Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | SIGHT SCIENCES, INC. | |
Entity Central Index Key | 0001531177 | |
Entity File Number | 001-40587 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0625749 | |
Entity Address, Address Line One | 4040 Campbell Ave | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Menlo Park | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94025 | |
City Area Code | 877 | |
Local Phone Number | 266-1144 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | SGHT | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,460,154 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 167,335 | $ 185,000 |
Accounts receivable, net | 16,357 | 15,148 |
Inventory, net | 7,138 | 6,114 |
Prepaid expenses and other current assets | 2,822 | 3,415 |
Total current assets | 193,652 | 209,677 |
Property and equipment, net | 1,393 | 1,571 |
Operating lease right-of-use assets | 1,372 | 1,614 |
Other noncurrent assets | 224 | 211 |
Total assets | 196,641 | 213,073 |
Current liabilities: | ||
Accounts payable | 3,501 | 2,688 |
Accrued compensation | 4,958 | 7,352 |
Accrued and other current liabilities | 6,686 | 7,777 |
Total current liabilities | 15,145 | 17,817 |
Long-term debt | 33,457 | 33,313 |
Other noncurrent liabilities | 1,663 | 1,867 |
Total liabilities | 50,265 | 52,997 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock par value of $0.001 per share; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock par value of $0.001 per share; 200,000,000 shares authorized as of March 31, 2023 and December 31, 2022, respectively; 48,450,378 and 48,298,138 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 48 | 48 |
Additional paid-in-capital | 402,638 | 399,271 |
Accumulated deficit | (256,310) | (239,243) |
Total stockholders' equity | 146,376 | 160,076 |
Total liabilities and stockholders' equity | $ 196,641 | $ 213,073 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, net of allowances | $ 774 | $ 1,024 |
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 48,450,378 | 48,298,138 |
Common stock, shares outstanding | 48,450,378 | 48,298,138 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 18,824 | $ 14,881 |
Cost of goods sold | 3,048 | 3,033 |
Gross profit | 15,776 | 11,848 |
Operating expenses: | ||
Research and development | 4,669 | 5,646 |
Selling, general and administrative | 28,675 | 28,395 |
Total operating expenses | 33,344 | 34,041 |
Loss from operations | (17,568) | (22,193) |
Interest expense | (1,276) | (1,046) |
Other (expense) income, net | 1,791 | (15) |
Loss before income taxes | (17,053) | (23,254) |
Provision for income taxes | 14 | 9 |
Net loss and comprehensive loss | $ (17,067) | $ (23,263) |
Net loss per share attributable to common stockholders-basic | $ (0.35) | $ (0.49) |
Net loss per share attributable to common stockholders-diluted | $ (0.35) | $ (0.49) |
Weighted-average shares of common stock outstanding-basic | 48,405,271 | 47,569,499 |
Weighted-average shares of common stock outstanding-diluted | 48,405,271 | 47,569,499 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance at Dec. 31, 2021 | $ 232,107 | $ 48 | $ 385,060 | $ (153,001) |
Beginning Balance, shares at Dec. 31, 2021 | 47,504,704 | |||
Issuance of common stock upon exercise of stock options, Shares | 85,644 | |||
Issuance of common stock upon exercise of stock options | 93 | 93 | ||
Stock-based compensation expense | 2,974 | 2,974 | ||
Net loss | (23,263) | (23,263) | ||
Ending Balance at Mar. 31, 2022 | 211,911 | $ 48 | 388,127 | (176,264) |
Ending Balance, shares at Mar. 31, 2022 | 47,590,348 | |||
Beginning Balance at Dec. 31, 2022 | $ 160,076 | $ 48 | 399,271 | (239,243) |
Beginning Balance, shares at Dec. 31, 2022 | 48,298,138 | |||
Exercise of stock options, Shares | 47,736 | |||
Issuance of common stock upon exercise of stock options, Shares | 46,208 | |||
Issuance of common stock upon exercise of stock options | $ 49 | 49 | ||
Issuance of common stock upon vesting of restricted stock units, shares | 106,032 | |||
Withholding taxes on net share settlement of restricted stock units | (205) | (205) | ||
Stock-based compensation expense | 3,523 | 3,523 | ||
Net loss | (17,067) | (17,067) | ||
Ending Balance at Mar. 31, 2023 | $ 146,376 | $ 48 | $ 402,638 | $ (256,310) |
Ending Balance, shares at Mar. 31, 2023 | 48,450,378 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (17,067) | $ (23,263) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 146 | 179 |
Accretion of debt discount and amortization of debt issuance costs | 144 | 161 |
Stock-based compensation expense | 3,523 | 2,974 |
Provision for doubtful accounts receivable | (250) | (60) |
Provision for excess and obsolete inventories | 12 | 8 |
Noncash operating lease expense | 242 | 121 |
Loss on disposal of property and equipment | 66 | 46 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (959) | (1,180) |
Inventory | (1,036) | (615) |
Prepaid expenses and other current assets | 593 | 1,472 |
Other noncurrent assets | (13) | 10 |
Accounts payable | 878 | (248) |
Accrued compensation | (2,394) | (2,129) |
Accrued and other current liabilities | (1,345) | 472 |
Other noncurrent liabilities | 77 | 86 |
Net cash used in operating activities | (17,383) | (21,966) |
Cash flows from investing activities | ||
Purchases of property and equipment | (126) | (227) |
Net cash used in investing activities | (126) | (227) |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | 49 | 92 |
Taxes paid on the net share settlement of restricted stock units | (205) | 0 |
Net cash provided by (used in) financing activities | (156) | 92 |
Net change in cash and cash equivalents | (17,665) | (22,101) |
Cash and cash equivalents at beginning of period | 185,000 | 260,687 |
Cash and cash equivalents at end of period | 167,335 | 238,586 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,002 | 766 |
Supplemental noncash disclosure | ||
Acquisition of property and equipment included in accounts payable and accrued liabilities | $ 10 | $ 418 |
Company and Nature of Business
