Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | TREACE MEDICAL CONCEPTS, INC. | |
Entity Central Index Key | 0001630627 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, State or Province | FL | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | TMCI | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 39,904,375 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 16,218 | $ 18,079 |
Accounts receivable, net of allowance for doubtful accounts of $329 and $446 as of March 31, 2021 and December 31, 2020, respectively | 10,793 | 14,486 |
Inventories | 7,370 | 7,820 |
Prepaid expenses and other current assets | 2,072 | 593 |
Total current assets | 36,453 | 40,978 |
Property and equipment, net | 929 | 829 |
Total assets | 37,382 | 41,807 |
Current liabilities | ||
Accounts payable | 1,269 | 2,265 |
Accrued liabilities | 2,821 | 1,848 |
Accrued commissions | 2,716 | 3,513 |
Accrued compensation | 1,782 | 2,183 |
Short-term debt | 0 | 1,788 |
Total current liabilities | 8,588 | 11,598 |
Derivative liability on term loan | 245 | 245 |
Long-term debt, net of discount of $767 and $811 as of March 31, 2021 and December 31, 2020, respectively | 29,233 | 29,189 |
Total liabilities | 38,066 | 41,031 |
Commitments and contingencies (Note 7) | ||
Stockholders' (deficit) equity | ||
Additional paid-in capital | 15,136 | 14,166 |
Accumulated deficit | (23,785) | (21,353) |
Total stockholders' (deficit) equity | (684) | 776 |
Total liabilities, and stockholders' equity | 37,382 | 41,807 |
Series A Preferred Stock [Member] | ||
Stockholders' (deficit) equity | ||
Series A preferred stock, $0.001 par value, 6,687,500 shares authorized; 6,687,475 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively; liquidation value of $8,000 as of March 31, 2021 and December 31, 2020, respectively | 7,935 | 7,935 |
Common Class A [Member] | ||
Stockholders' (deficit) equity | ||
Common stock, value | 30 | 28 |
Common Class B [Member] | ||
Stockholders' (deficit) equity | ||
Common stock, value | $ 0 | $ 0 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts receivable current | $ 329 | $ 446 |
Long term debt unamortized debt discount and issuance costs | $ 767 | $ 811 |
Series A Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 6,687,500 | 6,687,500 |
Preferred stock, shares issued | 6,687,475 | 6,687,475 |
Preferred stock, shares outstanding | 6,687,475 | 6,687,475 |
Preferred stock, liquidation preference, value | $ 8,000 | $ 8,000 |
Common Class A [Member] | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 66,875,000 | 66,875,000 |
Common stock share issued | 38,057,416 | 37,366,865 |
Common stock share outstanding | 38,057,416 | 37,366,865 |
Common Class B [Member] | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 1,000,000 | 1,000,000 |
Common stock share issued | 0 | 0 |
Common stock share outstanding | 0 | 0 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 18,707 | $ 11,256 |
Cost of goods sold | 3,327 | 2,389 |
Gross profit | 15,380 | 8,867 |
Operating expenses: | ||
Sales and marketing | 12,148 | 7,338 |
Research and development | 1,868 | 1,433 |
General and administrative | 2,766 | 1,295 |
Total operating expenses | 16,782 | 10,066 |
Loss from operations | (1,402) | (1,199) |
Interest and other income, net | 1 | 33 |
Interest expense | (1,031) | (441) |
Other income (expense), net | (1,030) | (408) |
Net loss and comprehensive loss | (2,432) | (1,607) |
Convertible preferred stock cumulative and undeclared dividends | (158) | (158) |
Net loss attributable to common stockholders | $ (2,590) | $ (1,765) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.07) | $ (0.05) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 37,854,687 | 37,052,294 |
Condensed Statement of Stockhol
Condensed Statement of Stockholders' (Deficit) Equity - USD ($) $ in Thousands | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Beginning at Dec. 31, 2019 | $ 3,161 | $ 7,935 | $ 28 | $ 12,884 | $ (17,686) |
Balance at Beginning (in Shares) at Dec. 31, 2019 | 6,687,475 | 37,031,841 | |||
Common stock share issued upon exercise of stock options | 41 | 41 | |||
Common stock share issued upon exercise of stock options (in Shares) | 36,447 | ||||
Share-based compensation expense | 209 | 209 | |||
Net loss | (1,607) | (1,607) | |||
Balance at Ending at Mar. 31, 2020 | 1,804 | $ 7,935 | $ 28 | 13,134 | (19,293) |
Balance at Ending (in Shares) at Mar. 31, 2020 | 6,687,475 | 37,068,288 | |||
Balance at Beginning at Dec. 31, 2020 | 776 | $ 7,935 | $ 28 | 14,166 | (21,353) |
Balance at Beginning (in Shares) at Dec. 31, 2020 | 6,687,475 | 37,366,865 | |||
Common stock share issued upon exercise of stock options | $ 570 | $ 2 | 568 | ||
Common stock share issued upon exercise of stock options (in Shares) | 690,551 | 690,551 | |||
Share-based compensation expense | $ 402 | 402 | |||
Net loss | (2,432) | (2,432) | |||
Balance at Ending at Mar. 31, 2021 | $ (684) | $ 7,935 | $ 30 | $ 15,136 | $ (23,785) |
Balance at Ending (in Shares) at Mar. 31, 2021 | 6,687,475 | 38,057,416 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (2,432) | $ (1,607) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 117 | 304 |
(Recovery) Provision for allowance for doubtful accounts | (77) | 73 |
Share-based compensation expense | 402 | 209 |
Amortization of debt issuance costs | 43 | 65 |
(Recovery) Provision for inventory obsolescence | (27) | 53 |
Net changes in operating assets and liabilities: | ||
Accounts Receivable | 3,769 | 3,807 |
Inventory | 478 | (1,360) |
Prepaid expenses and other assets | (379) | 147 |
Accounts payable | (1,173) | 1,465 |
Accrued liabilities | (1,167) | (4,051) |
Net cash used in operating activities | (446) | (895) |
Cash flows from investing activities | ||
Purchases of property and equipment | (196) | (674) |
Net cash used in investing activities | (196) | (674) |
Cash flows from financing activities | ||
Repayment on SBA Loan | (1,788) | |
Debt issuance costs | (8) | |
Proceeds from exercise of employee stock options | 569 | 41 |
Net cash (used in) provided by financing activities | (1,219) | 33 |
Net decrease in cash and cash equivalents | (1,861) | (1,536) |
Cash and cash equivalents at beginning of period | 18,079 | 12,139 |
Cash and cash equivalents at end of period | 16,218 | $ 10,603 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,945 | |
NON-CASH FINANCING ACTIVITIES: | ||
Unpaid offering costs included in accounts payable and accrued liabilities | $ 1,118 |
Formation and Business of the C
Formation and Business of the Company | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company The Company Treace Medical Concepts, LLC was formed on July 29, 2013. Effective July 1, 2014, the entity converted to a C Corporation and changed its name to Treace Medical Concepts, Inc. (the “Company”). The Company is a commercial-stage orthopaedic medical device company driving a paradigm shift in the surgical treatment of Hallux Valgus ® ™ The Company received 510(k) clearance for the Lapiplasty System in March 2015 and began selling its surgical medical devices in September 2015. Initial Public Offering On April 27, 2021, the Company completed its initial public offering (“IPO”) of 12,937,500 shares of its common stock, which included the exercise in full of the underwriters’ option to purchase additional shares. As part of the IPO, 6,953,125 shares of common stock were issued and sold by the Company (inclusive of 703,125 shares pursuant to the exercise of the underwriters’ option) and 5,984,375 shares of common stock were sold by the selling stockholders named in the prospectus (inclusive of 984,375 shares pursuant to the exercise of the underwriters’ option), at a price to the public of $17.00 per share. The Company received net proceeds of approximately $107.1 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company of $2.9 million. Upon the completion of the IPO, all 6,687,475 shares of Series A convertible preferred stock then outstanding were converted into shares of common stock on a one-to-one Forward Stock Split On April 16, 2021, in connection with the IPO, the Company filed an Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to implement a 1.3375-for-1 Coronavirus Pandemic The Company’s operations have been impacted by the coronavirus (“COVID-19”) COVID-19, shelter-in-place COVID-19, shelter-in-place |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These condensed financial statements have been prepared on the same basis as the Company’s annual financial statements included in the final prospectus filed with SEC dated April 22, 2021 in connection with the Company’s IPO. The unaudited condensed financial statements included herein reflect all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for future quarters or for the fiscal year ending December 31, 2021. Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting periods. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Significant estimates and assumptions include reserves and write-downs related to accounts receivable, inventories, the recoverability of long term assets, valuation of equity instruments, valuation of common stock, stock-based compensation, deferred tax assets and related valuation allowances and impact of contingencies. Property and Equipment, Net Property and equipment is recorded at cost. Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives of the related assets as follows: Years Furniture, fixtures and equipment 7 Machinery and equipment 3 Capitalized surgical instruments 3 Computer equipment 3 Leasehold improvements 5 or lease term, whichever Software 3 Beginning January 1, 2021, the Company adjusted the useful life of its capitalized instruments from 18 months to 36 months. The change in useful life was made as a prospective adjustment and resulted in a decrease of depreciation expense of less than $0.1 million during the three months ended March 31, 2021 and no impact on earnings per share. The change in useful life is expected to reduce depreciation expense by $0.2 million per year. Segments The Company operates and manages its business as one reportable and operating segment, which is the business of designing, manufacturing, and marketing medical devices for physicians, surgeons, ambulatory surgery centers and hospitals. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating and evaluating financial performance. All long-lived assets are maintained in the United States. Concentration of Credit Risk The Company earns revenue from the sale of its products to customers such as hospitals and ambulatory surgery centers. Sales of the Lapiplasty System and ancillary products accounted for the Company’s revenue for the three months ended March 31, 2021 and 2020. No single customer accounted for more than 10% of revenue for the three months ended March 31, 2021 and 2020. The Company’s accounts receivable are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral from its customers and independent sales agents. At March 31, 2021 and December 31, 2020, no customer accounted for more than 10% of accounts receivable or revenue. Accounts Receivable and Allowances Accounts receivable are generally from hospitals and ambulatory surgery centers and are stated at amounts billed less allowances for doubtful accounts. The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments. Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic related risks and economic conditions that may affect a customer’s ability to pay. Accounts receivable are written off when the Company deems individual balances are no longer collectible. As of March 31, 2021 and December 31, 2020, accounts receivable is presented net of an allowance for doubtful accounts of $0.3 million and $0.4 million respectively. For the three months ended March 31, 2021 and 2020, the Company recorded a recovery (provision) for bad debts of $0.1 million and $(0.1) million, respectively. Inventories Inventories consist primarily of surgical kits and components as finished goods and are stated at the lower of cost or net realizable value. Cost is determined based on an average cost method which approximates the first-in, first-out The Company reviews inventory for obsolescence and writes down inventory, as necessary. For the three months ended March 31, 2021 and 2020, the Company recorded a recovery (provision) of less than $0.1 million and $(0.1) million for obsolete inventory to cost of goods sold. Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and other fees and costs relating to the Company’s IPO, are capitalized and recorded on the balance sheet. The deferred offering costs are offset against the proceeds received upon the closing of the IPO. As of March 31, 2021 and December 31, 2020, $1.1 million and $0.2 million of deferred offering costs were recorded on the condensed balance sheets. During the three months ended March 31, 2021 and 2020, the Company did not write off any deferred offering costs. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases 2018-10, Leases 2016-02. 2019-01, 2016-02. right-of-use Leases 2018-11, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses 2019-10, |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Assets and liabilities recorded at fair value in the condensed financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3—Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 15,347 $ — $ — $ 15,347 Total $ 15,347 $ — $ — $ 15,347 Liabilities: Derivative liability $ — $ — $ 245 $ 245 Total $ — $ — $ 245 $ 245 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 17,577 $ — $ — $ 17,577 Total $ 17,577 $ — $ — $ 17,577 Liabilities: Derivative liability $ — $ — $ 245 $ 245 Total $ — $ — $ 245 $ 245 (1) Money market funds are included in cash and cash equivalents in the balance sheets as of March 31, 2021 and December 31, 2020. As discussed in Note 6, in July 2020, the Company entered into a non-revolving There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2021 and December 31, 2020. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | 5. Balance Sheet Components Cash and Cash Equivalents The Company’s cash and cash equivalents consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cash $ 871 $ 502 Cash equivalents: Money market funds 15,347 17,577 Total cash and cash equivalents $ 16,218 $ 18,079 Property and equipment, net The company’s property and equipment, net considered of the following (in thousands): March 31, 2021 December 31, 2020 Furniture and fixtures, and equipment $ 131 $ 131 Construction in Progress 5 — Machinery and equipment 265 226 Capitalized surgical instruments 2,614 2,652 Computer equipment 153 150 Leasehold improvements 187 168 Software 138 138 Total property and equipment 3,493 3,465 Less: accumulated depreciation and amortization (2,564 ) (2,636 ) Property and equipment, net $ 929 $ 829 Depreciation and amortization expense on property and equipment was $0.1 million and $0.3 million for the three months ended March 31, 2021 and 2020. Accrued liabilities Accrued other liabilities consist of the following (in thousands): March 31, 2021 December 31, 2020 Accrued expenses $ 1,277 $ 565 Accrued royalties expenses 809 1,032 Other 735 251 Total accrued liabilities $ 2,821 $ 1,848 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. Long Term Debt Silicon Valley Bank On December 31, 2019, the Company entered into the Second Amendment to the Loan and Security Agreement (the “Second Amendment”) with Silicon Valley Bank (“SVB”). The Second Amendment represents a modification to the First Amendment to the Loan and Security (the “First Amendment”) dated February 14, 2019 and the Loan and Security Agreement (the “LSA”) dated April 18, 2018. The LSA, First Amendment, and Second Amendment (collectively the “SVB Credit Facility”) is secured by substantially all the assets of the Company (excluding intellectual property) and matures August 3, 2024. The SVB Credit Facility provides for up to $25.0 million in term loans and up to $5.0 million in a revolving line of credit. The term loans are structured in three tranches. The Company received the proceeds from tranche 1 of $10.0 million upon execution of the First Amendment. The Company received the proceeds from tranche 2 of $10.0 million upon execution of the Second Amendment. Access to tranche 3 of remaining $5.0 million was subject to achievement of a revenue milestone prior to December 31, 2020. The term loans are interest only through August 1, 2021 with amortization of the principal balance beginning September 1, 2021 through the Maturity Date. The interest only period can be extended through February 1, 2022 based on achievement of the milestone and the funding of tranche 3. The term loans accrue interest at a floating per annum rate equal to the greater of (i) prime rate plus 2.25% as published in the money rates section of the Wall Street Journal, or (ii) seven and one-half Availability under the revolving line of credit is subject to a formula based on, among other things, eligible accounts receivable. Borrowings on the line of credit bear interest at a floating rate per annum equal to 1.00% above the prime rate as published from time to time in the money rates section of the Wall Street Journal. Under the terms of the SVB Credit Facility, the Company granted SVB first priority liens and security interests in substantially all of the Company’s assets (excluding its intellectual property but including any proceeds and rights to payments associated with our intellectual property) as collateral. The SVB Credit Facility also contains certain representations and warranties, indemnification provisions in favor of SVB, affirmative and negative covenants (including, among other things, requirements that the Company maintain a minimum amount of liquidity and achieve minimum revenue targets, limitations on other indebtedness, liens, acquisitions, investments and dividends and requirements relating to financial reporting, sales and leasebacks, insurance and protection of the Company’s intellectual property rights) and events of default (including payment defaults, breaches of covenants following any applicable cure period, investor abandonment, a material impairment in the perfection or priority of the lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The Company issued warrants in connection with the SVB Credit Facility that gives the lender the right to purchase up to 713,330 shares of the Company’s Class A common stock (see Note 9 and Note 12). The Company valued the warrants based upon the probability-weighted expected return method and option pricing model using the Black-Scholes option pricing model and accounted for the warrants as debt discount and additional paid in capital on the balance sheets. The Company paid issuance costs in connection with the SVB Credit Facility of $0.3 million which were recorded as a reduction of debt. The