. The Company accrues the cost of shipping and handling and recognizes revenue and costs at the point in time that control of the goods transfers to the customer. Direct-to-Consumer For direct sales to the consumer through the Company’s website, the Company’s performance obligation consists of the sale of finished goods to the consumer. Consumers may purchase products at any time or enter into subscription arrangements. Consumers place orders online in accordance with the Company’s standard terms and conditions and authorize payment when the order is placed. Credit cards are charged at the time of shipment. For subscription arrangements, consumers sign up to receive products on a periodic basis. Subscriptions are cancellable at any time without penalty, and no amounts are collected from the consumer until products are shipped. Revenue is recognized when transfer of control to the consumer takes place which is when the product is delivered to the carrier. Sales taxes collected from consumers are accounted for on a net basis and are excluded from revenue. Consumers may purchase gift cards, which are recorded as deferred revenue at the time of purchase. The Company recognizes revenue when these gift cards are redeemed for products and the revenue recognition criteria as described above have been met. For the year ended December 31, 2022 and 2021, revenue recognized from the use of gift cards was $0.8 million and $0.9 million, respectively. For the year ended December 31, 2020 revenue recognized from the use of gift cards was not material. As of December 31, 2022 and 2021, deferred revenue related to gift card purchases was $0.8 million and $0.7 million, respectively. Retail and Third-Party Ecommerce For retail and third-party ecommerce sales, the Company’s performance obligation consists of the sale of finished goods to retailers and third-party ecommerce customers. Revenue is recognized when control of the promised goods is transferred to those customers at time of shipment or delivery, depending on the contract terms. After the completion of the performance obligation, the Company has the right to consideration as outlined in the contract. Payment terms vary among the retail and third-party ecommerce customers although terms generally include a requirement of payment within 30 to 45 days of product shipment. Sales Returns and Allowances For direct-to-consumer, retail, and third-party ecommerce sales, the Company records estimated sales returns in the same period that the related revenue is recorded. The Company uses the expected value method to estimate returns, taking into considerati |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue Revenue by sales channel: For the year ended December 31, 2022 2021 2020 (In thousands) Digital $ 141,403 $ 157,546 $ 166,733 Retail 172,248 161,093 133,789 Total revenue $ 313,651 $ 318,639 $ 300,522 Revenue by product category: For the year ended December 31, 2022 2021 2020 (In thousands) Diapers and Wipes $ 200,429 $ 200,923 $ 188,452 Skin and Personal Care 89,316 101,697 79,542 Household and Wellness 23,906 16,019 32,528 Total revenue $ 313,651 $ 318,639 $ 300,522 Non-Monetary Transactions |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Intangible assets consisted of the following: As of December 31, 2022 Gross Accumulated Intangible (in thousands) Tradenames $ 770 $ (489) $ 281 Domain names 287 (198) 89 Total intangible assets, net $ 1,057 $ (687) $ 370 As of December 31, 2021 Gross Accumulated Intangible (in thousands) Tradenames $ 770 $ (438) $ 332 Domain names 287 (179) 108 Total intangible assets, net $ 1,057 $ (617) $ 440 As of December 31, 2022 and 2021, the weighted average remaining useful lives for tradenames and domain names was 6.2 years and 4.8 years, respectively, and 7.1 years and 5.8 years, respectively. Amortization expense was $0.1 million for each of the years ended December 31, 2022, 2021 and 2020, respectively. Estimated future amortization expense for each of the following five years ending December 31 and thereafter is as follows: (in thousands) 2023 $ 70 2024 70 2025 70 2026 70 2027 70 Thereafter 20 $ 370 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following: As of December 31, 2022 2021 (in thousands) Machinery and equipment $ 12,198 $ 12,064 Computer and office equipment 1,794 1,461 Capitalized software 5,989 4,906 Furniture and fixtures 4,334 4,304 Leasehold improvements 15,839 15,839 Building (1) — 42,146 40,154 80,720 Accumulated depreciation and amortization (25,827) (27,768) Total property and equipment, net $ 14,327 $ 52,952 __________ (1) As part of the adoption of ASC 842 the build-to-suit arrangement was derecognized. For each of the years ended December 31, 2022, 2021 and 2020, depreciation of equipment under capital lease obligations was $0.3 million, $0.4 million and $0.3 million, respectively. See Note 2 "Summary of Significant Accounting Policies" and Note 16 "Leases" for more information on the adoption of ASC 842. Total depreciation and amortization expense for property and equipment, inclusive of depreciation expense for equipment under capital lease obligations consisted of the following: For the year ended December 31, 2022 2021 2020 (In thousands) Cost of revenues $ 1,013 $ 2,198 $ 2,295 Research and development 195 186 251 Selling, general and administrative 1,474 1,697 2,237 Total depreciation and amortization expense $ 2,682 $ 4,081 $ 4,783 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments As of December 31, 2022 and 2021 , all investments in debt securities are classified as available-for-sale investments. All investments are reported within current assets because the securities represent investments of cash available for current operations. As of December 31, 2022 and 2021 , the Company held $5.7 million and $36.4 million, respectively, of investments with contractual maturities of less than one year. As of December 31, 2022, the Company did not have any investments with contractual maturities between one and two years. As of December 31, 2021 , the Company held $6.0 million of investments with contractual maturities between one and two years. Available-for-sale investments are recorded at fair value, and unrealized holding gains and losses are recorded as a component of other comprehensive income (loss). The following table summarizes the Company’s available-for-sale investments: As of December 31, 2022 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 3,216 $ — $ (24) $ 3,193 Commercial paper 582 — — 582 Certificates of deposit 1,884 — (9) 1,875 Total investments $ 5,682 $ — $ (33) $ 5,650 As of December 31, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 18,605 $ — $ (28) $ 18,577 Certificates of deposit 17,099 — (5) 17,095 U.S. government and agency securities 6,725 — (9) 6,716 Total investments $ 42,429 $ — $ (42) $ 42,388 Realized gains and losses on investments in debt securities for the years ended December 31, 2022, 2021 and 2020 were immaterial |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 9,595 $ — $ — $ 9,595 Total cash equivalents 9,595 — — 9,595 Short-term investments Corporate bonds — 3,193 — 3,193 Commercial paper — 582 — 582 Certificates of deposit — 1,875 — 1,875 Total short-term investments — 5,650 — 5,650 Total $ 9,595 $ 5,650 $ — $ 15,245 December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 29,411 $ — $ — $ 29,411 Total cash equivalents 29,411 — — 29,411 Short-term investments Corporate bonds — 18,577 — 18,577 Certificates of deposit — 17,095 — 17,095 U.S. government and agency securities — 6,716 — 6,716 Total short-term investments — 42,388 — 42,388 Total $ 29,411 $ 42,388 $ — $ 71,799 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities 2021 Credit Facility In April 2021, the Company entered into a first lien credit agreement (“2021 Credit Facility”), with JPMorgan Chase Bank, N.A., as administrative agent and lender, and the other lenders party thereto, which provided for a $35.0 million revolving credit facility that matures on April 30, 2026. The 2021 Credit Facility included a subfacility that provided for the issuance of letters of credit in an amount of up to $10.0 million at any time outstanding, which reduced the amount available under the 2021 Credit Facility. As of December 31, 2022 and 2021, there were outstanding standby letters of credit of $4.8 million and $6.3 million, respectively, related to lease obligations with $30.2 million and $28.7 million, respectively, available to be drawn upon. The 2021 Credit Facility was subject to customary fees for loan facilities of this type, including a commitment fee based on the average daily undrawn portion of the revolving credit facility. The Company recognized the commitment fee as incurred in interest and other expense, net in the consolidated statements of comprehensive loss. For the year ended December 31, 2022 and 2021, the commitment fee incurred was immaterial. The interest rate applicable to the 2021 Credit Facility was, at the Company’s option, either (a) the LIBOR (or a replacement rate established in accordance with the terms of the 2021 Credit Facility) (subject to a 0.00% LIBOR floor), plus a margin of 1.50% or (b) the CB floating rate minus a margin of 0.50%. The CB floating rate is the higher of (a) the Wall Street Journal prime rate and (b)(i) 2.50% plus (ii) the adjusted LIBOR rate for a one-month interest period. As of December 31, 2022 and 2021, there was no outstanding balance under the 2021 Credit Facility. Refer to Note 17, "Subsequent Events" included in these consolidated financial statements for more information on the termination of the 2021 Credit Facility, which was replaced with a new revolving credit facility. The 2021 Credit Facility contained covenants that restrict, among other things, the Company's ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. The Company was also subject to certain affirmative and negative covenants including the requirement that it maintains a total net |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: As of December 31, 2022 2021 (In thousands) Payroll and payroll related expenses (1) $ 6,790 $ 2,497 Accrued inventory purchases 17,050 8,838 Accrued returns 318 1,455 Accrued rent (2) 7,688 — Other accrued expenses 6,164 6,213 Total accrued expenses $ 38,010 $ 19,003 _______________ (1) Includes $4.3 million of CEO transition related expense. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Stockholders’ Deficit | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity and Stockholder's Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock and Stockholders’ Deficit | Redeemable Convertible Preferred Stock and Stockholders’ Deficit Immediately prior to the completion of the IPO, the Company filed an Amended and Restated Certificate of Incorporation, which authorized a total of 1,000,000,000 shares of common stock and 20,000,000 shares of preferred stock. Upon the filing of the Amended and Restated Certificate of Incorporation, 49,100,928 shares of the Company’s redeemable convertible preferred stock then outstanding with a carrying value of $376.4 million were automatically converted into 49,649,023 shares of the Company’s common stock. Upon completion of the IPO, the Company recognized a gain on extinguishment of the redeemable convertible preferred stock for earnings per share purposes of $29.0 million from the conversion of redeemable convertible preferred stock to common stock. Following the completion of the IPO, the Company has one class of authorized and outstanding common stock. The following table summarizes the Company's redeemable convertible preferred stock information as of December 31, 2020: Authorized Issued and Carrying Liquidation Series A Redeemable Convertible Preferred Stock 11,347,518 11,347,518 $ 6,000 $ 6,000 Series A-1 Redeemable Convertible Preferred Stock 11,554,016 11,554,016 20,796 21,000 Series B Redeemable Convertible Preferred Stock 4,551,572 4,551,572 42,106 50,000 Series C Redeemable Convertible Preferred Stock 5,174,204 5,174,204 90,586 100,000 Series D Redeemable Convertible Preferred Stock 4,545,944 4,454,624 101,239 101,911 Series E Redeemable Convertible Preferred Stock 6,918,204 6,918,204 67,685 67,815 Series F Redeemable Convertible Preferred Stock 5,100,790 5,100,790 47,992 50,000 Total 49,192,248 49,100,928 $ 376,404 $ 396,726 Shares Available for Issuance Immediately prior to the completion of the IPO, the Company filed an Amended and Restated Certificate of Incorporation, which authorized a total of 1,000,000,000 shares of common stock and 20,000,000 shares of preferred stock. As of December 31, 2021, there were no shares of Series A, Series A-1, Series B, Series C, Series D, Series E, or Series F redeemable convertible preferred stock available for issuance. As of December 31, 2020, the number of common shares available for issuance under the Company’s amended certificate of incorporation were as follows: Authorized number of common shares 110,000,000 Common shares outstanding (34,089,186) Stock awards outstanding under the 2011 Plan (18,038,042) Stock awards available for grant under the 2011 Plan (2,595,078) Reserve for the conversion of preferred stock (49,100,928) Available for issuance 6,176,766 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is subject to various claims and contingencies which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount or range of the loss can be reasonably estimated, the Company records a liability for the loss and discloses the possible loss in the consolidated financial statements . Legal costs are expensed as incurred. On September 17, 2019, the Nevada Department of Taxation (the “Department”) issued a Deficiency Notice against the Company to initiate administrative legal proceedings before the Department for the alleged non-compliance with employee retention requirements provided in exchange for tax benefits in establishing the Company’s Las Vegas distribution center in a December 2016 Abatement Agreement the Company had executed with the State of Nevada via its Governor’s Office of Economic Development. The Company has denied the allegations. An administrative hearing was held in the matter on January 15, 2021. On June 9, 2021 the court upheld the Department's Deficiency Notice against the Company in its entirety. The loss resulting from this matter was $0.7 million including penalties and interest, for which the Company has paid $0.6 million as of December 31, 2021. During the year ended December 31, 2021, the Company recorded interest expense of $0.1 million in interest and other expense, net on the consolidated statements of comprehensive loss. The Company filed its Notice of Appeal on July 1, 2021 and its opening brief on January 28, 2022. The Department filed its answering brief on March 4, 2022 and the Company filed its reply brief on March 23, 2022. The Nevada Tax Commission heard the appeal on May 2, 2022. The Nevada Tax Commission upheld the Company's appeal and overturned the Department's Deficiency Notice. The Company submitted a refund request for the taxes and interest paid, following the Department's June 9, 2021 decision, that were subject to abatement under the December 2016 Abatement Agreement. The Company recognized $0.7 million in other income in interest and other expense, net on the consolidated statements of comprehensive loss during the year ended December 31, 2022 related to the anticipated refund of taxes and interest paid. On September 23, 2020, the Center for Advanced Public Awareness (“CAPA”) served a 60-Day Notice of Violation on the Company, alleging that the Company violated California’s Health and Safety Code (“Prop 65”) because of the amount of lead in the Company’s Diaper Rash Cream and seeking statutory penalties and product warnings available under Prop 65. On October 22, 2021, CAPA filed a complaint in California Superior Court in the County of San Francisco ("the Court") for the alleged Prop 65 violations contained in its 60-Day Notice of Violation. The Company filed its answer and notice of related cases against Prestige Consumer Healthcare, Inc., Burt's Bees, Inc., and Hain Celestial Group, Inc. on January 7, 2022 and has stipulated to relate these cases and transfer them to the Court's Complex Division. The Company intends to vigorously defend itself in this matter. The matter’s outcome and materiality are uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in