Company and Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Nature of Business | Note 1. Company and Nature of Business Description of Business Sight Sciences, Inc. (the “Company”) was incorporated in the State of Delaware in 2010 and is headquartered in Menlo Park, California. The Company is an ophthalmic medical device company focused on the development and commercialization of surgical and nonsurgical technologies for the treatment of prevalent eye diseases. Significant Risks and Uncertainties Since inception, the Company has incurred losses and negative cash flows from operations. As of March 31, 2023, the Company had an accumulated deficit of $ 256.3 million and recorded a net loss of $ 17.1 million for the three months then ended and expects to incur additional losses in the future. If the Company’s revenue levels from its products are not sufficient or if the Company is unable to secure additional funding when desired, the Company may need to delay the development of its products, scale back its business and operations, or change its business strategy. The Company believes that its existing sources of liquidity will satisfy its working capital and capital requirements for at least 12 months from the issuance of its financial statements. Any failure to generate increased revenues, achieve improved gross margins, or control operating costs could require the Company to raise additional capital through equity or debt financing. Such additional financing may not be available on acceptable terms, or at all, and could require the Company to modify, delay, or abandon some of its planned future expansion or expenditures or reduce some of its ongoing operating costs, which could harm its business, operating results, financial condition, and ability to achieve its intended business objectives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies There have been no significant changes in the Company's significant accounting policies during the three months ended March 31, 2023, as compared with those disclosed in the 2022 Form 10-K for the year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (SEC) on March 16, 2023. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) applicable to interim periods and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements have been prepared on a basis consistent with the audited financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's financial information contained herein. The condensed consolidated balance sheets as of December 31, 2022 has been derived from the audited financial statements at that date. These interim condensed consolidated financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company's financial statements and accompanying notes for the fiscal year ended December 31, 2022, which are contained in the Company's 2022 Form 10-K filed with the SEC on March 16, 2023. The Company's results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates related to the provision for doubtful accounts, inventory excess and obsolescence, the selection of useful lives of property and equipment, determination of the fair value of stock option grants, and provisions for income taxes and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements. Actual results could differ from these estimates and such differences could be material to the Company’s financial position and results of operations. New Accounting Pronouncements Accounting Standards Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The guidance was effective for the Company beginning in the first quarter of 2023. The amendments in ASU 2016-13 were adopted with no material impact on the Company's consolidated financial statements. Accounting Standards Net Yet Adopted As of March 31, 2023, there are no significant ASU's issued and not yet adopted, that are expected to have a material impact on the Company's financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements The Company reports all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3—Inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety is based on the lowest-level input that is significant to the fair value measurement in its entirety. The Company's cash and cash equivalents included $ 157.3 million of treasury bills as of March 31, 2023. These securities are classified as held-to-maturity and all have been purchased with original maturities of 90 days or less. Held-to-maturity debt securities are recorded at amortized cost in the financial statements. March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 157,297 $ 58 $ — $ 157,355 The Company measures the fair value of outstanding debt for disclosure purposes on a recurring basis. As of March 31, 2023 and December 31, 2022, total debt of $ 33.5 million and $ 33.3 million is reported at amortized cost, respectively. This outstanding debt is classified as Level 2 as it is not actively traded. The amortized cost of the outstanding debt approximates the fair value. The financial statements as of March 31, 2023 and December 31, 2022, do not include any assets or liabilities that are measured at fair value on a nonrecurring basis. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Note 4. Balance Sheet Components Property and Equipment, Net Property and equipment, net consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Tools and equipment $ 2,085 $ 2,173 Computer equipment and software 37 37 Furniture and fixtures 183 282 Leasehold improvements 38 38 Construction in process 429 475 2,772 3,005 Less: Accumulated depreciation ( 1,379 ) ( 1,434 ) Property and equipment, net $ 1,393 $ 1,571 Depreciation expense was $ 0.1 million and $ 0.2 million for the three months ended March 31, 2023 and 2022, respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Accrued expenses $ 4,361 $ 5,307 Current portion of lease liabilities 1,069 1,033 Short term interest payable 364 348 Other accrued liabilities 892 1,087 Total accrued and other current liabilities $ 6,686 $ 7,775 Other Noncurrent Liabilities Other noncurrent liabilities consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Long term interest payable $ 1,272 $ 1,194 Noncurrent portion of lease liabilities 353 635 Other noncurrent liabilities 38 38 Total other noncurrent liabilities $ 1,663 $ 1,867 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5. Debt The Company currently has two credit and security agreements with MidCap Financial Services (the "Lender"), which provide for a maximum $ 40.0 million credit facility, consisting of a $ 35.0 million senior secured term loan (the "Term Loan") and a $ 5.0 million revolving loan (the "Revolver" and collectively with the Term Loan, the “MidCap Credit Facility”). The obligations under the MidCap Credit Facility are guaranteed by the Company's current and future subsidiaries, subject to exceptions for certain foreign subsidiaries. Obligations under the agreements are secured by substantially all assets of the Company, including material intellectual property. Additionally, the Company is subject to customary affirmative and negative covenants as defined in the credit agreements, including covenants that limit or restrict the ability to, among other things, incur indebtedness, grant liens, merge or consolidate, make investments, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock and enter into certain transactions with affiliates, in each case subject to certain exceptions. As of March 31, 2023, the Company was in compliance with all financial and non-financial covenants. The MidCap Credit Facility agreements each contain events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross-defaults and bankruptcy and insolvency events. As of March 31, 2023 and December 31, 2022, $ 5.0 million was available to be drawn under the Revolver, respectively. The Revolver had not been drawn upon as of March 31, 2023 and December 31, 2022. Long-term and short-term debt was as follows (in thousands): As of March 31, As of December 31, 2023 2022 Term Loan $ 35,000 $ 35,000 Total principal payments due 35,000 35,000 Less: debt discount related to warrant liability and issuance costs ( 1,543 ) ( 1,687 ) Total amounts outstanding 33,457 33,313 Less: Current portion — — Total accrued and other current liabilities $ 33,457 $ 33,313 The repayment schedule relating to the Company’s debt as of March 31, 2023, is as follows (in thousands): Amount 2023 (remainder) — 2024 2,917 2025 32,083 Thereafter — Total repayments $ 35,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Operating Lease Obligations The Company’s leases include facility leases and storage leases. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. The Company estimates its incremental borrowing rate based on qualitative factors including company specific credit offers, lease term, general economics, and the interest rate environment. In determining the lease term, the Company includes all renewal options that are reasonably probable to be executed. During the first quarter of 2021, the Company renewed its lease on its corporate headquarters in Menlo Park, California. The lease commenced in early August 2021 and is for a term of 37 months from the commencement date. The Company recorded an aggregate right-of-use ("ROU") asset and lease liability of $ 1.5 million. The ROU asset and corresponding lease liability were estimated using a weighted-average incremental borrowing rate of 13.59 %. Total base rent is approximately $ 1.6 million under the lease agreement. During the fourth quarter of 2022, the Company entered into a supply agreement that is expected to last approximately 18 months. The supply agreement contained provisions that, when evaluated, indicated an embedded lease was present within the agreement. The agreement commenced in early December 2022 and the Company recorded an aggregate ROU asset and lease liability of $ 0.7 million. The ROU asset and corresponding lease liability were estimated using a weighted-average incremental borrowing rate of 10.75 %. Total base rent under the agreement is approximately $ 0.7 million. The Company recognizes rent expense on a straight-line basis over the noncancelable lease term. The Company’s rent expense was $ 0.3 million and $ 0.2 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the weighted average remaining lease term for the leases was 1.3 years. Operating lease expense and supplemental cash flow information related to operating leases for the three months ended March 31, 2023 and 2022 were as follows (in thousands): Three Months Ended 2023 2022 Operating lease expense $ 293 $ 173 Cash paid for operating leases 297 170 Aggregate future minimum lease payments at March 31, 2023, under these noncancelable operating leases were as follows (in thousands): As of March 31, 2023 2023 (remainder) 887 2024 662 Total future minimum lease payments $ 1,549 Less: imputed interest ( 127 ) Present value of future minimum lease payments $ 1,422 Less: current portion of operating lease liability ( 1,069 ) Operating lease liabilities – noncurrent $ 353 Legal Proceedings On September 16, 2021, the Company filed suit in the U.S. District Court for the District of Delaware (C.A. No. 1:21-cv-01317) alleging that Ivantis, Inc. ("Ivantis") directly and indirectly infringes U.S. Patent Nos. 8,287,482, 9,370,443, 9,486,361, and 10,314,742 by making, using, selling, and offering for sale the Hydrus® Microstent. The Company’s Complaint seeks money damages and injunctive relief. On January 24, 2022, Ivantis asserted counterclaims requesting declaratory judgments that the Company's asserted patents-in-suit are not infringed and/or invalid. On August 1, 2022, the Company filed an amended complaint alleging that Alcon Inc., Alcon Vision, LLC and Alcon Research, LLC (collectively, "Alcon") infringe the four originally asserted patents by making, using, selling, and offering for sale the Hydrus® Microstent, and that all defendants also infringe U.S. Patent No. 11,389,328. The defendants reasserted counterclaims requesting declaratory judgments that the Company’s asserted patents-in-suit are not infringed and/or invalid. A five-day jury trial is scheduled to commence on April 8, 2024. Ivantis and Alcon filed petitions with the U.S. Patent Office seeking inter partes review of U.S. Patent Nos. 8,287,482, 9,370,443, 9,486,361, and 10,314,742 (IPR2022-01529, IPR2022-01530, IPR2022-01533, IPR2022-01540), each of which the U.S. Patent Office denied for raising prior art reference and invalidity arguments that were cumulative of those previously considered by the Office. The Company is presently unable to predict the outcome of this lawsuit or to reasonably estimate the potential financial impact of the lawsuit on the Company, if any. The Company is subject to claims and assessments from time to time in the ordinary course of business. Accruals for litigation and contingencies are reflected in the financial statements based on management’s assessment, including the advice of legal counsel, of the expected outcome of litigation or other dispute resolution proceedings, and/or the expected resolution of contingencies. Liabilities for estimated losses are accrued if the potential losses from any claims or legal proceedings are considered probable and the amounts can be reasonably estimated. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount can be reasonably estimated. Accruals are based only on information available at the time of the assessment due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s results of operations in a given period. As of March 31, 2023 the Company does not believe it was a party to any legal proceedings or claims which, if determined adversely, would, individually or taken together, have a material adverse effect on its business, financial condition, operating results, liquidity or future prospects. However, regardless of the merits of the claims raised or the outcome, legal proceedings and claims may have an adverse impact on the Company as a result of defense and settlement costs, diversion of management time and resources, and other factors. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company indemnifies each of its directors and officers (each an "Indemnitee") for certain events or occurrences, subject to certain limits, while the director is or was serving at the Company’s request in such capacity, as permitted under Delaware law and in accordance with its certificate of incorporation and bylaws. The term of the indemnification period lasts as long as an indemnitee may be subject to any proceeding arising out of acts or omissions of such indemnitee in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds director and officer liability insurance. This insurance allows the transfer of risk associated with the Company’s exposure and may enable it to recover a portion of any future amounts paid. The Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations as of March 31, 2023 or December 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7. Stockholders' Equity Common Stock In connection with the IPO, the Company’s certificate of incorporation was amended and restated to provide for 200,000,000 authorized shares of common stock with a par value of $ 0.001 per share and 10,000,000 authorized shares of preferred stock with a par value of $ 0.001 per share. The holders of common stock are entitled to receive dividends whenever funds are legally available, when and if declared by the board of directors. As of March 31, 2023, no dividends have been declared to date. Each share of common stock is entitled to one vote. At March 31, 2023 and December 31, 2022, the Company had reserved common stock for future issuances as follows: March 31, December 31, 2023 2022 Common stock options issued and outstanding 5,095,956 4,819,906 Common stock available for future grant 7,258,472 6,099,584 Restricted stock units outstanding 1,840,324 1,014,123 Shares available for future purchase under ESPP 1,709,104 1,226,123 Total 15,903,856 13,159,736 |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Note 8. Equity Incentive Plans 2011 Stock Option Plan and 2021 Incentive Award Plan In 2011, the Company established its 2011 Stock Option Plan (the “2011 Plan”) that provided for the granting of stock options to employees and nonemployees of the Company. In July 2021, the board of directors and stockholders adopted and approved the 2021 Incentive Award Plan, (the “2021 Plan”). Under the 2021 Plan, the Company has the ability to issue incentive stock options ("ISOs"), nonqualified stock options ("NSOs"), stock appreciation rights, dividend equivalent rights, restricted stock awards, and restricted stock unit awards. Options under the 2021 Plan can typically be granted for periods of up to 10 years. For stock options granted to a grantee who, at the time the option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company (or any parent or subsidiary of the Company), the term of the stock option may be granted for periods of up to five years. The ISOs and NSOs will be granted at a price per share not less than the fair value at the date of grant. The exercise price of a stock option granted to a 10% stockholder shall not be less than 110% of the grant date fair value of the shares. Options granted to new hires generally vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date and the remaining shares vesting in 36 equal monthly installments thereafter; options granted as merit awards generally vest in 48 equal monthly installments following the grant date. The Company initially reserved 5,200,000 shares of common stock for future issuance under the 2021 Plan. Pursuant to the evergreen provision in the 2021 Plan, this initial reserve was increased by 2,414,907 and 2,375,235 shares on January 1, 2023 and 2022, respectively. These a nnual increases under the evergreen provision are equal to the lesser of (i) 5% of the aggregate number of shares of Common Stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of Common Stock as determined by the Board, subject to certain limitations. The 2011 Plan was superseded by the 2021 Plan at the time of the IPO and no further grants have been made under the 2011 Plan from the date the 2021 Plan became effective. The terms under the 2011 Plan are consistent with those described above for the 2021 Plan. At March 31, 2023 and December 31, 2022 there were 7,258,472 and 6,099,584 shares, respectively, of common stock available for issuance under the 2021 Plan. Stock Option Awards The following table summarizes stock option activity under the 2021 Plan during the periods presented: Number of Weighted-Average Exercise Price Weighted-Average Average Intrinsic Value Balances as of December 31, 2022 4,819,906 $ 9.67 7.7 $ 19,463 Grants 633,700 9.78 Forfeited/cancelled ( 309,914 ) 12.71 Exercised/released ( 47,736 ) 1.07 Balances as of March 31, 2023 5,095,956 $ 9.60 7.5 $ 10,891 Vested and exercisable as of March 31, 2023 2,508,970 $ 7.32 6.2 $ 9,076 Vested and expected to vest as of March 31, 2023 5,095,956 $ 9.60 7.5 $ 10,891 During the three months ended March 31, 2023 and 2022, the Company recorded stock-based compensation expense of $ 2.2 million and $ 2.5 million related to stock option awards, respectively. The weighted-average grant-date fair values of options granted during the three months ended March 31, 2023 and 2022 was $ 6.91 and $ 9.76 per share, respectively. The aggregate intrinsic value of options exercised was $ 0.6 million during the three months ended March 31, 2023. The aggregate intrinsic value was calculated as the difference between the exercise prices of the underlying options and the estimated fair value of the common stock on the date of exercise. As of March 31, 2023, the unrecognized stock-based compensation expense relating to unvested opti ons was $ 22.0 million, which is expected to be recognized over a weighted-average period of 2.4 years. Determination of Fair Value The Company estimated the grant date fair value of stock options using the Black-Scholes option-pricing model. The fair value of stock options is recognized on a straight-line basis over the requisite service periods of the awards. The fair value of stock options was estimated using the following weighted-average assumptions: Three Months Ended 2023 2022 Expected term (in years) 5.60 – 6.02 5.38 – 6.94 Expected volatility 79.73 % 58.75 % – 60.12 % Risk-free interest rate 3.66 % – 3.67 % 1.34 % – 2.40 % Dividend yield – – Expected Term The expected term is calculated using the simplified method, which is available if there is insufficient historical data about exercise patterns and post vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date is used as the expected term under this method. For awards with multiple vesting tranches, the time from grant until the midpoints for each of the tranches may be averaged to provide an overall expected term. Expected Volatility The Company used an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility, as the Company did not have any trading history for its common stock. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size, and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. Risk-Free Interest Rate The risk-free interest rate is based on the implied yield currently available on US Treasury zero-coupon issues with remaining terms equivalent to the expected term of a stock award. Expected Dividend Rate The Company has not paid, and does not anticipate paying, any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be 0 %. Restricted Stock Units RSUs are share awards that entitle the holder to receive freely tradeable shares of the Company’s common stock upon vesting. The RSUs cannot be transferred, and the awards are subject to forfeiture if the holder’s employment terminates prior to the release of the vesting restrictions. The RSUs generally vest over a four-year period with straight-line vesting in equal amounts on an annual basis, provided the employee remains continuously employed with the Company. The fair value of the RSUs is equal to the closing price of the Company’s common stock on the grant date. The following table summarizes restricted share award activity under the 2021 Plan: Number of Weighted-Average Grant Date Fair Value Per Share Outstanding, December 31, 2022 1,014,123 $ 14.25 Grants 984,600 9.78 Forfeited/cancelled ( 52,367 ) 15.47 Vested ( 106,032 ) 17.07 Outstanding, March 31, 2023 1,840,324 $ 11.66 During three months ended March 31, 2023 and 2022, the Company recorded stock-based compensation expense of $ 1.1 million and $ 0.5 million related to the RSUs. As of March 31, 2023, there was $ 19.7 million of total unrecognized stock-based compensation expense relating to the RSUs that is expected to be recognized over a weighted-average period of 3.4 years. Employee Stock Purchase Plan I n July 2021, the board of directors and stockholders adopted and approved the 2021 Employee Stock Purchase Plan (the “ESPP”). The Company initially reserved 850,000 shares of common stock for future issuance under the ESPP. Pursuant to the evergreen provision under the ESPP, t his initial reserve was increased by 482,981 and 475,047 shares on January 1, 2023 and 2022, respectively. These annual increases pursuant to the evergreen provision are equal to the lesser of (i) 1% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Board, subject to certain limitations. The Company's first six-month offering period under the ESPP began during the second quarter of 2022. The Company has two offering periods annually, running for six-months, with the first offering period beginning in the second quarter, and the second offering period beginning in the fourth quarter. The purchase of shares for participants in the ESPP occurs at the conclusion of each offering period. As of March 31, 2023, the Company has collected payroll withholdings of $ 0.5 million in the current offering period for the purchase of shares under the ESPP. The Company recorded $ 0.2 million of stock-based compensation expense associated with the ESPP for the quarter ended March 31, 2023. There was no stock-based compensation expense associated with the ESPP for the three months ended March 31, 2022. As of March 31, 2023, there were 1,709,104 shares of common stock available for issuance under the ESPP. The fair value of shares to be issued under the Company's 2021 ESPP was estimated using the Black-Scholes valuation model with the following assumptions for the three months ended March 31, 2023: Three Months Ended 2023 Expected term (in years) 0.48 Expected volatility 97.38 % Risk-free interest rate 4.62 % Dividend yield – Stock Based Compensation The following is a summary of stock-based compensation expense by function (in thousands): Three Months Ended 2023 2022 Cost of goods sold $ 59 $ 36 Research and development 529 343 Selling, general and administrative 2,935 2,595 Total stock-based compensation expense $ 3,523 $ 2,974 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Note 9. Net Loss per Share Attributable to Common Stockholders Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. As the Company reported a net loss for the three months ended March 31, 2023 and 2022, respectively, basic net loss per share is the same as diluted net loss per share for each of the reported periods. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended 2023 2022 Numerator: Net loss attributable to common stockholders $ ( 17,067 ) $ ( 23,263 ) Denominator: Weighted-average shares of common stock 48,405,271 47,569,499 Net loss per share attributable to common $ ( 0.35 ) $ ( 0.49 ) The following potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive as a result of the net loss position: March 31, 2023 2022 Stock option awards 5,095,956 5,944,899 Restricted stock units 1,840,324 656,573 Total 6,936,280 6,601,472 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10. Segment Information The Company has two reportable operating segments which are determined on the basis of the product portfolio: Surgical Glaucoma and Dry Eye. The operating and reportable segments were determined based on how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), views and evaluates the Company’s operations. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on gross profit and gross profit margin. Surgical Glaucoma segment includes sales of the Company’s OMNI® Surgical System ("OMNI") and SION TM Surgical Instrument ("SION") for use in minimally invasive glaucoma procedures. Dry Eye segment includes sales of the Company’s TearCare® System ("TearCare") and related components and accessories for use in the treatment of Dry Eye Disease. The following table summarizes select operating results information for each reportable segment (in thousands): Three Months Ended 2023 2022 Revenue Surgical Glaucoma $ 17,334 $ 13,870 Dry Eye 1,490 1,011 Total 18,824 14,881 Cost of goods sold Surgical Glaucoma 2,362 1,491 Dry Eye 686 1,542 Total 3,048 3,033 Gross profit Surgical Glaucoma 14,972 12,379 Dry Eye 804 ( 531 ) Total 15,776 11,848 Operating expense 33,344 34,041 Loss from operations ( 17,568 ) ( 22,193 ) Interest expense ( 1,276 ) ( 1,046 ) Other income (expense), net 1,791 ( 15 ) Loss before income tax $ ( 17,053 ) $ ( 23,254 ) The Company does not allocate any components of income and expenses beyond revenue and cost of goods sold to the reportable operating segments in its reporting to the CODM. No asset information is provided for reportable operating segments because that information is not reviewed by the CODM on a segment basis. Substantially all of the Company’s revenue is generated from sales in the United States. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events The Company evaluated subsequent events through May 8, 2023, the date on which the condensed consolidated financial statements were available for issuance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) applicable to interim periods and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements have been prepared on a basis consistent with the audited financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's financial information contained herein. The condensed consolidated balance sheets as of December 31, 2022 has been derived from the audited financial statements at that date. These interim condensed consolidated financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company's financial statements and accompanying notes for the fiscal year ended December 31, 2022, which are contained in the Company's 2022 Form 10-K filed with the SEC on March 16, 2023. The Company's results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates related to the provision for doubtful accounts, inventory excess and obsolescence, the selection of useful lives of property and equipment, determination of the fair value of stock option grants, and provisions for income taxes and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements. Actual results could differ from these estimates and such differences could be material to the Company’s financial position and results of operations. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Accounting Standards Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The guidance was effective for the Company beginning in the first quarter of 2023. The amendments in ASU 2016-13 were adopted with no material impact on the Company's consolidated financial statements. Accounting Standards Net Yet Adopted As of March 31, 2023, there are no significant ASU's issued and not yet adopted, that are expected to have a material impact on the Company's financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Held-to-maturity debt securities at amortized cost in the financial statements. | These securities are classified as held-to-maturity and all have been purchased with original maturities of 90 days or less. Held-to-maturity debt securities are recorded at amortized cost in the financial statements. March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 157,297 $ 58 $ — $ 157,355 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Tools and equipment $ 2,085 $ 2,173 Computer equipment and software 37 37 Furniture and fixtures 183 282 Leasehold improvements 38 38 Construction in process 429 475 2,772 3,005 Less: Accumulated depreciation ( 1,379 ) ( 1,434 ) Property and equipment, net $ 1,393 $ 1,571 |
Summary of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Accrued expenses $ 4,361 $ 5,307 Current portion of lease liabilities 1,069 1,033 Short term interest payable 364 348 Other accrued liabilities 892 1,087 Total accrued and other current liabilities $ 6,686 $ 7,775 |
Summary of Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following (in thousands): As of March 31, As of December 31, 2023 2022 Long term interest payable $ 1,272 $ 1,194 Noncurrent portion of lease liabilities 353 635 Other noncurrent liabilities 38 38 Total other noncurrent liabilities $ 1,663 $ 1,867 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term and Short-term Debt | Long-term and short-term debt was as follows (in thousands): As of March 31, As of December 31, 2023 2022 Term Loan $ 35,000 $ 35,000 Total principal payments due 35,000 35,000 Less: debt discount related to warrant liability and issuance costs ( 1,543 ) ( 1,687 ) Total amounts outstanding 33,457 33,313 Less: Current portion — — Total accrued and other current liabilities $ 33,457 $ 33,313 |
Repayment Schedule Relating to the Company's Debt | The repayment schedule relating to the Company’s debt as of March 31, 2023, is as follows (in thousands): Amount 2023 (remainder) — 2024 2,917 2025 32,083 Thereafter — Total repayments $ 35,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Expense Recognized and Supplemental Cash Flow | Operating lease expense and supplemental cash flow information related to operating leases for the three months ended March 31, 2023 and 2022 were as follows (in thousands): Three Months Ended 2023 2022 Operating lease expense $ 293 $ 173 Cash paid for operating leases 297 170 |
Schedule of Aggregate Future Minimum Lease Payments | Aggregate future minimum lease payments at March 31, 2023, under these noncancelable operating leases were as follows (in thousands): As of March 31, 2023 2023 (remainder) 887 2024 662 Total future minimum lease payments $ 1,549 Less: imputed interest ( 127 ) Present value of future minimum lease payments $ 1,422 Less: current portion of operating lease liability ( 1,069 ) Operating lease liabilities – noncurrent $ 353 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Reserved Common Stock for Future Issuances | At March 31, 2023 and December 31, 2022, the Company had reserved common stock for future issuances as follows: March 31, December 31, 2023 2022 Common stock options issued and outstanding 5,095,956 4,819,906 Common stock available for future grant 7,258,472 6,099,584 Restricted stock units outstanding 1,840,324 1,014,123 Shares available for future purchase under ESPP 1,709,104 1,226,123 Total 15,903,856 13,159,736 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Option Activity | The following table summarizes stock option activity under the 2021 Plan during the periods presented: Number of Weighted-Average Exercise Price Weighted-Average Average Intrinsic Value Balances as of December 31, 2022 4,819,906 $ 9.67 7.7 $ 19,463 Grants 633,700 9.78 Forfeited/cancelled ( 309,914 ) 12.71 Exercised/released ( 47,736 ) 1.07 Balances as of March 31, 2023 5,095,956 $ 9.60 7.5 $ 10,891 Vested and exercisable as of March 31, 2023 2,508,970 $ 7.32 6.2 $ 9,076 Vested and expected to vest as of March 31, 2023 5,095,956 $ 9.60 7.5 $ 10,891 |
Summary of Weighted Average Valuation Assumptions Used to Estimate Fair Value of Employee Stock Options | The fair value of stock options was estimated using the following weighted-average assumptions: Three Months Ended 2023 2022 Expected term (in years) 5.60 – 6.02 5.38 – 6.94 Expected volatility 79.73 % 58.75 % – 60.12 % Risk-free interest rate 3.66 % – 3.67 % 1.34 % – 2.40 % Dividend yield – – |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes restricted share award activity under the 2021 Plan: Number of Weighted-Average Grant Date Fair Value Per Share Outstanding, December 31, 2022 1,014,123 $ 14.25 Grants 984,600 9.78 Forfeited/cancelled ( 52,367 ) 15.47 Vested ( 106,032 ) 17.07 Outstanding, March 31, 2023 1,840,324 $ 11.66 |
Summary of Stock-Based Compensation Expense by Function | The following is a summary of stock-based compensation expense by function (in thousands): Three Months Ended 2023 2022 Cost of goods sold $ 59 $ 36 Research and development 529 343 Selling, general and administrative 2,935 2,595 Total stock-based compensation expense $ 3,523 $ 2,974 |