debt discount and debt issuance costs are amortized over the term of the debt using the effective interest method and included within interest expense on the statement of operations. On August 3, 2020, the Company entered into the Third Amendment to the LSA (the “Third Amendment”) with SVB. The Third Amendment, which represents a modification to the Second Amendment, terminates tranche 3 of the term loans, increases the revolving line of credit from $5.0 million to $10.0 million, and extends the maturity date to August 3, 2024. In addition, the Third Amendment modifies the interest rate on the revolving line of credit to the greater of (a) 1.00% above the prime rate as published from time to time in the money rates section of the Wall Street Journal and (b) 5.00%, and includes a termination fee to be an amount of 1.00% of the revolving line of credit if the termination occurs before the second anniversary of the closing of the Third Amendment. Proceeds received from the CRG Term Loan Facility were used to repay the $20.0 million in term loans outstanding under the Second Amendment to the LSA (described below). As of December 31, 2020, the Company had $10.0 million in available borrowings on the line of credit and was in compliance with all covenants under the SVB Credit Facility. The Company did not have any balances outstanding under the revolving line of credit as of March 31, 2021 and December 31, 2020. CRG Term Loan Facility On July 31, 2020, the Company entered into the “CRG Term Loan Facility to obtain up to $50.0 million in financing over three tranches to be advanced no later than December 31, 2021. Principal amounts totaling $30 million were borrowed through December 31, 2020 and are currently outstanding. The CRG Term Loan Facility matures on June 30, 2025, and the Company can elect to make quarterly interest-only payments or to pay interest in-kind Under the terms of the CRG Term Loan Facility, the Company granted CRG first priority liens and security interests in substantially all of the Company’s assets as collateral (including the Company’s intellectual property), provided that the priority of such liens are subject to an intercreditor agreement between CRG and SVB. The CRG Term Loan Facility also contains certain representations and warranties, indemnification provisions in favor of CRG, affirmative and negative covenants (including, among other things, requirements that the Company maintain a minimum amount of liquidity and achieve minimum revenue targets, comply with limitations on other indebtedness, liens, acquisitions, investments and dividends and requirements relating to financial reporting, sales and leasebacks, insurance and protection of the Company’s intellectual property rights) and events of default (including payment defaults, breaches of covenants following any applicable cure period, investor abandonment, a material impairment in the perfection or priority of the lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The Company paid $0.5 million in fees to CRG and $0.2 million in fees to third parties in connection with the CRG Term Loan Facility. The fees were recorded as debt issuance costs and classified as contra-debt. In addition, the Company recognized $0.2 million as debt discount on borrowings under the CRG Term Loan Facility due to embedded features contained in the agreement which resulted in a derivative liability. Debt issuance costs and debt discount are amortized to interest expense using the effective interest method. As of March 31, 2021 and December 31, 2020, the balance outstanding under the CRG Term Loan Facility, net of debt issuance costs and debt discount, was $29.2 million and $29.2 million, respectively. PPP Loan The Company applied for and received a $1.8 million loan (the “PPP Loan”) under the Paycheck Protection Program ( the “PPP”) under the Coronavirus Aid Relief, and Economic Security Act (“CARES Act”). The PPP Loan, which was in the form of a promissory note, dated April 22, 2020, between the Company and SVB as the lender, matures on April 22, 2022 and accrued interest at a fixed rate of 1% per annum, and was payable monthly on the date that is the latter of (i) the date that is the 10th month after the end of the PPP Loan covered period. The Company repaid $1.8 million borrowed under the PPP Loan in March 2021. The Company’s debt consisted of the following (in thousands): March 31, December 31, Revolving line of credit SVB Credit Facility $ — $ — Term loans CRG Term Loan Facility 30,000 30,000 PPP Loan — 1,788 Total term loans 30,000 31,788 Less: debt discount and issuance costs (767 ) (811 ) Total debt 29,233 30,977 Short-term debt — 1,788 Long-term debt $ 29,233 $ 29,189 As of March 31, 2021, future payments under term loan, including interest only payments and the final payment, were as follows (in thousands): Fiscal Year 2021 (remaining) $ — 2022 — 2023 — 2024 — 2025 30,000 Total principal payments 30,000 Less: Unamortized debt discount and debt issuance costs (767 ) Total short-term and long-term debt $ 29,233 During the three months ended March 31, 2021 and 2020, the Company recorded $1.0 million and $0.4 million, respectively, in interest expense related to the borrowings under the SVB Credit Facility and CRG Credit Facility. During the three months ended March 31, 2021 and 2020, amortization of the debt discount was immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Lease The Company has commitments for future payments related to its lease of office space located in Ponte Vedra, Florida. The Company leases its office space under an operating lease agreement expiring in 2026. Lease payments comprise of the base rent stated in the lease plus operating costs which include taxes, insurance and common area maintenance. In November of 2019 the Company amended the lease agreement to include additional space of the second floor of their existing building. In March 2021, the Company again amended the lease agreement to further expand the Company’s office space and extend the lease expiration date to five years from the commencement of the Company’s leasing of the expanded premises. The amended lease will commence at the later of May 1, 2021 or on the tenth day after delivery of the premises to the Company and the new rent is reflected as such in the minimum rental obligation schedule below. The future minimum rental obligations required under non-cancelable Fiscal Year 2021 (remaining) $ 637 2022 899 2023 725 2024 746 2025 and thereafter 847 Total minimum lease payments $ 3,854 Total rent expense was $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020. License and Royalty Commitments The Company has entered into product development and fee for service agreements with members of its Surgeon Advisory Board that specify the terms under which the member is compensated for his or her consulting services and grants the Company rights to the intellectual property created by the member in the course of such services. As products are commercialized with the assistance of members of the Surgeon Advisory Board, the Company may agree to enter into royalty agreement if the member’s contributions to the product are novel, significant and innovative. As of March 31, 2021 and December 31, 2020, the Company has royalty agreements with certain members of its Surgeon Advisory Board providing for royalties based on each individual’s level of contribution. Each royalty agreement: (i) confirms the irrevocable transfer to the Company of all pertinent intellectual property rights; (ii) sets the applicable royalty rate; (iii) sets the period of time during which royalties are payable; (iv) is for a term of three years, renewable by the parties, and may be terminated by either party on 90 days’ notice for convenience (provided that if terminated by the Company for convenience the obligation to pay royalties is not affected); and (v) prohibits the payment of royalties on products sold to entities and/or individuals with whom the surgeon advisor or any other surgeon advisor entitled to royalties is affiliated. Each of the royalty agreements may be subsequently amended to add the license of additional intellectual property covering new products, and as a result, multiple royalty rates and duration of royalty payments may be included in one royalty agreement. As of March 31, 2021 and December 31, 2020, the Company’s royalty agreements provide for (i) royalty payments for 10 years from first commercial sale of the relevant product and (ii) a royalty rate for each such agreement ranging from 0.5% to 3% of net sales for the particular product to which the surgeon contributed. The Company recognized royalties’ expense of $0.8 million and $0.5 million for the three months ended March 31, 2021 and 2020, respectively, resulting in an aggregate royalty rate of 4.3% and 4.4% for the three months ended March 31, 2021 and 2020, respectively. Contingencies From time to time, the Company may be a party to various litigation claims in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with legal counsel, the need to record a liability for litigation and contingencies. Accrual estimates are recorded when and if it is determinable that such a liability for litigation and contingencies are both probable and reasonably estimable. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company has not recorded an income tax provision for the three months ended March 31, 2021 and 2020 due to its operating losses. All losses before income taxes were generated in the United States. