Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40824 | |
Entity Registrant Name | Cue Health Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1562193 | |
Entity Address, Address Line One | 4980 Carroll Canyon Rd. | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 412-8151 | |
Title of 12(b) Security | Common Stock, par value $0.00001 per share | |
Trading Symbol | HLTH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 153,511,264 | |
Entity Central Index Key | 0001628945 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 128,551 | $ 241,530 |
Restricted cash | 800 | 800 |
Accounts receivable, net | 1,707 | 18,751 |
Inventories, net - current | 68,373 | 82,210 |
Prepaid expenses | 9,318 | 15,728 |
Other current assets | 3,326 | 12,134 |
Total current assets | 212,075 | 371,153 |
Non-current inventories, net | 28,014 | 25,436 |
Property and equipment, net | 175,447 | 189,275 |
Operating lease right-of-use assets | 82,752 | 85,321 |
Net Carrying Value | 21,769 | 16,867 |
Other non-current assets | 3,802 | 6,528 |
Total assets | 523,859 | 694,580 |
Current liabilities: | ||
Accounts payable | 11,210 | 7,150 |
Accrued liabilities and other current liabilities | 35,924 | 52,378 |
Deferred revenue, current | 468 | 1,566 |
Operating lease liabilities, current | 7,672 | 7,739 |
Finance lease liabilities, current | 1,756 | 2,362 |
Total current liabilities | 57,030 | 71,195 |
Operating leases liabilities, net of current portion | 41,655 | 44,045 |
Finance lease liabilities, net of current portion | 0 | 849 |
Other non-current liabilities | 1,997 | 1,997 |
Total liabilities | 100,682 | 118,086 |
Commitments and contingencies (Note 14) | ||
Stockholders’ Equity | ||
Common stock, $0.00001 par value; 500,000,000 and 500,000,000 shares authorized, 152,662,162 and 150,406,014 issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 2 | 1 |
Additional paid-in-capital | 819,311 | 794,567 |
Accumulated deficit | (396,136) | (218,074) |
Total stockholders’ equity | 423,177 | 576,494 |
Total liabilities and stockholders’ equity | $ 523,859 | $ 694,580 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 152,662,162 | 150,406,014 |
Common stock, shares outstanding (in shares) | 152,662,162 | 150,406,014 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Revenue | $ 9,896 | $ 87,700 | $ 34,661 | $ 267,110 |
Operating costs and expenses: | ||||
Sales and marketing | 8,059 | 16,971 | 19,307 | 51,139 |
Research and development | 36,536 | 44,000 | 81,269 | 72,787 |
General and administrative | 14,703 | 25,411 | 31,641 | 52,321 |
Restructuring expense | 6,645 | 1,883 | 14,518 | 1,883 |
Total operating costs and expenses | 95,289 | 190,163 | 215,904 | 366,725 |
Loss from operations | (85,393) | (102,463) | (181,243) | (99,615) |
Interest expense | (291) | (16) | (511) | (67) |
Other income, net | 1,820 | 43 | 3,692 | 49 |
Loss before income taxes | (83,864) | (102,436) | (178,062) | (99,633) |
Income tax benefit | 0 | (3,386) | 0 | (3,386) |
Net loss | $ (83,864) | $ (99,050) | $ (178,062) | $ (96,247) |
Net loss per share – basic (in dollars per share) | $ (0.55) | $ (0.67) | $ (1.18) | $ (0.65) |
Weighted-average number of shares used in computation of net loss per share – basic (in shares) | 151,869,131 | 147,498,162 | 151,478,593 | 147,014,951 |
Net loss per share – diluted (in dollars per share) | $ (0.55) | $ (0.67) | $ (1.18) | $ (0.65) |
Weighted-average number of shares used in computation of net loss per share – diluted (in shares) | 151,869,131 | 147,498,162 | 151,478,593 | 147,014,951 |
Product revenue | ||||
Revenue | ||||
Revenue | $ 7,591 | $ 84,351 | $ 32,085 | $ 261,805 |
Operating costs and expenses: | ||||
Cost of product revenue | 29,346 | 101,898 | 69,169 | 188,595 |
Grant and other revenue | ||||
Revenue | ||||
Revenue | $ 2,305 | $ 3,349 | $ 2,576 | $ 5,305 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 146,402,991 | |||
Beginning balance at Dec. 31, 2021 | $ 706,750 | $ 1 | $ 730,767 | $ (24,018) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of common stock options (in shares) | 515,705 | |||
Exercise of common stock options | 512 | 512 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,507,394 | |||
Tax withholding on exercise of stock options and issuance of shares from restricted stock units (shares) | (591,713) | |||
Tax withholding on stock option exercises and restricted stock unit issuance | (3,468) | (3,468) | ||
Stock-based compensation | 32,826 | 32,826 | ||
Net loss | (96,247) | (96,247) | ||
Ending balance (in shares) at Jun. 30, 2022 | 147,834,377 | |||
Ending balance at Jun. 30, 2022 | 640,373 | $ 1 | 760,637 | (120,265) |
Beginning balance (in shares) at Mar. 31, 2022 | 146,958,296 | |||
Beginning balance at Mar. 31, 2022 | 725,138 | $ 1 | 746,352 | (21,215) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of common stock options (in shares) | 220,849 | |||
Exercise of common stock options | 242 | 242 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,598,315 | |||
Tax withholding on exercise of stock options and issuance of shares from restricted stock units (shares) | (943,083) | |||
Tax withholding on stock option exercises and restricted stock unit issuance | (2,749) | (2,749) | ||
Stock-based compensation | 16,792 | 16,792 | ||
Net loss | (99,050) | (99,050) | ||
Ending balance (in shares) at Jun. 30, 2022 | 147,834,377 | |||
Ending balance at Jun. 30, 2022 | $ 640,373 | $ 1 | 760,637 | (120,265) |
Beginning balance (in shares) at Dec. 31, 2022 | 150,406,014 | 150,406,014 | ||
Beginning balance at Dec. 31, 2022 | $ 576,494 | $ 1 | 794,567 | (218,074) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of common stock options (in shares) | 169,515 | 642,595 | ||
Exercise of common stock options | $ 113 | $ 1 | 112 | |
Issuance of common stock upon vesting of restricted stock units (in shares) | 2,528,808 | |||
Tax withholding on exercise of stock options and issuance of shares from restricted stock units (shares) | (915,255) | |||
Tax withholding on stock option exercises and restricted stock unit issuance | (1,265) | (1,265) | ||
Stock-based compensation | 25,910 | 25,910 | ||
Other | (13) | (13) | ||
Net loss | $ (178,062) | (178,062) | ||
Ending balance (in shares) at Jun. 30, 2023 | 152,662,162 | 152,662,162 | ||
Ending balance at Jun. 30, 2023 | $ 423,177 | $ 2 | 819,311 | (396,136) |
Beginning balance (in shares) at Mar. 31, 2023 | 151,567,650 | |||
Beginning balance at Mar. 31, 2023 | 495,863 | $ 2 | 808,133 | (312,272) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of common stock options (in shares) | 32,374 | |||
Exercise of common stock options | 17 | 17 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,664,739 | |||
Tax withholding on exercise of stock options and issuance of shares from restricted stock units (shares) | (602,601) | |||
Tax withholding on stock option exercises and restricted stock unit issuance | (341) | (341) | ||
Stock-based compensation | 11,503 | 11,503 | ||
Other | (1) | (1) | ||
Net loss | $ (83,864) | (83,864) | ||
Ending balance (in shares) at Jun. 30, 2023 | 152,662,162 | 152,662,162 | ||
Ending balance at Jun. 30, 2023 | $ 423,177 | $ 2 | $ 819,311 | $ (396,136) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parenthetical) | 3 Months Ended |
Jun. 30, 2023 shares | |
Statement of Stockholders' Equity [Abstract] | |
Exercise of common stock options, including ESPP activity (in shares) | 473,080 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (178,062) | $ (96,247) |
Adjustments to reconcile net loss to net cash, cash equivalents and restricted cash used in operations | ||
Depreciation and amortization | 24,420 | 21,585 |
Allowance for credit losses provision | (327) | 453 |
Stock-based compensation expense | 25,910 | 32,826 |
Non-cash lease expense | 4,598 | 4,017 |
Deferred income taxes | 0 | (2,214) |
Interest on finance leases | 41 | 94 |
Non-cash interest expense | 155 | 176 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,371 | 50,128 |
Inventories | 11,259 | (50,659) |
Prepaid expenses and other current assets | 15,205 | (5,990) |
Other non-current assets | 2,571 | (1,094) |
Accounts payable, accrued liabilities and other current liabilities | (14,104) | 44,691 |
Income taxes payable | 0 | (11,546) |
Deferred revenue | (1,098) | 3,411 |
Operating lease liabilities | (4,486) | (9,942) |
Net cash, cash equivalents and restricted cash used in operating activities | (96,547) | (20,311) |
Cash flows from investing activities | ||
Purchase of property and equipment | (6,147) | (30,781) |
Expenditures for software development and other intangible assets | (8,161) | (3,899) |
Net cash, cash equivalents and restricted cash used in investing activities | (14,308) | (34,680) |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | 113 | 512 |
Tax withholding on stock option exercises and restricted stock unit issuance | (1,265) | (3,468) |
Proceeds from employee stock purchase plan activity | 524 | 685 |
Debt issuance and prepayment costs | 0 | (599) |
Payments for finance leases | (1,496) | (1,391) |
Net cash, cash equivalents and restricted cash used in financing activities | (2,124) | (4,261) |
Net change in cash, cash equivalents and restricted cash | (112,979) | (59,252) |
Cash, cash equivalents and restricted cash, beginning balance | 242,330 | 423,710 |
Cash, cash equivalents and restricted cash, ending balance | 129,351 | 364,458 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 128,551 | 363,124 |
Restricted cash | 800 | 1,334 |
Total cash, cash equivalents and restricted cash | 129,351 | 364,458 |
Supplemental disclosure for cash flow information | ||
Cash paid for taxes | 134 | 0 |
Cash paid for interest | 0 | 0 |
Supplemental disclosure for non-cash investing and financing matters | ||
Right-of-use assets obtained in exchange for lease obligations | 0 | 2,611 |
Prepaid rent reclassified to right-of-use assets | 0 | 50 |
Purchase of property and equipment included in accounts payable | 2,160 | 8,150 |
Software development costs included in accounts payable | $ 0 | $ 704 |
BUSINESS AND BASIS OF ACCOUNTIN