this matter. On September 15, 2021, Cody Dixon filed a putative class action complaint in the U.S. District Court for the Central District of California alleging federal securities law violations by the Company, certain current officers and directors, and certain underwriters in connection with the Company's IPO. A second putative class action complaint containing similar allegations against the Company and certain current officers and directors was filed by Stephen Gambino on October 8, 2021 in the U.S. District Court for the Central District of California. These related complaints have been transferred to the same court and a Lead Plaintiff has been appointed in the matter, and a putative consolidated class action complaint was filed by the Lead Plaintiff on February 21, 2022. A derivative complaint was filed by Hayato Ono on behalf of the Company on November 29, 2021 in the U.S. District Court for the Central District of California, alleging breach of fiduciary duties, unjust enrichment, waste, gross mismanagement, and federal securities law violations by the Company’s directors and certain officers. On December 17, 2021, a second derivative complaint containing similar allegations against the Company’s directors and certain officers was filed by Mike Wang in the U.S. District Court for the Central District of California. These two federal derivative cases have been transferred to the same judge who is presiding over the securities class action complaints. A third derivative complaint was filed by Leah Bisch and Raluca Corobana in California Superior Court for the County of Los Angeles on January 3, 2022 with similar allegations. A fourth derivative complaint was filed by David Butler in the U.S. District Court for the District of Delaware on October 19, 2022 with similar allegations. Each of these federal and state court derivative cases have been stayed pending the outcome of a motion for summary judgment in the securities class action. Defendants’ motion to dismiss the putative consolidated class action complaint was filed on March 14, 2022. On July 18, 2022, the Company's motion to dismiss was granted in part and denied in part. The Company believes the securities complaints are without merit and intends to vigorously defend itself against these allegations. These matters are in the preliminary stages of litigation with uncertain outcomes at this time. Therefore, the Company cannot estimate the probability of the loss or make an estimate of the loss or range of loss in these matters. On August 10, 2022, Catrice Sida and Kris Yerby filed a putative class action complaint in the U.S. District Court for the Northern District of California alleging violations of California’s Unfair Competition Law, False Advertising Law, Consumers Legal Remedies Act, breach of warranty, and unjust enrichment related to plant-based claims on certain of the Company’s wipes products and seeking declaratory relief, injunctive relief, monetary damages, punitive damages and statutory penalties, and attorneys’ fees and costs. The Company filed its motion to dismiss on October 17, 2022. On December 6, 2022, the Company's motion to dismiss was denied. The Company believes this complaint is without merit and intends to vigorously defend itself in this matter. The matter is in the preliminary stages of litigation and its outcome is uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the range of loss in this matter. As of December 31, 2022 and 2021, the Company was not subject to any other currently pending legal matters or claims that based on its current evaluation are expected to have a material adverse effect on its financial position, results of operations, or cash flows should such matters be resolved unfavorably. Indemnifications In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has the Company been involved in litigation in connection with these indemnification arrangements. As of December 31, 2022 and 2021, the Company has not accrued a liability for these guarantees as the likelihood of incurring a payment obligation, if any, in connection with these guarantees is not probable or reasonably estimable due to the unique facts and circumstances involved. Purchase Commitments The Company has unconditional purchase commitments for software service subscriptions, advertising services and certain other services. Future minimum payments under these unconditional purchase commitments are as follows: (In thousands) Years Ending December 31, 2023 $ 3,074 2024 1,979 2025 496 2026 — 2027 — Thereafter — Future minimum payments $ 5,549 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2011 Stock Incentive Plan The Company’s 2011 Stock Incentive Plan (the “2011 Plan”), which is stockholder-approved, permits the grant of incentive and non-qualified stock options, stock awards, stock units or stock appreciation rights of common stock. Generally, stock options vest 25% on the first anniversary of the vesting commencement date and then monthly thereafter for 36 months, or pursuant to another vesting schedule as approved by the Board and set forth in the option agreement. Certain options and share awards provide for accelerated vesting upon certain events as described in the terms of the option and award agreements. Stock options have a maximum term of ten years. Prior to the IPO, all of the stock options and restricted stock units the Company granted were made pursuant to the 2011 Plan. Following the IPO, the Company grants equity incentive awards under the terms of the 2021 Plan (defined below). The following table summarizes the stock option activity: Number of Options Weighted Average Exercise Price Weighted Average Contractual Term (Years) Intrinsic Value Outstanding at December 31, 2021 16,440,539 $ 5.26 5.4 $ 46,589 Granted — $ — Exercised (43,556) $ 2.81 Forfeited/Cancelled (1,508,976) $ 5.50 Outstanding at December 31, 2022 14,888,007 $ 5.24 4.0 $ 3,024 Exercisable at December 31, 2022 14,503,073 $ 5.23 3.9 $ 3,024 From 2018 to 2020, the Company granted stock options that vest based upon achieving a qualifying liquidity event, provided the employee remains employed on the date the vesting condition is satisfied. In conjunction with the IPO, 2,442,918 stock option awards with a weighted average exercise price of $5.54 vested based on the achievement of the IPO qualifying liquidity event, which resulted in the recognition of stock-based compensation expense of $3.1 million upon the effective date of the IPO registration statement. The intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 were $0.1 million , $6.0 million and $0.3 million, respectively. This intrinsic value represents the difference between the fair value of the Company’s common stock on the date of exercise and the exercise price of each option. The total fair value of options vested during the years ended December 31, 2022, 2021 and 2020 were $2.0 million , $7.9 million and $7.6 million, respectively. As of December 31, 2022 and 2021, there was $1.0 million and $3.9 million, respectively, of unrecognized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.3 years and 1.8 years, respectively. 2021 Equity Incentive Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. All equity-based awards granted on or after the effectiveness of the 2021 Plan are granted under the 2021 Plan. The 2021 Plan provides for grants of incentive stock options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock units ("RSUs") awards, performance awards and other forms of awards to the Company’s employees, directors and consultants and any of its affiliates’ employees and consultants. Initially, the maximum number of shares of the Company’s common stock that may be issued under its 2021 Plan will not exceed 25,025,580 shares of the Company’s common stock. In addition, the number of shares of the Company’s common stock reserved for issuance under its 2021 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to (1) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year, or (2) a lesser number of shares determined by the Company’s board of directors prior to the date of the increase. On January 1, 2022, 3,660,485 additional shares were reserved for issuance pursuant to this provision . The maximum number of shares of the Company’s common stock that may be issued on the exercise of ISOs under its 2021 Plan is 75,100,000 shares. The following table summarizes the RSU activity: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2021 103,561 2,867,306 $ 16.00 $ 13.58 Granted 485,806 3,113,741 $ 3.51 $ 5.07 Vested (1) (131,775) (1,121,573) $ 13.38 $ 12.20 Forfeited (4,641) (694,071) $ 8.09 $ 10.54 Unvested RSUs at December 31, 2022 452,951 4,165,403 $ 3.44 $ 8.09 _______________ (1) Includes 8,050 shares of common stock, that were withheld to cover taxes on the release of vested RSUs and became available for future grants pursuant to the 2021 Plan during the year ended December 31, 2022. As of December 31, 2022 and 2021, there was $31.2 million and $34.2 million, respectively, of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.5 years and 4.0 years, respectively. 2021 Employee Stock Purchase Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The Company authorized the issuance of 1,175,000 shares of common stock under the 2021 ESPP. In addition, the number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031 by the lesser of (i) 1% of the total number of shares of common stock outstanding on December 31 of the immediately preceding year; and (ii) 3,525,000 shares, except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). On January 1, 2022, 915,121 additional shares were reserved for issuance pursuant to this provision. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute (in the form of payroll deductions or otherwise to the extent permitted by the administrator) an amount established by the administrator from time to time in its discretion to purchase common stock at a discounted price per share. Under the 2021 ESPP, eligible employees are granted the right to purchase shares of common stock at the lower of 85% of the fair value at the time of grant or 85% of the fair value at the time of exercise. The right to purchase shares of common stock is granted in May and November of each year for an offering period of approximately six months. The first offering period under the 2021 ESPP commenced in May 2021 and the second offering in November 2021. For the year ended December 31, 2022 and 2021, employees who elected to participate in the ESPP purchased 95,742 and 39,490 shares of common stock, respectively, under the 2021 ESPP, resulting in cash proceeds to the Company of $0.3 million and $0.3 million, respectively. The weighted average price at purchase was $2.68 and $7.37 per share, respectively. As of December 31, 2022 and 2021, the Company had 1,955,107 and 1,135,510, respectively, remaining authorized shares available for purchase. The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the Year Ended December 31, 2022 Expected life of options (in years) 0.50 Expected stock price volatility 73.27% — 79.56% Risk free interest rate 1.52% — 4.65% Expected dividend yield —% Weighted average grant-date fair value per share $1.09 — $1.12 Stock-Based Compensation Expense Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows: For the year ended December 31, 2022 2021 2020 (In thousands) Selling, general and administrative $ 14,593 $ 15,820 $ 7,558 Research and development 485 1,027 347 Total stock-based compensation expense $ 15,078 $ 16,847 $ 7,905 |
Net Income (Loss) per Share Att
Net Income (Loss) per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share Attributable to Common Stockholders | Net Income (Loss) per Share Attributable to Common Stockholders The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires net income be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. In periods where the Company has net losses, losses are not allocated to participating securities as they are not required to fund the losses. The Company considers its redeemable convertible preferred stock to be participating securities as preferred stockholders have rights to participate in dividends with the common stockholders. Basic net income (loss) attributable to common stockholders per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding. The Company computes diluted net income per share under a two-class method where income is reallocated between common stock, potential common stock and participating securities. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock options using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: For the year ended December 31, (In thousands, except for share and per share values) 2022 2021 2020 Numerator: Net loss $ (49,019) $ (38,679) $ (14,466) Add: gain on conversion of preferred stock (1) — 28,994 — Less: dividends paid to preferred stockholders (2) — (20,637) — Net loss attributable to common stockholders - basic and diluted $ (49,019) $ (30,322) $ (14,466) Net loss attributable to common stockholders - diluted $ (49,019) $ (30,322) $ (14,466) Denominator: Weighted average shares of common stock outstanding - basic 92,201,806 71,126,218 34,075,572 Weighted average shares of common stock outstanding - diluted 92,201,806 71,126,218 34,075,572 Net loss per share, attributable to common shareholders: Basic and diluted $ (0.53) $ (0.43) $ (0.43) _____________ (1) The conversion price of the Company’s Series C and Series D redeemable convertible preferred stock was adjusted as the offering price in the initial public offering was below a certain threshold resulting in the preferred stockholders receiving a fixed dollar amount on conversion settled into a variable number of shares, or a stock-settled redemption feature. Upon the settlement of this redemption feature, the Company recorded a gain on extinguishment of the redeemable convertible preferred stock of $29.0 million as an adjustment to net loss to arrive at net loss attributable to common stockholders to calculate earnings per share. The extinguishment gain was measured as the difference between the carrying amount of the redeemable convertible preferred stock and the fair value of common stock upon the IPO date that the preferred stock converted into. (2) In April 2021, the Company's board of directors declared a cash dividend of $35.0 million to the holders of record of our common stock as of May 3, 2021, that was contingent upon the closing of the Company's IPO. On June 29, 2021, the Company paid the dividend, of which $20.6 million was paid to the holders of the Company's redeemable convertible preferred stock. The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the year ended December 31, 2022 2021 2020 Redeemable convertible preferred stock (1) — — 49,100,928 Stock options to purchase common stock 14,888,007 16,440,539 18,038,042 Unvested restricted stock units 4,618,354 2,970,867 — Employee stock purchase plan 62,438 39,157 — Total 19,568,799 19,450,563 67,138,970 ___________________ (1) Immediately prior to the completion of the IPO, 49,100,928 outstanding shares of redeemable convertible preferred stock with a carrying value of $376.4 million converted into 49,649,023 shares of common stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax provision consisted of the following: For the year ended December 31, 2022 2021 2020 (In thousands) Current Federal $ — $ — $ — State 110 77 89 Foreign — — — 110 77 89 Deferred Federal — — — State — — — Foreign — — — — — — Income tax provision $ 110 $ 77 $ 89 The reconciliation of the income tax benefit computed at the U.S. federal statutory rate of 21% to the Company’s income tax provision is as follows: For the year ended December 31, 2022 2021 2020 (In thousands) Income tax benefit at the federal statutory rate $ (10,271) $ (8,106) $ (3,019) State income taxes, net of federal benefit (625) (143) 831 Permanent differences for equity compensation 2,604 5,156 2,353 Nondeductible items 53 84 82 Nondeductible compensation 302 1,349 — Change in valuation allowance 8,047 1,737 (158) Income tax provision $ 110 $ 77 $ 89 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities were as follows: As of December 31, (In thousands) 2022 2021 Deferred tax assets Intangible assets $ 95 $ 122 Property and equipment 815 — Accrued expenses 653 2,602 Deferred revenue 51 13 Allowances, reserves and other 