Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Societal CDMO, Inc. | |
Entity Central Index Key | 0001588972 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,922,711 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Trading Symbol | SCTL | |
Entity File Number | 001-36329 | |
Entity Tax Identification Number | 26-1523233 | |
Entity Address, Address Line One | 1 E. Uwchlan Ave, Suite 112 | |
Entity Address, City or Town | Exton | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19341 | |
City Area Code | 770 | |
Local Phone Number | 534-8239 | |
Entity Incorporation, State or Country Code | PA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, par value $0.01 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 6,293 | $ 14,995 |
Accounts receivable, net | 15,229 | 15,950 |
Contract assets | 8,604 | 8,724 |
Inventory | 11,574 | 10,301 |
Prepaid expenses and other current assets | 3,337 | 2,848 |
Assets held for sale | 2,801 | 2,768 |
Total current assets | 47,838 | 55,586 |
Property, plant and equipment, net | 50,857 | 50,365 |
Operating lease asset | 5,372 | 5,491 |
Intangible assets, net | 2,744 | 2,928 |
Goodwill | 41,077 | 41,077 |
Other assets | 2,050 | 1,996 |
Total assets | 149,938 | 157,443 |
Current liabilities: | ||
Accounts payable | 2,392 | 1,466 |
Current portion of debt | 7,840 | 7,577 |
Current portion of operating lease liability | 1,086 | 1,079 |
Accrued expenses and other current liabilities | 8,213 | 12,686 |
Total current liabilities | 19,531 | 22,808 |
Debt, net of current portion | 30,462 | 30,967 |
Operating lease liability, net of current portion | 4,482 | 4,584 |
Gainesville, Georgia | 39,487 | 39,225 |
Total liabilities | 93,962 | 97,584 |
Commitments and contingencies (note 7) | ||
Shareholders' equity: | ||
Convertible preferred stock, $0.01 par value. 10,000,000 shares authorized, 450,000 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 4,332 | 4,350 |
Common stock, $0.01 par value. 95,000,000 shares authorized, 84,902,318 and 84,588,868 shares issued and outstanding at March 31, 2023 and December 31,2022, respectively | 849 | 846 |
Additional paid-in capital | 321,114 | 320,298 |
Accumulated deficit | (270,319) | (265,635) |
Total shareholders' equity | 55,976 | 59,859 |
Total liabilities and shareholders' equity | $ 149,938 | $ 157,443 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Shares of convertible preferred stock issued | 450,000 | 450,000 |
Preferred stock, shares outstanding | 450,000 | 450,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 84,902,318 | 84,588,868 |
Common stock, shares outstanding | 84,902,318 | 84,588,868 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 21,527,000 | $ 21,194,000 |
Operating expenses: | ||
Cost of sales | 19,279,000 | 16,114,000 |
Selling, general and administrative | 4,662,000 | 5,710,000 |
Amortization of intangible assets | 184,000 | 221,000 |
Total operating expenses | 24,125,000 | 22,045,000 |
Operating loss | (2,598,000) | (851,000) |
Interest expense | (2,145,000) | (3,418,000) |
Interest income | 131,000 | 5,000 |
Loss before income taxes | (4,612,000) | (4,264,000) |
Income tax expense | 72,000 | 0 |
Net loss | $ (4,684,000) | $ (4,264,000) |
Loss per share, Basic | $ (0.06) | $ (0.08) |
Loss per share, Diluted | $ (0.06) | $ (0.08) |
Weighted average shares outstanding, Basic | 84,799,670 | 56,351,178 |
Weighted average shares outstanding, Diluted | 84,799,670 | 56,351,178 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity or Deficit (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2021 | $ 42,064 | $ 467 | $ 287,351 | $ (245,754) | |
Balance, Shares at Dec. 31, 2021 | 46,681,453 | ||||
Issuance of stock, net of costs amount | (16) | $ 93 | (109) | ||
Issuance of stock, net of costs,Shares | 9,302,718 | ||||
Stock-based compensation expense | 1,479 | 1,479 | |||
Exercise of stock options, net, Shares | 220 | ||||
Vesting of restricted stock units, net | (101) | $ 5 | (106) | ||
Vesting of restricted stock units, net , Shares | 487,695 | ||||
Net loss | (4,264) | (4,264) | |||
Balance at Mar. 31, 2022 | 39,162 | $ 565 | 288,615 | (250,018) | |
Balance, Shares at Mar. 31, 2022 | 56,472,086 | ||||
Balance at Dec. 31, 2022 | 59,859 | $ 4,350 | $ 846 | 320,298 | (265,635) |
Balance, Shares at Dec. 31, 2022 | 450,000 | 84,588,868 | |||
Issuance of stock, net of costs amount | (36) | $ (18) | (18) | ||
Stock-based compensation expense | $ 1,044 | 1,044 | |||
Exercise of stock options, net, Shares | 3,100,519 | ||||
Vesting of restricted stock units, net | $ (207) | $ 3 | (210) | ||
Vesting of restricted stock units, net , Shares | 313,450 | ||||
Net loss | (4,684) | (4,684) | |||
Balance at Mar. 31, 2023 | $ 55,976 | $ 4,332 | $ 849 | $ 321,114 | $ (270,319) |
Balance, Shares at Mar. 31, 2023 | 450,000 | 84,902,318 |
Consolidated Statements of Cash
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 | $ (4,684) | $ (4,264) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 1,044 | 1,479 |
Non-cash interest expense | 314 | 1,257 |
Depreciation expense | 1,905 | 1,792 |
Amortization of intangible assets | 184 | 221 |
Deferred income tax expense | 72 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 721 | (2,211) |
Contract assets | 120 | (369) |
Inventory | (1,273) | (553) |
Prepaid expenses and other assets | (416) | 1,134 |
Accrued interest | (22) | (2,274) |
Accounts payable, accrued expenses and other liabilities | (818) | (4,292) |
Net cash used in operating activities | (2,853) | (8,080) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,376) | (1,708) |
Net cash used in investing activities | (3,376) | (1,708) |
Cash flows from financing activities: | ||
Payment of costs for issuance of stock | (553) | (16) |
Payment of debt principal | (461) | 0 |
Payment of financing costs | (1,252) | (36) |
Net payments related to vesting of restricted stock units | (207) | (101) |
Net cash used in financing activities | (2,473) | (153) |
Net decrease in cash and cash equivalents | (8,702) | (9,941) |
Cash and cash equivalents, beginning of period | 14,995 | 25,217 |
Cash and cash equivalents, end of period | 6,293 | 15,276 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 2,144 | 4,676 |
Purchases of property, plant and equipment included in accrued expenses and accounts payable | 405 | 774 |
Deferred financing costs included in accounts payable and accrued expenses | 240 | 0 |
Offering costs included in accounts payable and accrued expenses | $ 10 | $ 0 |
Background
Background | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | (1) Background Societal CDMO, Inc. (the “Company”) was incorporated in the Commonwealth of Pennsylvania on November 15, 2007 . The Company is a bi-coastal contract development and manufacturing organization with capabilities spanning pre-investigational new drug development to commercial manufacturing and packaging for a wide range of therapeutic dosage forms with a primary focus on small molecules. With an expertise in solving complex manufacturing problems, the Company provides therapeutic development, end-to-end regulatory support, clinical and commercial manufacturing, aseptic fill/finish, lyophilization, packaging and logistics services to the global pharmaceutical market. The Company has incurred net losses since inception and has an accumulated deficit of $ 270,319 as of March 31, 2023 , which is primarily related to the activities of its former research and development business, which was spun-out in 2019. The Company’s future operations are highly dependent on the profitability of its development and manufacturing operations. Management believes that it is probable that the Company will be able to meet its obligations as they become due within at least one year after the date financial statements included herein are issued. |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | (2) Summary of significant accounting principles Basis of presentation and principles of consolidation The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In accordance with Securities and Exchange Commission’s (“SEC”) rules for interim financial statements, certain information required by U.S. GAAP may be condensed or omitted. The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s results for the interim periods. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The Company has determined that it operates in a single segment. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Use of estimates The preparation of financial statements and the notes to the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Cash and cash equivalents Cash and cash equivalents represent cash in banks and highly liquid short-term investments that have maturities of three months or less when acquired. These highly liquid short-term investments are both readily convertible to known amounts of cash and so near to their maturity that they present insignificant risk of changes in value due to changes in interest rates. Accounts receivable, net Accounts receivable generally represent amounts billed for services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for credit losses, if necessary. We apply judgment in assessing the ultimate realization of our receivables, and we estimate an allowance for credit losses based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers. The allowance for credit losses was not material as of the balance sheet dates presented. Inventory Inventory is stated at the lower of cost or net realizable value. Included in inventory are raw materials and work-in-process used in the production of commercial products. Items are issued out of inventory using the first-in, first-out method. Adjustments to inventory are determined at the raw materials, work-in-process, and finished good levels to reflect obsolescence or impaired balances. Factors influencing inventory obsolescence include changes in demand, product life cycle, product pricing, physical deterioration and quality concerns. Property, plant and equipment, net Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are as follows: three to ten years for furniture, office and computer equipment; six to ten years for manufacturing equipment; 40 years for buildings; and the shorter of the lease term or useful life for leasehold improvements. Repairs and maintenance costs are expensed as incurred. The Company reviews the carrying value of property, plant and equipment for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of individual assets or asset groups may not be recoverable. The Company considers assets to be held for sale when (i) management commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) the asset is actively being marketed for sale at a price that is reasonable given the estimate of current market value; and (iv) the sale is probable and will be completed within one year. Upon designation of an asset as held for sale, the Company records the asset’s value at the lower of its carrying value plus selling costs or its estimated net realizable value. Goodwill and intangible assets Goodwill represents the excess of purchase price over the fair value of net assets acquired by the Company in a business combination. Goodwill is not amortized but assessed for impairment on an annual basis or more frequently if impairment indicators exist. The impairment analysis for goodwill consists of an optional qualitative assessment potentially followed by a quantitative analysis. If the Company determines that the carrying value of its reporting unit exceeds its fair value, an impairment charge is recorded for the excess. The Company performs its annual goodwill impairment test as of November 30 th , or whenever an event or change in circumstance occurs that would require reassessment of the impairment of goodwill. In performing the evaluation, the Company assesses qualitative factors such as overall financial performance, actual and anticipated changes in industry and market conditions, and competitive environments. As a result of the most recent annual goodwill impairment test, the Company determined that there was no impairment of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful life. The Company is required to review the carrying value of definite-lived intangible assets for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Contingencies The Company’s business exposes it to various contingencies including compliance with regulations, legal exposures and other matters. Loss contingencies are reflected in the financial statements based on management’s assessments of their expected outcome or resolution: • They are recognized as liabilities on the balance sheet if the potential loss is probable and the amount can be reasonably estimated. • They are disclosed if the potential loss is material and considered at least reasonably possible. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, the Company reassesses potential liabilities and may revise previous estimates. Revenue recognition The Company generates revenues from manufacturing, packaging and development and related services for multiple pharmaceutical companies. Manufacturing Manufacturing and other related services revenue is recognized upon transfer of control of a product to a customer, generally upon shipment, based on a transaction price that reflects the consideration the Company expects to be entitled to as specified in the agreement with the commercial partner, which could include variable consideration such as pricing and volume-based adjustments. Profit-sharing In addition to manufacturing and packaging revenue, certain customers who use our technologies are subject to agreements that provide us intellectual property sales-based profit-sharing and/or royalties consideration, collectively referred to as profit-sharing, computed on the net product sales of the commercial partner. Profit-sharing revenues are generally recognized under the terms of the applicable license, development and/or supply agreement. The Company has determined that, in its arrangements, the license for intellectual property is not the predominant item to which the profit-sharing relates, so the Company recognizes revenue upon transfer of control of the manufactured product. In these cases, significant judgment is required to calculate the estimated variable consideration from such profit-sharing using the expected value method based on historical commercial partner pricing and deductions. Estimated variable consideration is partially constrained due to the uncertainty of price adjustments made by the Company’s commercial partners, which are outside of the Company’s control. Factors causing price adjustments by the Company’s commercial partners include increased competition in the products’ markets, mix of volume between the commercial partners’ customers, and changes in government pricing. Development Development revenue includes services associated with formulation, process development, clinical trial materials services, as well as custom development of manufacturing processes and analytical methods for a customer’s non-clinical, clinical and commercial products. Such revenues are recognized at a point in time or over time depending on the nature and particular facts and circumstances associated with the contract terms. In contracts that specify milestones, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments related to arrangements under which the Company has continuing performance obligations are deferred and recognized over the period of performance. Milestone payments that are not within the Company’s control, such as submission for approval to regulators by a commercial partner or approvals from regulators, are not considered probable of being achieved until those submissions are submitted by the customer or approvals are received. In contracts that require revenue recognition over time, the Company utilizes input or output methods, depending on the specifics of the contract, that compare the cumulative work-in-process to date to the most current estimates for the entire performance obligation. Under these contracts, the customer typically owns the product details and process, which have no alternative use. These projects are customized to each customer to meet its specifications, and typically only one performance obligation is included. Each project represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by the Company’s services and can make changes to its process or specifications upon request. Contract assets represent revenue recognized for performance obligations completed or in process before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales has not yet occurred. Contract liabilities represent payments received from customers prior to the completion of associated performance obligations. Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company manages its cash and cash equivalents based on established guidelines relative to diversification and maturities to maintain safety and liquidity. The Company’s accounts receivable balances are primarily concentrated among three customers, with balances in the aggregate accounting for 86 % of the balance as of March 31, 2023. If any of these customers’ receivable balances should be deemed uncollectible, it could have a material adverse effect on the Company’s results of operations and financial condition. The Company is dependent on its relationships with a small number of commercial partners. The Company’s three largest customers generated 84 % of revenues for the three months ended March 31, 2023, and 78 % of its revenues for the three months ended March 31, 2022 . Stock-based compensation expense The Company measures employee stock-based awards at grant-date fair value and recognizes employee compensation expense on a straight-line basis over the vesting period of the award. The Company accounts for forfeitures as they occur. Determining the appropriate fair value of stock options requires the use of subjective assumptions, including the expected life of the option and expected stock price volatility. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and/or management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” which is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses the historical volatility of its publicly traded stock in order to estimate future stock price trends. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. Upon exercise of stock options or vesting of restricted stock units, the holder may elect to cover tax withholdings by forfeiting shares of an equivalent value. In such cases, the Company issues net new shares to the holder, pays the tax withholding on behalf of the participant and presents the payment similar to a capital distribution: a reduction to additional paid-in-capital and a financing cash outflow in the consolidated financial statements. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. In assessing the realizability of net deferred tax assets, the Company considers all relevant positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The realization of the gross deferred tax assets is dependent on several factors, including the generation of sufficient taxable income prior to the expiration of the net operating loss carryforwards. A full valuation allowance was recorded as of March 31, 2023 and December 31, 2022. Unrecognized income tax benefits represent income tax positions taken on income tax returns that have not been recognized in the consolidated financial statements. The Company recognizes the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company does not anticipate significant changes in the amount of unrecognized income tax benefits over the next year. Leases The Company determines under U.S. GAAP if an arrangement is a lease at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Options to extend the lease are included in the lease term if the options are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. In a sale-leaseback transaction, the Company determines under U.S. GAAP if the transaction meets the requirements of a sale and purchase. If the Company determines that it did not relinquish control of the assets to the buyer-lessor, it does not qualify for sale-leaseback accounting. Operating lease balances are presented as separate captions on the balance sheets. Finance lease assets are included in property, plant and equipment. Finance lease liabilities are included in other liabilities. Income or loss per share Net loss per common share is computed using the two-class method required due to the participating nature of the Series A Convertible Preferred Stock (as defined and discussed in note 10) given the rights to participate in dividends if declared on common stock. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Series A Convertible Preferred stockholders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. Basic income or loss per share is determined by dividing net income or loss (the numerator) by the weighted average common shares outstanding during the period (the denominator). To calculate diluted income or loss per share, the numerator and denominator are adjusted to eliminate the income or loss and the dilutive effects on shares, respectively, caused by outstanding common stock options, warrants and unvested restricted stock units, using the treasury stock method, if the inclusion of such instruments would be dilutive. For all periods presented, the Company incurred a net loss. In periods of net loss, the inclusion of dilutive securities would be antidilutive because it would reduce the amount of loss incurred per share. As a result, no additional dilutive shares were included in diluted loss per share, and there were no differences between basic and diluted loss per share. The following table presents the potentially dilutive securities that were excluded from the computations of diluted loss per share: Three months ended March 31, 2023 2022 Restricted stock units 1,054,173 739,148 Stock options 6,348,587 6,860,892 Warrants 402,126 348,664 Amounts in the table above reflect the common stock equivalents of the noted instruments. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | (3) Inventory The following table presents the components of inventory: March 31, 2023 December 31, 2022 Raw materials $ 6,504 $ 4,318 Work in process 3,826 3,689 Finished goods 1,244 2,294 Inventory $ 11,574 $ 10,301 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | (4) I ntangible assets, net The following table presents the components of other intangible assets: March 31, 2023 December 31, 2022 Gross value Accumulated amortization Carrying value Gross value Accumulated amortization Carrying value Customer relationships $ 18,900 $ 16,309 $ 2,591 $ 18,900 $ 16,188 $ 2,712 Backlog 460 307 153 460 261 199 Trademarks and tradenames 310 310 — 310 293 17 Total $ 19,670 $ 16,926 $ 2,744 $ 19,670 $ 16,742 $ 2,928 The following table presents estimated future amortization of other intangible assets: Twelve months ending March 31, 2023 $ 670 2024 455 2025 486 2026 486 2027 486 Thereafter 161 Total $ 2,744 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (5) Property, plant and equipment, net The following table presents the components of property, plant and equipment: March 31, 2023 December 31, 2022 Land $ 604 $ 604 Building and improvements 22,781 22,751 Furniture, office and computer equipment 6,573 6,388 Manufacturing equipment 59,332 58,039 Construction in process 7,913 7,024 Property, plant and equipment, gross 97,203 94,806 Less: accumulated depreciation ( 46,346 ) ( 44,441 ) Property, plant and equipment, net $ 50,857 $ 50,365 Interest expense capitalized to construction in process was $ 206 and $ 268 for the three months ended March 31, 2023 and 2022, respectively. In September 2022, the Company signed a sales and purchase agreement to sell approximately 121 acres of land adjacent to its Gainesville, Georgia manufacturing campus for expected proceeds of $ 9,075 . The land was determined to be held for sale at September 30, 2022 and reclassified at cost to other current assets with a carrying value of $ 2,659 . Selling costs of $ 142 have also been capitalized into the asset. The sale of the land is subject to customary closing conditions for transactions of this type, including completion of title and environmental due diligence and receipt of certain zoning approvals and permits, which remained to be satisfied at March 31, 2023 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | (6) Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: March 31, 2023 December 31, 2022 Accrued transaction costs $ 2,046 $ 3,653 Contract liabilities (see note 11) 1,757 2,211 Payroll and related costs 1,576 4,276 Property, plant and equipment 247 934 Professional and consulting fees 213 356 Accrued interest 205 227 Other 2,169 1,029 Total $ 8,213 $ 12,686 Accrued transaction costs include costs incurred related to the refinancing completed in December 2022 which included the sale and subsequent leaseback of the Company’s commercial manufacturing campus located in Gainesville, Georgia (see note 9), the issuance of common and preferred stock, a borrowing of $ 36,900 under a new term loan with Royal Bank of Canada (see note 8) and a one-time cash transaction bonus to certain executive officers and employees. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (7) Commitments and contingencies Litigation The Company is involved, from time to time, in various claims and legal proceedings arising in the ordinary course of its business. Except as disclosed below, the Company is not currently a party to any such claims or proceedings that, if decided adversely to it, would either individually or in the aggregate have a material adverse effect on its business, financial condition or results of operations. On July 2, 2022, a product liability lawsuit was filed against the Company and various other defendants in the State Court of Cobb County, Georgia that claimed injuries and damages caused by Plaintiff Jakob Cuble’s alleged ingestion of, among other things, Focalin XR. The complaint sought compensatory and punitive damages. On April 14, 2023, Plaintiff's counsel withdrew the case. Purchase commitments As of March 31, 2023, the Company had outstanding cancelable and non-cancelable purchase commitments in the aggregate amount of $ 9,933 related to inventory, capital expenditures and other goods and services. Employment agreements and certain other contingencies The Company has entered into employment agreements with each of its executive officers that provide for, among other things, severance commitments of up to $ 1,393 should the Company terminate the executive officers for convenience or if certain events occur following a change in control. In addition, the Company is subject to other contingencies of up to $ 3,944 in the aggregate if certain events occur following a change in control. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | (8) Debt The following table presents the components and classification of debt: March 31, 2023 December 31, 2022 Debt principal: Term loan under Credit Agreement $ 36,439 $ 36,900 Note with former equity holder of IriSys 4,078 4,078 Other 339 339 Debt principal 40,856 41,317 Debt adjustments: Unamortized deferred issuance costs ( 2,325 ) ( 2,476 ) Unamortized original discount ( 229 ) ( 297 ) Carrying value of debt $ 38,302 $ 38,544 Current portion of debt $ 7,840 $ 7,577 Debt, net of current portion 30,462 30,967 Carrying value of debt $ 38,302 $ 38,544 The following table presents the future maturity of debt principal: Twelve months ending March 31, 2024 $ 7,840 2025 5,060 2026 27,673 2027 41 2028 49 Thereafter 193 Total debt principal $ 40,856 Term loan under Credit Agreement The Company is currently party to a credit agreement (as amended from time to time, the “Credit Agreement”) with Royal Bank of Canada. The Credit Agreement has been fully drawn in the form of a term loan of $ 36,900 . The outstanding principal amount will be repaid in quarterly amounts totaling $ 2,076 , $ 2,998 and $ 1,845 during the twelve months ending March 31, 2024, 2025 and 2026, respectively. The final payment of all remaining outstanding principal is due on December 16, 2025. If the Company completes a sale of certain real property by December 14, 2023 and makes the $ 10,000 principal repayment disclosed below, the quarterly principal payments will be reduced proportionately to the reduction in principal. Subject to certain exceptions, the Company is required to make mandatory prepayments with the cash proceeds received in respect of asset sales, extraordinary receipts and debt issuances, upon a change of control and specified other events. Additionally, the Company is obligated to repay $ 10,000 of principal by December 14, 2023, upon the sale of certain real property adjacent to its Gainesville, Georgia manufacturing campus (see note 5). If that property is not sold by December 14, 2023, the Company will be required to pay a fee of $ 369 and increase each of its quarterly principal payments by $ 231 until that property is sold and the $ 10,000 principal payment is made. Because the Company concluded that the sale of the property is probable as of March 31, 2023 , an additional $ 3,726 of debt principal has been presented as current, representing the carrying value of the current asset held for sale plus the $ 925 excess of the principal payment over the expected proceeds from the asset. The Credit Agreement also includes certain financial covenants that the Company will need to satisfy on a quarterly basis, including: (i) maintaining a net leverage ratio less than 3.75 :1.00, stepping down to 2.75 :1.00 at the end of 2023; (ii) maintaining a fixed charge coverage ratio greater than 1.15 :1.00; and (iii) maintaining no less than $ 4,000 cash and cash equivalents on hand, stepping up to $ 5,000 by the end of 2024. As of March 31, 2023, the Company was in compliance with its covenants under the Credit Agreement. The Credit Agreement was amended in March 2023 to clarify the terms and definitions of the aforementioned financial covenants. In connection with the Credit Agreement, the Company has paid financing costs. These costs are being recognized in interest expense using the effective interest method over the term of the Credit Agreement, resulting in non-cash interest expense of $ 236 for the three months ended March 31, 2023. The Credit Agreement bears interest at a floating rate equal to the three-month term Secured Overnight Financing Rate, or SOFR, with an initial floor of 1.00 %, plus an applicable margin that is equal to 4.50 % per annum for the first year, 5.00 % for the second year and 5.50 % for the third year, with quarterly interest payments due until maturity. At March 31, 2023, the overall effective interest rate, including cash paid for interest and non-cash interest expense, was 12.1 % . Historical term loans with Athyrium The Company was previously party to a credit agreement with Athyrium Opportunities III Acquisition LP (“Athyrium Credit Agreement”). The Athyrium Credit Agreement included $ 100,000 of term loans at an interest rate equal to the three-month LIBOR rate plus 8.25 % per annum . The Athyrium Credit Agreement was amended numerous times with the Company paying financing costs and accreting an exit fee. These costs were recognized in interest expense using the effective interest method, resulting in non-cash interest expense of $ 1,137 for the three months ended March 31, 2022. The Company repaid the term loans in full using the proceeds from the new Credit Agreement, the sale-leaseback transaction (see note 9) and the issuance of preferred and common stock (see note 10) in December 2022. Note with former equity holder of IriSys In connection with the acquisition of IriSys, LLC (“IriSys”) , the Company issued a subordinated promissory note to a former equity holder of IriSys in the aggregate principal amount of $ 6,117 (the “Note”). The Note is unsecured, has a three-year term, and bears interest at a rate of 6 % per annum. The Note must be repaid in three equal annual installments through its maturity date, August 13, 2024 . The Note may be prepaid in whole or in part at any time prior to the maturity date. The Note is expressly subordinated in right of payment and priority to the term loan under the Credit Agreement. The Note was initially recognized at fair value as part of the consideration paid for the acquisition of IriSys, resulting in an original discount recognized of $ 877 that is being recognized as interest expense using the effective interest method over the term of the Note. At March 31, 2023, the overall effective interest rate, including the amortization of the original discount, was 13.0 % . The Company has accrued interest of $ 154 through March 31, 2023 that will become payable to the former equity holder of IriSys on August 13, 2023. |
Other liabilities
Other liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | (9) Other liabilities At March 31, 2023, other liabilities include a sale-leaseback liability of $ 38,382 and other liabilities of $ 1,105 . Sale-leaseback liability In December 2022 , the Company concurrently entered into sale and lease agreements with Tenet Equity Funding SPE Gainesville, LLC (“Tenet”) related to its commercial manufacturing campus in Gainesville, Georgia. The selling price was $ 39,000 , of which $ 1,750 was retained by Tenet as a lease deposit and classified within other assets, resulting in cash proceeds to the Company of $ 37,250 in 2022. The lease is for an initial term of 20 years with four renewal options of ten years each. Rent under the lease will be payable monthly at a rate of $ 3,510 per year, increasing annually by 3 %, except for the first year where annual base rent will increase by the change in the consumer price index, not to exceed 5 %, if greater. The Company is responsible for the payment of all operating expenses, property taxes and insurance for the property. Pursuant to the terms of the lease, the Company will have a purchase option every ten years and a right of first offer and a right of first refusal to purchase the property should the buyer-lessor intend to sell the property to a third party. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the assets were not derecognized, and the selling price was recorded as a financial liability. As of March 31, 2023, the Company has recognized a liability of $ 38,382 , that is net of $ 847 of deferred financing costs. The Company will recognize interest expense at a 10.95 % imputed rate of interest over a term of 20 years . The deferred financing costs will also be amortized and recognized as interest expense using the effective interest method over the term of the lease. The gross liability balance will increase through 2034, at which point it will decrease through the end of lease term on December 31, 2042. |