BUSINESS AND BASIS OF ACCOUNTING | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND BASIS OF ACCOUNTING | BUSINESS AND BASIS OF ACCOUNTING Organization and Description of Business Cue Health Inc. (the “Company”) was originally formed in the State of California on January 26, 2010, prior to being incorporated in the State of Delaware on December 14, 2017. The Company is a healthcare technology company committed to revolutionizing the healthcare experience by providing individuals with a convenient and connected diagnostic platform that bridges the physical and virtual care continuum. The Company’s proprietary platform, the Cue Health Monitoring System, comprised of the Cue Reader and Cue Test Kit, enables lab-quality diagnostics-led care at home, at work or at the point of care. This platform is designed to empower stakeholders across the healthcare ecosystem, including individuals, enterprises, healthcare providers and payors, and public health agencies with paradigm-shifting access to diagnostic and health data to inform care decisions. The Company’s headquarters are located in San Diego, California. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited annual financial statements and notes thereto for the year ended December 31, 2022. The unaudited interim condensed consolidated balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results for the fiscal year ending December 31, 2023 or any future interim period. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting and, in the opinion of management, include all adjustments necessary for the fair statement of the Company’s financial position for the periods presented. All such adjustments are of a normal, recurring nature. Certain disclosures have been condensed or omitted from the interim condensed consolidated financial statements. The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses as well as the related disclosure of contingent assets and liabilities. Use of Estimates The preparation of the accompanying unaudited interim condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to revenue recognition, net accounts receivable, equity-based compensation expense, product warranty reserve, the usage and recoverability of its inventories, long-lived assets, intangible assets and net deferred tax assets (net of related valuation allowance). The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. Segment Reporting Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. In addition, the guidance for segment reporting indicates certain quantitative materiality thresholds. The Company views its operations and manages its business in one operating segment which is consistent with how the Chief Executive Officer, who is the chief operating decision-maker, reviews the business, makes investment and resource allocation decisions, and assesses operating performance. The majority of revenue to date is from customers located in the United States and the majority of long-lived assets are located in the United States. Revenues to customers located outside of the United States were not material and $0.1 million for the three and six months ended June 30, 2023, respectively. Revenues to customers located outside of the United States were $4.0 million and $7.5 million for the three and six months ended June 30, 2022, respectively. Long-lived assets, which consist of property and equipment, located outside of the United States were $4.1 million and $4.7 million as of June 30, 2023 and December 31, 2022, respectively. COVID-19 Impact COVID-19 was declared a global pandemic by the World Health Organization in March 2020 and adversely impacted global commercial activity but served as a catalyst to accelerating the Company’s product pipeline. The Company began selling and recording product revenues for its Cue COVID-19 test in August 2020 after obtaining an EUA from the FDA in June 2020. Currently, the majority of the Company’s product revenues are derived from the Cue COVID-19 test. Given the unpredictable nature of the COVID-19 pandemic, the development and potential size of the COVID-19 diagnostic testing market is highly uncertain. The FDA issued various EUAs and approvals for COVID-19 vaccines. The widely administered use of an efficacious vaccine or new therapeutic treatment for COVID-19 may reduce the demand for the Cue COVID-19 test and, as a result, the COVID-19 diagnostic testing market may not develop or grow substantially. Given the rapid development of events surrounding the pandemic, there is uncertainty to the Company’s future results and performance. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Company's significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Liquidity The Company’s operations have been primarily financed through a combination of its proceeds from its initial public offering, other financing activities, and product sales. The Company expects that its near and longer-term liquidity requirements will consist of working capital and general corporate expenses associated with its business, including, without limitation, expenses associated with sales and marketing expense associated with increasing market awareness of its platform and brand generally to healthcare providers, individual consumers, enterprises and other target customers, research and development expenses associated with its test and care offerings, and expenses associated with being a public company. The Company had an accumulated deficit of $396.1 million as of June 30, 2023. During the year ended December 31, 2022, and the six months ended June 30, 2023, the Company incurred negative cash flows. A tempering of COVID-19 testing demand has resulted in a loss from operations. Currently, the majority of our product revenue is related to sales of our Cue COVID-19 test, and while we have a number of tests submitted to the FDA for regulatory approval and in late stage technical development, the receipt of such approvals is outside the Company’s control. These factors, underscored by the inherent uncertainty in timing of regulatory approvals, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans to alleviate the conditions that raise substantial doubt include obtaining regulatory approvals for additional test products, reduced spending, and the pursuit of additional capital. There can be no assurance that the current operating plan will be achieved, including the timing of additional products, or that additional funding will be available on terms acceptable to the Company, or at all. Accordingly, the Company has concluded that substantial doubt exists about the Company's ability to continue as a going concern for a period of at least 12 months from the date of issuance of these condensed consolidated financial statements. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments. The standard provides guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Product Revenue Disaggregation of the product revenue by type of customer for the three and six months ended June 30, 2023 and 2022, respectively: Three Months Ended Six Months Ended 2023 2022 2023 2022 Private sector customers $ 7,297 $ 80,528 $ 31,310 $ 256,372 Public sector entities 294 3,823 775 5,433 Total product revenue $ 7,591 $ 84,351 $ 32,085 $ 261,805 Product revenue for the three and six months ended June 30, 2023 includes an immaterial amount of service revenue generated from telemedicine and proctoring services provided to customers. Revenue generated from proctoring is recognized over the term of the contracts with customers. The following table sets forth the Company’s product gross (loss) profit and product gross (loss) profit margin for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 Product revenue $ 7,591 $ 84,351 $ 32,085 $ 261,805 Cost of product revenue 29,346 101,898 69,169 188,595 Product gross (loss) profit $ (21,755) $ (17,547) $ (37,084) $ 73,210 Product gross (loss) profit margin (287) % (21) % (116) % 28 % During the six months ended June 30, 2023 , a contract manufacturer vendor drew on a cash collateralized letter of credit in the amount of $12.0 million (the “disputed payment charge”) that was recorded in cost of product revenue. The Company disputes the validity of the payment and is pursuing recovery ( See Note 14. Commitments and Contingencies ) . Contract Assets and Liabilities Contract assets primarily relate to the Company’s conditional right to consideration for performance obligations satisfied through direct-to-consumer sales but not billed at the reporting date. Net contract assets were not material and $0.3 million as of June 30, 2023 and December 31, 2022, respectively, and were recorded in other current assets on the balance sheets. Contract liabilities are recorded when cash is received prior to recording revenue. Contract liabilities are recorded in deferred revenue on the balance sheets. The activity related to contract liabilities for the six months ended June 30, 2023 and 2022 is as follows: Six Months Ended 2023 2022 Balance at beginning of period $ 1,566 $ 92,448 Unearned revenue from cash received during the period, excluding amounts recognized as revenue during the period 406 3,411 Revenue recognized related to contract liability balance at the beginning of the period (1,504) — Balance at end of period $ 468 $ 95,859 Grant and Other Revenue Grant and other revenue primarily relates to a cost reimbursement agreement with the Biomedical Advanced Research and Development Authority (“BARDA”). The Compan y g enerated $2.1 million and $2.2 million of revenue related to the agreement with BARDA during the three and six months ended June 30, 2023, respectively. The Compan y g enerated $3.3 million and $5.3 million of revenue related to the agreement with BARDA during the three and six months ended June 30, 2022, respectively. Accounts Receivable Under ASU 2016-13, the Company is required to remeasure expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The allowance for credit losses represents the Company’s estimate of expected credit losses relating to these factors. Amounts are written off against the allowances for credit losses when the Company determines that a customer account is uncollectible. The activity related to the allowance for credit losses for the six