2,796 2,915 Stock-based compensation 8,335 9,592 Section 174 capitalized expenses 1,456 — Net operating loss and other carryforwards 85,176 77,548 Total deferred tax assets 99,377 92,792 Valuation allowance (94,103) (86,659) Net deferred tax assets 5,274 6,133 Deferred tax liabilities Deferred revenue — — Property and equipment — (544) Prepaid expenses (364) (539) State taxes (4,910) (5,050) Total deferred tax liabilities (5,274) (6,133) Net deferred taxes $ — $ — Effective January 1, 2022, the Tax Cuts and Jobs Act ("TCJA") of 2017 eliminated the option to deduct research and development expenses in the current year and now requires taxpayers to capitalize and amortize research and development expenses to Internal Revenue Code of 1986, as amended, (“IRC”) Section 174. The capitalized expenses are amortized over a 5-year period for domestic expenses and a 15-year period for foreign expenses. As of December 31, 2022, the Company's deferred tax assets related to capitalized research and development expenses was $1.5 million. As of December 31, 2022 and 2021 , the Company had federal and state net operating loss carryforwards of $301.0 million and $272.0 million, respectively, and federal and state net operating loss carryforwards of $271.0 million and $248.0 million, respectively. Federal and state net operating loss carryforwards begin to expire in 2032. As of December 31, 2022, the Company did not have any state tax credits. As of December 31, 2021, the Company had state tax credits of $0.1 million, which began to expire in 2021. Federal net operating losses generated after January 1, 2018 would not expire, but would only be available to offset up to 80% of the Company’s future taxable income. The IRC imposes substantial restrictions on the utilization of net operating losses and other tax attributes in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use pre-change net operating loss and research tax credits may be limited as prescribed under IRC Sections 382 and 383. Events which may cause limitation in the amount of the net operating losses and credits that the Company utilizes in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. The Company performed a study to determine whether net operating losses and credit carryover limitations exist under Section 382 as of December 31, 2020, and determined that a portion of the net operating losses that were generated during 2013 and prior are subject to Section 382 annual limitations. As of December 31, 2022 and 2021 , these limitations did not cause any of the limited net operating losses to be permanently lost. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible or includable in taxable income. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2022 . Such objective evidence limits the ability to consider other subjective evidence such as its projections for future growth. On the basis of this evaluation, at December 31, 2022 , a full valuation allowance has been recorded since it is more likely than not that the deferred tax assets will not be realized. The following table summarizes the changes in the valuation allowance: For the year ended December 31, 2022 2021 2020 (In thousands) Beginning balance $ 86,659 $ 84,934 $ 85,083 Increase (decrease) to valuation allowance 8,047 1,737 (158) Decrease due to adoption of ASC 842 (613) — — Other increases (decreases) 10 (12) 9 Ending balance $ 94,103 $ 86,659 $ 84,934 The Company is subject to taxation in the U.S. federal and various state jurisdictions. During the years ended December 31, 2022 and 2021, the Company has not recorded any uncertain tax positions and has not recognized interest or penalties in the consolidated statements of comprehensive loss. The Company is subject to examination from federal tax authorities for years 2019, 2020 and 2021. To the extent allowed by law, the federal and state tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward and make adjustments up to the amount of the net operating loss or credit carryforward. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “Act”), which contains provisions that became effective on January 1, 2023, including a 15% corporate minimum tax and a 1% excise tax on stock buybacks. While the Company is still evaluating the impact of the Act, the Company does not currently expect any material changes on its consolidated financial position, results of operations and cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In April 2020, the Company engaged Summit House Studios LLC, a third-party consultant, to provide digital ad production services. Summit House Studios LLC is owned by a major shareholder of the Company. Based on services provided, the Company incurred $0.2 million, $0.6 million and $0.3 million of advertising costs for this related party during the years ended December 31, 2022, 2021 and 2020, respectively, which is reported as marketing expense in the Company’s consolidated statements of comprehensive loss. In May 2022, the Company engaged, Vault Co., a third-party consultant, to develop and deliver an ongoing brand tracker for the Company. Vault Co. is owned by a major shareholder of the Company. Based on services provided, the Company incurred $0.1 million of advertising costs for this related party during the year ended December 31, 2022, which is reported as marketing expense in the Company’s consolidated statements of comprehensive loss. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one In connection with two of the Company’s facilities leases, the Company is required to obtain irrevocable letters of credit in lieu of security deposits. The letters of credit totaled $4.8 million and $6.3 million as of December 31, 2022 and 2021, respectively, and expire within a set number of days after the expirations of the facilities leases. In connection with the Company’s office facility lease, following the fourth year of the lease, the letter of credit balance can be reduced annually by a stated amount in the lease agreement, so long as the Company complies with certain covenants. In connection with the Company’s warehouse lease, the letter of credit balance is reduced annually by a stated amount in the lease agreement, so long as the Company complies with certain covenants. As a result of the adoption of ASC 842, the following adjustments were made to the opening balances of the Company’s consolidated balance sheet (in thousands): December 31, 2021 Impact due to Adoption of January 1, 2022 Assets Property and equipment, net (1) 52,952 (37,581) $ 15,371 Operating lease ROU (2) — 36,127 $ 36,127 Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) Accrued expenses (2) $ 19,003 $ 5,113 $ 24,116 Lease financing obligation, net of current portion (1) 37,527 (37,527) $ — Operating lease liabilities, net of current portion (2) — 37,531 $ 37,531 Other long-term liabilities (3) 7,487 (7,415) $ 72 Accumulated equity (deficit) (4) (391,656) 845 $ (390,811) ___________________ (1) Represents the derecognition of non-Company owned property that was capitalized under previously existing built-to-suit accounting policies. (2) Represents the recognition of operating lease ROU assets and corresponding current and non-current lease liabilities. (3) Represents reclassification of deferred rent to operating lease ROU assets upon adoption of ASC 842. (4) Represents a decrease to the beginning fiscal 2022 accumulated deficit related to the adoption of ASC 842. The components of lease expense were as follows (in thousands): For the year ended December 31, 2022 Finance lease expense: Amortization 263 Interest on lease liabilities (1) 7 Operating lease expense: Operating lease expense (2) 7,153 Sublease income (2,006) Total lease expense, net 5,417 ______________________ (1) Interest expense on the Company's build-to-suit lease was previously included in interest and other income (expense), net on the consolidated statements of comprehensive loss and with the adoption of ASC 842 it is now included in cost of revenue, along with the operating lease expense, on the consolidated statements of comprehensive loss. (2) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities. For the years ended December 31, 2021 and 2020, rent expense under ASC 840 was $5.0 million and $5.2 million, respectively. For the years ended December 31, 2021 and 2020, sublease rent income was $2.5 million and $2.7 million, respectively . Based on the nature of the ROU assets, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the consolidated statements of comprehensive loss. The following tables set forth the amount of lease assets and lease liabilities included in the Company’s consolidated balance sheets (in thousands): Assets Financial Statement Line Item December 31, 2022 Finance lease assets Property and equipment, net $ 70 Operating lease assets Operating lease right-of-use asset 29,947 Total lease assets 30,017 Liabilities Current Finance lease liabilities Accrued expenses 52 Operating lease liabilities Accrued expenses 7,688 Non-current Finance lease liabilities Other long-term liabilities 22 Operating lease liabilities Operating lease liabilities, net of current portion 29,842 Total lease liabilities 37,604 Supplemental information related to the Company’s leases for the year ended December 31, 2022 was as follows: Weighted-average remaining lease term (in years) Finance leases 1.4 Operating leases 4.5 Weighted-average discount rate Finance leases 3.00% Operating leases 2.29% Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $8 Operating cash flows used in operating leases $7,007 Finance cash flows used in finance leases $303 The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the year ended December 31, 2022 for either finance or operating leases. Future minimum lease payments required under operating and finance leases as of December 31, 2022, were as follows (in thousands): Operating Leases Finance Leases 2023 $ 8,468 57 2024 8,704 21 2025 8,950 — 2026 9,201 — 2027 4,244 — Thereafter — — Future minimum lease payments $ 39,567 $ 78 Less: Amount representing interest (2,037) (4) Present value of future lease payments $ 37,530 $ 74 As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one In connection with two of the Company’s facilities leases, the Company is required to obtain irrevocable letters of credit in lieu of security deposits. The letters of credit totaled $4.8 million and $6.3 million as of December 31, 2022 and 2021, respectively, and expire within a set number of days after the expirations of the facilities leases. In connection with the Company’s office facility lease, following the fourth year of the lease, the letter of credit balance can be reduced annually by a stated amount in the lease agreement, so long as the Company complies with certain covenants. In connection with the Company’s warehouse lease, the letter of credit balance is reduced annually by a stated amount in the lease agreement, so long as the Company complies with certain covenants. As a result of the adoption of ASC 842, the following adjustments were made to the opening balances of the Company’s consolidated balance sheet (in thousands): December 31, 2021 Impact due to Adoption of January 1, 2022 Assets Property and equipment, net (1) 52,952 (37,581) $ 15,371 Operating lease ROU (2) — 36,127 $ 36,127 Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) Accrued expenses (2) $ 19,003 $ 5,113 $ 24,116 Lease financing obligation, net of current portion (1) 37,527 (37,527) $ — Operating lease liabilities, net of current portion (2) — 37,531 $ 37,531 Other long-term liabilities (3) 7,487 (7,415) $ 72 Accumulated equity (deficit) (4) (391,656) 845 $ (390,811) ___________________ (1) Represents the derecognition of non-Company owned property that was capitalized under previously existing built-to-suit accounting policies. (2) Represents the recognition of operating lease ROU assets and corresponding current and non-current lease liabilities. (3) Represents reclassification of deferred rent to operating lease ROU assets upon adoption of ASC 842. (4) Represents a decrease to the beginning fiscal 2022 accumulated deficit related to the adoption of ASC 842. The components of lease expense were as follows (in thousands): For the year ended December 31, 2022 Finance lease expense: Amortization 263 Interest on lease liabilities (1) 7 Operating lease expense: Operating lease expense (2) 7,153 Sublease income (2,006) Total lease expense, net 5,417 ______________________ (1) Interest expense on the Company's build-to-suit lease was previously included in interest and other income (expense), net on the consolidated statements of comprehensive loss and with the adoption of ASC 842 it is now included in cost of revenue, along with the operating lease expense, on the consolidated statements of comprehensive loss. (2) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities. For the years ended December 31, 2021 and 2020, rent expense under ASC 840 was $5.0 million and $5.2 million, respectively. For the years ended December 31, 2021 and 2020, sublease rent income was $2.5 million and $2.7 million, respectively . Based on the nature of the ROU assets, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the consolidated statements of comprehensive loss. The following tables set forth the amount of lease assets and lease liabilities included in the Company’s consolidated balance sheets (in thousands): Assets Financial Statement Line Item December 31, 2022 Finance lease assets Property and equipment, net $ 70 Operating lease assets Operating lease right-of-use asset 29,947 Total lease assets 30,017 Liabilities Current Finance lease liabilities Accrued expenses 52 Operating lease liabilities Accrued expenses 7,688 Non-current Finance lease liabilities Other long-term liabilities 22 Operating lease liabilities Operating lease liabilities, net of current portion 29,842 Total lease liabilities 37,604 Supplemental information related to the Company’s leases for the year ended December 31, 2022 was as follows: Weighted-average remaining lease term (in years) Finance leases 1.4 Operating leases 4.5 Weighted-average discount rate Finance leases 3.00% Operating leases 2.29% Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $8 Operating cash flows used in operating leases $7,007 Finance cash flows used in finance leases $303 The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the year ended December 31, 2022 for either finance or operating leases. Future minimum lease payments required under operating and finance leases as of December 31, 2022, were as follows (in thousands): Operating Leases Finance Leases 2023 $ 8,468 57 2024 8,704 21 2025 8,950 — 2026 9,201 — 2027 4,244 — Thereafter — — Future minimum lease payments $ 39,567 $ 78 Less: Amount representing interest (2,037) (4) Present value of future lease payments $ 37,530 $ 74 As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2023, the Company entered into a first lien credit agreement (the “2023 Credit Facility”), with JPMorgan Chase Bank, N.A., as administrative agent and lender, and the other lenders party thereto, which provides for a $35.0 million revolving credit facility maturing on April 30, 2026 . The 2023 Credit Facility includes an uncommitted accordion feature that allows for increases in the revolving commitment to as much as an additional $35.0 million, for up to $70.0 million in potential revolving commitments.The 2023 Credit Facility includes a subfacility that provides for the issuance of letters of credit in an amount of up to $15.0 million at any time outstanding. The 2023 Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee based on the average daily undrawn portion of the 2023 Credit Facility. The interest rate applicable to the 2023 Credit Facility will be, at the Company’s option, either (a) the Adjusted Term SOFR Rate (subject to a 0.00% floor), plus a margin ranging from 1.50% to 2.25% or (b) the CB floating rate, (i) plus a margin of 0.25% or (ii) minus a margin ranging from 0.25% to 0.50%. The margin will be based upon the Company’s fixed charge coverage ratio. The CB floating rate is the higher of (a) the Wall Street Journal prime rate and (b) 2.50%. In January 2023, u pon entry into the 2023 Credit Facility, the Company’s existing 2021 Credit Facility was terminated. As of March 16, 2023, there was no outstanding balance under the 2023 Credit Facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. |