Stockholders_ Equity or Deficit
Stockholders’ Equity or Deficit | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity or Deficit | (10) Shareholders’ equity or deficit Convertible preferred stock In December 2022, the Company issued 450,000 shares of Series A Convertible Preferred Stock for proceeds of $ 11.00 per share. Each share is convertible into ten shares of common stock automatically upon approval by the Company’s shareholders to increase the number of authorized shares of common stock. If the approval is not obtained by June 30, 2023, the conversion rate will be immediately increased by 10 % and annually thereafter until approval has been obtained. Shares of Series A Convertible Preferred Stock feature a liquidation preference over common shares, have no voting rights and are entitled to receive dividends equally with shares of common stock on an as-if-converted basis. Warrants At March 31, 2023 , warrants to purchase 402,126 shares of common stock were outstanding. The warrants were originally issued to Athyrium in connection with the Athyrium Credit Agreement, are equity-classified, exercisable at $ 1.50 per share and expire in November 2024 . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | (11) Revenue recognition The following table presents changes in contract assets and liabilities: Contract assets Contract liabilities Balance at December 31, 2022 $ 8,724 $ ( 2,211 ) Changes to the beginning balance arising from: Reclassification to receivables as the result of rights to consideration becoming unconditional ( 6,519 ) — Reclassification to revenue as the result of performance obligations satisfied 344 1,237 Changes in estimate 768 — Net change to contract balance recognized since beginning of period due to recognition of revenue, amounts billed and changes in estimate 5,287 ( 783 ) Balance at March 31, 2023 $ 8,604 $ ( 1,757 ) Contract assets and contract liabilities are reported at the contract level. Contracts with multiple performance obligation are reported as a net contract asset or contract liability on the consolidated balance sheet. The reclassification to revenue appearing in the contract assets column results from the recognition of revenue on contract liabilities that are presented as a net contract asset at the beginning of the year. The following table disaggregates revenue by timing of revenue recognition: Three months ended March 31, 2023 2022 Point in time $ 16,813 $ 16,880 Over time 4,714 4,314 Total $ 21,527 $ 21,194 The Company’s payment terms for manufacturing revenue and development services are typically 30 to 45 days. Profit-sharing revenue is recorded to accounts receivable in the quarter that the product is sold by the commercial partner upon reporting from the commercial partner and payment terms are generally 45 days after quarter end. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (12) Stock-based compensation In October 2013, the Company established an equity incentive plan that has been subsequently amended and restated to become the 2018 Amended and Restated Equity Incentive Plan (the “A&R Plan”). At March 31, 2023, a total of 4,411,012 shares were available for future grants under the A&R Plan. On December 1 st of each year, pursuant to an “evergreen” provision of the A&R Plan, the number of shares available under the A&R Plan may be increased by the board of directors by an amount equal to 5 % of the outstanding common stock on December 1 st of that year. Stock options Stock options are exercisable generally for a period of ten years from the date of grant and generally vest over four years . The following table presents information about the fair value of stock options granted: Three months ended March 31, 2023 2022 Weighted average grant date fair value $ 0.84 $ 1.16 Assumptions used to determine fair value: Range of expected option life 6.0 years 6.0 years Expected volatility 80 % 79 % Risk-free interest rate 3.6 % 1.5 - 2.4 % Expected dividend yield — — No options were exercised in the three months ended March 31, 2023. The intrinsic value of options exercised was negligible in the three months ended March 31, 2022. The following table presents information about stock option balances and activity: Number of shares Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life Balance, December 31, 2022 8,050,337 $ 3.89 6.6 years Granted 135,060 1.19 Forfeited or expired ( 1,337,589 ) 7.65 Balance, March 31, 2023 6,847,808 3.10 $ — 7.6 years Exercisable 3,100,519 4.83 — 6.2 years Included in the table above are 1,023,264 options outstanding as of March 31, 2023 that were granted outside the A&R Plan. The grants were made pursuant to the inducement grant exception in accordance with Nasdaq Listing Rule 5635(c)(4). The table above does not include 1,455,906 options that were granted during the period as they are subject to shareholders approving an increase in the number of authorized shares of common stock at the Company's 2023 annual meeting of shareholders, subject to continued service with the Company. Restricted stock units Restricted stock units (“RSUs”) vest over six months to four years depending on the purpose of the award and sometimes include performance conditions in addition to service conditions. The fair value of RSUs on the date of grant is measured as the closing price of the Company’s common stock on that date. The weighted average grant-date fair value of RSUs awarded to employees was $ 1.66 in the three months ended March 31, 2022. The fair value of RSUs vested was $ 682 and $ 414 in the three months ended March 31, 2023 and 2022, respectively. The following table presents information about recent RSU activity: Number of shares Weighted average grant date fair value Balance, December 31, 2022 2,061,866 $ 1.71 Granted — — Vested ( 498,982 ) 2.31 Forfeited ( 2,738 ) 8.32 Balance, March 31, 2023 1,560,146 4.28 Included in the table above are 77,256 time-based RSUs outstanding at March 31, 2023 that were granted outside of the A&R Plan. The grants were made pursuant to the inducement grant exception in accordance with Nasdaq Listing Rule 5635(c)(4). The table above does not include 1,793,262 time-based RSUs and 358,060 performance-based RSUs that were granted during the period as they are subject to shareholders approving an increase in the number of authorized shares of common stock at the Company's 2023 annual meeting of shareholders, subject to continued service with the Company. Other information The following table presents the classification of stock-based compensation expense: Three months ended March 31, 2023 2022 Cost of sales $ 407 $ 403 Selling, general and administrative expenses 637 1,076 Total $ 1,044 $ 1,479 As of March 31, 2023, there was $ 6,066 of unrecognized compensation expense related to unvested options and RSUs that are expected to vest and will be expensed over a weighted average period of 1.9 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (13) Income taxes The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items. The provision for income taxes was $ 72 for the three months ended March 31, 2023 and the effective tax rate was approximately ( 2 ) % for the same period. There was no provision for income taxes for the three months ended March 31, 2022 . The change in effective tax rate was due to the utilization of all net operating loss carryforwards without limitations during 2022 in connection with the sale-leaseback transaction (see note 9). |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (14) Fair value of financial instruments The Company follows the provisions of FASB ASC Topic 820, “ Fair Value Measurements and Disclosures ,” for fair value measurement recognition and disclosure purposes for its financial assets and financial liabilities that are remeasured and reported at fair value each reporting period. The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, short-term investments and certain warrants. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. Categorization is based on a three-tier valuation hierarchy, which prioritizes the inputs used in measuring fair value, as follows: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: Inputs that are other than quoted prices in active markets for identical assets and liabilities, inputs that are quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are either directly or indirectly observable; and • Level 3: Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Items measured at fair value on a recurring basis Cash equivalents of $ 5,394 at March 31, 2023 and $ 6,034 at December 31, 2022 consisted entirely of money market mutual funds whose fair value were determined using Level 1 measurements. Fair value disclosures The Company follows the disclosure provisions of FASB ASC Topic 825, “ Financial Instruments ” (ASC 825), for disclosure purposes for financial assets and financial liabilities that are not measured at fair value. As of March 31, 2023, the financial assets and liabilities recorded on the consolidated balance sheets that are not measured at fair value on a recurring basis include accounts receivable, accounts payable and accrued expenses. The carrying values of these financial assets and liabilities approximate fair value due to their short-term nature. The fair value of long-term debt, where a quoted market price is not available, is evaluated based on, among other factors, interest rates currently available to the Company for debt with similar terms, remaining payments and considerations of the Company’s creditworthiness. The Company determined that the recorded book value of its debt, a level 2 measurement, approximated fair value at March 31, 2023 due to the recent issuances of those instruments and taking into consideration management’s current evaluation of market conditions. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Leases | (15) Leases The Company is party to two operating leases for development facilities in California and Georgia that end in 2031 and 2025 , respectively, as well as other immaterial operating leases for office space, storage and office equipment. The development facility leases each include options to extend, none of which are included in the lease terms. Short-term and variable lease costs were not material for the periods presented. The development facility leases do not provide an implicit rate, so the Company uses its incremental borrowing rate to discount the lease liabilities. Undiscounted future lease payments for the two development leases, which were the only material noncancelable leases at March 31, 2023, were as follows: Twelve months ended March 31, 2024 $ 1,172 2025 1,201 2026 1,126 2027 1,104 2028 1,135 Thereafter 3,395 Total lease payments 9,133 Less imputed interest ( 3,565 ) Total operating lease liabilities $ 5,568 At March 31, 2023, the weighted average remaining lease term was 7.5 years, and the weighted average discount rate was 14.1 % . Total lease cost was $ 480 and $ 488 for the three months ended March 31, 2023 and 2022 , respectively. |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | (16) Subsequent event The Company is party to an amended License and Supply Agreement with Lannett Company, Inc. ( “Lannett”). In May 2023, Lannett announced that it had entered into a restructuring support agreement with certain of its lenders and that it had commenced Chapter 11 cases and filed a prepackaged plan of reorganization in the United States Bankruptcy Court for the District of Delaware. As part of the announcement, Lannett stated that it will continue to operate in the ordinary course of business during the bankruptcy process and that the Chapter 11 cases and prepackaged plan of reorganization, which are subject to court approval, provide for vendors to be paid in the normal course of business for obligations incurred prior to and subsequent to the commenced bankruptcy. At this time, Lannett continues to perform under the terms of the amended License and Supply Agreement, which generated 17 % of the Company’s revenue in the three months ended March 31, 2023, 19 % of accounts receivable at March 31, 2023 (all of which were subsequently collected on May 8, 2023) and 27 % of contract assets at March 31, 2023. As of March 31, 2023, no allowances for credit losses or other provisions for losses have been recognized based on Lannett’s stated intent to continue to operate in the ordinary course of business. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of presentation and principles of consolidation The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In accordance with Securities and Exchange Commission’s (“SEC”) rules for interim financial statements, certain information required by U.S. GAAP may be condensed or omitted. The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s results for the interim periods. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The Company has determined that it operates in a single segment. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Use of Estimates | Use of estimates The preparation of financial statements and the notes to the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents represent cash in banks and highly liquid short-term investments that have maturities of three months or less when acquired. These highly liquid short-term investments are both readily convertible to known amounts of cash and so near to their maturity that they present insignificant risk of changes in value due to changes in interest rates. |
Accounts Receivable, net | Accounts receivable, net Accounts receivable generally represent amounts billed for services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for credit losses, if necessary. We apply judgment in assessing the ultimate realization of our receivables, and we estimate an allowance for credit losses based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers. The allowance for credit losses was not material as of the balance sheet dates presented. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Included in inventory are raw materials and work-in-process used in the production of commercial products. Items are issued out of inventory using the first-in, first-out method. Adjustments to inventory are determined at the raw materials, work-in-process, and finished good levels to reflect obsolescence or impaired balances. Factors influencing inventory obsolescence include changes in demand, product life cycle, product pricing, physical deterioration and quality concerns. |
Property, Plant and Equipment, net | Property, plant and equipment, net Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are as follows: three to ten years for furniture, office and computer equipment; six to ten years for manufacturing equipment; 40 years for buildings; and the shorter of the lease term or useful life for leasehold improvements. Repairs and maintenance costs are expensed as incurred. The Company reviews the carrying value of property, plant and equipment for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of individual assets or asset groups may not be recoverable. The Company considers assets to be held for sale when (i) management commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) the asset is actively being marketed for sale at a price that is reasonable given the estimate of current market value; and (iv) the sale is probable and will be completed within one year. Upon designation of an asset as held for sale, the Company records the asset’s value at the lower of its carrying value plus selling costs or its estimated net realizable value. |
Goodwill and Intangible Assets | Goodwill and intangible assets Goodwill represents the excess of purchase price over the fair value of net assets acquired by the Company in a business combination. Goodwill is not amortized but assessed for impairment on an annual basis or more frequently if impairment indicators exist. The impairment analysis for goodwill consists of an optional qualitative assessment potentially followed by a quantitative analysis. If the Company determines that the carrying value of its reporting unit exceeds its fair value, an impairment charge is recorded for the excess. The Company performs its annual goodwill impairment test as of November 30 th , or whenever an event or change in circumstance occurs that would require reassessment of the impairment of goodwill. In performing the evaluation, the Company assesses qualitative factors such as overall financial performance, actual and anticipated changes in industry and market conditions, and competitive environments. As a result of the most recent annual goodwill impairment test, the Company determined that there was no impairment of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful life. The Company is required to review the carrying value of definite-lived intangible assets for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. |
Contingencies | Contingencies The Company’s business exposes it to various contingencies including compliance with regulations, legal exposures and other matters. Loss contingencies are reflected in the financial statements based on management’s assessments of their expected outcome or resolution: • They are recognized as liabilities on the balance sheet if the potential loss is probable and the amount can be reasonably estimated. • They are disclosed if the potential loss is material and considered at least reasonably possible. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, the Company reassesses potential liabilities and may revise previous estimates. |
Revenue Recognition | Revenue recognition The Company generates revenues from manufacturing, packaging and development and related services for multiple pharmaceutical companies. Manufacturing Manufacturing and other related services revenue is recognized upon transfer of control of a product to a customer, generally upon shipment, based on a transaction price that reflects the consideration the Company expects to be entitled to as specified in the agreement with the commercial partner, which could include variable consideration such as pricing and volume-based adjustments. Profit-sharing In addition to manufacturing and packaging revenue, certain customers who use our technologies are subject to agreements that provide us intellectual property sales-based profit-sharing and/or royalties consideration, collectively referred to as profit-sharing, computed on the net product sales of the commercial partner. Profit-sharing revenues are generally recognized under the terms of the applicable license, development and/or supply agreement. The Company has determined that, in its arrangements, the license for intellectual property is not the predominant item to which the profit-sharing relates, so the Company recognizes revenue upon transfer of control of the manufactured product. In these cases, significant judgment is required to calculate the estimated variable consideration from such profit-sharing using the expected value method based on historical commercial partner pricing and deductions. Estimated variable consideration is partially constrained due to the uncertainty of price adjustments made by the Company’s commercial partners, which are outside of the Company’s control. Factors causing price adjustments by the Company’s commercial partners include increased competition in the products’ markets, mix of volume between the commercial partners’ customers, and changes in government pricing. Development Development revenue includes services associated with formulation, process development, clinical trial materials services, as well as custom development of manufacturing processes and analytical methods for a customer’s non-clinical, clinical and commercial products. Such revenues are recognized at a point in time or over time depending on the nature and particular facts and circumstances associated with the contract terms. In contracts that specify milestones, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments related to arrangements under which the Company has continuing performance obligations are deferred and recognized over the period of performance. Milestone payments that are not within the Company’s control, such as submission for approval to regulators by a commercial partner or approvals from regulators, are not considered probable of being achieved until those submissions are submitted by the customer or approvals are received. In contracts that require revenue recognition over time, the Company utilizes input or output methods, depending on the specifics of the contract, that compare the cumulative work-in-process to date to the most current estimates for the entire performance obligation. Under these contracts, the customer typically owns the product details and process, which have no alternative use. These projects are customized to each customer to meet its specifications, and typically only one performance obligation is included. Each project represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by the Company’s services and can make changes to its process or specifications upon request. Contract assets represent revenue recognized for performance obligations completed or in process before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales has not yet occurred. Contract liabilities represent payments received from customers prior to the completion of associated performance obligations. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company manages its cash and cash equivalents based on established guidelines relative to diversification and maturities to maintain safety and liquidity. The Company’s accounts receivable balances are primarily concentrated among three customers, with balances in the aggregate accounting for 86 % of the balance as of March 31, 2023. If any of these customers’ receivable balances should be deemed uncollectible, it could have a material adverse effect on the Company’s results of operations and financial condition. The Company is dependent on its relationships with a small number of commercial partners. The Company’s three largest customers generated 84 % of revenues for the three months ended March 31, 2023, and 78 % of its revenues for the three months ended March 31, 2022 . |