months ended June 30, 2023 and 2022 is as follows: Six Months Ended 2023 2022 Allowance for credit losses, beginning balance $ 2,311 $ 318 Provision for doubtful accounts, net of recoveries (327) 453 Write-offs — (15) Allowance for credit losses, ending balance $ 1,984 $ 756 Receivables Purchase Agreement On June 1, 2023, the Company entered into a Receivables Purchase Agreement (the “Purchase Agreement”) with East West Bank, a California state-chartered bank (the “Purchaser”), pursuant to which, among other things, the Company may sell certain of the indebtedness and other payment obligations owed to the Company to the Purchaser in an amount of up to $20 million without recourse in exchange for cash. Transactions under the Purchase Agreement, which matures on June 1, 2024, are accounted for as sales under ASC 860, Transfers and Servicing of Financial Assets, with the sold receivables removed from the Company’s balance sheet. Under the Purchase Agreement, the Company does not maintain any beneficial interest in the receivables sold. The Company performs limited administrative services on behalf of the Purchaser since the receivables are trade receivables, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee of the Wall Street Journal prime rate with a floor of 5.50%, are reflected in cash flows from operating activities on the condensed consolidated statements of cash flows. The Company’s loss on these transactions, the cost of factoring such receivables, is reflected in other income, net on the condensed consolidated statements of operations, and were not material during the three and six months ended June 30, 2023. During the six months ended June 30, 2023 and 2022, the Company received cash proceeds of $2.9 million and $0, respectively, from the sales of accounts receivables under its factoring arrangements. As of June 30, 2023 and December 31, 2022, there were a total o f $3.0 million and $0, respectively, of uncollected receivables that had been sold and removed from the Company’s condensed consolidated balance sheets. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES As of June 30, 2023 and December 31, 2022, the Company’s inventories consisted of the following: June 30, December 31, Raw materials $ 79,657 $ 80,968 Work-in-process 11,920 14,305 Finished goods 41,893 37,867 Reserve (37,083) (25,494) Total inventories $ 96,387 $ 107,646 Non-current inventories $ (28,014) $ (25,436) Total inventories, current $ 68,373 $ 82,210 |
PREPAID EXPENSES
PREPAID EXPENSES | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES | PREPAID EXPENSES As of June 30, 2023 and December 31, 2022, the Company’s prepaid expenses consisted of the following: June 30, December 31, Prepaid expense $ 5,676 $ 11,523 Prepaid inventory 3,642 4,205 Total prepaid expenses $ 9,318 $ 15,728 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET As of June 30, 2023 and December 31, 2022, the Company’s property and equipment, net consisted of the following: June 30, December 31, Construction in progress $ 35,881 $ 32,412 Machinery and equipment 217,555 214,702 Leasehold improvements 24,214 23,233 Furniture and fixtures 1,914 1,883 Property and equipment 279,564 272,230 Accumulated depreciation and amortization (104,117) (82,955) Total property and equipment, net $ 175,447 $ 189,275 Depreciation and amortization expense related to property and equipment was $10.6 million and $10.2 million for the three months ended June 30, 2023 and 2022, respectively. Depreciation and amortization expense related to property and equipment was $21.2 million and $20.2 million for the six months ended June 30, 2023 and 2022, respectively. The carrying value of assets under finance leases within property and equipment as of June 30, 2023 and December 31, 2022 wa s $6.0 million and $7.3 million , respectively. As of June 30, 2023, the carrying value of manufacturing equipment not yet placed into service was $23.8 million. The cost of this equipment is substantially complete and is included in construction in progress. Depreciation expense related to these assets will commence when they are placed into service and will be depreciated over their estimated useful lives. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of June 30, 2023, the Company’s intangible assets consisted of the following: Gross Amount Accumulated Amortization Net Carrying Value Capitalized software $ 24,751 $ (8,904) $ 15,847 Other 920 (78) 842 Intangible assets, net 25,671 (8,982) 16,689 In-process software development 5,080 — 5,080 Total intangible assets $ 30,751 $ (8,982) $ 21,769 As of December 31, 2022, the Company’s intangible assets consisted of the following: Gross Amount Accumulated Amortization Net Carrying Value Capitalized software $ 19,052 $ (5,724) $ 13,328 In-process software development 3,539 — 3,539 Total intangible assets $ 22,591 $ (5,724) $ 16,867 During the development stage, the Company capitalizes certain eligible costs associated with the software development, in accordance with ASC 350-40, Internal-Use Software. The capitalized costs primarily consist of direct labor and third-party contractor fees. In-process software development consists of software costs incurred in the development of internal-use software not yet implemented. The software is expected to be implemented no later than one year from the commencement date of development. Once the software is implemented and ready for its intended use, the Company will begin amortizing the capitalized costs on a straight-line basis over the software's estimated useful life. Amortization expense related to intangible assets placed in service was $1.8 million and $3.3 million for the three and six months ended June 30, 2023, respectively. Amortization expense related to intangible assets placed in service was $0.8 million and $1.4 million for the three and six months ended June 30, 2022, respectively. Estimated amortization expense for each of the years ending December 31 is as follows: 2023 (excluding the six months ended June 30, 2023) $ 4,168 2024 7,565 2025 4,121 2026 835 Total amortization expense $ 16,689 TrustedMedRx Acquisition |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASESThe Company leases real estate and manufacturing and laboratory equipment which are used in the Company’s manufacturing, research and development, and administrative activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. These arrangements are classified as finance leases and operating leases. Finance leases consist of laboratory and manufacturing equipment with remaining terms ranging up to one year. The Company’s operating leases relate to the Company’s manufacturing facilities and office space and have remaining terms from under one year to eight years. There were no new material leases entered into during the three and six months ended June 30, 2023. The right-of-use assets and lease liabilities recognized on the Company’s balance sheet as of June 30, 2023 and December 31, 2022 were as follows: Balance Sheet Location June 30, 2023 December 31, 2022 Assets Right-of-use assets operating leases Operating lease right-of-use assets $ 82,752 $ 85,321 Right-of-use assets finance leases Property and equipment, net 6,034 7,264 Liabilities Operating lease liabilities (current) Operating lease liabilities, current 7,672 7,739 Finance lease liabilities (current) Finance lease liabilities, current 1,756 2,362 Operating lease liabilities (non-current) Operating lease liabilities, net of current portion 41,655 44,045 Finance lease liabilities (non-current) Finance lease liabilities, net of current portion — 849 The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 3,013 $ 2,795 $ 6,001 $ 5,557 Finance lease cost: Amortization of right-of-use assets 591 640 1,231 1,279 Interest on lease liabilities 17 43 41 94 Total lease cost $ 3,621 $ 3,478 $ 7,273 $ 6,930 |
LEASES | LEASESThe Company leases real estate and manufacturing and laboratory equipment which are used in the Company’s manufacturing, research and development, and administrative activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. These arrangements are classified as finance leases and operating leases. Finance leases consist of laboratory and manufacturing equipment with remaining terms ranging up to one year. The Company’s operating leases relate to the Company’s manufacturing facilities and office space and have remaining terms from under one year to eight years. There were no new material leases entered into during the three and six months ended June 30, 2023. The right-of-use assets and lease liabilities recognized on the Company’s balance sheet as of June 30, 2023 and December 31, 2022 were as follows: Balance Sheet Location June 30, 2023 December 31, 2022 Assets Right-of-use assets operating leases Operating lease right-of-use assets $ 82,752 $ 85,321 Right-of-use assets finance leases Property and equipment, net 6,034 7,264 Liabilities Operating lease liabilities (current) Operating lease liabilities, current 7,672 7,739 Finance lease liabilities (current) Finance lease liabilities, current 1,756 2,362 Operating lease liabilities (non-current) Operating lease liabilities, net of current portion 41,655 44,045 Finance lease liabilities (non-current) Finance lease liabilities, net of current portion — 849 The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 3,013 $ 2,795 $ 6,001 $ 5,557 Finance lease cost: Amortization of right-of-use assets 591 640 1,231 1,279 Interest on lease liabilities 17 43 41 94 Total lease cost $ 3,621 $ 3,478 $ 7,273 $ 6,930 |
ACCRUED LIABILITIES AND OTHER C
ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES Accrued liabilities and other current liabilities consisted of the following: June 30, December 31, Accrued purchases (1) $ 1,806 $ 4,488 Accrued payroll and benefits 15,255 26,350 Accrued expenses 6,343 5,553 Accrued sales tax — 1,361 Product warranty reserve 4,065 6,660 Accrued restructuring 218 — Accrued purchase commitment loss (2) 8,237 7,966 Total accrued liabilities and other current liabilities $ 35,924 $ 52,378 (1) Accrued purchases primarily reflects receipts of goods and services for which we had not yet been invoiced. As we are invoiced for these goods and services, this balance will reduce and accounts payable will increase. (2) Accrued purchase commitment loss reflects accrued loss on purchase obligations for inventory expected to be reserved. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Secured Revolving Facility Agreement On June 30, 2022, the Company entered into a loan and security agreement (the “2022 Revolving Facility Agreement”) among the Company, the lenders from time to time party thereto and East West Bank, as collateral agent and administrat ive agent (“Agent”). The 2022 Revolving Facility Agreement provides for a $100.0 million secured revolving credit facility, with a $20.0 million letter of credit subfacility. As of June 30, 2023 , there were no revolving loans outstanding and $1.0 million aggregate f ace amount of letters of credit outstanding under the 2022 Revolving Facility Agreement, which reduces the availability to borrow under the revolving credit facility to $99.0 million . The Company recorded $0.6 million in deferred financings costs in connection with the 2022 Revolving Facility Agreement. This balance is amortized over two years and is classified in other non-current assets since no funds were drawn on the 2022 Revolving Facility Agreement. The revolving loans are available subject to the Company maintaining an asset coverage ratio of not less than 1.20 to 1.00, measured as (x) the sum of specified cash and cash equivalents subject to liens in favor of Agent plus 80% of eligible accounts receivable less the amount of the Company’s outstanding sales tax liability to (y) the principal amount of the outstanding obligations under the 2022 Revolving Facility Agreement. The revolving commitments terminate and the principal amount of outstanding revolving loans, together with accrued and unpaid interest, is due and payable on June 30, 2024. The revolving loans accrue interest at the greater of the prime rate and 3.50%. Interest on the revolving loans is payable monthly in arrears. The Company may borrow, prepay and reborrow revolving loans, without premium or penalty. The Company is required to pay a prepayment fee of 1.0% if the revolving commitments are terminated prior to the maturity date. The Company is also obligated to pay other customary fees for a loan facility of this size and type. The Company’s obligations under the 2022 Revolving Facility Agreement are secured by substantially all of the Company’s assets, and will be guaranteed by, and secured by substantially all of the assets of, its future domestic subsidiaries. As of the closing date, there were no guarantors. The 2022 Revolving Facility Agreement requires the Company to maintain a current ratio of not less than 1.20 to 1.00, measured quarterly. The 2022 Revolving Facility Agreement also requires the Company to maintain at least six months remaining liquidity, determined as set forth in the 2022 Revolving Facility Agreement. Additionally, the 2022 Revolving Facility Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its subsidiaries to, among other things, dispose of assets, effect certain mergers, incur debt, grant liens, pay dividends and distributions on their capital stock, make investments and acquisitions, and enter into transactions with affiliates, in each case subject to customary exceptions for a loan facility of this size and type. The Company was in compliance with its covenants as of June 30, 2023. The events of default under the 2022 Revolving Facility Agreement include, among others, payment defaults, material misrepresentations, breaches of covenants, cross defaults with certain other material indebtedness, bankruptcy and insolvency events, the occurrence of a material adverse effect, a change of control and judgment defaults. The occurrence of an event of default could result in the acceleration of the Company’s obligations under the 2022 Revolving Facility Agreement, the termination of the lenders’ commitments, a 2% increase in the applicable rate of interest and the exercise by Agent and the lenders of other rights and remedies provided for under the 2022 Revolving Facility Agreement or applicable law. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Incentive Plans 2021 Stock Incentive Plan In September 2021, the Company adopted the 2021 Stock Incentive Plan (the “2021 Plan”) under which employees, officers and directors, as well as consultants and advisors to the Company are eligible to be granted awards (incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards). The 2021 Plan initially authorized the issuance of a maximum of 22,399,691 shares of common stock. The number of shares of common stock available for issuance under the 2021 Plan were and will be increased on the first day of each fiscal year beginning with the 2022 fiscal year, in an amount equal to the least of (i) 5% of the number of shares of the Company's common stock outstanding on the first day of such fiscal year and (ii) the number of shares of the Company's common stock determined by the Company's board of directors. 2021 Employee Stock Purchase Plan In September 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) under which employees of the Company can purchase shares of the Company’s common stock commencing on such time and such dates as the board of directors of the Company determine. The 2021 ESPP initially allowed for the sale of 2,834,754 shares of common stock. The number of shares of the Company's common stock to be sold under the 2021 ESPP were and will be increased on the first day of each fiscal year beginning with the 2022 fiscal year, in an amount equal to the least of (i) 8,504,263 shares, (ii) 1% of the number of shares of the Company's common stock outstanding on the first day of such fiscal year and (ii) a number of shares of the Company's common stock determined by the Company's board of directors. The price at which stock is purchased under the 2021 ESPP is equal to 85% of the fair market value of the Company’s common stock on the lesser of either (i) the first business day of the Plan Period or (ii) the Exercise Date. Stock-Based Compensation Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2023 and 2022, was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of product revenues $ 709 $ 885 $ 1,345 $ 1,402 Sales and marketing 1,747 2,464 3,275 5,277 Research and development 3,888 6,423 8,957 11,568 General and administrative 4,929 7,020 11,784 14,579 Restructuring 229 — 549 — Total stock-based compensation expense $ 11,502 $ 16,792 $ 25,910 $ 32,826 In total, $0.7 million and $1.3 million of stock-based compensation expense was capitalized to inventory during the manufacturing process during the three and six months ended June 30, 2023, respectively. An immaterial amount remained in inventory as of June 30, 2023. Stock Options A summary of stock option activity and related information for the six months ended June 30, 2023 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Outstanding at January 1, 2023 7,102,853 $ 5.92 6.4 Granted 3,473,387 2.15 Exercised (169,515) 0.66 Forfeited (1,069,922) 11.76 Expired (129,790) 11.44 Outstanding at June 30, 2023 9,207,013 $ 3.83 7.0 Exercisable at June 30, 2023 5,810,401 $ 4.26 5.6 Vested and expected to vest at June 30, 2023 9,207,013 $ 3.83 7.0 As of June 30, 2023, there was $9.2 million of unamortized compensation cost related to unvested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 2.4 years, on a straight-line basis. The estimated fair value of each stock option award granted to employees was determined on the date of grant using the BSM option pricing model with the following assumptions for stock option grants for the six months ended June 30, 2023. 2023 Expected volatility 85% Expected term (years) 6.5 Expected dividend yield 0.0% Risk-free interest rate 4.3% Grant date fair value $ 1.58 During the six months ended June 30, 2023, the Company modified certain stock options previously granted to non-employees. The modification included changes to the exercise price of 622,323 unvested options. As a result of these modifications, the Company will recognize an additional $0.4 million in stock-based compensation expense over the remaining vesting period of the affected options. Restricted Stock Units Under the 2014 and 2021 Plans, RSUs are generally subject to a 4-year vesting period, with 25% of the shares vesting one year from the vesting commencement date and quarterly thereafter over the remaining vesting term, but may be subject to other vesting conditions such as performance or market based conditions. Compensation expense is recognized ratably over the requisite service period. A summary of RSU activity and related information for the six months ended June 30, 2023 was as follows: Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 18,681,701 $ 9.51 $ 177,739 Granted 9,330,451 1.68 15,706 Vested (2,528,808) 7.32 (18,523) Forfeited (4,878,189) 6.96 (33,934) Outstanding, June 30, 2023 20,605,155 $ 6.84 $ 140,988 As of June 30, 2023, there was $93.0 million of total unrecognized compensation cost related to outstanding RSUs, which is expected to be recognized over a remaining weighted-average vesting period of 2.6 years, on a straight-line basis. Market-Based Performance-Vesting RSUs In September 2021, the Company issued 3,335,300 RSUs that vest based on the satisfaction of both a continued employment condition and the achievement of certain market-based performance goals. Market-based performance-vesting RSUs vest upon the achievement of certain stock price performance over a performance period. There are seven stock price targets which can be achieved over the performance period and are based on an average closing price of the Company’s common stock. Market-based performance-vesting RSU activity for the six months ended June 30, 2023 was as follows: Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 $ 3,335,300 $ 12.82 $ 42,759 Granted — — — Vested — — — Forfeited — — — Outstanding, June 30, 2023 $ 3,335,300 $ 12.82 $ 42,759 Operational-Based Performance-Vesting RSUs In September 2021, the Company iss ued 1,597,272 oper ational-based performance-vesting RSUs that vest