Stock Split | Stock Split In April 2021, the Company effected a 1-for-2 forward stock split of its common and redeemable convertible preferred stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the holders, became two shares of common stock and each issued and outstanding share of redeemable convertible preferred stock, automatically and without action on the part of the holders, became two shares of redeemable convertible preferred stock. The par value per share of common and redeemable convertible preferred stock was not adjusted. All share, per share and related information presented in the consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split. |
Segment Reporting and Geographic Information | Segment Reporting and Geographic InformationThe Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for doubtful accounts, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation and for the periods prior to the Company's IPO, the fair value of common stock. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus disease (“COVID-19”) a pandemic. The full extent to which the outbreak of the COVID-19 pandemic and any COVID-19 variants will impact the Company’s business, results of operations and financial condition is still unknown and will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the COVID-19 outbreak and its variants, their severity, the actions to contain the virus and its variants or treat their impact, and how quickly and to what extent normal economic and operating conditions can resume. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. |
Investments | Investments Investments consist of highly liquid investments in debt securities. Investments comprises commercial paper, certificates of deposit, corporate bonds and U.S. government and agency securities, which are classified as available-for-sale investments. The Company includes its available-for-sale investments in current assets because the securities represent investments of cash available for current operations. Available-for-sale investments are recorded at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Unrealized holding gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains or losses are recorded in interest and other income (expense), net. The Company evaluates the potential impairment through review of unrealized losses associated with its investments to determine if the impairment is “temporary” or “other-than-temporary.” A “temporary” unrealized loss is recorded in the accumulated other comprehensive loss component of stockholders’ deficit. Such an unrealized loss does not reduce net income for the applicable accounting period because the loss is not viewed as “other-than-temporary”. If the impairment is determined to be “other-than-temporary” the loss is recorded as an impairment charge in the period any such determination is made. The factors evaluated to differentiate between “temporary” and “other-than-temporary” include the projected future cash flows, credit rating actions, and assessment of the credit quality of the underlying collateral, as well as other factors. |
Concentrations | Concentrations Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, short-term investments and accounts receivable. The Company places its cash with high credit quality financial institutions, which typically exceed federally insured limits. The Company invests its excess cash primarily in highly rated money market funds and short-term debt instruments, diversifies its investments and, by policy, invests only in highly rated securities to minimize credit risk. |
Accounts Receivable | Accounts Receivable Sales made to consumers through the Company’s Honest.com website are conducted with credit cards, and the Company records its credit card sales in transit as accounts receivable at selling price less applicable deductions. The Company also extends credit in the normal course of business to its third-party ecommerce customers and retailers and performs credit evaluations on a case-by-case basis. The Company does not obtain collateral or other security related to its accounts receivable. |
Inventories | Inventories Inventories consist of finished goods and are stated at the lower of cost or estimated net realizable value. Cost is computed based on weighted average historical costs. The Company allocates certain overhead costs to the carrying value of its finished goods. The carrying value of inventories is reduced for any excess and obsolete inventory. Excess and obsolete inventory reductions are determined based on assumptions about future demand and sales prices, estimates of the impact of competition, and |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Repairs and maintenance costs are expensed as incurred. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive loss. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the assets as follows: Machinery and equipment 3-20 years Computer and office equipment 3-5 years Capitalized software and website development costs 1-5 years Furniture and fixtures 3-5 years Building 40 years Leasehold improvements Lesser of the estimated useful life or the remaining lease term |
Deferred IPO Costs | Deferred IPO CostsDeferred offering costs consisted of costs incurred in connection with the sale of the Company’s common stock in its IPO, including certain legal, accounting, and other IPO-related expenses. |
Leases | Leases Beginning with the year ended December 31, 2022, the Company accounts for leases in accordance with Accounting Standards Codification No. 842, Leases (“ASC 842”). The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one Operating lease ROU assets and lease liabilities are recorded on the date the Company takes possession of the leased assets with expense recognized on a straight-line basis over the lease term. Leases with an estimated total term of 12 months or less are not recorded on the balance sheet and the lease expense is recognized on a straight-line basis over the lease term. Deferred rent represented the difference between rent amounts paid and amounts recognized as straight-line expense. The excess of straight-line rent expense over lease payments due was recorded as a deferred rent liability in accrued expenses, for the current portion, and other long-term liabilities, for the noncurrent portion, in the consolidated balance sheets. With the adoption of ASC 842, deferred rent is no longer recorded. As of December 31, 2021, the Company recorded deferred rent liabilities of $1.0 million in accrued expenses and $7.4 million in other long-term liabilities. Generally, the Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. |
Capitalized Software and Website Development Costs | Capitalized Software and Website Development Costs The Company accounts for its internal-use software costs and website development costs in accordance with ASC No. 350-40, Internal-Use Software , and ASC No. 350-50, Website Development Costs , respectively. The Company capitalizes costs to purchase and develop its websites and internal-use software and amortizes such costs on a straight-line basis over the estimated useful life of the software once it is available for its intended use. Capitalization of internal-use costs begins when the preliminary project stage is completed, management with the relevant authority authorizes and commits to the funding of the project, and it is probable that the project will be completed and will be used to perform the function intended. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Capitalized internal-use software and |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized but evaluated for impairment at least annually at the reporting unit level or whenever events or changes in circumstances indicate that the value may not be recoverable. Events or changes in circumstances which could trigger an impairment review include significant adverse changes in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner in which the Company uses the acquired assets or the strategy for the Company’s overall business, significant industry or economic trends, or significant underperformance relevant to expected historical or projected future results of operations. Goodwill is assessed for possible impairment by performing a qualitative analysis to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if the Company concludes otherwise, then the Company is required to perform the first of a two-step impairment test. |
Intangible Assets, Net | Intangible Assets, Net Intangible assets are stated at cost, net of accumulated amortization. Intangible assets consist of tradenames and domain names. Tradenames and domain names are amortized on a straight-line basis, which approximates the pattern in which the economic benefits are consumed, over the estimated useful lives of the assets of 15 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the carrying value of its long-lived assets, consisting primarily of property and equipment and intangible assets, when there is evidence that events or changes in circumstances indicate that the carrying value of an asset or group of assets may not be recoverable. Such events or changes in circumstances may include a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which an asset is used, a significant change in legal factors or in the business climate, a significant deterioration in the amount of revenue or cash flows expected to be generated from a group of assets, a current expectation that, more likely than not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or any other significant adverse change that would indicate that the carrying value of an asset or group of assets may not be recoverable. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable and the expected undiscounted future cash flows attributable to the asset group are less than the carrying amount of the asset group, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates or tax law on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided on deferred tax assets when it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The Company recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. |
Foreign Currency Transactions | Foreign Currency TransactionsThe Company records foreign currency gains or losses in other income, net in the consolidated statements of comprehensive loss, related to transactions denominated in currencies other than the U.S. dollar. |
Contingent Liabilities | Contingent Liabilities If a potential loss contingency is considered probable, and the amount can be reasonably estimated, the Company accrues a liability for an estimated loss. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible. However, if the Company determines that a contingent loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the consolidated financial statements. Legal costs are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense for employees and non-employees based on the grant-date fair value of stock award over the applicable service period. For awards that vest based on continued service, stock-based compensation cost is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the awards. For awards with performance vesting conditions, stock-based compensation cost is recognized on a graded vesting basis over the requisite service period when it is probable the performance condition will be achieved. The grant date fair value of restricted stock awards that contain service vesting conditions is estimated based on the fair value of the underlying shares on grant date, with a cumulative adjustment for the portion of the service period that occurred for the period prior to the performance condition becoming probable of being achieved. For awards that contain service, performance or a combination of both vesting conditions, the grant date fair value of restricted stock award is estimated based on the fair value of the underlying shares on grant date while the Black-Scholes option-pricing model is used to estimate the grant date fair value of stock option awards. For stock option awards that contain service, performance and market vesting conditions, where the performance condition is an initial public offering or a change in control event, performance condition is not probable of being achieved for accounting purposes until the event occurs. Thereafter, stock-based compensation expense is recognized when the event occurs even if the market condition was not or is not achieved, provided the employee continues to satisfy the service condition. The Monte Carlo simulation model is used to estimate the fair value of stock options that have market vesting conditions. Determining the fair value of stock option awards requires judgment and the assumptions used in the option-pricing models require the input of subjective assumptions which are as follows: • Fair value - Prior to the Company's IPO, the fair value of the common stock underlying the Company’s stock-based awards was determined by the Company’s Board of Directors (the “Board”). The Company’s Board determined the common stock fair value at the stock option grant date by considering several objective and subjective factors, including the price paid for its common and preferred stock, actual and forecasted operating and financial performance, market conditions and performance of comparable publicly traded companies, developments and milestones within the Company, the rights, preferences, and privileges of its common and preferred stock, and the likelihood of achieving a liquidity event. Subsequent to the Company's IPO, the fair value of the Company's common stock is determined based on the closing stock price on the date of grant. • Expected volatility - Expected volatility is based on historical volatilities of a publicly traded peer group based on weekly price observations over a period equivalent to the expected term of the stock option grants. • Expected term - For stock options with only service vesting conditions the expected term is determined using the simplified method, which estimates the expected term using the contractual life of the option and the vesting period. For stock options with performance or market conditions, the term is estimated in consideration of the time period expected to achieve the performance or market condition, the contractual term of the award, and estimates of future exercise behavior. • Risk-free interest rate - The risk-free interest rate is based on the U.S. Treasury yield of treasury bonds with a maturity that approximates the expected term of the options. • Expected dividend yield - The dividend yield is based on the Company’s current expectations of dividend payouts. The Company has never declared or paid any cash dividends on its common stock, and the Company does not anticipate paying any cash dividends in the foreseeable future. The determination of stock-based compensation cost is inherently uncertain and subjective and involves the application of valuation models and assumptions requiring the use of judgment. If the Company had made different assumptions, its stock-based compensation expense and its net loss could have been significantly different. New shares are issued from authorized shares of common stock upon the exercise of stock options. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. |