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. Due to the Company’s history of net losses, the deferred tax assets have been fully offset by full valuation allowance of $4.9 million and $5.5 million as of March 31, 2021 and December 31, 2020, respectively. The Company’s change in the deferred tax asset valuation allowance for the three months ended March 31, 2021 and 2020, were approximately $0.5 million and $0.9 million, respectively. The Company had unused federal and state net operating loss carryforwards of approximately $12.0 million and $11.5 million, respectively as of March 31, 2021, and federal and state net operating loss carryforwards of approximately $14.6 million The federal and state net operating loss carryforwards and credits may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code and similar provisions under state law. The Tax Reform Act contains provisions that limit the federal net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of the Company’s stock, increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. The Company may have previously experienced, and may in the future experience, one or more Section 382 “ownership changes,” including in connection with the IPO. If so, the Company may lose some or all of the tax benefits of its carryforwards and credits. Based on our analysis as of March 31, 2021, we have determined that we do not expect these limitations to impair our ability to use our net operating losses prior to expiration. The Company generally provides for income taxes in interim periods based on the estimated annual effective tax rate for the year, adjusting for discrete items in the quarter in which they arise. The annual effective tax rate before discrete items was 25.5% for each of the three months ended March 31, 2021 and 2020. The Company’s effective tax rate for the three months ended March 31, 2021 was based on best estimates, which may fluctuate through the remainder of the year due to the volatility and uncertainty of global economic conditions in connection with the COVID-19 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Convertible Preferred Stock Under the Company’s Amended and Restated Certificate of Incorporation in effect immediately before completion of the IPO, the Company was authorized to issue up to 6,687,500 Preferred Shares, with 6,687,475 shares issued and outstanding as of March 31, 2021 and December 31, 2020. Dividends At March 31, 2021 and December 31, 2020, the Company had accumulated, undeclared and unpaid Preferred Shares dividend of $2.5 million and $2.3 million, respectively, which may be paid from available cash or in Class A Common Stock. Voting Rights Conversion non-assessable In addition, upon conversion, the Company was required to pay all accrued and unpaid dividends on such converted Preferred Shares (i) in cash, or (ii) upon the election of the Company’s Board of Directors or the holders of Preferred Shares to receive payment of the dividends in kind, by issuing the holder additional shares of Class A Common Stock equal to the quotient of the accrued and unpaid dividends on the Preferred Shares with respect to the converted shares, divided by the most recent per share value, as determined by an independent appraiser. The Amended and Restated Certificate of Incorporation in effect immediately before the Company’s IPO incorporated a provision whereby any accrued but unpaid dividends on the Preferred Shares automatically converted into common stock upon the Company’s initial public offering, with April 16, 2021 being the date used for the purpose of calculating such accrued and unpaid dividends. Common Stock As of March 31, 2021 and December 31, 2020, the Company was authorized to issue up to 50,000,000 Class A Common Stock voting shares (which was adjusted to 66,875,000 shares with the Forward Stock Split) and 1,000,000 Class B Common Stock non-voting Shares Reserved for Future Issuance As of March 31, 2021 and December 31, 2020, the Company had reserved shares of common stock for future issuances as follows: March 31, December 31, Series A convertible preferred stock outstanding 6,687,475 6,687,475 Warrants to purchase Class A common stock 713,330 713,330 Common stock options issued and outstanding 7,897,688 8,081,828 Estimated preferred share conversion for dividends in kind 146,803 334,316 Class A common stock available for future issuance 13,372,288 13,691,186 Class B common stock available for future issuance 1,000,000 1,000,000 Total 29,817,584 30,508,135 Stock Option Plan The Company has approved the 2014 Stock Plan (the “Stock Plan”), to allow for the issuance of stock purchase rights and to grant options to purchase Class A Common Stock to employees, directors and consultants. Stock options shall have a term of no more than ten years from the date of grant and vest in equal installments over a maximum of five years. At March 31, 2021, the Stock Plan is authorized to grant awards for up to 10,700,000 shares of Class A Common Stock which may include incentive stock options, non-statutory Activity under the Stock Plans is set forth below: Outstanding Options Shares Number of Weighted- Weighted- Balance, December 31, 2020 1,800,000 8,081,828 6.86 $ 1.82 Options granted (511,594 ) 511,594 $ 7.03 Options exercised — (690,551 ) $ 0.82 Options canceled 5,183 (5,183 ) $ 1.35 Balance, March 31, 2021 1,293,589 7,897,688 6.97 $ 2.24 Options vested and expected to vest at March 31, 2021 6,813,429 6.65 $ 1.85 Options vested and exercisable at March 31, 2021 4,446,820 5.79 $ 1.02 The aggregate intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was $5.4 million and $0.2 million, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock for stock options that were in-the-money year-end. 52.3 Stock-Based Compensation During the three months ended March 31, 2021 and 2020, the Company granted stock options to employees to purchase an aggregate of 511,594 and 484,476 shares respectively, of the Company’s common stock. The weighted-average grant date fair value of the employee stock options granted during the three months ended March 31, 2021 and 2020 were $3.78 and $1.70 per share, respectively. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options at the grant dates with the following weighted-average assumptions for options granted during the three months ended March 31, 2021 and 2020: March 31, 2021 2020 Expected term (in years) 1.97 – 2.16 years 2.7 – 3.3 years Expected volatility 54.41% - 55.60% 37.09% –51.29% Risk-free interest rate 0.07% - 0.09% 0.18% -1.53% Expected dividend yield 0.00% 0.00% Expected Term The expected term represents the period that the stock options are expected to remain outstanding. The Company determined the expected term based upon the probabilities of the anticipated timing of potential liquidity events. Expected Volatility The expected volatility is derived from the historical stock volatilities of several comparable publicly listed peers over a period approximately equal to the expected term of the options as the Company has no trading history to determine the volatility of its common stock. In evaluating similarity, the Company considered factors such as industry, stage of life cycle and size. Risk-Free Interest Rate The risk-free interest rate assumption is based on the U.S. Treasury yield curve in effect at the date of grant for zero-coupon Expected Dividend Yield The expected dividend yield is zero as the Company has not paid nor does it anticipate paying any dividends on its common stock in the foreseeable future. Fair Value of Common Stock The fair value of the Company’s common stock is determined by the Board of Directors with assistance from Management and, in part, on input from an independent third-party valuation firm. The Board of Directors determines the fair value of common stock by considering a number of objective and subjective factors, including valuations of comparable companies, sales of convertible preferred stock, operating and financial performance, probabilities of anticipated timing of potential liquidity events, the lack of liquidity of the Company’s common stock and the general and industry-specific economic outlook. Stock-Based Compensation Expense Stock-based compensation expense is reflected in the statements of operations and comprehensive loss as follows (in thousands): March 31, 2021 2020 Sales and marketing expenses $ 147 $ 95 Research and development expenses 63 49 General and administrative expenses 192 65 Total $ 402 $ 209 As of March 31, 2021 and December 31, 2020, there was $5.5 million and $4.1 million, respectively, of unrecognized stock-based compensation expense related to unvested common stock options, which the Company expects to recognize over a weighted-average period of 3.2 years and 3.0 years, respectively. The total grant date fair value of shares vested during the three months ended March 31, 2021 and 2020 were $0.5 million and $0.4 million, respectively. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 11. Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders which is computed by dividing the net loss attributable to common stockholders by the weighted- average number of shares of common stock outstanding for the period. As the Company reported a net loss for the three months ended March 31, 2021 and 2020, basic net loss per share attributable to common stockholders was the same as diluted net loss per share attributable to common stockholders as the inclusion of potentially dilutive shares would have been antidilutive if included in the calculation (in thousands, except share and per share amounts): March 31, 2021 2020 Numerator Net loss $ (2,432 ) $ (1,607 ) Adjust: Convertible preferred stock cumulative and undeclared dividends (158 ) (158 ) Net loss attributable to common stockholders (2,590 ) $ (1,765 ) Denominator Weighted-average common stock outstanding, basic and diluted 37,854,687 37,052,294 Net loss per share attributable to common stockholders, basic and diluted $ (0.07 ) $ (0.05 ) The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding because such securities have an antidilutive impact due to the Company’s net loss, in common stock equivalent shares: March 31, December 31, Series A convertible preferred stock outstanding 6,687,475 6,687,475 Warrants to purchase Class A common stock 713,330 713,330 Common stock option issued and outstanding 7,897,688 8,081,828 Total 15,298,493 15,482,633 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events The Company evaluated subsequent events through May 25 Shares Authorized On April 16, 2021, the Company filed an Amended and Restated Certificate of Incorporation with the Delaware Secretary of State that implemented the Forward Stock Split, effective on April 16, 2021, whereby each 1.0 share of Class A common stock issued and outstanding was reclassified as 1.3375 shares of Class A common stock and each 1.0 Preferred Share issued and outstanding was reclassified as 1.3375 Preferred Shares. The total number of shares of all classes of stock which the Company is authorized to issue was adjusted to 73,562,500, divided into 66,875,000 shares of Class A common stock and 6,687,500 Preferred Shares. There was no On April 27, 2021, the Company filed its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware and its Amended and Restated Bylaws became effective in connection with the closing of the Company’s IPO. The Amended and Restated Certificate of Incorporation authorized 300,000,000 shares of common stock, deleted all references to the various series of preferred stock that were previously authorized and created 5,000,000 shares of undesignated preferred stock with terms to be set by the Board of Directors. Adoption of 2021 Equity Award Plan In April 2021, the Company’s Board of Directors and stockholders approved the 2021 Equity Award Plan (“2021 Plan”). The Company has initially reserved 5,046,278 shares of common stock for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and other stock-based awards. The number of shares initially reserved for issuance or transfer pursuant to awards under the 2021 Plan will be increased by (i) the number of shares represented by awards outstanding under the Stock Plan (“Prior Plan Awards”) that become available for issuance under the counting provisions described below following the effective date and (ii) an annual increase on the first day of each fiscal year beginning in 2022 and ending in 2031, equal to the lesser of (i) 5.0% of the shares of stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of stock as determined by our board of directors; provided, however, that no more than 37,847,090 shares of stock may be issued upon the exercise of incentive stock options. Adoption of Employee Share Purchase Plan In April 2021, the Company’s Board of Directors and stockholders approved the 2021 Employee Stock Purchase Plan (“ESPP”) which the Company does not expect to activate for participation during 2021. The Company has initially reserved 504,627 shares of common stock for purchase under the ESPP. Each offering to the employees to purchase stock under the ESPP will begin on a date to be determined by the Company’s Compensation Committee and will end no later than six months thereafter. On each purchase date, which falls on the last date of each offering period, ESPP participants will purchase shares of common stock at a price per share equal to 85% of the lesser of (1) the fair market value per share of the common stock on the offering date or (2) the fair market value of the common stock on the purchase date. The occurrence and duration of offering periods under the ESPP are subject to the determinations of the Company’s Compensation Committee, in its sole discretion. Exercise of Warrants On April 28, 2021, the holders of warrants to purchase 713,330 shares of the Company’s common stock issued in connection with the SVB Credit Facility notified the Company that they had elected to exercise their warrants in a cashless net exercise using the closing price of the Company’s common stock on the prior business day (April 27, 2021) of $31.27 as permitted by the warrant agreement. The exercise price of the warrants was $4.0224. Accordingly, the transaction resulted in 621,570 shares of the Company’s common stock being issued to the warrant holders. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These condensed financial statements have been prepared on the same basis as the Company’s annual financial statements included in the final prospectus filed with SEC dated April 22, 2021 in connection with the Company’s IPO. The unaudited condensed financial statements included herein reflect all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for future quarters or for the fiscal year ending December 31, 2021. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting periods. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Significant estimates and assumptions include reserves and write-downs related to accounts receivable, inventories, the recoverability of long term assets, valuation of equity instruments, valuation of common stock, stock-based compensation, deferred tax assets and related valuation allowances and impact of contingencies. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is recorded at cost. Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives of the related assets as follows: Years Furniture, fixtures and equipment 7 Machinery and equipment 3 Capitalized surgical instruments 3 Computer equipment 3 Leasehold improvements 5 or lease term, whichever Software 3 Beginning January 1, 2021, the Company adjusted the useful life of its capitalized instruments from 18 months to 36 months. The change in useful life was made as a prospective adjustment and resulted in a decrease of depreciation expense of less than $0.1 million during the three months ended March 31, 2021 and no impact on earnings per share. The change in useful life is expected to reduce depreciation expense by $0.2 million per year. |
Segments | Segments The Company operates and manages its business as one reportable and operating segment, which is the business of designing, manufacturing, and marketing medical devices for physicians, surgeons, ambulatory surgery centers and hospitals. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating and evaluating financial performance. All long-lived assets are maintained in the United States. |
Concentration of Credit Risk | Concentration of Credit Risk The Company earns revenue from the sale of its products to customers such as hospitals and ambulatory surgery centers. Sales of the Lapiplasty System and ancillary products accounted for the Company’s revenue for the three months ended March 31, 2021 and 2020. No single customer accounted for more than 10% of revenue for the three months ended March 31, 2021 and 2020. The Company’s accounts receivable are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral from its customers and independent sales agents. At March 31, 2021 and December 31, 2020, no customer accounted for more than 10% of accounts receivable or revenue. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Accounts receivable are generally from hospitals and ambulatory surgery centers and are stated at amounts billed less allowances for doubtful accounts. The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments. Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic related risks and economic conditions that may affect a customer’s ability to pay. Accounts receivable are written off when the Company deems individual balances are no longer collectible. As of March 31, 2021 and December 31, 2020, accounts receivable is presented net of an allowance for doubtful accounts of $0.3 million and $0.4 million respectively. For the three months ended March 31, 2021 and 2020, the Company recorded a recovery (provision) for bad debts of $0.1 million and $(0.1) million, respectively. |