based on the satisfaction of both a continued employment condition and the achievement of certain performance goals including meeting certain annual revenue targets and product development milestones. The grant date fair value of operational-based performance-vesting RSUs was estimated based on the fair value of the Company’s common stock on the date of grant. Compensation costs are recorded when achievement of the performance goals is determined to be probable. Operations-based performance-vesting RSU activity for the six months ended June 30, 2023 was as follows: Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 798,635 $ 16.00 $ 12,778 Granted 266,212 2.48 660 Vested — — — Forfeited (532,425) 9.24 (4,919) Outstanding, June 30, 2023 532,422 $ 16.00 $ 8,519 Common Stock Warrants As of June 30, 2023, the Company had an outstanding warrant to purchase 75,744 shares of common stock at a purchase price of $0.40 per share. The warrant was issued on August 22, 2017 and expires on August 22, 2027. All shares subject to the warrant were vested as of December 31, 2022. |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHAREBasic net loss per share is computed by dividing net loss by the weighted-average common shares outstanding during the period. Diluted net loss per share is computed based on the weighted-average common shares outstanding plus the effect of dilutive potential common shares outstanding during the period calculated using the treasury stock method and the if-converted method. Dilutive potential common shares include stock options, non-vested shares, redeemable convertible preferred shares, convertible notes, restricted stock and similar equity instruments granted by the Company. Some restricted stock units vest upon certain performance and market conditions and as they vest, the shares will be included in outstanding common shares. Potential common share equivalents have been excluded where their inclusion would be anti-dilutive. The following table reconciles net loss and the weighted-average shares used in computing basic and diluted earnings per share: Three Months Ended Six Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (83,864) $ (99,050) $ (178,062) $ (96,247) Denominator: Basic and diluted weighted-average common shares outstanding 151,869,131 147,498,162 151,478,593 147,014,951 Net (loss) income per share Basic $ (0.55) $ (0.67) $ (1.18) $ (0.65) Diluted $ (0.55) $ (0.67) $ (1.18) $ (0.65) In periods of net losses, potentially dilutive securities are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Outstanding anti-dilutive securities not included in the diluted net loss per share attributable to common stockholders calculations were as follows (in common stock equivalent shares): Three Months Ended Six Months Ended 2023 2022 2023 2022 Restricted stock units 20,605,155 16,827,712 20,605,155 16,827,712 Stock options 9,207,013 8,463,738 9,207,013 8,463,738 Employee stock purchase plan – shares projected to be issued 825,973 148,963 825,973 148,963 Common stock warrants 75,744 75,744 75,744 75,744 Total 30,713,885 25,516,157 30,713,885 25,516,157 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective income tax rate for each of the three and six months ended June 30, 2023 was 0%. The Company’s effective income tax rate for the three and six months ended June 30, 2022 was 3.3% and 3.4%, respectively. The effective tax rate for the three and six months ended June 30, 2023 differs from the statutory rate primarily due to the Company maintaining a full valuation allowance against its net deferred tax assets. The effective tax rate for the three and six months ended June 30, 2022 differs from the statutory rate primarily due to the Company maintaining a full valuation allowance against its net deferred tax assets and the impact of certain state tax credits recorded during the six months ended June 30, 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Product Liability The Company’s business exposes it to liability risks from its potential medical diagnostic products. Product liability claims could result in the payment of significant amounts of money and divert management’s attention from running the business. The Company may not be able to maintain insurance on acceptable terms, or the insurance may not provide adequate protection in the case of a product liability claim. To the extent that product liability insurance, if available, does not cover potential claims, the Company would be required to self-insure the risks associated with such claims. The Company believes it carries reasonably adequate insurance for product liability. Product Warranty Reserve The Company provides its customers with the right to receive a replacement of defective or nonconforming Cue Readers for a period of up to twelve months from the date of shipment. Subject to certain limitations, the Company currently provides customers with the right to receive a replacement Cue Cartridge for tests that do not produce a valid result, for a period of up to ninety days from the date the test is performed. All warranties are classified as current liabilities within the accrued liabilities and other current liabilities on the balance sheet. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are determined based on historical information that includes test failure rates, replacement frequency, and the overall replacement cost. The Company evaluates the reserve on a quarterly basis and makes adjustments when appropriate. Changes to test failure rates and overall replacement rates could have a material impact on our estimated liability. The following table provides a reconciliation of the change in estimated warranty liabilities: Amount Balance, December 31, 2022 $ 6,660 Provision for warranties 1,959 Settlements (4,554) Balance, June 30, 2023 $ 4,065 Cost Reduction Plan On January 5, 2023, the Company announced that it was implementing a new cost reduction plan (the “January CRP”). Management, with the oversight and guidance of the Company’s board of directors, determined to implement the January CRP following a review of the Company’s business, operating expenses and the macroeconomic environment. The January CRP is intended to reduce the Company’s cost structure and improve its operational efficiency. The January CRP includes a reduction in the Company’s employee base. On April 28, 2023, the Company announced a further cost reduction plan (the “April CRP”, and together with the January CRP, the “CRP”), which included a reduction in the Company’s employee base. Cash expenditures in connection with the CRP consist of payments for salary, benefits, and unused paid time off for the affected employees. The CRP also consists of a severance package that includes a cash severance payment and payments to cover the employer premiums and administration fees for continuation of healthcare coverage for a limited period. The severance package, in some cases, also included an acceleration of the vesting of certain outstanding restricted stock units and stock options to affected employees. Each affected employee’s eligibility for the severance benefits is contingent upon such employee’s execution (and no revocation) of a separation agreement, which includes a general release of claims against the Company. The Company expects payments relating to the CRP to be completed by the end of the fourth quarter of 2023. In connection with the CRP, the Company recorded restructuring charges of $6.6 million and $14.5 million during the three and six months ended June 30, 2023, respectively, related to one-time termination benefits. The following table summarizes the total amount incurred and accrued related to these restructuring activities: Amount Accrued restructuring as of December 31, 2022 $ — Restructuring charges incurred during the period 14,518 Cash payments (13,751) Non-cash settlements and other adjustments (549) Accrued restructuring as of June 30, 2023 $ 218 Restricted Cash In November 2021, $0.8 million of cash was restricted in relation to a customs surety on international imports which remains restricted as of June 30, 2023. Purchase Commitments Purchase commitments are comprised of the Company’s commitments for goods and services in the normal course of business. These purchase commitments relate to goods and services which have not yet been delivered or performed and therefore have not been reflected in our condensed consolidated balance sheets and condensed consolidated statements of operations. These commitments typically become due after the delivery and completion of such goods or services. Legal Proceedings On May 5, 2023, Sanmina Corporation (“Sanmina”), a contract manufacturer, filed a complaint against us in the Superior Court of California, Santa Clara County. Sanmina alleges breach of contract, breach of implied covenant of good faith and fair dealing and promissory estoppel. In connection with this allegation, in March 2023, Sanmina unilaterally drew against a $12.0 million collateralized letter of credit with Sanmina (the “Letter of Credit”) that we had posted as a partial security for our obligations under our agreement with Sanmina, and which we have previously recorded as cost of product revenue. Sanmina is seeking damages in the amount of approximately $30.0 million. We believe the claims are without merit, and we dispute both the incurrence of the costs alleged and that Sanmina lawfully drew on the Letter of Credit. We intend to defend ourselves vigorously and on July 25, 2023, we filed a cross-complaint alleging, among other claims, that Sanmina is in breach of contract for improperly over-ordering components and we are seeking recovery of wrongfully retaining funds, components, and manufacturing equipment rightfully due to us. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (83,864) | $ (99,050) | $ (178,062) | $ (96,247) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Erica Palsis [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Erica Palsis, our General Counsel, adopted a Rule 10b5-1 trading arrangement on May 23, 2023. The duration of the trading arrangement begins on August 21, 2023, and ends on August 30, 2024. The Rule 10b5-1 trading arrangement provides for the sale of 85,920.shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Name | Erica Palsis | |