Revenue Recognition and Cost of Revenue | Revenue Recognition The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness. The digital sales channel includes direct-to-consumer sales through the Company’s website and sales to third-party ecommerce customers, who resell the Company’s products through their own online platforms. The retail sales channel includes sales to traditional brick and mortar retailers, who may also resell the Company’s products through their own online platforms. The Company accounts for revenue contracts with customers by applying the following steps in accordance with ASC No. 606, Revenue from Contracts with Customers : • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company elected as an accounting policy to record all shipping and handling costs as fulfillment costs. The Company accrues the cost of shipping and handling and recognizes revenue and costs at the point in time that control of the goods transfers to the customer. Direct-to-Consumer For direct sales to the consumer through the Company’s website, the Company’s performance obligation consists of the sale of finished goods to the consumer. Consumers may purchase products at any time or enter into subscription arrangements. Consumers place orders online in accordance with the Company’s standard terms and conditions and authorize payment when the order is placed. Credit cards are charged at the time of shipment. For subscription arrangements, consumers sign up to receive products on a periodic basis. Subscriptions are cancellable at any time without penalty, and no amounts are collected from the consumer until products are shipped. Revenue is recognized when transfer of control to the consumer takes place which is when the product is delivered to the carrier. Sales taxes collected from consumers are accounted for on a net basis and are excluded from revenue. Consumers may purchase gift cards, which are recorded as deferred revenue at the time of purchase. The Company recognizes revenue when these gift cards are redeemed for products and the revenue recognition criteria as described above have been met. For the year ended December 31, 2022 and 2021, revenue recognized from the use of gift cards was $0.8 million and $0.9 million, respectively. For the year ended December 31, 2020 revenue recognized from the use of gift cards was not material. As of December 31, 2022 and 2021, deferred revenue related to gift card purchases was $0.8 million and $0.7 million, respectively. Retail and Third-Party Ecommerce For retail and third-party ecommerce sales, the Company’s performance obligation consists of the sale of finished goods to retailers and third-party ecommerce customers. Revenue is recognized when control of the promised goods is transferred to those customers at time of shipment or delivery, depending on the contract terms. After the completion of the performance obligation, the Company has the right to consideration as outlined in the contract. Payment terms vary among the retail and third-party ecommerce customers although terms generally include a requirement of payment within 30 to 45 days of product shipment. Sales Returns and Allowances For direct-to-consumer, retail, and third-party ecommerce sales, the Company records estimated sales returns in the same period that the related revenue is recorded. The Company uses the expected value method to estimate returns, taking into consideration assumptions of demand based on historical data and historical returns rates. When estimating returns, the Company also considers future business initiatives and relevant anticipated future events. Estimated sales returns and ultimate losses may vary from actual results, which could be material to the consolidated financial statements. The estimated sales returns allowance is recorded as a reduction of revenue. For direct-to-consumer, retail and third-party ecommerce sales, the Company offers credits in the form of discounts, which are recorded as reductions in revenue and are allocated to products on a relative basis based on their respective standalone selling price. For retail and third-party ecommerce sales, the Company routinely commits to one-time or ongoing sales incentive programs with its customers that may require the Company to estimate and accrue the expected costs of such programs, including trade promotion activities and contractual allowances. The Company records these programs as a reduction to revenue unless it receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received, in which case the Company records it as a marketing expense. The Company recognizes a liability or a reduction to accounts receivable, and reduces revenue based on the estimated amount of credits that will be claimed by customers. An allowance is recorded as a reduction to accounts receivable if the customer can deduct the program amount from outstanding invoices. Estimates for these sales incentive programs are developed using the most likely amount and are included in the transaction price to the extent that a significant reversal of revenue would not result once the uncertainty is resolved. In developing its estimate, the Company uses historical analysis and contractual rates in determining the accruals for these activities. The Company also considers the susceptibility of the incentive to outside influences, the length of time until the uncertainty is Cost of Revenue Cost of revenue includes the purchase price of merchandise sold to customers, inbound and outbound shipping and handling costs, freight and duties, shipping and packaging supplies, credit card processing fees and warehouse fulfillment costs incurred in operating and staffing warehouses, including rent. Cost of revenue also includes depreciation and amortization, allocated overhead and direct and indirect labor for warehouse personnel. |
Selling, General and Administrative | Selling, General and Administrative Selling, general and administrative expenses consist primarily of personnel costs, principally for our selling and administrative functions. These include personnel-related expenses, including salaries, bonuses, benefits and stock-based compensation expense. Selling, general and administrative expenses also include technology expenses, professional fees, facility costs, including insurance, utilities and rent relating to our headquarters, depreciation and amortization, and overhead costs. |
Marketing | Marketing Marketing expenses includes costs related to the Company’s branding initiatives, retail customer marketing activities, point of purchase displays, targeted online advertising through sponsored search, display advertising, email marketing campaigns, market research, content production and other public relations and promotional initiatives. one |
Research and Development | Research and Development Research and development expenses relate to costs incurred for the development of new products, improvement in the quality of existing products and the development and implementation of new technologies to enhance the quality and value of products. Research and development expenses consist primarily of personnel-related expenses, including salaries, bonuses, benefits and stock-based compensation expense. Research and development expenses also include allocated depreciation and amortization and overhead costs. The Company expenses research and development costs in the period they are incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act, allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No 2016-02, Leases (Topic 842), as subsequently amended, collectively codified under Topic 842. Topic 842 requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike prior guidance which requires only capital leases to be recognized on the balance sheet, the new ASU requires both types of leases to be recognized on the balance sheet. ASU 2016-02 was effective for public business entities for fiscal years beginning after December 15, 2018. In June 2020, FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) – Effective Dates for Certain Entities , which extended the effective date of this guidance for certain non-public entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis under ASU 2018-11. As such, prior periods were not respectively adjusted. The Company also elected the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company made an accounting policy election to not recognize lease assets and lease liabilities for leases in all asset classes with lease terms less than twelve months. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. The Company also elected to combine lease and non-lease components on its leases into a single lease component. Upon adoption of this guidance on January 1, 2022, the Company recognized $36.1 million in right of use assets ("ROU"), and corresponding lease liabilities of $37.5 million, net of the current portion of lease liability of $7.0 million, on its consolidated balance sheet. In addition, the Company recognized a decrease to assets and liabilities of $37.6 million and $38.4 million, respectively, and a decrease to the beginning accumulated deficit of $0.8 million, as a result of the derecognition of its build-to-suit arrangement that was reassessed to be an operating lease under the new guidance. The adoption of this guidance did not have a material impact on the Company's consolidated statements of comprehensive loss or the consolidated statements of cash flows. Refer to Note 16, "Leases" included in these consolidated financial statements for more information on leases. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASC 740"). This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 as well as by improving consistent application of the topic by clarifying and amending existing guidance. For public business entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The adoption of ASC 740 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements – Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to amend the accounting for credit losses for certain financial instruments. This guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, FASB issued ASU No. 2019-10 which delayed the effective dates of the guidance. This guidance is effective for public business |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The Company’s customers that accounted for 10% or more of total accounts receivable, net, were as follows: As of December 31, 2022 2021 Customer A 44 % 48 % Customer B 15 % 24 % The Company’s customers that accounted for 10% or more of total revenue were as follows: For the Year Ended December 31, 2022 2021 2020 Customer A 31 % 28 % 23 % Customer B 19 % 22 % 22 % |
Useful Life of Assets | Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the assets as follows: Machinery and equipment 3-20 years Computer and office equipment 3-5 years Capitalized software and website development costs 1-5 years Furniture and fixtures 3-5 years Building 40 years Leasehold improvements Lesser of the estimated useful life or the remaining lease term Property and equipment consisted of the following: As of December 31, 2022 2021 (in thousands) Machinery and equipment $ 12,198 $ 12,064 Computer and office equipment 1,794 1,461 Capitalized software 5,989 4,906 Furniture and fixtures 4,334 4,304 Leasehold improvements 15,839 15,839 Building (1) — 42,146 40,154 80,720 Accumulated depreciation and amortization (25,827) (27,768) Total property and equipment, net $ 14,327 $ 52,952 __________ (1) As part of the adoption of ASC 842 the build-to-suit arrangement was derecognized. For the year ended December 31, 2022 2021 2020 (In thousands) Cost of revenues $ 1,013 $ 2,198 $ 2,295 Research and development 195 186 251 Selling, general and administrative 1,474 1,697 2,237 Total depreciation and amortization expense $ 2,682 $ 4,081 $ 4,783 |
Schedule of Sales Incentive Programs | The following table summarizes the changes in the allowance for sales incentive programs for retail and third-party ecommerce customers: For the year ended December 31, (In thousands) 2022 2021 2020 Beginning balance $ 6,494 $ 8,207 $ 8,428 Charged to revenue 48,962 47,290 35,465 Charged to selling, general and administrative expense 550 — — Charged to marketing expense 12,541 16,150 10,906 Utilization of accrual for trade promotions (61,954) (65,153) (46,592) Reclassification to prepaid expenses and other current assets/accrued expenses (197) — — Ending balance $ 6,396 $ 6,494 $ 8,207 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue by sales channel: For the year ended December 31, 2022 2021 2020 (In thousands) Digital $ 141,403 $ 157,546 $ 166,733 Retail 172,248 161,093 133,789 Total revenue $ 313,651 $ 318,639 $ 300,522 Revenue by product category: For the year ended December 31, 2022 2021 2020 (In thousands) Diapers and Wipes $ 200,429 $ 200,923 $ 188,452 Skin and Personal Care 89,316 101,697 79,542 Household and Wellness 23,906 16,019 32,528 Total revenue $ 313,651 $ 318,639 $ 300,522 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: As of December 31, 2022 Gross Accumulated Intangible (in thousands) Tradenames $ 770 $ (489) $ 281 Domain names 287 (198) 89 Total intangible assets, net $ 1,057 $ (687) $ 370 As of December 31, 2021 Gross Accumulated Intangible (in thousands) Tradenames $ 770 $ (438) $ 332 Domain names 287 (179) 108 Total intangible assets, net $ 1,057 $ (617) $ 440 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense for each of the following five years ending December 31 and thereafter is as follows: (in thousands) 2023 $ 70 2024 70 2025 70 2026 70 2027 70 Thereafter 20 $ 370 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the assets as follows: Machinery and equipment 3-20 years Computer and office equipment 3-5 years Capitalized software and website development costs 1-5 years Furniture and fixtures 3-5 years Building 40 years Leasehold improvements Lesser of the estimated useful life or the remaining lease term Property and equipment consisted of the following: As of December 31, 2022 2021 (in thousands) Machinery and equipment $ 12,198 $ 12,064 Computer and office equipment 1,794 1,461 Capitalized software 5,989 4,906 Furniture and fixtures 4,334 4,304 Leasehold improvements 15,839 15,839 Building (1) — 42,146 40,154 80,720 Accumulated depreciation and amortization (25,827) (27,768) Total property and equipment, net $ 14,327 $ 52,952 __________ (1) As part of the adoption of ASC 842 the build-to-suit arrangement was derecognized. For the year ended December 31, 2022 2021 2020 (In thousands) Cost of revenues $ 1,013 $ 2,198 $ 2,295 Research and development 195 186 251 Selling, general and administrative 1,474 1,697 2,237 Total depreciation and amortization expense $ 2,682 $ 4,081 $ 4,783 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Investments | The following table summarizes the Company’s available-for-sale investments: As of December 31, 2022 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 3,216 $ — $ (24) $ 3,193 Commercial paper 582 — — 582 Certificates of deposit 1,884 — (9) 1,875 Total investments $ 5,682 $ — $ (33) $ 5,650 As of December 31, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 18,605 $ — $ (28) $ 18,577 Certificates of deposit 17,099 — (5) 17,095 U.S. government and agency securities 6,725 — (9) 6,716 Total investments $ 42,429 $ — $ (42) $ 42,388 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 9,595 $ — $ — $ 9,595 Total cash equivalents 9,595 — — 9,595 Short-term investments Corporate bonds — 3,193 — 3,193 Commercial paper — 582 — 582 Certificates of deposit — 1,875 — 1,875 Total short-term investments — 5,650 — 5,650 Total $ 9,595 $ 5,650 $ — $ 15,245 December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 29,411 $ — $ — $ 29,411 Total cash equivalents 29,411 — — 29,411 Short-term investments Corporate bonds — 18,577 — 18,577 Certificates of deposit — 17,095 — 17,095 U.S. government and agency securities — 6,716 — 6,716 Total short-term investments — 42,388 — 42,388 Total $ 29,411 $ 42,388 $ — $ 71,799 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of December 31, 2022 2021 (In thousands) Payroll and payroll related expenses (1) $ 6,790 $ 2,497 Accrued inventory purchases 17,050 8,838 Accrued returns 318 1,455 Accrued rent (2) 7,688 — Other accrued expenses 6,164 6,213 Total accrued expenses $ 38,010 $ 19,003 _______________ (1) Includes $4.3 million of CEO transition related expense. |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity and Stockholder's Equity Disclosure [Abstract] | |
Summary of Redeemable Convertible Preferred Stock | The following table summarizes the Company's redeemable convertible preferred stock information as of December 31, 2020: Authorized Issued and Carrying Liquidation Series A Redeemable Convertible Preferred Stock 11,347,518 11,347,518 $ 6,000 $ 6,000 Series A-1 Redeemable Convertible Preferred Stock 11,554,016 11,554,016 20,796 21,000 Series B Redeemable Convertible Preferred Stock 4,551,572 4,551,572 42,106 50,000 Series C Redeemable Convertible Preferred Stock 5,174,204 5,174,204 90,586 100,000 Series D Redeemable Convertible Preferred Stock 4,545,944 4,454,624 101,239 101,911 Series E Redeemable Convertible Preferred Stock 6,918,204 6,918,204 67,685 67,815 Series F Redeemable Convertible Preferred Stock 5,100,790 5,100,790 47,992 50,000 Total 49,192,248 49,100,928 $ 376,404 $ 396,726 |