Stock-based Compensation Expense | Stock-based compensation expense The Company measures employee stock-based awards at grant-date fair value and recognizes employee compensation expense on a straight-line basis over the vesting period of the award. The Company accounts for forfeitures as they occur. Determining the appropriate fair value of stock options requires the use of subjective assumptions, including the expected life of the option and expected stock price volatility. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and/or management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” which is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses the historical volatility of its publicly traded stock in order to estimate future stock price trends. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. Upon exercise of stock options or vesting of restricted stock units, the holder may elect to cover tax withholdings by forfeiting shares of an equivalent value. In such cases, the Company issues net new shares to the holder, pays the tax withholding on behalf of the participant and presents the payment similar to a capital distribution: a reduction to additional paid-in-capital and a financing cash outflow in the consolidated financial statements. |
Income Taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. In assessing the realizability of net deferred tax assets, the Company considers all relevant positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The realization of the gross deferred tax assets is dependent on several factors, including the generation of sufficient taxable income prior to the expiration of the net operating loss carryforwards. A full valuation allowance was recorded as of March 31, 2023 and December 31, 2022. Unrecognized income tax benefits represent income tax positions taken on income tax returns that have not been recognized in the consolidated financial statements. The Company recognizes the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company does not anticipate significant changes in the amount of unrecognized income tax benefits over the next year. |
Leases | Leases The Company determines under U.S. GAAP if an arrangement is a lease at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Options to extend the lease are included in the lease term if the options are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. In a sale-leaseback transaction, the Company determines under U.S. GAAP if the transaction meets the requirements of a sale and purchase. If the Company determines that it did not relinquish control of the assets to the buyer-lessor, it does not qualify for sale-leaseback accounting. Operating lease balances are presented as separate captions on the balance sheets. Finance lease assets are included in property, plant and equipment. Finance lease liabilities are included in other liabilities. |
Income or Loss Per Share | Income or loss per share Net loss per common share is computed using the two-class method required due to the participating nature of the Series A Convertible Preferred Stock (as defined and discussed in note 10) given the rights to participate in dividends if declared on common stock. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Series A Convertible Preferred stockholders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. Basic income or loss per share is determined by dividing net income or loss (the numerator) by the weighted average common shares outstanding during the period (the denominator). To calculate diluted income or loss per share, the numerator and denominator are adjusted to eliminate the income or loss and the dilutive effects on shares, respectively, caused by outstanding common stock options, warrants and unvested restricted stock units, using the treasury stock method, if the inclusion of such instruments would be dilutive. For all periods presented, the Company incurred a net loss. In periods of net loss, the inclusion of dilutive securities would be antidilutive because it would reduce the amount of loss incurred per share. As a result, no additional dilutive shares were included in diluted loss per share, and there were no differences between basic and diluted loss per share. The following table presents the potentially dilutive securities that were excluded from the computations of diluted loss per share: Three months ended March 31, 2023 2022 Restricted stock units 1,054,173 739,148 Stock options 6,348,587 6,860,892 Warrants 402,126 348,664 Amounts in the table above reflect the common stock equivalents of the noted instruments. |
Fair Value Measurement | The Company follows the provisions of FASB ASC Topic 820, “ Fair Value Measurements and Disclosures ,” for fair value measurement recognition and disclosure purposes for its financial assets and financial liabilities that are remeasured and reported at fair value each reporting period. The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, short-term investments and certain warrants. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. Categorization is based on a three-tier valuation hierarchy, which prioritizes the inputs used in measuring fair value, as follows: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: Inputs that are other than quoted prices in active markets for identical assets and liabilities, inputs that are quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are either directly or indirectly observable; and • Level 3: Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Anti-Dilutive Securities | The following table presents the potentially dilutive securities that were excluded from the computations of diluted loss per share: Three months ended March 31, 2023 2022 Restricted stock units 1,054,173 739,148 Stock options 6,348,587 6,860,892 Warrants 402,126 348,664 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The following table presents the components of inventory: March 31, 2023 December 31, 2022 Raw materials $ 6,504 $ 4,318 Work in process 3,826 3,689 Finished goods 1,244 2,294 Inventory $ 11,574 $ 10,301 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Components of Other Intangible Assets | The following table presents the components of other intangible assets: March 31, 2023 December 31, 2022 Gross value Accumulated amortization Carrying value Gross value Accumulated amortization Carrying value Customer relationships $ 18,900 $ 16,309 $ 2,591 $ 18,900 $ 16,188 $ 2,712 Backlog 460 307 153 460 261 199 Trademarks and tradenames 310 310 — 310 293 17 Total $ 19,670 $ 16,926 $ 2,744 $ 19,670 $ 16,742 $ 2,928 |
Schedule of Finite Lived Intangible Assets, Estimated Future Amortization Expense | The following table presents estimated future amortization of other intangible assets: Twelve months ending March 31, 2023 $ 670 2024 455 2025 486 2026 486 2027 486 Thereafter 161 Total $ 2,744 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | property, plant and equipment: March 31, 2023 December 31, 2022 Land $ 604 $ 604 Building and improvements 22,781 22,751 Furniture, office and computer equipment 6,573 6,388 Manufacturing equipment 59,332 58,039 Construction in process 7,913 7,024 Property, plant and equipment, gross 97,203 94,806 Less: accumulated depreciation ( 46,346 ) ( 44,441 ) Property, plant and equipment, net $ 50,857 $ 50,365 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: March 31, 2023 December 31, 2022 Accrued transaction costs $ 2,046 $ 3,653 Contract liabilities (see note 11) 1,757 2,211 Payroll and related costs 1,576 4,276 Property, plant and equipment 247 934 Professional and consulting fees 213 356 Accrued interest 205 227 Other 2,169 1,029 Total $ 8,213 $ 12,686 Accrued transaction costs include costs incurred related to the refinancing completed in December 2022 which included the sale and subsequent leaseback of the Company’s commercial manufacturing campus located in Gainesville, Georgia (see note 9), the issuance of common and preferred stock, a borrowing of $ 36,900 under a new term loan with Royal Bank of Canada (see note 8) and a one-time cash transaction bonus to certain executive officers and employees. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components and Classification of Debt | The following table presents the components and classification of debt: March 31, 2023 December 31, 2022 Debt principal: Term loan under Credit Agreement $ 36,439 $ 36,900 Note with former equity holder of IriSys 4,078 4,078 Other 339 339 Debt principal 40,856 41,317 Debt adjustments: Unamortized deferred issuance costs ( 2,325 ) ( 2,476 ) Unamortized original discount ( 229 ) ( 297 ) Carrying value of debt $ 38,302 $ 38,544 Current portion of debt $ 7,840 $ 7,577 Debt, net of current portion 30,462 30,967 Carrying value of debt $ 38,302 $ 38,544 |
Schedule of Future Maturities of Debt | The following table presents the future maturity of debt principal: Twelve months ending March 31, 2024 $ 7,840 2025 5,060 2026 27,673 2027 41 2028 49 Thereafter 193 Total debt principal $ 40,856 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Contract Assets and Liabilities | The following table presents changes in contract assets and liabilities: Contract assets Contract liabilities Balance at December 31, 2022 $ 8,724 $ ( 2,211 ) Changes to the beginning balance arising from: Reclassification to receivables as the result of rights to consideration becoming unconditional ( 6,519 ) — Reclassification to revenue as the result of performance obligations satisfied 344 1,237 Changes in estimate 768 — Net change to contract balance recognized since beginning of period due to recognition of revenue, amounts billed and changes in estimate 5,287 ( 783 ) Balance at March 31, 2023 $ 8,604 $ ( 1,757 ) |
Disaggregation of Revenue by Timing of Revenue Recognition | The following table disaggregates revenue by timing of revenue recognition: Three months ended March 31, 2023 2022 Point in time $ 16,813 $ 16,880 Over time 4,714 4,314 Total $ 21,527 $ 21,194 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Fair Value of Stock Options Granted | The following table presents information about the fair value of stock options granted: Three months ended March 31, 2023 2022 Weighted average grant date fair value $ 0.84 $ 1.16 Assumptions used to determine fair value: Range of expected option life 6.0 years 6.0 years Expected volatility 80 % 79 % Risk-free interest rate 3.6 % 1.5 - 2.4 % Expected dividend yield — — |
Summary of Stock Option Activity | The following table presents information about stock option balances and activity: Number of shares Weighted average exercise price Aggregate intrinsic value Weighted average remaining contractual life Balance, December 31, 2022 8,050,337 $ 3.89 6.6 years Granted 135,060 1.19 Forfeited or expired ( 1,337,589 ) 7.65 Balance, March 31, 2023 6,847,808 3.10 $ — 7.6 years Exercisable 3,100,519 4.83 — 6.2 years |
Summary of Restricted Stock Units Activity | The following table presents information about recent RSU activity: Number of shares Weighted average grant date fair value Balance, December 31, 2022 2,061,866 $ 1.71 Granted — — Vested ( 498,982 ) 2.31 Forfeited ( 2,738 ) 8.32 Balance, March 31, 2023 1,560,146 4.28 |