Title | General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 23, 2023 | |
Arrangement Duration | 375 days | |
Aggregate Available | 85,920 | 85,920 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited annual financial statements and notes thereto for the year ended December 31, 2022. The unaudited interim condensed consolidated balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results for the fiscal year ending December 31, 2023 or any future interim period. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting and, in the opinion of management, include all adjustments necessary for the fair statement of the Company’s financial position for the periods presented. All such adjustments are of a normal, recurring nature. Certain disclosures have been condensed or omitted from the interim condensed consolidated financial statements. The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses as well as the related disclosure of contingent assets and liabilities. |
Use of Estimates | Use of Estimates The preparation of the accompanying unaudited interim condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates and assumptions made in the accompanying financial statements include, but are not limited to revenue recognition, net accounts receivable, equity-based compensation expense, product warranty reserve, the usage and recoverability of its inventories, long-lived assets, intangible assets and net deferred tax assets (net of related valuation allowance). The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates. |
Segment Reporting | Segment ReportingOperating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. In addition, the guidance for segment reporting indicates certain quantitative materiality thresholds. The Company views its operations and manages its business in one operating segment which is consistent with how the Chief Executive Officer, who is the chief operating decision-maker, reviews the business, makes investment and resource allocation decisions, and assesses operating performance. The majority of revenue to date is from customers located in the United States and the majority of long-lived assets are located in the United States. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments. The standard provides guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregation of the product revenue by type of customer for the three and six months ended June 30, 2023 and 2022, respectively: Three Months Ended Six Months Ended 2023 2022 2023 2022 Private sector customers $ 7,297 $ 80,528 $ 31,310 $ 256,372 Public sector entities 294 3,823 775 5,433 Total product revenue $ 7,591 $ 84,351 $ 32,085 $ 261,805 The following table sets forth the Company’s product gross (loss) profit and product gross (loss) profit margin for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 Product revenue $ 7,591 $ 84,351 $ 32,085 $ 261,805 Cost of product revenue 29,346 101,898 69,169 188,595 Product gross (loss) profit $ (21,755) $ (17,547) $ (37,084) $ 73,210 Product gross (loss) profit margin (287) % (21) % (116) % 28 % |
Schedule of Contract Liabilities | The activity related to contract liabilities for the six months ended June 30, 2023 and 2022 is as follows: Six Months Ended 2023 2022 Balance at beginning of period $ 1,566 $ 92,448 Unearned revenue from cash received during the period, excluding amounts recognized as revenue during the period 406 3,411 Revenue recognized related to contract liability balance at the beginning of the period (1,504) — Balance at end of period $ 468 $ 95,859 |
Schedule of Allowance for Credit Loss | The activity related to the allowance for credit losses for the six months ended June 30, 2023 and 2022 is as follows: Six Months Ended 2023 2022 Allowance for credit losses, beginning balance $ 2,311 $ 318 Provision for doubtful accounts, net of recoveries (327) 453 Write-offs — (15) Allowance for credit losses, ending balance $ 1,984 $ 756 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of June 30, 2023 and December 31, 2022, the Company’s inventories consisted of the following: June 30, December 31, Raw materials $ 79,657 $ 80,968 Work-in-process 11,920 14,305 Finished goods 41,893 37,867 Reserve (37,083) (25,494) Total inventories $ 96,387 $ 107,646 Non-current inventories $ (28,014) $ (25,436) Total inventories, current $ 68,373 $ 82,210 |
PREPAID EXPENSES (Tables)
PREPAID EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses | As of June 30, 2023 and December 31, 2022, the Company’s prepaid expenses consisted of the following: June 30, December 31, Prepaid expense $ 5,676 $ 11,523 Prepaid inventory 3,642 4,205 Total prepaid expenses $ 9,318 $ 15,728 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | As of June 30, 2023 and December 31, 2022, the Company’s property and equipment, net consisted of the following: June 30, December 31, Construction in progress $ 35,881 $ 32,412 Machinery and equipment 217,555 214,702 Leasehold improvements 24,214 23,233 Furniture and fixtures 1,914 1,883 Property and equipment 279,564 272,230 Accumulated depreciation and amortization (104,117) (82,955) Total property and equipment, net $ 175,447 $ 189,275 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | As of June 30, 2023, the Company’s intangible assets consisted of the following: Gross Amount Accumulated Amortization Net Carrying Value Capitalized software $ 24,751 $ (8,904) $ 15,847 Other 920 (78) 842 Intangible assets, net 25,671 (8,982) 16,689 In-process software development 5,080 — 5,080 Total intangible assets $ 30,751 $ (8,982) $ 21,769 As of December 31, 2022, the Company’s intangible assets consisted of the following: Gross Amount Accumulated Amortization Net Carrying Value Capitalized software $ 19,052 $ (5,724) $ 13,328 In-process software development 3,539 — 3,539 Total intangible assets $ 22,591 $ (5,724) $ 16,867 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for each of the years ending December 31 is as follows: 2023 (excluding the six months ended June 30, 2023) $ 4,168 2024 7,565 2025 4,121 2026 835 Total amortization expense $ 16,689 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The right-of-use assets and lease liabilities recognized on the Company’s balance sheet as of June 30, 2023 and December 31, 2022 were as follows: Balance Sheet Location June 30, 2023 December 31, 2022 Assets Right-of-use assets operating leases Operating lease right-of-use assets $ 82,752 $ 85,321 Right-of-use assets finance leases Property and equipment, net 6,034 7,264 Liabilities Operating lease liabilities (current) Operating lease liabilities, current 7,672 7,739 Finance lease liabilities (current) Finance lease liabilities, current 1,756 2,362 Operating lease liabilities (non-current) Operating lease liabilities, net of current portion 41,655 44,045 Finance lease liabilities (non-current) Finance lease liabilities, net of current portion — 849 |
Schedule of Lease Cost | The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 3,013 $ 2,795 $ 6,001 $ 5,557 Finance lease cost: Amortization of right-of-use assets 591 640 1,231 1,279 Interest on lease liabilities 17 43 41 94 Total lease cost $ 3,621 $ 3,478 $ 7,273 $ 6,930 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consisted of the following: June 30, December 31, Accrued purchases (1) $ 1,806 $ 4,488 Accrued payroll and benefits 15,255 26,350 Accrued expenses 6,343 5,553 Accrued sales tax — 1,361 Product warranty reserve 4,065 6,660 Accrued restructuring 218 — Accrued purchase commitment loss (2) 8,237 7,966 Total accrued liabilities and other current liabilities $ 35,924 $ 52,378 (1) Accrued purchases primarily reflects receipts of goods and services for which we had not yet been invoiced. As we are invoiced for these goods and services, this balance will reduce and accounts payable will increase. (2) Accrued purchase commitment loss reflects accrued loss on purchase obligations for inventory expected to be reserved. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense Related to Awards Issued | Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2023 and 2022, was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of product revenues $ 709 $ 885 $ 1,345 $ 1,402 Sales and marketing 1,747 2,464 3,275 5,277 Research and development 3,888 6,423 8,957 11,568 General and administrative 4,929 7,020 11,784 14,579 Restructuring 229 — 549 — Total stock-based compensation expense $ 11,502 $ 16,792 $ 25,910 $ 32,826 |
Schedule of Stock Option Activity and Related Information | A summary of stock option activity and related information for the six months ended June 30, 2023 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Outstanding at January 1, 2023 7,102,853 $ 5.92 6.4 Granted 3,473,387 2.15 Exercised (169,515) 0.66 Forfeited (1,069,922) 11.76 Expired (129,790) 11.44 Outstanding at June 30, 2023 9,207,013 $ 3.83 7.0 Exercisable at June 30, 2023 5,810,401 $ 4.26 5.6 Vested and expected to vest at June 30, 2023 9,207,013 $ 3.83 7.0 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The estimated fair value of each stock option award granted to employees was determined on the date of grant using the BSM option pricing model with the following assumptions for stock option grants for the six months ended June 30, 2023. 2023 Expected volatility 85% Expected term (years) 6.5 Expected dividend yield 0.0% Risk-free interest rate 4.3% Grant date fair value $ 1.58 |