2021 Employee Stock Purchase Plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Weighted Average Valuation Assumptions Used to Estimate Fair Value of Employee Stock Options | The fair value of shares to be issued under the Company's 2021 ESPP was estimated using the Black-Scholes valuation model with the following assumptions for the three months ended March 31, 2023: Three Months Ended 2023 Expected term (in years) 0.48 Expected volatility 97.38 % Risk-free interest rate 4.62 % Dividend yield – |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended 2023 2022 Numerator: Net loss attributable to common stockholders $ ( 17,067 ) $ ( 23,263 ) Denominator: Weighted-average shares of common stock 48,405,271 47,569,499 Net loss per share attributable to common $ ( 0.35 ) $ ( 0.49 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive as a result of the net loss position: March 31, 2023 2022 Stock option awards 5,095,956 5,944,899 Restricted stock units 1,840,324 656,573 Total 6,936,280 6,601,472 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table summarizes select operating results information for each reportable segment (in thousands): Three Months Ended 2023 2022 Revenue Surgical Glaucoma $ 17,334 $ 13,870 Dry Eye 1,490 1,011 Total 18,824 14,881 Cost of goods sold Surgical Glaucoma 2,362 1,491 Dry Eye 686 1,542 Total 3,048 3,033 Gross profit Surgical Glaucoma 14,972 12,379 Dry Eye 804 ( 531 ) Total 15,776 11,848 Operating expense 33,344 34,041 Loss from operations ( 17,568 ) ( 22,193 ) Interest expense ( 1,276 ) ( 1,046 ) Other income (expense), net 1,791 ( 15 ) Loss before income tax $ ( 17,053 ) $ ( 23,254 ) |
Company and Nature of Business
Company and Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||
Accumulated deficit | $ (256,310) | $ (239,243) | |
Net loss | $ (17,067) | $ (23,263) | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock par value | $ 0.001 | $ 0.001 | |
IPO | |||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||
Common stock, shares authorized | 200,000,000 | ||
Common stock, par value | $ 0.001 | ||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock par value | $ 0.001 |
Fair value Measurement - Additi
Fair value Measurement - Additional Information (Details) - Fair Value, Recurring - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Treasury bills | $ 157.3 | |
Fair Value, Inputs, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Amount | $ 33.5 | $ 33.3 |
Fair Value Measurements - Held-
Fair Value Measurements - Held-to-maturity debt securities at amortized cost (Details) - US Treasury Securities [Member] $ in Thousands | Mar. 31, 2023 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Amortized Cost | $ 157,297 |
Unrealized Gains | 58 |
Unrealized Losses | 0 |
Aggregate Fair Value | $ 157,355 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,772 | $ 3,005 |
Less: Accumulated depreciation | (1,379) | (1,434) |
Property and equipment, net | 1,393 | 1,571 |
Tools and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,085 | 2,173 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 37 | 37 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 183 | 282 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 38 | 38 |
Construction In Process | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 429 | $ 475 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation | $ 146 | $ 179 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued expenses | $ 4,361 | $ 5,307 |
Current portion of lease liabilities | 1,069 | 1,033 |
Short term interest payable | 364 | 348 |
Other accrued liabilities | 892 | 1,087 |
Total accrued and other current liabilities | 6,686 | 7,777 |
Total accrued and other current liabilities | $ 6,686 | $ 7,775 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long term interest payable | $ 1,272 | $ 1,194 |
Noncurrent portion of lease liabilities | 353 | 635 |
Other noncurrent liabilities | 38 | 38 |
Total other noncurrent liabilities | $ 1,663 | $ 1,867 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 35,000 | |
Revolving 2020 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, current borrowing capacity | 5,000 | $ 5,000 |
Mid Cap Financial Services | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 40,000 | |
Mid Cap Financial Services | Senior Secured 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 35,000 | |
Mid Cap Financial Services | Revolver 2019 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 5,000 |
Debt - Schedule of Long-term an
Debt - Schedule of Long-term and Short-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal payments due | $ 35,000 | $ 35,000 |
Less: debt discount related to warrant liability and issuance costs | (1,543) | (1,687) |
Total amounts outstanding | 33,457 | 33,313 |
Less: Current portion | 0 | 0 |
Total accrued and other current liabilities | 33,457 | 33,313 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Principal payments due | $ 35,000 | $ 35,000 |
Debt - Schedule Relating to the
Debt - Schedule Relating to the Company's Debt (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 (remainder) | $ 0 |
2024 | 2,917 |
2025 | 32,083 |
Thereafter | 0 |
Long-term Debt, Total | $ 35,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 05, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Supply Commitment [Line Items] | ||||
Operating lease right-of-use assets | $ 1,372 | $ 1,614 | ||
Remaining lease term | 1 year 3 months 18 days | |||
Operating leases, rent expense | $ 293 | $ 173 | ||
Supply agreement [Member] | ||||
Supply Commitment [Line Items] | ||||
Operating lease right-of-use assets | $ 700 | |||
Lease, borrowing rate | 10.75% | |||
Operating lease term | 18 months | |||
Total base rent under lease agreement | $ 700 | |||
California [Member] | ||||
Supply Commitment [Line Items] | ||||
Lease commencement date | Aug. 01, 2021 | |||
Operating lease right-of-use assets | $ 1,500 | |||
Lease, borrowing rate | 13.59% | |||
Operating lease term | 37 months | |||
Total base rent under lease agreement | $ 1,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Operating Lease Expense Recognized and Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease expense | $ 293 | $ 173 |
Cash paid for operating leases | $ 297 | $ 170 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Aggregate Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 887 | |
2024 | 662 | |
Total future minimum lease payments | 1,549 | |
Less: imputed interest | (127) | |
Present value of future minimum lease payments | 1,422 | |
Less: current portion of operating lease liability | (1,069) | $ (1,033) |
Operating lease liabilities - noncurrent | $ 353 | $ 635 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) Vote $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock par value | $ / shares | $ 0.001 | $ 0.001 |
Dividends declared | $ | $ 0 | |
Number of votes entitled per share of common stock | Vote | 1 | |
Common stock, shares issued | 48,450,378 | 48,298,138 |
IPO | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, shares authorized | 200,000,000 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par value | $ / shares | $ 0.001 | |
Preferred stock par value | $ / shares | $ 0.001 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Reserved Common Stock for Future Issuances (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 15,903,856 | 13,159,736 |
Common stock options issued and outstanding | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 5,095,956 | 4,819,906 |
Common stock available for future grant | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 7,258,472 | 6,099,584 |