Summary of Stock Based Compensation Expense | The following table presents the classification of stock-based compensation expense: Three months ended March 31, 2023 2022 Cost of sales $ 407 $ 403 Selling, general and administrative expenses 637 1,076 Total $ 1,044 $ 1,479 |
Leases - (Tables)
Leases - (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Schedule of Undiscounted Future Lease Payments for the Development Lease | Undiscounted future lease payments for the two development leases, which were the only material noncancelable leases at March 31, 2023, were as follows: Twelve months ended March 31, 2024 $ 1,172 2025 1,201 2026 1,126 2027 1,104 2028 1,135 Thereafter 3,395 Total lease payments 9,133 Less imputed interest ( 3,565 ) Total operating lease liabilities $ 5,568 |
Background - Additional Informa
Background - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Entity incorporation date | Nov. 15, 2007 | |
Accumulated deficit | $ 270,319 | $ 265,635 |
Summary of Significant Accoun_4
Summary of Significant Accounting Principles - Additional Information (Detail) - Customer | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of customers | 3 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Cash [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Concentration risk percentage | 86% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Cash [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Concentration risk percentage | 84% | 78% |
Furniture and Office Equipment [Member] | Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment estimated useful lives | 3 years | |
Furniture and Office Equipment [Member] | Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment estimated useful lives | 10 years | |
Manufacturing Equipment [Member] | Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment estimated useful lives | 6 years | |
Manufacturing Equipment [Member] | Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment estimated useful lives | 10 years | |
Buildings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment estimated useful lives | 40 years | |
Leasehold Improvements [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, plant and equipment useful life | the shorter of the lease term or useful life |
Summary of Significant Accoun_5
Summary of Significant Accounting Principles - Schedule of Anti-Dilutive Securities (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted weighted average shares outstanding | 1,054,173 | 739,148 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted weighted average shares outstanding | 6,348,587 | 6,860,892 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted weighted average shares outstanding | 402,126 | 348,664 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,504 | $ 4,318 |
Work in process | 3,826 | 3,689 |
Finished goods | 1,244 | 2,294 |
Inventory | $ 11,574 | $ 10,301 |
Intangible Assets , Net - Summa
Intangible Assets , Net - Summary of Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross value | $ 19,670 | $ 19,670 |
Accumulated amortization | 16,926 | 16,742 |
Carrying value | 2,744 | 2,928 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross value | 18,900 | 18,900 |
Accumulated amortization | 16,309 | 16,188 |
Carrying value | 2,591 | 2,712 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross value | 460 | 460 |
Accumulated amortization | 307 | 261 |
Carrying value | 153 | 199 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross value | 310 | 310 |
Accumulated amortization | $ 310 | 293 |
Carrying value | $ 17 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Finite Lived Intangible Assets, Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 670 | |
2024 | 455 | |
2025 | 486 | |
2026 | 486 | |
2027 | 486 | |
Thereafter | 161 | |
Carrying value | $ 2,744 | $ 2,928 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 97,203 | $ 94,806 |
Less: accumulated depreciation | (46,346) | (44,441) |
Property, plant and equipment, net | 50,857 | 50,365 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 604 | 604 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 22,781 | 22,751 |
Furniture, Office & Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 6,573 | 6,388 |
Manufacturing Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 59,332 | 58,039 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 7,913 | $ 7,024 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) a | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Interest Expense | $ 2,145 | $ 3,418 | |
Term of contract under recognize interest expense | 20 years | ||
Sale lease back transaction date | December 2022 | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest Expense | $ 206 | $ 268 | |
Georgia [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Selling price | $ 39,000 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Area Of Land | a | 121 | ||
Proceeds from Sale of property plant and equipment | $ 9,075 | ||
Carrying value of other assets | $ 2,659 | ||
Selling costs | $ 142 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued transaction costs | $ 2,046 | $ 3,653 |
Contract liabilities | 1,757 | 2,211 |
Payroll and related costs | 1,576 | 4,276 |
Property, plant and equipment | 247 | 934 |
Professional and consulting fees | 213 | 356 |
Accrued interest | 205 | 227 |
Other | 2,169 | 1,029 |
Total | $ 8,213 | $ 12,686 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - Term loans under Credit Agreement [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
New term loan | $ 36,900 | |
Georgia [Member] | ||
New term loan | $ 36,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Executive Officer [Member] | |
Supply Commitment [Line Items] | |
Potential severance commitments arrangement consideration | $ 1,393 |
Other Contingencies | 3,944 |
Purchase Commitment [Member] | |
Supply Commitment [Line Items] | |
Purchase commitment non cancelable and cancelable | $ 9,933 |
Debt - Schedule of Components a
Debt - Schedule of Components and Classification of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt principal | $ 40,856 | $ 41,317 |
Unamortized deferred issuance costs | (2,325) | (2,476) |
Unamortized original discount | (229) | (297) |
Carrying value of debt | 38,302 | 38,544 |
Current portion of debt | 7,840 | 7,577 |
Debt, net of current portion | 30,462 | 30,967 |
Carrying value of debt | 38,302 | 38,544 |
Term loans under Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal | 36,439 | 36,900 |
Current portion of debt | 3,726 | |
Note With Former [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal | 4,078 | 4,078 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal | $ 339 | $ 339 |
Debt - Schedule of Future Matur
Debt - Schedule of Future Maturities of Debt (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 7,840 |
2025 | 5,060 |
2026 | 27,673 |
2027 | 41 |
2028 | 49 |
Thereafter | 193 |
Total debt principal | 40,856 |
Term loans under Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
2024 | 2,076 |
2025 | 2,998 |
2026 | $ 1,845 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Long term debt, maturity, year two | $ 7,840 | |||
Long term debt, maturity, year three | 5,060 | |||
Long term debt, maturity, year four | 27,673 | |||
Cash and cash equivalents | 6,293 | $ 14,995 | ||
Carrying value of debt | 38,302 | 38,544 | ||
Current portion of debt | 7,840 | $ 7,577 | ||
Non-cash interest expense | $ 314 | $ 1,257 | ||
Athyrium Opportunities I I I Acquisition Limited Partnership Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit agreement | $ 100,000 | |||
Term loan interest rate, Description | an interest rate equal to the three-month LIBOR rate plus 8.25% per annum | |||
Non-cash interest expense | $ 1,137 | |||
Athyrium Opportunities I I I Acquisition Limited Partnership Credit Agreement [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan variable interest rate | 8.25% | |||
Note With Former [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Aug. 13, 2024 | |||
Carrying value of debt | $ 6,117 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6% | |||
Unamortized original discount | $ 877 | |||
Debt Instrument, Interest Rate, Basis for Effective Rate | 13.0 | |||
Accrued Interest | $ 154 | |||
Long-term debt term | 3 years | |||
Term loans under Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit agreement | $ 36,900 | |||
Long term debt, maturity, year two | 2,076 | |||
Long term debt, maturity, year three | 2,998 | |||
Long term debt, maturity, year four | $ 1,845 | |||
Repayment Terms | The outstanding principal amount will be repaid in quarterly amounts totaling $2,076, $2,998 and $1,845 during the twelve months ending March 31, 2024, 2025 and 2026, respectively. The final payment of all remaining outstanding principal is due on December 16, 2025. If the Company completes a sale of certain real property by December 14, 2023 and makes the $10,000 principal repayment disclosed below, the quarterly principal payments will be reduced proportionately to the reduction in principal. | |||
Repayment of debt within 12 months of credit agreement closing upon the sale of real property | $ 10,000 | |||
Cash and cash equivalents | 4,000 | |||
Cash and cash equivalents end Of next twelve month | $ 5,000 | |||
Minimum fixed charge ratio | 1.15 | |||
Term loan interest rate, Description | interest at a floating rate equal to the three-month term Secured Overnight Financing Rate, or SOFR, with an initial floor of 1.00%, plus an applicable margin that is equal to 4.50% per annum for the first year, 5.00% for the second year and 5.50% for the third year, with quarterly interest payments due until maturity. | |||
Debt instrument, early repayment terms | Subject to certain exceptions, the Company is required to make mandatory prepayments with the cash proceeds received in respect of asset sales, extraordinary receipts and debt issuances, upon a change of control and specified other events. Additionally, the Company is obligated to repay $10,000 of principal by December 14, 2023, upon the sale of certain real property adjacent to its Gainesville, Georgia manufacturing campus (see note 5). If that property is not sold by December 14, 2023, the Company will be required to pay a fee of $369 and increase each of its quarterly principal payments by $231 until that property is sold and the $10,000 principal payment is made. Because the Company concluded that the sale of the property is probable as of March 31, 2023, an additional $3,726 of debt principal has been presented as current, representing the carrying value of the current asset held for sale plus the $925 excess of the principal payment over the expected proceeds from the asset. | |||
Fee on debt instrument | 369 | |||
Increase in qauterly repayments | $ 231 | |||
Excess payment of debt over principal payments | 925 | |||
Current portion of debt | $ 3,726 | |||
Effective interest rate | 12.10% | |||
Non-cash interest expense | $ 236 | |||
Term loans under Credit Agreement [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum leverage ratio | 3.75 | |||
Term loans under Credit Agreement [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum leverage ratio | 2.75 | |||
Term loans under Credit Agreement [Member] | Debt Instrument, Redemption, Period One [Member] | Floor [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan variable interest rate | 1% | |||
Term loans under Credit Agreement [Member] | Debt Instrument, Redemption, Period One [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan variable interest rate | 4.50% | |||