Inventories | Inventories Inventories consist primarily of surgical kits and components as finished goods and are stated at the lower of cost or net realizable value. Cost is determined based on an average cost method which approximates the first-in, first-out The Company reviews inventory for obsolescence and writes down inventory, as necessary. For the three months ended March 31, 2021 and 2020, the Company recorded a recovery (provision) of less than $0.1 million and $(0.1) million for obsolete inventory to cost of goods sold. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and other fees and costs relating to the Company’s IPO, are capitalized and recorded on the balance sheet. The deferred offering costs are offset against the proceeds received upon the closing of the IPO. As of March 31, 2021 and December 31, 2020, $1.1 million and $0.2 million of deferred offering costs were recorded on the condensed balance sheets. During the three months ended March 31, 2021 and 2020, the Company did not write off any deferred offering costs. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of property and equipment depreciation estimated useful lives | Property and equipment is recorded at cost. Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives of the related assets as follows: Years Furniture, fixtures and equipment 7 Machinery and equipment 3 Capitalized surgical instruments 3 Computer equipment 3 Leasehold improvements 5 or lease term, whichever Software 3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities are measured at fair value | Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 15,347 $ — $ — $ 15,347 Total $ 15,347 $ — $ — $ 15,347 Liabilities: Derivative liability $ — $ — $ 245 $ 245 Total $ — $ — $ 245 $ 245 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 17,577 $ — $ — $ 17,577 Total $ 17,577 $ — $ — $ 17,577 Liabilities: Derivative liability $ — $ — $ 245 $ 245 Total $ — $ — $ 245 $ 245 (1) Money market funds are included in cash and cash equivalents in the balance sheets as of March 31, 2021 and December 31, 2020. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of the Company's Cash and Cash Equivalents Consisted | The Company’s cash and cash equivalents consisted of the following (in thousands): March 31, 2021 December 31, 2020 Cash $ 871 $ 502 Cash equivalents: Money market funds 15,347 17,577 Total cash and cash equivalents $ 16,218 $ 18,079 |
Summary of the Company's Property and Equipment, Net Considered | The company’s property and equipment, net considered of the following (in thousands): March 31, 2021 December 31, 2020 Furniture and fixtures, and equipment $ 131 $ 131 Construction in Progress 5 — Machinery and equipment 265 226 Capitalized surgical instruments 2,614 2,652 Computer equipment 153 150 Leasehold improvements 187 168 Software 138 138 Total property and equipment 3,493 3,465 Less: accumulated depreciation and amortization (2,564 ) (2,636 ) Property and equipment, net $ 929 $ 829 |
Summary of Accrued Other Liabilities Consist | Accrued other liabilities consist of the following (in thousands): March 31, 2021 December 31, 2020 Accrued expenses $ 1,277 $ 565 Accrued royalties expenses 809 1,032 Other 735 251 Total accrued liabilities $ 2,821 $ 1,848 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Instruments | The Company’s debt consisted of the following (in thousands): March 31, December 31, Revolving line of credit SVB Credit Facility $ — $ — Term loans CRG Term Loan Facility 30,000 30,000 PPP Loan — 1,788 Total term loans 30,000 31,788 Less: debt discount and issuance costs (767 ) (811 ) Total debt 29,233 30,977 Short-term debt — 1,788 Long-term debt $ 29,233 $ 29,189 |
Summary of Maturities of Long-term Debt | As of March 31, 2021, future payments under term loan, including interest only payments and the final payment, were as follows (in thousands): Fiscal Year 2021 (remaining) $ — 2022 — 2023 — 2024 — 2025 30,000 Total principal payments 30,000 Less: Unamortized debt discount and debt issuance costs (767 ) Total short-term and long-term debt $ 29,233 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Rental Obligations Required Under Non-cancelable Leases | The future minimum rental obligations required under non-cancelable Fiscal Year 2021 (remaining) $ 637 2022 899 2023 725 2024 746 2025 and thereafter 847 Total minimum lease payments $ 3,854 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Summary Of The Company Had Reserved Shares Of Common Stock For Future Issuances | As of March 31, 2021 and December 31, 2020, the Company had reserved shares of common stock for future issuances as follows: March 31, December 31, Series A convertible preferred stock outstanding 6,687,475 6,687,475 Warrants to purchase Class A common stock 713,330 713,330 Common stock options issued and outstanding 7,897,688 8,081,828 Estimated preferred share conversion for dividends in kind 146,803 334,316 Class A common stock available for future issuance 13,372,288 13,691,186 Class B common stock available for future issuance 1,000,000 1,000,000 Total 29,817,584 30,508,135 |
Summary Of The Stock Plans is Set Forth | Activity under the Stock Plans is set forth below: Outstanding Options Shares Number of Weighted- Weighted- Balance, December 31, 2020 1,800,000 8,081,828 6.86 $ 1.82 Options granted (511,594 ) 511,594 $ 7.03 Options exercised — (690,551 ) $ 0.82 Options canceled 5,183 (5,183 ) $ 1.35 Balance, March 31, 2021 1,293,589 7,897,688 6.97 $ 2.24 Options vested and expected to vest at March 31, 2021 6,813,429 6.65 $ 1.85 Options vested and exercisable at March 31, 2021 4,446,820 5.79 $ 1.02 |
Summary Of Company Uses the Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options at the Grant | The Company uses the Black-Scholes option pricing model to determine the fair value of stock options at the grant dates with the following weighted-average assumptions for options granted during the three months ended March 31, 2021 and 2020: March 31, 2021 2020 Expected term (in years) 1.97 – 2.16 years 2.7 – 3.3 years Expected volatility 54.41% - 55.60% 37.09% –51.29% Risk-free interest rate 0.07% - 0.09% 0.18% -1.53% Expected dividend yield 0.00% 0.00% |
Summary Of Stock-Based Compensation Expense Is Reflected In The Statements Of Operations And Comprehensive Loss | Stock-based compensation expense is reflected in the statements of operations and comprehensive loss as follows (in thousands): March 31, 2021 2020 Sales and marketing expenses $ 147 $ 95 Research and development expenses 63 49 General and administrative expenses 192 65 Total $ 402 $ 209 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted | As the Company reported a net loss for the three months ended March 31, 2021 and 2020, basic net loss per share attributable to common stockholders was the same as diluted net loss per share attributable to common stockholders as the inclusion of potentially dilutive shares would have been antidilutive if included in the calculation (in thousands, except share and per share amounts): March 31, 2021 2020 Numerator Net loss $ (2,432 ) $ (1,607 ) Adjust: Convertible preferred stock cumulative and undeclared dividends (158 ) (158 ) Net loss attributable to common stockholders (2,590 ) $ (1,765 ) Denominator Weighted-average common stock outstanding, basic and diluted 37,854,687 37,052,294 Net loss per share attributable to common stockholders, basic and diluted $ (0.07 ) $ (0.05 ) |
Summary of Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding because such securities have an antidilutive impact due to the Company’s net loss, in common stock equivalent shares: March 31, December 31, Series A convertible preferred stock outstanding 6,687,475 6,687,475 Warrants to purchase Class A common stock 713,330 713,330 Common stock option issued and outstanding 7,897,688 8,081,828 Total 15,298,493 15,482,633 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) $ / shares in Units, $ in Millions | Apr. 27, 2021USD ($)$ / sharesshares | Apr. 16, 2021$ / sharesshares | Mar. 31, 2021 |
Company incorporation date of incorporation | Jul. 29, 2013 | ||
Subsequent Event [Member] | |||
Stock issued during the period shares including sale by the existing shareholders | 12,937,500 | ||
Sale of stock issue price per share | $ / shares | $ 17 | ||
Adjustment to additional paid in capital stock issuance costs | $ | $ 2.9 | ||
Preferred stock shares outstanding converted into equity shares | 6,687,475 | ||
Stock split ratio | 1.3375 | ||
Common stock shares authorized | 300,000,000 | ||
Preferred stock shares authorized | 5,000,000 | 6,687,500 | |
Common stock par or stated value per share | $ / shares | $ 0.001 | ||
Preferred stock par or stated value per share | $ / shares | $ 0.001 | ||
Subsequent Event [Member] | Forward Stock Split [Member] | |||
Shares authorized preferred and common stock | 73,562,500 | ||
Common stock shares authorized | 66,875,000 | ||
Preferred stock shares authorized | 6,687,500 | ||
Subsequent Event [Member] | IPO [Member] | |||
Stock issued during the period shares new issues | 6,953,125 | ||
Sale of stock by the existing shareholders | 5,984,375 | ||
Sale of stock net consideration received on the transaction | $ | $ 107.1 | ||
Subsequent Event [Member] | Over-Allotment Option [Member] | |||
Stock issued during the period shares new issues | 703,125 | ||
Sale of stock by the existing shareholders | 984,375 | ||
Series A Convertible Preferred Stock [Member] | Subsequent Event [Member] | |||
Stock shares issued during the period value dividends | $ | $ 2.5 | ||
Stock shares issued during the period shares dividends | 158,447 |
Summary of Property And Equipme
Summary of Property And Equipment Depreciation Estimated Useful Lives (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Capitalized Surgical Instruments [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 or lease term, whichever is shorter |
Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Net of an allowance for doubtful accounts | $ 300 | $ 400 | |
Net of an allowance for doubtful accounts , written off | 100 | ||
Inventory write down recovery | (27) | $ 53 | |
Deferred Offering Costs | $ 1,100 | $ 200 | |
Capitalized Surgical Instruments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of its capitalized instruments | 3 years | ||