Schedule of Common Shares Available for Issuance | As of December 31, 2020, the number of common shares available for issuance under the Company’s amended certificate of incorporation were as follows: Authorized number of common shares 110,000,000 Common shares outstanding (34,089,186) Stock awards outstanding under the 2011 Plan (18,038,042) Stock awards available for grant under the 2011 Plan (2,595,078) Reserve for the conversion of preferred stock (49,100,928) Available for issuance 6,176,766 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Receivable | As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Contractual Obligation, Fiscal Year Maturity | Future minimum payments under these unconditional purchase commitments are as follows: (In thousands) Years Ending December 31, 2023 $ 3,074 2024 1,979 2025 496 2026 — 2027 — Thereafter — Future minimum payments $ 5,549 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the stock option activity: Number of Options Weighted Average Exercise Price Weighted Average Contractual Term (Years) Intrinsic Value Outstanding at December 31, 2021 16,440,539 $ 5.26 5.4 $ 46,589 Granted — $ — Exercised (43,556) $ 2.81 Forfeited/Cancelled (1,508,976) $ 5.50 Outstanding at December 31, 2022 14,888,007 $ 5.24 4.0 $ 3,024 Exercisable at December 31, 2022 14,503,073 $ 5.23 3.9 $ 3,024 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the RSU activity: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2021 103,561 2,867,306 $ 16.00 $ 13.58 Granted 485,806 3,113,741 $ 3.51 $ 5.07 Vested (1) (131,775) (1,121,573) $ 13.38 $ 12.20 Forfeited (4,641) (694,071) $ 8.09 $ 10.54 Unvested RSUs at December 31, 2022 452,951 4,165,403 $ 3.44 $ 8.09 _______________ (1) Includes 8,050 shares of common stock, that were withheld to cover taxes on the release of vested RSUs and became available for future grants pursuant to the 2021 Plan during the year ended December 31, 2022. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the Year Ended December 31, 2022 Expected life of options (in years) 0.50 Expected stock price volatility 73.27% — 79.56% Risk free interest rate 1.52% — 4.65% Expected dividend yield —% Weighted average grant-date fair value per share $1.09 — $1.12 |
Stock-based Compensation Expense | Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows: For the year ended December 31, 2022 2021 2020 (In thousands) Selling, general and administrative $ 14,593 $ 15,820 $ 7,558 Research and development 485 1,027 347 Total stock-based compensation expense $ 15,078 $ 16,847 $ 7,905 |
Net Income (Loss) per Share A_2
Net Income (Loss) per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: For the year ended December 31, (In thousands, except for share and per share values) 2022 2021 2020 Numerator: Net loss $ (49,019) $ (38,679) $ (14,466) Add: gain on conversion of preferred stock (1) — 28,994 — Less: dividends paid to preferred stockholders (2) — (20,637) — Net loss attributable to common stockholders - basic and diluted $ (49,019) $ (30,322) $ (14,466) Net loss attributable to common stockholders - diluted $ (49,019) $ (30,322) $ (14,466) Denominator: Weighted average shares of common stock outstanding - basic 92,201,806 71,126,218 34,075,572 Weighted average shares of common stock outstanding - diluted 92,201,806 71,126,218 34,075,572 Net loss per share, attributable to common shareholders: Basic and diluted $ (0.53) $ (0.43) $ (0.43) _____________ (1) The conversion price of the Company’s Series C and Series D redeemable convertible preferred stock was adjusted as the offering price in the initial public offering was below a certain threshold resulting in the preferred stockholders receiving a fixed dollar amount on conversion settled into a variable number of shares, or a stock-settled redemption feature. Upon the settlement of this redemption feature, the Company recorded a gain on extinguishment of the redeemable convertible preferred stock of $29.0 million as an adjustment to net loss to arrive at net loss attributable to common stockholders to calculate earnings per share. The extinguishment gain was measured as the difference between the carrying amount of the redeemable convertible preferred stock and the fair value of common stock upon the IPO date that the preferred stock converted into. |
Schedule of Potentially Dilutive Shares | The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the year ended December 31, 2022 2021 2020 Redeemable convertible preferred stock (1) — — 49,100,928 Stock options to purchase common stock 14,888,007 16,440,539 18,038,042 Unvested restricted stock units 4,618,354 2,970,867 — Employee stock purchase plan 62,438 39,157 — Total 19,568,799 19,450,563 67,138,970 ___________________ (1) Immediately prior to the completion of the IPO, 49,100,928 outstanding shares of redeemable convertible preferred stock with a carrying value of $376.4 million converted into 49,649,023 shares of common stock. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The components of income tax provision consisted of the following: For the year ended December 31, 2022 2021 2020 (In thousands) Current Federal $ — $ — $ — State 110 77 89 Foreign — — — 110 77 89 Deferred Federal — — — State — — — Foreign — — — — — — Income tax provision $ 110 $ 77 $ 89 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the income tax benefit computed at the U.S. federal statutory rate of 21% to the Company’s income tax provision is as follows: For the year ended December 31, 2022 2021 2020 (In thousands) Income tax benefit at the federal statutory rate $ (10,271) $ (8,106) $ (3,019) State income taxes, net of federal benefit (625) (143) 831 Permanent differences for equity compensation 2,604 5,156 2,353 Nondeductible items 53 84 82 Nondeductible compensation 302 1,349 — Change in valuation allowance 8,047 1,737 (158) Income tax provision $ 110 $ 77 $ 89 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities were as follows: As of December 31, (In thousands) 2022 2021 Deferred tax assets Intangible assets $ 95 $ 122 Property and equipment 815 — Accrued expenses 653 2,602 Deferred revenue 51 13 Allowances, reserves and other 2,796 2,915 Stock-based compensation 8,335 9,592 Section 174 capitalized expenses 1,456 — Net operating loss and other carryforwards 85,176 77,548 Total deferred tax assets 99,377 92,792 Valuation allowance (94,103) (86,659) Net deferred tax assets 5,274 6,133 Deferred tax liabilities Deferred revenue — — Property and equipment — (544) Prepaid expenses (364) (539) State taxes (4,910) (5,050) Total deferred tax liabilities (5,274) (6,133) Net deferred taxes $ — $ — |
Schedule of Changes in Valuation Allowance | The following table summarizes the changes in the valuation allowance: For the year ended December 31, 2022 2021 2020 (In thousands) Beginning balance $ 86,659 $ 84,934 $ 85,083 Increase (decrease) to valuation allowance 8,047 1,737 (158) Decrease due to adoption of ASC 842 (613) — — Other increases (decreases) 10 (12) 9 Ending balance $ 94,103 $ 86,659 $ 84,934 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | As a result of the adoption of ASC 842, the following adjustments were made to the opening balances of the Company’s consolidated balance sheet (in thousands): December 31, 2021 Impact due to Adoption of January 1, 2022 Assets Property and equipment, net (1) 52,952 (37,581) $ 15,371 Operating lease ROU (2) — 36,127 $ 36,127 Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) Accrued expenses (2) $ 19,003 $ 5,113 $ 24,116 Lease financing obligation, net of current portion (1) 37,527 (37,527) $ — Operating lease liabilities, net of current portion (2) — 37,531 $ 37,531 Other long-term liabilities (3) 7,487 (7,415) $ 72 Accumulated equity (deficit) (4) (391,656) 845 $ (390,811) ___________________ (1) Represents the derecognition of non-Company owned property that was capitalized under previously existing built-to-suit accounting policies. (2) Represents the recognition of operating lease ROU assets and corresponding current and non-current lease liabilities. (3) Represents reclassification of deferred rent to operating lease ROU assets upon adoption of ASC 842. (4) Represents a decrease to the beginning fiscal 2022 accumulated deficit related to the adoption of ASC 842. |
Lease, Cost | The components of lease expense were as follows (in thousands): For the year ended December 31, 2022 Finance lease expense: Amortization 263 Interest on lease liabilities (1) 7 Operating lease expense: Operating lease expense (2) 7,153 Sublease income (2,006) Total lease expense, net 5,417 ______________________ (1) Interest expense on the Company's build-to-suit lease was previously included in interest and other income (expense), net on the consolidated statements of comprehensive loss and with the adoption of ASC 842 it is now included in cost of revenue, along with the operating lease expense, on the consolidated statements of comprehensive loss. |
Assets and Liabilities, Lessee | The following tables set forth the amount of lease assets and lease liabilities included in the Company’s consolidated balance sheets (in thousands): Assets Financial Statement Line Item December 31, 2022 Finance lease assets Property and equipment, net $ 70 Operating lease assets Operating lease right-of-use asset 29,947 Total lease assets 30,017 Liabilities Current Finance lease liabilities Accrued expenses 52 Operating lease liabilities Accrued expenses 7,688 Non-current Finance lease liabilities Other long-term liabilities 22 Operating lease liabilities Operating lease liabilities, net of current portion 29,842 Total lease liabilities 37,604 Supplemental information related to the Company’s leases for the year ended December 31, 2022 was as follows: Weighted-average remaining lease term (in years) Finance leases 1.4 Operating leases 4.5 Weighted-average discount rate Finance leases 3.00% Operating leases 2.29% Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $8 Operating cash flows used in operating leases $7,007 Finance cash flows used in finance leases $303 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments required under operating and finance leases as of December 31, 2022, were as follows (in thousands): Operating Leases Finance Leases 2023 $ 8,468 57 2024 8,704 21 2025 8,950 — 2026 9,201 — 2027 4,244 — Thereafter — — Future minimum lease payments $ 39,567 $ 78 Less: Amount representing interest (2,037) (4) Present value of future lease payments $ 37,530 $ 74 |
Finance Lease, Liability, Fiscal Year Maturity | Future minimum lease payments required under operating and finance leases as of December 31, 2022, were as follows (in thousands): Operating Leases Finance Leases 2023 $ 8,468 57 2024 8,704 21 2025 8,950 — 2026 9,201 — 2027 4,244 — Thereafter — — Future minimum lease payments $ 39,567 $ 78 Less: Amount representing interest (2,037) (4) Present value of future lease payments $ 37,530 $ 74 |
Schedule of Future Minimum Rental Receivable | As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2021, the future minimum rental payments under non-cancelable leases with offsetting sublease revenue were as follows: (in thousands) Facility Subleases Build-to-Suit Capital Years Ending December 31, 2022 $ 5,231 $ (1,936) $ 2,639 $ 280 2023 5,754 (1,994) 2,714 57 2024 5,916 (2,054) 2,788 21 2025 6,082 (2,115) 2,868 — 2026 6,253 (2,179) 2,948 — Thereafter 1,357 (369) 2,888 — Future minimum lease payments (income) $ 30,593 $ (10,647) $ 16,845 $ 358 Less: Amount representing interest (8) Present value of future lease payments $ 350 |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
May 07, 2021 | May 06, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sale of Stock [Line Items] | |||||||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Price per share (in USD per share) | $ 16 | ||||||
Underwriting commissions, discounts, and offering costs | $ 12,200 | ||||||
IPO Bonus | $ 9,500 | ||||||
Payroll taxes and expenses | $ 200 | ||||||
Cash dividend declared | $ 35,000 | ||||||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 49,100,928 | 0 | 49,100,928 | 49,100,928 | |||
Carrying Value | $ 376,400 | $ 0 | $ 376,404 | $ 376,404 | |||
Number of common stock issued from conversion (in shares) | 49,649,023 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ 29,000 | 376,405 | |||||
Selling, general and administrative | |||||||
Sale of Stock [Line Items] | |||||||
IPO Bonus | 9,100 | ||||||
Research and development | |||||||
Sale of Stock [Line Items] | |||||||
IPO Bonus | $ 400 | ||||||
IPO | |||||||
Sale of Stock [Line Items] | |||||||
Number of common stock issued in transaction (in shares) | 25,807,000 | ||||||
Aggregate net proceeds | $ 91,000 | ||||||
Underwriting commissions, discounts, and offering costs | $ 6,700 | ||||||
IPO - Sold by Company | |||||||
Sale of Stock [Line Items] | |||||||
Number of common stock issued in transaction (in shares) | 6,451,613 | ||||||
IPO - Sold by Existing Shareholders | |||||||
Sale of Stock [Line Items] | |||||||
Number of common stock issued in transaction (in shares) | 19,355,387 | ||||||
IPO - Other Offering Expense | |||||||
Sale of Stock [Line Items] | |||||||
Underwriting commissions, discounts, and offering costs | $ 5,500 | ||||||
Over-Allotment Option | |||||||
Sale of Stock [Line Items] | |||||||
Number of common stock issued in transaction (in shares) | 3,871,050 | ||||||
Option to purchase additional shares, period | 30 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2022 USD ($) | Apr. 30, 2021 | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2022 USD ($) | May 07, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Class of Stock [Line Items] | ||||||||
Number of operating segments | segment | 1 | |||||||
Allowance for doubtful accounts | $ 500,000 | $ 200,000 | ||||||
Deferred offering costs | $ 5,500,000 | |||||||
Deferred rent liabilities, current | 1,000,000 | |||||||
Deferred rent liabilities, noncurrent | 7,400,000 | |||||||
Capitalized implementation costs from cloud computing | 1,000,000 | 900,000 | ||||||
Capitalized implementation costs from cloud computing, accumulated amortization | $ 1,800,000 | 1,200,000 | ||||||
Goodwill impairment | $ 0 | |||||||
Intangible asset, estimated useful life | 15 years | |||||||
Realized and unrealized foreign currency (losses) gains, net | $ (200,000) | (100,000) | $ 100,000 | |||||
Deferred revenue | 815,000 | 731,000 | ||||||
Deferred advertising, current | 1,600,000 | 1,000,000 | ||||||
Deferred advertising, noncurrent | 0 | 100,000 | ||||||
Advertising expense | 44,800,000 | 49,200,000 | 41,100,000 | |||||
Operating lease right-of-use asset | 29,947,000 | |||||||
Operating lease liability | 37,530,000 | |||||||
Accrued rent | 7,688,000 | |||||||
Decrease in total assets | (240,599,000) | (272,597,000) | ||||||
Decrease in total liabilities | (94,239,000) | (93,491,000) | ||||||
Stockholders' equity | 146,360,000 | 179,106,000 | (236,825,000) | $ (230,277,000) | ||||
Sales Incentive Program | ||||||||
Class of Stock [Line Items] | ||||||||
Allowance for sales incentive program | 6,396,000 | 6,494,000 | 8,207,000 | 8,428,000 | ||||
Accumulated Deficit | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' equity | (439,830,000) | (391,656,000) | (352,977,000) | $ (338,511,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Class of Stock [Line Items] | ||||||||
Operating lease right-of-use asset | $ 36,127,000 | |||||||
Stockholders' equity | 845,000 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' equity | 845,000 | |||||||
Accounts Receivable | Sales Incentive Program | ||||||||
Class of Stock [Line Items] | ||||||||
Allowance for sales incentive program | $ 5,800,000 | 6,100,000 | ||||||
Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Lessee, finance lease, remaining lease term | 1 year | |||||||
Lessee, operating lease, remaining lease term | 1 year | |||||||
Deferred advertising, amortization period | 1 year | |||||||
Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Lessee, finance lease, remaining lease term | 6 years | |||||||
Lessee, operating lease, remaining lease term | 6 years | |||||||
Deferred advertising, amortization period | 3 years | |||||||
Accounting Standards Update 2016-02 | ||||||||
Class of Stock [Line Items] | ||||||||
Operating lease right-of-use asset | 36,100,000 | |||||||
Operating lease liability | 37,500,000 | |||||||
Accrued rent | 7,000,000 | |||||||
Decrease in total assets | 37,600,000 | |||||||