Schedule of Share-based Payment Arrangement, Restricted Stock Unit, Activity | A summary of RSU activity and related information for the six months ended June 30, 2023 was as follows: Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 18,681,701 $ 9.51 $ 177,739 Granted 9,330,451 1.68 15,706 Vested (2,528,808) 7.32 (18,523) Forfeited (4,878,189) 6.96 (33,934) Outstanding, June 30, 2023 20,605,155 $ 6.84 $ 140,988 Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 $ 3,335,300 $ 12.82 $ 42,759 Granted — — — Vested — — — Forfeited — — — Outstanding, June 30, 2023 $ 3,335,300 $ 12.82 $ 42,759 Operations-based performance-vesting RSU activity for the six months ended June 30, 2023 was as follows: Underlying Shares Weighted-average Grant Date Fair Value Aggregate Fair Value Outstanding, January 1, 2023 798,635 $ 16.00 $ 12,778 Granted 266,212 2.48 660 Vested — — — Forfeited (532,425) 9.24 (4,919) Outstanding, June 30, 2023 532,422 $ 16.00 $ 8,519 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share, Basic and Diluted | The following table reconciles net loss and the weighted-average shares used in computing basic and diluted earnings per share: Three Months Ended Six Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (83,864) $ (99,050) $ (178,062) $ (96,247) Denominator: Basic and diluted weighted-average common shares outstanding 151,869,131 147,498,162 151,478,593 147,014,951 Net (loss) income per share Basic $ (0.55) $ (0.67) $ (1.18) $ (0.65) Diluted $ (0.55) $ (0.67) $ (1.18) $ (0.65) |
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share | Outstanding anti-dilutive securities not included in the diluted net loss per share attributable to common stockholders calculations were as follows (in common stock equivalent shares): Three Months Ended Six Months Ended 2023 2022 2023 2022 Restricted stock units 20,605,155 16,827,712 20,605,155 16,827,712 Stock options 9,207,013 8,463,738 9,207,013 8,463,738 Employee stock purchase plan – shares projected to be issued 825,973 148,963 825,973 148,963 Common stock warrants 75,744 75,744 75,744 75,744 Total 30,713,885 25,516,157 30,713,885 25,516,157 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table provides a reconciliation of the change in estimated warranty liabilities: Amount Balance, December 31, 2022 $ 6,660 Provision for warranties 1,959 Settlements (4,554) Balance, June 30, 2023 $ 4,065 |
Summary of Total Amount Incurred and Accrued Related to Restructuring Activities | The following table summarizes the total amount incurred and accrued related to these restructuring activities: Amount Accrued restructuring as of December 31, 2022 $ — Restructuring charges incurred during the period 14,518 Cash payments (13,751) Non-cash settlements and other adjustments (549) Accrued restructuring as of June 30, 2023 $ 218 |
BUSINESS AND BASIS OF ACCOUNT_2
BUSINESS AND BASIS OF ACCOUNTING (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Non-US | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 0 | $ 4 | $ 0.1 | $ 7.5 | |
Long-lived assets | $ 4.1 | $ 4.1 | $ 4.7 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Accumulated deficit | $ (396,136) | $ (218,074) |
REVENUE - Schedule of Product R
REVENUE - Schedule of Product Revenue By Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,896 | $ 87,700 | $ 34,661 | $ 267,110 |
Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,591 | 84,351 | 32,085 | 261,805 |
Product revenue | Private sector customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,297 | 80,528 | 31,310 | 256,372 |
Product revenue | Public sector entities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 294 | $ 3,823 | $ 775 | $ 5,433 |
REVENUE - Schedule of Product_2
REVENUE - Schedule of Product Revenue Gross (Loss) Profit and Gross (Loss) Profit Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Product revenue | $ 9,896 | $ 87,700 | $ 34,661 | $ 267,110 |
Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenue | 7,591 | 84,351 | 32,085 | 261,805 |
Cost of product revenue | 29,346 | 101,898 | 69,169 | 188,595 |
Product gross (loss) profit | $ (21,755) | $ (17,547) | $ (37,084) | $ 73,210 |
Product gross (loss) profit margin | (287.00%) | (21.00%) | (116.00%) | 28% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||||
Net contract assets | $ 0 | $ 0 | $ 300,000 | ||||
Revenue | 9,896,000 | $ 87,700,000 | 34,661,000 | $ 267,110,000 | |||
Accounts receivable, allowance for doubtful accounts | 1,984,000 | 756,000 | 1,984,000 | 756,000 | 2,311,000 | $ 318,000 | |
Proceeds from sale of accounts receivables | 2,900,000 | 0 | |||||
Uncollected receivables sold and removed from the balance sheet | $ 3,000,000 | $ 3,000,000 | $ 0 | ||||
Receivables Purchase Agreement | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Receivable purchase agreement, amount authorized | $ 20,000,000 | ||||||
Receivables Purchase Agreement | Minimum | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 5.50% | 5.50% | |||||
Grant and other revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | $ 2,305,000 | 3,349,000 | $ 2,576,000 | 5,305,000 | |||
Grant and other revenue | Biomedical Advanced Research And Development Authority (BARDA) | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | $ 2,100,000 | $ 3,300,000 | 2,200,000 | $ 5,300,000 | |||
Contract Manufacturer Vendor | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Proceeds from collateralized letter of credit | $ 12,000,000 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract With Customer, Liability Rollforward [Roll Forward] | ||
Balance at beginning of period | $ 1,566 | $ 92,448 |
Unearned revenue from cash received during the period, excluding amounts recognized as revenue during the period | 406 | 3,411 |
Revenue recognized related to contract liability balance at the beginning of the period | (1,504) | 0 |
Balance at end of period | $ 468 | $ 95,859 |
REVENUE - Accounts Receivable R
REVENUE - Accounts Receivable Roll forward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | $ 2,311 | $ 318 |
Provision for doubtful accounts, net of recoveries | (327) | 453 |
Write-offs | 0 | (15) |
Allowance for credit losses, ending balance | $ 1,984 | $ 756 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 79,657 | $ 80,968 |
Work-in-process | 11,920 | 14,305 |
Finished goods | 41,893 | 37,867 |
Reserve | (37,083) | (25,494) |
Total inventories | 96,387 | 107,646 |
Non-current inventories | (28,014) | (25,436) |
Total inventories, current | $ 68,373 | $ 82,210 |
PREPAID EXPENSES - Schedule of
PREPAID EXPENSES - Schedule of Prepaid Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expense | $ 5,676 | $ 11,523 |
Prepaid inventory | 3,642 | 4,205 |
Total prepaid expenses | $ 9,318 | $ 15,728 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 279,564 | $ 272,230 |
Accumulated depreciation and amortization | (104,117) | (82,955) |
Total property and equipment, net | 175,447 | 189,275 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 35,881 | 32,412 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 217,555 | 214,702 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 24,214 | 23,233 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,914 | $ 1,883 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 10,600 | $ 10,200 | $ 21,200 | $ 20,200 | |
Carrying value of finance leases | 6,034 | 6,034 | $ 7,264 | ||
Manufacturing Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Construction in progress | $ 23,800 | $ 23,800 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 30,751 | $ 22,591 |
Accumulated Amortization | (8,982) | (5,724) |
Total intangible assets | 21,769 | 16,867 |
Intangible assets, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 25,671 | |
Accumulated Amortization | (8,982) | |
Total intangible assets | 16,689 | |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 24,751 | 19,052 |
Accumulated Amortization | (8,904) | (5,724) |
Total intangible assets | 15,847 | 13,328 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 920 | |
Accumulated Amortization | (78) | |
Total intangible assets | 842 | |
In-process software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 5,080 | 3,539 |
Accumulated Amortization | 0 | 0 |
Total intangible assets | $ 5,080 | $ 3,539 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 04, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 1.8 | $ 0.8 | $ 3.3 | $ 1.4 | |
TrustMedRx LLC | CHP HC LLP | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Payment to acquire business | $ 0.7 | ||||
Business acquisition, transaction costs | $ 0.2 | ||||
TrustMedRx LLC | CHP HC LLP | Operating Licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset, useful life | 2 years |
INTANGIBLE ASSETS - Schedule _2
INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 21,769 | $ 16,867 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 (excluding the six months ended June 30, 2023) | 4,168 | |
2024 | 7,565 | |
2025 | 4,121 | |
2026 | 835 | |
Total intangible assets | $ 16,689 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, remaining lease term (in years) | 1 year |
Operating lease, remaining lease term (in years) | 8 years |
LEASES - Schedule of Lease Asse
LEASES - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease right-of-use assets | $ 82,752 | $ 85,321 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Right-of-use assets finance leases | $ 6,034 | $ 7,264 |
Liabilities | ||
Operating lease liabilities (current) | 7,672 | 7,739 |
Finance lease liabilities (current) | 1,756 | 2,362 |
Operating lease liabilities (non-current) | 41,655 | 44,045 |
Finance lease liabilities (non-current) | $ 0 | $ 849 |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,013 | $ 2,795 | $ 6,001 | $ 5,557 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 591 | 640 | 1,231 | 1,279 |
Interest on lease liabilities | 17 | 43 | 41 | 94 |
Total lease cost | $ 3,621 | $ 3,478 | $ 7,273 | $ 6,930 |
ACCRUED LIABILITIES AND OTHER_3
ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued purchases | $ 1,806 | $ 4,488 |
Accrued payroll and benefits | 15,255 | 26,350 |
Accrued expenses | 6,343 | 5,553 |
Accrued sales tax | 0 | 1,361 |
Product warranty reserve | 4,065 | 6,660 |
Accrued restructuring | 218 | 0 |
Accrued purchase commitment loss | 8,237 | 7,966 |
Total accrued liabilities and other current liabilities | $ 35,924 | $ 52,378 |
DEBT (Details)
DEBT (Details) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt covenant, percent of eligible accounts receivable less sales tax liability | 80% | |
Revolving Credit Facility | Line of Credit | Maximum | ||
Debt Instrument [Line Items] | ||
Asset coverage ratio | 1.20 | |
Revolving Credit Facility | Line of Credit | Minimum | ||
Debt Instrument [Line Items] | ||
Asset coverage ratio | 1 | |