Obsolescence [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Inventory write down recovery | $ 100 | $ 100 | |
Maximum [Member] | Revenue Benchmark [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Maximum [Member] | Accounts Receivable [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Maximum [Member] | Capitalized Surgical Instruments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of its capitalized instruments | 36 months | ||
Decrease in depreciation expense | $ 200 | ||
Minimum [Member] | Capitalized Surgical Instruments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of its capitalized instruments | 18 months | ||
Decrease in depreciation expense | $ 100 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - Minimum [Member] | Mar. 31, 2021 |
Item Effected [Line Items] | |
Lessee, Operating Lease, Term of Contract | 12 months |
ASC 842 Topic [Member] | |
Item Effected [Line Items] | |
Lessee, Operating Lease, Term of Contract | 12 months |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities are Measured at Fair Value (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities | ||
Derivative liability | $ 200,000 | |
Fair Value, Recurring [Member] | ||
Assets | ||
Money market funds | 15,347 | $ 17,577 |
Total | 15,347 | 17,577 |
Liabilities | ||
Derivative liability | 245 | 245 |
Total | 245 | 245 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Assets | ||
Money market funds | 15,347 | 17,577 |
Total | 15,347 | 17,577 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Liabilities | ||
Derivative liability | 245 | 245 |
Total | $ 245 | $ 245 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Derivative liability | $ 0.2 |
Minimum [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Probability of Default | 1.00% |
Maximum [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Probability of Default | 2.00% |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of the Company's Cash and Cash Equivalents Consisted (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||
Cash | $ 871 | $ 502 | ||
Money market funds | 15,347 | 17,577 | ||
Total cash and cash equivalents | $ 16,218 | $ 18,079 | $ 10,603 | $ 12,139 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of the Company's Property and Equipment, Net Considered (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,493 | $ 3,465 |
Less: accumulated depreciation and amortization | (2,564) | (2,636) |
Property and equipment, net | 929 | 829 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 131 | 131 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 265 | 226 |
Tools, Dies and Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,614 | 2,652 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 153 | 150 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 187 | 168 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 138 | $ 138 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Other Liabilities Consist (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued expenses | $ 1,277 | $ 565 |
Accrued royalties expenses | 809 | 1,032 |
Other | 735 | 251 |
Accrued liabilities | $ 2,821 | $ 1,848 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation and amortization expense | $ 117 | $ 304 |
Long Term Debt - Summary of Lon
Long Term Debt - Summary of Long-term Debt Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total term loans | $ 30,000 | $ 31,788 |
Less: debt discount and issuance costs | (767) | (811) |
Total short-term and long-term debt | 29,233 | 30,977 |
Short-term debt | 0 | 1,788 |
Long-term debt | 29,233 | 29,189 |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term and long-term debt | 29,200 | 29,200 |
Term Loans [Member] | CRG Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total term loans | $ 30,000 | 30,000 |
Term Loans [Member] | Paycheck Protection Programme Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total term loans | $ 1,788 |
Long Term Debt - Summary of Mat
Long Term Debt - Summary of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2025 | $ 30,000 | |
Total term loans | 30,000 | $ 31,788 |
Less: Unamortized debt discount and debt issuance costs | (767) | (811) |
Total short-term and long-term debt | $ 29,233 | $ 30,977 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | Aug. 03, 2020 | Jul. 31, 2020 | Apr. 22, 2020 | Feb. 14, 2019 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Apr. 22, 2022 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||
Proceeds from long term loan from the bank | $ 1,800,000 | |||||||||
Class of warrants or rights number of shares issuable on conversion of warrants | 713,330 | |||||||||
Line of credit outstanding | $ 0 | $ 0 | $ 0 | |||||||
Long term debt fixed rate of interest | 13.00% | |||||||||
Long term debt net of unamortized debt issuance costs and discount | 29,233,000 | 29,233,000 | $ 30,977,000 | |||||||
Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt fixed rate of interest | 1.00% | |||||||||
Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 50,000,000 | |||||||||
Long-term Debt, Maturity Date | Jun. 30, 2025 | |||||||||
Proceeds from long term loan from the bank | 30,000,000 | |||||||||
Long term debt default rate of interest | 4.00% | |||||||||
Long term debt terms of interest payment | quarterly interest-only payments or to pay interest in-kind through December 31, 2020 | |||||||||
Debt discount gross | 200,000 | |||||||||
Long term debt net of unamortized debt issuance costs and discount | 29,200,000 | 29,200,000 | 29,200,000 | |||||||
Term Loans [Member] | Third Party [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs gross | 500,000 | |||||||||
Term Loans [Member] | CRG [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs gross | $ 200,000 | |||||||||
Term Loans [Member] | Early Repayment Within One Year [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt prepayment premium percentage | 20.00% | |||||||||
Term Loans [Member] | Early Repayment => 1Year But Within 2 Years [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt prepayment premium percentage | 11.00% | |||||||||
Long Term Loan Under Paycheck Protection Program [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of long term debt borrowed from the bank | $ 1,800,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Maturity Date | Aug. 3, 2024 | |||||||||
Payment of debt issuance costs | $ 300,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | $ 5,000,000 | |||||||||
Debt instrument variable interest rate spread percentage | 1.00% | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 25,000,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Prime Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable interest rate spread percentage | 2.25% | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Interest [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt maturity start date | Aug. 1, 2021 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Interest [Member] | Based On Revenue Milestone [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt maturity start date | Feb. 1, 2022 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Principal [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt maturity start date | Sep. 1, 2021 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche One [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long term loan from the bank | $ 10,000,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long term loan from the bank | $ 10,000,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche Three [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt instrument variable interest rate percentage | 7.00% | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche Three [Member] | Based On Revenue Milestone [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long term loan from the bank | $ 5,000,000 | |||||||||
Second Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche One And Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt instrument variable interest rate percentage | 7.50% | |||||||||
Third Amendment To The Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable interest rate spread percentage | 1.00% | |||||||||
Long term debt instrument variable interest rate percentage | 5.00% | |||||||||
Line of credit facility expiration date | Aug. 3, 2024 | |||||||||
Debt instrument termination fee percentage | 1.00% | |||||||||
Line of credit current borrowing capacity | $ 10,000,000 | |||||||||
Third Amendment To The Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | 10,000,000 | |||||||||
Third Amendment To The Loan And Security Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | 5,000,000 | |||||||||
Third Amendment To The Loan And Security Agreement [Member] | Term Loans [Member] | Tranche One And Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of long term debt borrowed from the bank | $ 20,000,000 | |||||||||
SVB Credit Facility And CRG Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expenses | $ 1,000,000 | $ 400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule Of Future Minimum Rental Obligations Required Under Non-cancelable Leases (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 (remaining) | $ 637 |
2022 | 899 |
2023 | 725 |
2024 | 746 |
2025 and thereafter | 847 |
Total minimum lease payments | $ 3,854 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||||
Operating lease year of expiration | 2026 | |||