Restricted stock units outstanding | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 1,840,324 | 1,014,123 |
Shares available for future purchase under ESPP | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 1,709,104 | 1,226,123 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jul. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average grant-date fair values of options granted | $ 6.91 | $ 9.76 | ||||
Aggregate intrinsic value of options exercised | $ 600 | |||||
Unrecognized stock-based compensation of unvested options | $ 22,000 | |||||
Weighted-average period expected to recognize | 2 years 4 months 24 days | |||||
Dividend yield | 0% | |||||
Common stock reserved for future issuance | 15,903,856 | 13,159,736 | ||||
Description of Transaction of Future issuance | nnual increases under the evergreen provision are equal to the lesser of (i) 5% of the aggregate number of shares of Common Stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of Common Stock as determined by the Board, subject to certain limitations. | |||||
Number of Shares, Granted | 633,700 | |||||
Weighted-Average Exercise Price, Granted | $ 9.78 | |||||
Stock based compensation | $ 2,200 | $ 2,500 | ||||
Share of common stock purchased | $ 3,523 | 2,974 | ||||
Restricted Stock Units RSU | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | |||||
Unrecognized stock-based compensation of unvested options | $ 19,700 | |||||
Weighted-average period expected to recognize | 3 years 4 months 24 days | |||||
Stock based compensation | $ 1,100 | $ 500 | ||||
2021 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock available for issuance | 7,258,472 | 6,099,584 | ||||
Common stock reserved for future issuance | 5,200,000 | 2,414,907 | 2,375,235 | |||
2021 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Collected withholdings under plan | $ 500 | |||||
Common stock reserved for future issuance | 1,709,104 | 482,981 | 475,047 | 850,000 | ||
Stock based compensation | $ 200 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Company Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares | 4,819,906 | ||
Number of Shares, Granted | 633,700 | ||
Forfeited/cancelled | (309,914) | ||
Number of Shares, Exercised/released | (47,736) | ||
Number of Shares | 5,095,956 | 4,819,906 | |
Number of Shares Vested and exercisable as of March 31, 2023 | 2,508,970 | ||
Number of Shares, Vested and expected to vest as of March 31, 2022 | 5,095,956 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-Average Exercise Price | $ 9.67 | ||
Weighted-Average Exercise Price, Granted | 9.78 | ||
Weighted-Average Exercise Price, Forfeited/cancelled | 12.71 | ||
Weighted-Average Exercise Price, Exercised/released | 1.07 | ||
Weighted-Average Exercise Price | 9.60 | $ 9.67 | |
Vested and exercisable as of March 31, 2023 | $ 7.32 | ||
Vested and expected to vest as of March 31, 2022 | $ 9.60 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term | 7 years 6 months | 7 years 8 months 12 days | |
Weighted average contractual term, vested and exercisable | 6 years 2 months 12 days | ||
Weighted average contractual term, vested and expected | 7 years 6 months | ||
Average Intrinsic Value | $ 10,891 | $ 19,463 | |
Average Intrinsic Value, Vested and exercisable as of March 31, 2023 | $ 9,076 | ||
Average Intrinsic Value, Vested and expected as of March 31, 2022 | $ 10,891 |
Equity Incentive Plans - Summ_2
Equity Incentive Plans - Summary of Stock Based Compensation Fair Value Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Dividend yield | 0% | |
2021 Employee Stock Purchase Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term (in years) | 5 months 23 days | |
Expected volatility | 97.38% | |
Risk-free interest rate | 4.62% | |
Maximum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 7 days | 6 years 11 months 8 days |
Expected volatility | 60.12% | |
Risk-free interest rate | 3.67% | 2.40% |
Minimum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 7 months 6 days | 5 years 4 months 17 days |
Expected volatility | 79.73% | 58.75% |
Risk-free interest rate | 3.66% | 1.34% |
Equity Incentive Plans - Summ_3
Equity Incentive Plans - Summary of Share-Based Compensation Expense By Function (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 3,523 | $ 2,974 |
Cost of Goods Sold | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 59 | 36 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 529 | 343 |
Selling, General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,935 | $ 2,595 |
Equity Incentive Plans - summ_4
Equity Incentive Plans - summarizes restricted share award activity under the 2021 Plan (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Forfeited/cancelled | shares | (309,914) |
Weighted-Average Exercise Price, Forfeited/cancelled | $ / shares | $ 12.71 |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | shares | 1,014,123 |
Grant | shares | 984,600 |
Forfeited/cancelled | shares | (52,367) |
Vested | shares | 106,032 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | shares | 1,840,324 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 14.25 |
Weighted average, Grant | $ / shares | 9.78 |
Weighted-Average Exercise Price, Forfeited/cancelled | $ / shares | 15.47 |
Weighted average, Vested | $ / shares | 17.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 11.66 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (17,067) | $ (23,263) |
Denominator: | ||
Weighted-average shares of common stock outstanding-basic | 48,405,271 | 47,569,499 |
Weighted-average shares of common stock outstanding-diluted | 48,405,271 | 47,569,499 |
Net loss per share attributable to common stockholders-basic | $ (0.35) | $ (0.49) |
Net loss per share attributable to common stockholders-diluted | $ (0.35) | $ (0.49) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Redeemable convertible preferred stock | 6,936,280 | 6,601,472 |
Stock option awards | ||
Redeemable convertible preferred stock | 5,095,956 | 5,944,899 |
Restricted Stock Units | ||
Redeemable convertible preferred stock | 1,840,324 | 656,573 |
Segment Information - Summary o
Segment Information - Summary of Operating Result Information for Each Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | ||
Revenue | $ 18,824 | $ 14,881 |
Cost of goods sold | ||
Cost of goods sold | 3,048 | 3,033 |
Gross profit | ||
Gross profit | 15,776 | 11,848 |
Operating expense | 33,344 | 34,041 |
Loss from operations | (17,568) | (22,193) |
Interest expense | (1,276) | (1,046) |
Other (expense) income, net | 1,791 | (15) |
Loss before income tax | (17,053) | (23,254) |
Surgical Glaucoma | ||
Revenue | ||
Revenue | 17,334 | 13,870 |
Cost of goods sold | ||
Cost of goods sold | 2,362 | 1,491 |
Gross profit | ||
Gross profit | 14,972 | 12,379 |
Dry Eye | ||
Revenue | ||
Revenue | 1,490 | 1,011 |
Cost of goods sold | ||
Cost of goods sold | 686 | 1,542 |
Gross profit | ||
Gross profit | $ 804 | $ (531) |