Decrease in total liabilities | 38,400,000 | |||||||
Accounting Standards Update 2016-02 | Minimum | Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' equity | $ 800,000 | |||||||
Sales Channel, Directly to Consumer | ||||||||
Class of Stock [Line Items] | ||||||||
Revenue recognized | 0 | $ 0 | ||||||
Deferred revenue | $ 800,000 | 700,000 | ||||||
Gift Card | Sales Channel, Directly to Consumer | ||||||||
Class of Stock [Line Items] | ||||||||
Revenue recognized | $ 800,000 | 900,000 | ||||||
Retail | Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Revenue Recognition, Payment Term | 30 days | |||||||
Retail | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Revenue Recognition, Payment Term | 45 days | |||||||
Sanitization and Disinfecting Products | Household and Wellness | ||||||||
Class of Stock [Line Items] | ||||||||
Inventory reserve | $ 4,300,000 | 5,600,000 | ||||||
Face Masks | ||||||||
Class of Stock [Line Items] | ||||||||
Donation of face masks | $ 1,000,000 | $ 700,000 | ||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock split ratio | 0.5 | |||||||
Redeemable Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock split ratio | 0.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 44% | 48% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15% | 24% | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31% | 28% | 23% |
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19% | 22% | 22% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Useful Life of Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Computer and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Capitalized software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 1 year |
Capitalized software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Sales Incentive Program Activity (Details) - Sales Incentive Program - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer, Allowance for Sales Incentive Program [Roll Forward] | |||
Beginning balance | $ 6,494 | $ 8,207 | $ 8,428 |
Charged to revenue | 48,962 | 47,290 | 35,465 |
Utilization of accrual for trade promotions | (61,954) | (65,153) | (46,592) |
Reclassification to prepaid expenses and other current assets/accrued expenses | (197) | 0 | 0 |
Ending balance | 6,396 | 6,494 | 8,207 |
Charged to selling, general and administrative expense | |||
Revenue from Contract with Customer, Allowance for Sales Incentive Program [Roll Forward] | |||
Charged to marketing expense | 550 | 0 | 0 |
Charged to marketing expense | |||
Revenue from Contract with Customer, Allowance for Sales Incentive Program [Roll Forward] | |||
Charged to marketing expense | $ 12,541 | $ 16,150 | $ 10,906 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 313,651 | $ 318,639 | $ 300,522 |
Diapers and Wipes | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 200,429 | 200,923 | 188,452 |
Skin and Personal Care | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 89,316 | 101,697 | 79,542 |
Household and Wellness | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 23,906 | 16,019 | 32,528 |
Digital | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 141,403 | 157,546 | 166,733 |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 172,248 | $ 161,093 | $ 133,789 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 313,651,000 | $ 318,639,000 | $ 300,522,000 |
Cost of revenue | $ 221,336,000 | 209,467,000 | $ 192,626,000 |
Trade Agreements | |||
Disaggregation of Revenue [Line Items] | |||
Marketing credits, usage period | 4 years | ||
Marketing credits, option to extend | 2 years | ||
Revenue | $ 3,200,000 | 4,200,000 | |
Cost of revenue | 1,700,000 | 2,200,000 | |
Impairment | 0 | 0 | |
Transportation credits used | $ 1,400,000 | $ 400,000 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Indefinite Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,057 | $ 1,057 |
Accumulated Amortization | (687) | (617) |
Intangible Assets, Net | 370 | 440 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 770 | 770 |
Accumulated Amortization | (489) | (438) |
Intangible Assets, Net | 281 | 332 |
Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 287 | 287 |
Accumulated Amortization | (198) | (179) |
Intangible Assets, Net | $ 89 | $ 108 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 0.1 | $ 0.1 | $ 0.1 |
Tradenames | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, estimated useful life | 6 years 2 months 12 days | 4 years 9 months 18 days | |
Domain names | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, estimated useful life | 7 years 1 month 6 days | 5 years 9 months 18 days |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Expected Remaining Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 70 | |
2024 | 70 | |
2025 | 70 | |
2026 | 70 | |
2027 | 70 | |
Thereafter | 20 | |
Intangible Assets, Net | $ 370 | $ 440 |
Property and Equipment, Net - C
Property and Equipment, Net - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 80,720 | |
Property and equipment, gross | $ 40,154 | |
Accumulated depreciation and amortization | (25,827) | |
Accumulated depreciation and amortization | (27,768) | |
Property and equipment, net | 14,327 | |
Property and equipment, net | 52,952 | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,198 | 12,064 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,794 | 1,461 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,989 | 4,906 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,334 | 4,304 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,839 | 15,839 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 42,146 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Amortization | $ 263 | ||
Capital lease depreciation expense | $ 400 | $ 300 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,753 | $ 4,146 | $ 4,854 |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 2,682 | 4,081 | 4,783 |
Cost of Sales | Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 1,013 | 2,198 | 2,295 |
Research and development | Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 195 | 186 | 251 |
Selling, general and administrative | Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 1,474 | $ 1,697 | $ 2,237 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments with contractual maturities of less than one year | $ 5.7 | $ 36.4 |
Investments with contractual maturities between one and two years | $ 0 | $ 6 |
Investments - Available-for-Sal
Investments - Available-for-Sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 5,682 | $ 42,429 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (33) | (42) |
Total Estimated Fair Value | 5,650 | 42,388 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 3,216 | 18,605 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24) | (28) |
Total Estimated Fair Value | 3,193 | 18,577 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 582 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total Estimated Fair Value | 582 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 1,884 | 17,099 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (9) | (5) |
Total Estimated Fair Value | $ 1,875 | 17,095 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 6,725 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (9) | |
Total Estimated Fair Value | $ 6,716 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 5,650 | $ 42,388 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | 18,577 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | 17,095 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,716 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,595 | 29,411 |
Short-term investments | 5,650 | 42,388 |
Total | 15,245 | 71,799 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | 18,577 |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | 17,095 |
Fair Value, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,716 | |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,595 | 29,411 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,595 | 29,411 |
Short-term investments | 0 | 0 |
Total | 9,595 | 29,411 |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,595 | 29,411 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 5,650 | 42,388 |
Total | 5,650 | 42,388 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | 18,577 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | 17,095 |
Fair Value, Recurring | Level 2 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,716 | |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Credit Facilities (Details)
Credit Facilities (Details) - 2021 Credit Facility | 1 Months Ended | ||
Apr. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
JP Morgan Chase Bank | |||
Line of Credit Facility [Line Items] | |||
Maximum total net leverage ratio | 3.50 | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Interest rate base (as a percent) | 0% | ||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% | ||
Revolving Credit Facility | CB floating rate | |||
Line of Credit Facility [Line Items] | |||
Interest rate base (as a percent) | 2.50% | ||
Debt instrument, basis spread on variable rate (as a percent) | 0.50% | ||
Revolving Credit Facility | JP Morgan Chase Bank | |||
Line of Credit Facility [Line Items] | |||
Maximum issuance of letters of credit | $ 35,000,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 0 | $ 0 | |
Maximum issuance of letters of credit | $ 10,000,000 | ||
Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of credit issued | 4,800,000 | 6,300,000 | |
Standby Letters of Credit | JP Morgan Chase Bank | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity available | $ 30,200,000 | $ 28,700,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Payables and Accruals [Line Items] | ||
Payroll and payroll related expenses | $ 6,790 | $ 2,497 |
Accrued inventory purchases | 17,050 | 8,838 |
Accrued returns | 318 | 1,455 |
Accrued rent | 7,688 | |
Other accrued expenses | 6,164 | 6,213 |
Total accrued expenses | 38,010 | $ 19,003 |
Chief Executive Officer | ||
Schedule of Payables and Accruals [Line Items] | ||
Payroll and payroll related expenses | $ 4,300 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 06, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | |
Temporary Equity [Line Items] | |||||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | ||
Outstanding shares of redeemable convertible preferred stock (in shares) | 49,100,928 | 0 | 49,100,928 | 49,100,928 | |
Carrying Value | $ 376,400 | $ 0 | $ 376,404 | $ 376,404 | |
Number of common stock issued from conversion (in shares) | 49,649,023 | ||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ 29,000 | $ 376,405 | |||
Series A Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 11,347,518 | ||||
Carrying Value | $ 6,000 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series A-1 Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 11,554,016 | ||||
Carrying Value | $ 20,796 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series B Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 4,551,572 | ||||
Carrying Value | $ 42,106 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series C Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 5,174,204 | ||||
Carrying Value | $ 90,586 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series D Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 4,454,624 | ||||
Carrying Value | $ 101,239 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series E Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 6,918,204 | ||||
Carrying Value | $ 67,685 | ||||
Shares available for issuance (in shares) | 0 | ||||
Series F Redeemable Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Outstanding shares of redeemable convertible preferred stock (in shares) | 5,100,790 | ||||
Carrying Value | $ 47,992 | ||||
Shares available for issuance (in shares) | 0 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Summary of Redeemable Convertible Preferred Stock Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | May 06, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 49,192,248 | |||
Issued (in shares) | 49,100,928 | |||
Outstanding (in shares) | 0 | 49,100,928 | 49,100,928 | 49,100,928 |
Carrying Value | $ 0 | $ 376,400 | $ 376,404 | $ 376,404 |
Liquidation Preference | $ 396,726 | |||
Series A Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 11,347,518 | |||
Issued (in shares) | 11,347,518 | |||
Outstanding (in shares) | 11,347,518 | |||
Carrying Value | $ 6,000 | |||
Liquidation Preference | $ 6,000 | |||
Series A-1 Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 11,554,016 | |||
Issued (in shares) | 11,554,016 | |||
Outstanding (in shares) | 11,554,016 | |||
Carrying Value | $ 20,796 | |||
Liquidation Preference | $ 21,000 | |||
Series B Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 4,551,572 | |||
Issued (in shares) | 4,551,572 | |||
Outstanding (in shares) | 4,551,572 | |||
Carrying Value | $ 42,106 | |||
Liquidation Preference | $ 50,000 | |||
Series C Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 5,174,204 | |||
Issued (in shares) | 5,174,204 | |||
Outstanding (in shares) | 5,174,204 | |||
Carrying Value | $ 90,586 | |||
Liquidation Preference | $ 100,000 | |||
Series D Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 4,545,944 | |||
Issued (in shares) | 4,454,624 | |||
Outstanding (in shares) | 4,454,624 | |||
Carrying Value | $ 101,239 | |||
Liquidation Preference | $ 101,911 | |||
Series E Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 6,918,204 | |||
Issued (in shares) | 6,918,204 | |||
Outstanding (in shares) | 6,918,204 | |||
Carrying Value | $ 67,685 | |||
Liquidation Preference | $ 67,815 | |||
Series F Redeemable Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Authorized Shares (in shares) | 5,100,790 | |||
Issued (in shares) | 5,100,790 | |||
Outstanding (in shares) | 5,100,790 | |||
Carrying Value | $ 47,992 | |||
Liquidation Preference | $ 50,000 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Schedule of Stock Available for Future Issuance (Details) | Dec. 31, 2020 shares |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 6,176,766 |
Authorized number of common shares | |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 110,000,000 |
Common shares outstanding | |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 34,089,186 |
Stock awards outstanding under the 2011 Plan | |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 18,038,042 |
Stock awards available for grant under the 2011 Plan | |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 2,595,078 |
Reserve for the conversion of preferred stock | |
Class of Stock [Line Items] | |
Available for issuance (in shares) | 49,100,928 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Nevada Department of Taxation vs. Honest Company - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Payments for legal settlements | $ 0.6 | |
Interest expense | 0.1 | |
Other income | $ 0.7 | |
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Potential loss | $ 0.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Purchase Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Years Ending December 31, | |
2023 | $ 3,074 |
2024 | 1,979 |
2025 | 496 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Future minimum payments | $ 5,549 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 16,440,539 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (43,556) | |
Forfeited (in shares) | (1,508,976) | |
Options outstanding, ending balance (in shares) | 14,888,007 | 16,440,539 |
Options exercisable (in shares) | 14,503,073 | |
Weighted Average Exercise Price | ||
Weighted-average exercise price, beginning balance (in USD per share) | $ 5.26 | |
Weighted-average exercise price, granted (in USD per share) | 0 | |
Weighted-average exercise price, exercised (in USD per share) | 2.81 | |
Weighted-average exercise price, forfeited (in USD per share) | 5.50 | |
Weighted-average exercise price, ending balance (in USD per share) | 5.24 | $ 5.26 |
Weighted-average exercise price, exercisable (in USD per share) | $ 5.23 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Contractual Term (Years) | 4 years | 5 years 4 months 24 days |
Weighted average contractual term, exercisable | 3 years 10 months 24 days | |
Intrinsic Value (in thousands) | $ 3,024 | $ 46,589 |