Revolving Credit Facility | Secured Revolving Facility Agreement | East West Bank | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |
Line of credit | $ 0 | |
Remaining borrowing capacity | 99,000,000 | |
Revolving Credit Facility | Revolving Credit Agreement | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.50% | |
Prepayment fee | 1% | |
Interest rate, increase | 2% | |
Revolving Credit Facility | Revolving Credit Agreement | Line of Credit | Maximum | ||
Debt Instrument [Line Items] | ||
Current ratio | 1.20 | |
Revolving Credit Facility | Revolving Credit Agreement | Line of Credit | Minimum | ||
Debt Instrument [Line Items] | ||
Current ratio | 1 | |
Letter of Credit | Secured Revolving Facility Agreement | Line of Credit | ||
Debt Instrument [Line Items] | ||
Deferred financing cost | 600,000 | |
Letter of Credit | Secured Revolving Facility Agreement | East West Bank | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | |
Letter of Credit | Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 1,000,000 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term (years), outstanding | 7 years | 6 years 4 months 24 days | ||
Common Stock Warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants outstanding (in shares) | 75,744 | 75,744 | ||
Exercise price of warrant (in dollars per share) | $ 0.40 | $ 0.40 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized share-based compensation cost related to unvested stock option awards | $ 9.2 | $ 9.2 | ||
Expected period for recognition | 2 years 4 months 24 days | |||
Granted (in shares) | 622,323 | |||
Plan modification, incremental cost | $ 0.4 | |||
Share-based Payment Arrangement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation cost capitalized in inventory | 0.7 | $ 1.3 | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 9,330,451 | |||
Award vesting period | 4 years | |||
Unrecognized compensation cost | $ 93 | $ 93 | ||
Weighted average remaining contractual term (years), outstanding | 2 years 7 months 6 days | |||
Restricted stock units | Share-Based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Award vesting percentage | 25% | |||
Operations-Based Performance-Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1,597,272 | 266,212 | ||
2021 Stock Purchase Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual percentage increase in shares available | 5% | |||
2021 Stock Purchase Plan | Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 22,399,691 | |||
2021 Employee Stock Purchase Plan | Employee stock purchase plan – shares projected to be issued | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 2,834,754 | |||
Annual percentage increase in shares available | 1% | |||
Annual increase, number of shares (in shares) | 8,504,263 | |||
Purchase price of common stock, percent | 85% |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense Related to Awards Issued (Details) - Share-based Payment Arrangement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 11,502 | $ 16,792 | $ 25,910 | $ 32,826 |
Cost of product revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 709 | 885 | 1,345 | 1,402 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 1,747 | 2,464 | 3,275 | 5,277 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 3,888 | 6,423 | 8,957 | 11,568 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 4,929 | 7,020 | 11,784 | 14,579 |
Restructuring | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 229 | $ 0 | $ 549 | $ 0 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity and Related Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Options | ||
Outstanding at beginning of period (in shares) | shares | 7,102,853 | |
Granted (in shares) | shares | 3,473,387 | |
Exercised (in shares) | shares | (169,515) | |
Forfeited (in shares) | shares | (1,069,922) | |
Expired (in shares) | shares | (129,790) | |
Outstanding at end of period (in shares) | shares | 9,207,013 | 7,102,853 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 5.92 | |
Granted (in dollars per share) | $ / shares | 2.15 | |
Exercised (in dollars per share) | $ / shares | 0.66 | |
Forfeited (in dollars per share) | $ / shares | 11.76 | |
Expired (in dollars per share) | $ / shares | 11.44 | |
Outstanding at end of period (in dollars per share) | $ / shares | $ 3.83 | $ 5.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options, exercisable (in shares) | shares | 5,810,401 | |
Options, vested and expected to vest (in shares) | shares | 9,207,013 | |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 4.26 | |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | $ 3.83 | |
Weighted average remaining contractual term (years), outstanding | 7 years | 6 years 4 months 24 days |
Weighted average remaining contractual term (years), exercisable | 5 years 7 months 6 days | |
Weighted average remaining contractual term (years), vested and expected to vest | 7 years |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - Stock options | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 85% |
Expected term (years) | 6 years 6 months |
Expected dividend yield | 0% |
Risk-free interest rate | 4.30% |
Grant date fair value (in dollars per share) | $ 1.58 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Share-based Payment Arrangement, Restricted Stock Unit, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended |
Sep. 30, 2021 | Jun. 30, 2023 | |
Restricted stock units | ||
Underlying Shares | ||
Outstanding, beginning balance (in shares) | 18,681,701 | |
Granted (in shares) | 9,330,451 | |
Vested (in shares) | (2,528,808) | |
Forfeited (in shares) | (4,878,189) | |
Outstanding, ending balance (in shares) | 20,605,155 | |
Weighted-average Grant Date Fair Value | ||
Outstanding, beginning balance(in dollars per share) | $ 9.51 | |
Granted (in dollars per share) | 1.68 | |
Vested (in dollars per share) | 7.32 | |
Forfeited (in dollars per share) | 6.96 | |
Outstanding, ending balance (in dollars per share) | $ 6.84 | |
Aggregate Fair Value | ||
Aggregate fair value, beginning balance | $ 177,739 | |
Granted | 15,706 | |
Vested | (18,523) | |
Forfeited | (33,934) | |
Aggregate fair value, ending balance | $ 140,988 | |
Market-Based Performance-Vesting RSUs | ||
Underlying Shares | ||
Outstanding, beginning balance (in shares) | 3,335,300 | |
Granted (in shares) | 3,335,300 | 0 |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding, ending balance (in shares) | 3,335,300 | |
Weighted-average Grant Date Fair Value | ||
Outstanding, beginning balance(in dollars per share) | $ 12.82 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Outstanding, ending balance (in dollars per share) | $ 12.82 | |
Aggregate Fair Value | ||
Aggregate fair value, beginning balance | $ 42,759 | |
Granted | 0 | |
Vested | 0 | |
Forfeited | 0 | |
Aggregate fair value, ending balance | $ 42,759 | |
Operations-Based Performance-Vesting RSUs | ||
Underlying Shares | ||
Outstanding, beginning balance (in shares) | 798,635 | |
Granted (in shares) | 1,597,272 | 266,212 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (532,425) | |
Outstanding, ending balance (in shares) | 532,422 | |
Weighted-average Grant Date Fair Value | ||
Outstanding, beginning balance(in dollars per share) | $ 16 | |
Granted (in dollars per share) | 2.48 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 9.24 | |
Outstanding, ending balance (in dollars per share) | $ 16 | |
Aggregate Fair Value | ||
Aggregate fair value, beginning balance | $ 12,778 | |
Granted | 660 | |
Vested | 0 | |
Forfeited | (4,919) | |
Aggregate fair value, ending balance | $ 8,519 |
LOSS PER SHARE - Schedule of Ne
LOSS PER SHARE - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net loss | $ (83,864) | $ (99,050) | $ (178,062) | $ (96,247) |
Denominator: | ||||
Basic weighted-average common shares outstanding (in shares) | 151,869,131 | 147,498,162 | 151,478,593 | 147,014,951 |
Diluted weighted-average common shares outstanding (in shares) | 151,869,131 | 147,498,162 | 151,478,593 | 147,014,951 |
Net (loss) income per share | ||||
Basic (in dollars per share) | $ (0.55) | $ (0.67) | $ (1.18) | $ (0.65) |
Diluted (in dollars per share) | $ (0.55) | $ (0.67) | $ (1.18) | $ (0.65) |
LOSS PER SHARE- Schedule of Ant
LOSS PER SHARE- Schedule of Antidilutive Securities Excluded from Computation of Net (Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 30,713,885 | 25,516,157 | 30,713,885 | 25,516,157 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,605,155 | 16,827,712 | 20,605,155 | 16,827,712 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 9,207,013 | 8,463,738 | 9,207,013 | 8,463,738 |
Employee stock purchase plan – shares projected to be issued | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 825,973 | 148,963 | 825,973 | 148,963 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 75,744 | 75,744 | 75,744 | 75,744 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 0% | 3.30% | 0% | 3.40% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 05, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Nov. 30, 2021 | |
Debt Instrument [Line Items] | |||||||
Standard product warranty, term | 12 months | ||||||
Restructuring expense | $ 6,645 | $ 1,883 | $ 14,518 | $ 1,883 | |||
Restricted cash | $ 800 | ||||||
Damages sought | $ 30,000 | ||||||
Sanmina Corporation | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from collateralized letter of credit | $ 12,000 | ||||||
Cost Reduction Plan | |||||||
Debt Instrument [Line Items] | |||||||
Restructuring expense | $ 6,600 | $ 14,500 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Product Warranty Liability (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance, December 31, 2022 | $ 6,660 |
Provision for warranties | 1,959 |
Settlements | (4,554) |
Balance, June 30, 2023 | $ 4,065 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Restructuring Activities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring as of December 31, 2022 | $ 0 |
Restructuring charges incurred during the period | 14,518 |
Cash payments | (13,751) |
Non-cash settlements and other adjustments | (549) |
Accrued restructuring as of June 30, 2023 | $ 218 |