Term loans under Credit Agreement [Member] | Debt Instrument, Redemption, Period Two [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan variable interest rate | 5% | |||
Term loans under Credit Agreement [Member] | Debt Instrument, Redemption, Period Three [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan variable interest rate | 5.50% |
Other liabilities - Additional
Other liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accelerated Share Repurchases [Line Items] | ||
Sale Leaseback Liability | $ 38,382 | |
Other Liabilities | $ 39,487 | $ 39,225 |
Sale lease back transaction description of assets | In December 2022, the Company concurrently entered into sale and lease agreements with Tenet Equity Funding SPE Gainesville, LLC (“Tenet”) related to its commercial manufacturing campus in Gainesville, Georgia. The selling price was $39,000, of which $1,750 was retained by Tenet as a lease deposit and classified within other assets, resulting in cash proceeds to the Company of $37,250 in 2022. The lease is for an initial term of 20 years with four renewal options of ten years each. Rent under the lease will be payable monthly at a rate of $3,510 per year, increasing annually by 3%, except for the first year where annual base rent will increase by the change in the consumer price index, not to exceed 5%, if greater. The Company is responsible for the payment of all operating expenses, property taxes and insurance for the property. Pursuant to the terms of the lease, the Company will have a purchase option every ten years and a right of first offer and a right of first refusal to purchase the property should the buyer-lessor intend to sell the property to a third party. | |
Sale lease back transaction date | December 2022 | |
Lease Deposit | $ 1,750 | |
Lessee,lease, description | The lease is for an initial term of 20 years with four renewal options of ten years each. Rent under the lease will be payable monthly at a rate of $3,510 per year, increasing annually by 3%, except for the first year where annual base rent will increase by the change in the consumer price index, not to exceed 5%, if greater. | |
Lessee, lease, renewal term | 10 years | |
Proceeds from sales-lease back liability | $ 37,250 | |
Lease initial term | 20 years | |
Annual base rent under the lease | $ 3,510 | |
Percentage of increase in rent amount | 3% | |
Company recognized liability | $ 38,382 | |
Deferred finance costs net | $ 847 | |
Imputed rate of interest | 10.95% | |
Term of contract under recognize interest expense | 20 years | |
Description of sale leaseback liability, gross liability period | The gross liability balance will increase through 2034, at which point it will decrease through the end of lease term on December 31, 2042. | |
Maximum [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Percentage of increase in rent amount | 5% | |
Gainesville, Georgia | ||
Accelerated Share Repurchases [Line Items] | ||
Other Liabilities | $ 1,105 | |
Selling price | $ 39,000 |
Shareholders Equity or Deficit
Shareholders Equity or Deficit - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Capitalization Equity [Line Items] | ||
Shares of convertible preferred stock issued | 450,000 | 450,000 |
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock Convertible Conversion Percentage Increase | 10% | |
Preferred Class A [Member] | ||
Schedule Of Capitalization Equity [Line Items] | ||
Shares of convertible preferred stock issued | 450,000 | |
Convertible preferred stock, par value | $ 11 | |
Equity [Member] | Athyrium Opportunities II Acquisition LP [Member] | Warrants, Exercise Price $6.84, Expiring on November 2024 [Member] | ||
Schedule Of Capitalization Equity [Line Items] | ||
Warrants outstanding to purchase shares, Number of Shares | 402,126 | |
Warrant, exercise price per share | $ 1.50 | |
Warrants outstanding to purchase shares, Expiration dates | 2024-11 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Changes in Contract Assets and Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Contract with Customer Asset | |
Balance at December 31, 2022 | $ 8,724 |
Changes to the beginning balance of contract assets arising from: | |
Reclassification to receivables as a result of rights to consideration becoming unconditional | (6,519) |
Reclassification to revenue as the result of performance obligations satisfied | 344 |
Changes in estimate | 768 |
Net change to contract balance recognized since beginning of period due to recognition of revenue, amounts billed and changes in estimate | 5,287 |
Balance at March 31, 2023 | 8,604 |
Contract with Customer, Liability | |
Balance at December 31, 2022 | (2,211) |
Changes to the beginning balance of contract liabilities arising from : | |
Reclassification to revenue as the result of performance obligations satisfied | 1,237 |
Net change to contract balance recognized since beginning of period due to recognition of revenue, amounts billed and changes in estimate | (783) |
Balance at March 31, 2023 | $ (1,757) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 21,527 | $ 21,194 |
Point In Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 16,813 | 16,880 |
Over Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 4,714 | $ 4,314 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options exercisable period | 10 years | ||
Stock options vest period | 4 years | ||
Weighted average grant date fair value | $ 0.84 | $ 1.16 | |
Number of options, exercised | $ 0 | ||
Number of options, Granted | 1,023,264 | ||
Unrecognized compensation expense related to unvested options and time-based RSUs, expected to vest | $ 6,066 | ||
Unrecognized compensation expense related to unvested options, weighted average period | 1 year 10 months 24 days | ||
Stock Options Granted Outside Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Granted | 1,455,906 | ||
Number of shares, Granted | 77,256 | ||
Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 0 | $ 1.66 | |
Number of shares, Granted | 0 | ||
Fair value vested | $ 682 | $ 414 | |
Restricted Stock Units [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options vest period | 6 months | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options vest period | 4 years | ||
Stock Options And Time Based Restricted Stock Units Member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Granted | 1,793,262 | ||
Stock Options And Performance Based Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Granted | 358,060 | ||
A&R Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of outstanding common stock | 5% | ||
2013 Equity Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for future grants | 4,411,012 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Stock Options Granted (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 0.84 | $ 1.16 |
Assumptions used to determine fair value: | ||
Range of expected option life | 6 years | 6 years |
Expected volatility | 80% | 79% |
Risk-free interest rate | 3.60% | |
Expected dividend yield | 0% | 0% |
Minimum [Member] | ||
Assumptions used to determine fair value: | ||
Risk-free interest rate | 1.50% | |
Maximum [Member] | ||
Assumptions used to determine fair value: | ||
Risk-free interest rate | 2.40% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of shares, Beginning balance | 8,050,337 | |
Number of shares, Granted | 135,060 | |
Number of shares, Exercised | (3,100,519) | |
Number of shares, Forfeited or expired | (1,337,589) | |
Number of shares, Ending balance | 6,847,808 | 8,050,337 |
Weighted average exercise price, Beginning balance | $ 3.89 | |
Weighted average exercise price, Granted | 1.19 | |
Weighted average exercise price, Forfeited or expired | 7.65 | |
Weighted average exercise price, Ending balance | 3.10 | $ 3.89 |
Weighted average exercise price, Exercisable | $ 4.83 | |
Aggregate intrinsic value | $ 0 | |
Aggregate intrinsic value, Exercisable | $ 0 | |
Weighted average remaining contractual life | 7 years 7 months 6 days | 6 years 7 months 6 days |
Weighted average remaining contractual life, Exercisable | 6 years 2 months 12 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average grant date fair value, Granted | $ 0.84 | $ 1.16 |
Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Beginning balance | 2,061,866 | |
Number of shares, Granted | 0 | |
Number of shares, Vested | (498,982) | |
Number of shares, Forfeited | (2,738) | |
Number of shares, Ending balance | 1,560,146 | |
Weighted average grant date fair value, Beginning balance | $ 1.71 | |
Weighted average grant date fair value, Granted | 0 | $ 1.66 |
Weighted average grant date fair value, Vested | 2.31 | |
Weighted average grant date fair value, Forfeited | 8.32 | |
Weighted average grant date fair value, Ending balance | $ 4.28 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation expense | $ 1,044 | $ 1,479 |
Cost Of Sales [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation expense | 407 | 403 |
Selling General And Administrative Expenses [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation expense | $ 637 | $ 1,076 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 72,000 | $ 0 |
Effective income tax rate | (2.00%) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Money Market Mutual Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Cash equivalents | $ 5,394 | $ 6,034 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) Lease | Mar. 31, 2022 USD ($) | |
Lessee Lease Description [Line Items] | ||
Number of Operating Lease | 2 | |
Number of Development Lease | 2 | |
Operating lease, weighted average remaining term | 7 years 6 months | |
Operating lease, weighted average discount rate percent | 14.10% | |
Total operating lease, cost | $ | $ 480 | $ 488 |
California [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease, option to extend | The development facility leases each include options to extend, none of which are included in the lease terms. | |
Operating lease expiration year | 2031 | |
Georgia [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration year | 2025 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Future Lease Payments for the Development Lease (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Lessee Disclosure [Abstract] | |
2024 | $ 1,172 |
2025 | 1,201 |
2026 | 1,126 |
2027 | 1,104 |
2018 | 1,135 |
Thereafter | 3,395 |
Total lease payments | 9,133 |
Less imputed interest | (3,565) |
Total operating lease liabilities | $ 5,568 |
Subsequent event (Additional In
Subsequent event (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 08, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | |||
Allowance for credit losses | $ 0 | ||
Cash [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Subsequent Event [Line Items] | |||
Concentration risk percentage | 84% | 78% | |
Cash [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Subsequent Event [Line Items] | |||
Concentration risk percentage | 86% | ||
Cash [Member] | Contract Asset [Member] | Customer Concentration Risk [Member] | |||
Subsequent Event [Line Items] | |||
Concentration risk percentage | 27% | ||
Subsequent Event [Member] | Cash [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Subsequent Event [Line Items] | |||
Concentration risk percentage | 17% | ||
Subsequent Event [Member] | Cash [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Subsequent Event [Line Items] | |||
Concentration risk percentage | 19% |