Intrinsic Value, exercisable | $ 3,024 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 07, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average exercise price (in USD per share) | $ 5.24 | $ 5.26 | ||
Total stock-based compensation expense | $ 15,078 | $ 16,847 | $ 7,905 | |
Intrinsic value of options exercised | 100 | 6,000 | 300 | |
Fair value of options vested during the period | 2,000 | 7,900 | $ 7,600 | |
Unrecognized stock-based compensation expense | $ 1,000 | $ 3,900 | ||
Stock Options With Liquidity Event Vesting Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vested (in shares) | 2,442,918 | |||
Weighted average exercise price (in USD per share) | $ 5.54 | |||
Total stock-based compensation expense | $ 3,100 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition | 1 year 3 months 18 days | 1 year 9 months 18 days | ||
Options | 2011 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vested upon occurrence of event | 25% | |||
Award vesting period | 36 months |
Stock-Based Compensation - 2021
Stock-Based Compensation - 2021 Equity Incentive Plan (Details) - shares | 1 Months Ended | |||
Apr. 30, 2021 | Jan. 01, 2022 | Apr. 01, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common stock authorized to be issued (in shares) | 6,176,766 | |||
2021 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares that may be issued (in shares) | 75,100,000 | 25,025,580 | ||
Period to increase available shares for issuance | 10 years | |||
Percentage of total number of shares outstanding | 4% | |||
Number of common stock authorized to be issued (in shares) | 3,660,485 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Awards (Details) - Unvested restricted stock units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Non-Employee Directors | |
Number of Shares | |
Granted (in shares) | 485,806 |
Vested (in shares) | (131,775) |
Forfeited (in shares) | (4,641) |
Weighted Average Grant Date Fair Value Per Share | |
Granted (in USD per share) | $ / shares | $ 3.51 |
Vested (in USD per share) | $ / shares | 13.38 |
Forfeited (in USD per share) | $ / shares | $ 8.09 |
Officers and Employees | |
Number of Shares | |
Granted (in shares) | 3,113,741 |
Vested (in shares) | (1,121,573) |
Forfeited (in shares) | (694,071) |
Weighted Average Grant Date Fair Value Per Share | |
Granted (in USD per share) | $ / shares | $ 5.07 |
Vested (in USD per share) | $ / shares | 12.20 |
Forfeited (in USD per share) | $ / shares | $ 10.54 |
Non-Employee Directors | |
Number of Shares | |
Unvested RSUs, beginning balance (in shares) | 103,561 |
Unvested RSUs, ending balance (in shares) | 452,951 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested RSUs, beginning balance (in USD per share) | $ / shares | $ 16 |
Unvested RSUs, ending balance (in USD per share) | $ / shares | $ 3.44 |
Directors, Officers and Employees | |
Number of Shares | |
Unvested RSUs, beginning balance (in shares) | 2,867,306 |
Unvested RSUs, ending balance (in shares) | 4,165,403 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested RSUs, beginning balance (in USD per share) | $ / shares | $ 13.58 |
Unvested RSUs, ending balance (in USD per share) | $ / shares | $ 8.09 |
2021 Equity Incentive Plan | |
Weighted Average Grant Date Fair Value Per Share | |
Common stock withheld to cover taxes (in shares) | 8,050 |
Stock-Based Compensation - RS_2
Stock-Based Compensation - RSU Awards Narrative (Details) - Unvested restricted stock units - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 31.2 | $ 34.2 |
Period for recognition | 2 years 6 months | 4 years |
Stock-Based Compensation - 20_2
Stock-Based Compensation - 2021 Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock authorized to be issued (in shares) | 6,176,766 | ||||
Employee stock purchase plan | 2021 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock authorized to be issued (in shares) | 1,175,000 | 915,121 | |||
Period to increase available shares for issuance | 10 years | ||||
Percentage of total number of shares outstanding | 1% | ||||
Additional shares authorized (in shares) | 3,525,000 | ||||
Purchase price of common stock in percent | 85% | ||||
Shares issued through ESPP (in shares) | 95,742 | 39,490 | |||
Proceeds from issuance of common stock | $ 0.3 | $ 0.3 | |||
Share price (in USD per share) | $ 2.68 | $ 7.37 | |||
Number of shares available for purchase (in shares) | 1,955,107 | 1,135,510 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Options | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of options (in years) | 6 months |
Expected stock price volatility (minimum) | 73.27% |
Expected stock price volatility (maximum) | 79.56% |
Risk free interest rate (minimum) | 1.52% |
Risk free interest rate (maximum) | 4.65% |
Expected dividend yield | 0% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant-date fair value per share (in USD per share) | $ 1.09 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant-date fair value per share (in USD per share) | $ 1.12 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 15,078 | $ 16,847 | $ 7,905 |
Selling, general and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 14,593 | 15,820 | 7,558 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 485 | $ 1,027 | $ 347 |
Net Income (Loss) per Share A_3
Net Income (Loss) per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 29, 2021 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||||
Net loss | $ (49,019) | $ (38,679) | $ (14,466) | ||
Add: gain on conversion of preferred stock | 0 | 28,994 | 0 | ||
Less: dividends paid to preferred stockholders | 0 | (20,637) | 0 | ||
Net loss attributable to common stockholders - basic | (49,019) | (30,322) | (14,466) | ||
Net loss attributable to common stockholders - diluted | $ (49,019) | $ (30,322) | $ (14,466) | ||
Denominator: | |||||
Weighted average shares of common stock outstanding - basic (in shares) | 92,201,806 | 71,126,218 | 34,075,572 | ||
Weighted average shares of common stock outstanding - diluted (in shares) | 92,201,806 | 71,126,218 | 34,075,572 | ||
Net loss per share, attributable to common shareholders: | |||||
Basic (in USD per share) | $ (0.53) | $ (0.43) | $ (0.43) | ||
Diluted (in USD per share) | $ (0.53) | $ (0.43) | $ (0.43) | ||
Gain on extinguishment of redeemable convertible preferred stock | $ 0 | $ 28,994 | $ 0 | ||
Cash dividend declared | $ 35,000 | ||||
Dividends paid to holders of Company's redeemable convertible preferred stock | $ 20,600 |
Net Income (Loss) per Share A_4
Net Income (Loss) per Share Attributable to Common Stockholders - Potentially Dilutive Shares Excluded From Computation of Diluted Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 06, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19,568,799 | 19,450,563 | 67,138,970 | ||
Outstanding shares of redeemable convertible preferred stock (in shares) | 49,100,928 | 0 | 49,100,928 | 49,100,928 | |
Carrying Value | $ 376,400 | $ 0 | $ 376,404 | $ 376,404 | |
Number of common stock issued from conversion (in shares) | 49,649,023 | ||||
Redeemable convertible preferred stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 49,100,928 | ||
Stock options to purchase common stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 14,888,007 | 16,440,539 | 18,038,042 | ||
Unvested restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,618,354 | 2,970,867 | 0 | ||
Employee stock purchase plan | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 62,438 | 39,157 | 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 110 | 77 | 89 |
Foreign | 0 | 0 | 0 |
Current income tax expense total | 110 | 77 | 89 |
Deferred | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Deferred income tax expense total | 0 | 0 | 0 |
Income tax provision | $ 110 | $ 77 | $ 89 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at the federal statutory rate | $ (10,271) | $ (8,106) | $ (3,019) |
State income taxes, net of federal benefit | (625) | (143) | 831 |
Permanent differences for equity compensation | 2,604 | 5,156 | 2,353 |
Nondeductible items | 53 | 84 | 82 |
Nondeductible compensation | 302 | 1,349 | 0 |
Change in valuation allowance | 8,047 | 1,737 | (158) |
Income tax provision | $ 110 | $ 77 | $ 89 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||||
Intangible assets | $ 95 | $ 122 | ||
Property and equipment | 815 | 0 | ||
Accrued expenses | 653 | 2,602 | ||
Deferred revenue | 51 | 13 | ||
Allowances, reserves and other | 2,796 | 2,915 | ||
Stock-based compensation | 8,335 | 9,592 | ||
Section 174 capitalized expenses | 1,456 | 0 | ||
Net operating loss and other carryforwards | 85,176 | 77,548 | ||
Total deferred tax assets | 99,377 | 92,792 | ||
Valuation allowance | (94,103) | (86,659) | $ (84,934) | $ (85,083) |
Net deferred tax assets | 5,274 | 6,133 | ||
Deferred tax liabilities | ||||
Deferred revenue | 0 | 0 | ||
Property and equipment | 0 | (544) | ||
Prepaid expenses | (364) | (539) | ||
State taxes | (4,910) | (5,050) | ||
Total deferred tax liabilities | (5,274) | (6,133) | ||
Net deferred taxes | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets related to capitalized research and development expenses | $ 1,456,000 | $ 0 |
Uncertain tax positions | 0 | 0 |
Interest and penalties expense | 0 | 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 301,000,000 | 272,000,000 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 271,000,000 | 248,000,000 |
Tax credits | $ 0 | $ 100,000 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Asset, Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 86,659 | $ 84,934 | $ 85,083 |
Increase (decrease) to valuation allowance | 8,047 | 1,737 | (158) |
Other increases (decreases) | 10 | (12) | 9 |
Ending balance | 94,103 | 86,659 | $ 84,934 |
Accounting Standards Update 2016-02 | |||
Deferred Tax Asset, Valuation Allowance [Roll Forward] | |||
Beginning balance | $ (613) | ||
Ending balance | $ (613) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Advertising expense | $ 44.8 | $ 49.2 | $ 41.1 |
Summit House Studios LLC | |||
Related Party Transaction [Line Items] | |||
Advertising expense | 0.2 | $ 0.6 | $ 0.3 |
Vault Co. | |||
Related Party Transaction [Line Items] | |||
Advertising expense | $ 0.1 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 5,000,000 | $ 5,200,000 | |
Sublease rent income | 2,500,000 | $ 2,700,000 | |
Non-cash ROU assets obtained in exchange for finance lease liabilities | $ 0 | ||
Non-cash ROU assets obtained in exchange for operating lease liabilities | 0 | ||
Standby Letters of Credit | 2021 Credit Facility | |||
Lessee, Lease, Description [Line Items] | |||
Letters of credit issued | $ 4,800,000 | $ 6,300,000 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, remaining lease term | 1 year | ||
Lessee, finance lease, remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, remaining lease term | 6 years | ||
Lessee, finance lease, remaining lease term | 6 years |
Leases - Summary of Impact of T
Leases - Summary of Impact of Topic 842 (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | $ 52,952 | ||
Property and equipment, net | $ 14,327 | ||
Operating lease right-of-use asset | 29,947 | ||
Total accrued expenses | 38,010 | 19,003 | |
Lease financing obligation, net of current portion | 37,527 | ||
Operating lease liabilities, net of current portion | 29,842 | ||
Other long-term liabilities | 817 | 7,487 | |
Accumulated deficit | $ (439,830) | $ (391,656) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | $ (37,581) | ||
Operating lease right-of-use asset | 36,127 | ||
Total accrued expenses | 5,113 | ||
Lease financing obligation, net of current portion | (37,527) | ||
Operating lease liabilities, net of current portion | 37,531 | ||
Other long-term liabilities | (7,415) | ||
Accumulated deficit | 845 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | 15,371 | ||
Operating lease right-of-use asset | 36,127 | ||
Total accrued expenses | 24,116 | ||
Operating lease liabilities, net of current portion | 37,531 | ||
Other long-term liabilities | 72 | ||
Accumulated deficit | $ (390,811) |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Amortization | $ 263 |
Interest on lease liabilities | 7 |
Operating lease expense | 7,153 |
Sublease income | (2,006) |
Total lease expense, net | $ 5,417 |
Leases - Summary of Assets and
Leases - Summary of Assets and Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Assets | |
Finance lease, right-of-use asset, statement of financial position | Property and equipment, net |
Finance lease assets | $ 70 |
Operating lease right-of-use asset | 29,947 |
Total lease assets | $ 30,017 |
Current | |
Finance lease, liability, current, statement of financial position | Total accrued expenses |
Finance lease liabilities, current | $ 52 |
Operating lease, liability, current, statement of financial position | Total accrued expenses |
Accrued rent | $ 7,688 |
Non-current | |
Finance lease, liability, noncurrent, statement of financial position | Other long-term liabilities |
Lease financing obligation, net of current portion | $ 22 |
Operating lease liabilities, net of current portion | 29,842 |
Total lease liabilities | $ 37,604 |
Weighted-average remaining lease term (in years) | |
Finance lease, weighted-average remaining lease term | 1 year 4 months 24 days |
Operating lease, weighted-average remaining lease term | 4 years 6 months |
Weighted-average discount rate | |
Finance lease, weighted-average discount rate | 3% |
Operating lease, weighted-average discount rate | 2.29% |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows used in finance leases | $ 8 |
Operating cash flows used in operating leases | 7,007 |
Finance cash flows used in finance leases | $ 303 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments for Operating and Finance Leases (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 8,468 |
2024 | 8,704 |
2025 | 8,950 |
2026 | 9,201 |
2027 | 4,244 |
Thereafter | 0 |
Future minimum lease payments | 39,567 |
Less: Amount representing interest | (2,037) |
Operating lease liability | 37,530 |
Finance Leases | |
2023 | 57 |
2024 | 21 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Future minimum lease payments | 78 |
Less: Amount representing interest | (4) |
Present value of future lease payments | $ 74 |
Leases - Summary of Minimum Fut
Leases - Summary of Minimum Future Rent Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Subleases | |
2022 | $ (1,936) |
2023 | (1,994) |
2024 | (2,054) |
2025 | (2,115) |
2026 | (2,179) |
Thereafter | (369) |
Future minimum lease payments (income) | (10,647) |
Capital Leases | |
2022 | 280 |
2023 | 57 |
2024 | 21 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Future minimum lease payments (income) | 358 |
Less: Amount representing interest | (8) |
Present value of future lease payments | 350 |
Facility Leases | |
Operating Leases | |
2022 | 5,231 |
2023 | 5,754 |
2024 | 5,916 |
2025 | 6,082 |
2026 | 6,253 |
Thereafter | 1,357 |
Future minimum lease payments (income) | 30,593 |
Build-to-Suit Lease | |
Operating Leases | |
2022 | 2,639 |
2023 | 2,714 |
2024 | 2,788 |
2025 | 2,868 |
2026 | 2,948 |
Thereafter | 2,888 |
Future minimum lease payments (income) | $ 16,845 |
Subsequent Events (Details)
Subsequent Events (Details) - 2023 Credit Facility - Line of Credit - Subsequent Event - USD ($) | 1 Months Ended | |
Jan. 31, 2023 | Mar. 16, 2023 | |
Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Maximum issuance of letters of credit | $ 35,000,000 | |
Uncommitted accordion feature | 35,000,000 | |
Potential revolving commitment | $ 70,000,000 | |
SOFR floor rate | 0% | |
Amount outstanding | $ 0 | |
Revolving Credit Facility | Prime Rate | ||
Subsequent Event [Line Items] | ||
Debt instrument, basis spread on variable rate (as a percent) | 0.25% | |
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Debt instrument, basis spread on variable rate (as a percent) | 1.50% | |
Revolving Credit Facility | Minimum | Prime Rate | ||
Subsequent Event [Line Items] | ||
Debt instrument, basis spread on variable rate (as a percent) | (0.25%) | |
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Debt instrument, basis spread on variable rate (as a percent) | 2.25% | |
Revolving Credit Facility | Maximum | Prime Rate | ||
Subsequent Event [Line Items] | ||
Debt instrument, basis spread on variable rate (as a percent) | (0.50%) | |
Letter of Credit | ||
Subsequent Event [Line Items] | ||
Maximum issuance of letters of credit | $ 15,000,000 |