Royalty Agreement With Certain Members Of The Surgeon Advisory Board [Member] | ||||
Other Commitments [Line Items] | ||||
Period over which the royalties are payable | 3 years | 3 years | ||
Notice period for termination of agreement | 90 days | 90 days | ||
Royalty Agreement With Certain Members Of The Surgeon Advisory Board [Member] | 10 years from the first sale of the commercial product [Member] | ||||
Other Commitments [Line Items] | ||||
Royalty expenses | $ 0.8 | $ 0.5 | ||
Royalty as a percentage of net sales for the period | 4.30% | 4.40% | ||
Maximum [Member] | ||||
Other Commitments [Line Items] | ||||
Operating lease rental expense | $ 0.1 | $ 0.1 | ||
Maximum [Member] | Royalty Agreement With Certain Members Of The Surgeon Advisory Board [Member] | 10 years from the first sale of the commercial product [Member] | ||||
Other Commitments [Line Items] | ||||
Royalty as a percentage of net sales | 3.00% | 3.00% | ||
Minimum [Member] | Royalty Agreement With Certain Members Of The Surgeon Advisory Board [Member] | 10 years from the first sale of the commercial product [Member] | ||||
Other Commitments [Line Items] | ||||
Royalty as a percentage of net sales | 0.50% | 0.50% | ||
Operating Lease Amendment Agreement [Member] | ||||
Other Commitments [Line Items] | ||||
Lessee operating lease not yet commenced term of contract | 5 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||
Income tax provision | $ 0 | $ 0 | |
Valuation allowance offsetting deferred tax assets | 4.9 | $ 5.5 | |
Change in the deferred tax asset valuation allowance | $ 0.5 | $ 0.9 | |
Operating loss carry forwards expiration year | 2034 years | ||
Stock ownership percentage | 5.00% | 50.00% | |
Number of years determining ownership change | 3 years | ||
Annual effective tax rate | 25.50% | 25.50% | |
Research Tax Credit Carryforward [Member] | |||
Income Tax Disclosure [Line Items] | |||
Research and development tax credit carry forwards | $ 0.5 | 0.4 | |
Research and development tax credit carry forwards expiration year | 2037 years | ||
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Unused federal operating loss carryforwards | $ 12 | 14.6 | |
State and Local Jurisdiction [Member] | |||
Income Tax Disclosure [Line Items] | |||
Unused federal operating loss carryforwards | $ 11.5 | $ 9.5 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Company had Reserved Shares of Common Stock for Future Issuances (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 29,817,584 | 30,508,135 |
Share-based Payment Arrangement, Option [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 7,897,688 | 8,081,828 |
Estimated preferred share conversion for dividends in kind [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Series A convertible preferred stock outstanding | 146,803 | 334,316 |
Series A convertible preferred stock outstanding [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Series A convertible preferred stock outstanding | 6,687,475 | 6,687,475 |
Warrants to purchase Class A common stock [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 713,330 | 713,330 |
Class A common stock available for future issuance [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 13,372,288 | 13,691,186 |
Class B common stock available for future issuance [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 1,000,000 | 1,000,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of the Stock Plans Set Forth (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Available For Grant of Beginning Balance | 1,800,000 | |
Shares Available for Grant of Options Granted | (511,594) | |
Shares Available for Grant of Options Canceled | 5,183 | |
Shares Available for Grant of Ending Balance | 1,293,589 | 1,800,000 |
Number of Shares Outstanding Options of Beginning Balance | 8,081,828 | |
Number of Shares Outstanding of Option Granted | 511,594 | |
Number of Shares Outstanding of Options Exercised | (690,551) | |
Number of Shares Outstanding of Options Canceled | (5,183) | |
Number of Shares Outstanding of Ending Balance | 7,897,688 | 8,081,828 |
Options vested and expected to vest at March 31, 2021 | 6,813,429 | |
Options vested and exercisable at March 31, 2021 | 4,446,820 | |
Outstanding Options Weighted-Average Remaining Contractual Term | 6 years 11 months 19 days | 6 years 10 months 9 days |
Options vested and expected to vest at March 31, 2021 | 6 years 7 months 24 days | |
Options vested and exercisable at March 31, 2021 | 5 years 9 months 14 days | |
Weighted-Average Exercise Price Beginning Balance | $ 1.82 | |
Weighted-Average Exercise Price, Options granted | 7.03 | |
Weighted-Average Exercise Price, Options exercised | 0.82 | |
Weighted-Average Exercise Price, Options canceled | 1.35 | |
Weighted-Average Exercise Price, Ending Balance | 2.24 | $ 1.82 |
Options vested and expected to vest at March 31, 2021 | 1.85 | |
Options vested and exercisable at March 31, 2021 | $ 1.02 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary Of Company Uses the Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options at the Grant (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected volatility (Maximum) | 55.60% | 51.29% |
Expected volatility (Minimum) | 54.41% | 37.09% |
Risk-free interest rate (Maximum) | 0.09% | 1.53% |
Risk-free interest rate (Minimum) | 0.07% | 0.18% |
Expected dividend yield | 0.00% | 0.00% |
Maximum [Member] | ||
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected term (in years) | 2 years 1 month 27 days | 3 years 3 months 18 days |
Minimum [Member] | ||
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ||
Expected term (in years) | 1 year 11 months 19 days | 2 years 8 months 12 days |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Stock-Based Compensation Expense Reflected in the Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 402 | $ 209 |
Sales and marketing expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 147 | 95 |
Research and development expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 63 | 49 |
General and administrative expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 192 | $ 65 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Preferred shares dividends percentage | 8.00% | ||
Preferred shares dividends unpaid | $ 2.5 | $ 2.3 | |
Preferred shares voting rights | Holders of the Preferred Shares were entitled to vote with holders of Class A Common Stock equal to the number of shares of Class A Common Stock into which the Preferred Shares were convertible. | ||
Employees stock options, shares granted | 511,594 | ||
Method used to determine the fair value of stock options | Black-Scholes option pricing model | ||
Expected dividend yield | 0.00% | 0.00% | |
Unvested unrecognized stock-based compensation expense | $ 5.5 | $ 4.1 | |
Grant date fair value of shares vested | $ 500,000 | $ 400,000 | |
2014 Stock Plan [Member] | |||
Class of Stock [Line Items] | |||
Stock options, Terms | ten years | ||
Stock options, vesting period | 5 years | ||
Stock Plan grant awards authorized | 10,700,000 | ||
Aggregate intrinsic value of options exercised | $ 5.4 | $ 0.2 | |
Aggregate intrinsic values of options outstanding | 83.1 | ||
Aggregate intrinsic values of options exercisable | 52.3 | ||
Aggregate intrinsic values of options vest and option exercisable | $ 74.4 | ||
Employee Stock Option [Member] | |||
Class of Stock [Line Items] | |||
Employees stock options, weighted-average grant date fair value | $ 3.78 | $ 1.70 | |
Weighted-average period of recognition | 3 years 2 months 12 days | 3 years | |
Class A Common Stock Voting Shares [Member] | |||
Class of Stock [Line Items] | |||
Common stock, Shares Authorizeds | 66,875,000 | 66,875,000 | |
Common stock, shares authorized | 50,000,000 | 50,000,000 | |
Class B Common Stock Non Voting Shares [Member] | |||
Class of Stock [Line Items] | |||
Common stock, Shares Authorizeds | 1,000,000 | 1,000,000 | |
Common Stock [Member] | Employee Stock Option [Member] | |||
Class of Stock [Line Items] | |||
Employees stock options, shares granted | 511,594 | 484,476 | |
Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred shares authorized | 6,687,500 | ||
Preferred shares issued | 6,687,475 | 6,687,475 | |
Preferred shares outstanding | 6,687,475 | 6,687,475 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator | ||
Net loss | $ (2,432) | $ (1,607) |
Adjust: Convertible preferred stock cumulative and undeclared dividends | (158) | (158) |
Net loss attributable to common stockholders | $ (2,590) | $ (1,765) |
Denominator | ||
Weighted-average common stock outstanding, basic and diluted | 37,854,687 | 37,052,294 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.07) | $ (0.05) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Summary of Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 15,298,493 | 15,482,633 |
Series A convertible preferred stock outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 6,687,475 | 6,687,475 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 713,330 | 713,330 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 7,897,688 | 8,081,828 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Apr. 28, 2021$ / sharesshares | Apr. 16, 2021$ / sharesshares | Apr. 27, 2021shares | Apr. 21, 2021shares | Mar. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | Feb. 14, 2019shares |
Subsequent Event [Line Items] | |||||||
Shares of common stock reserved for issuance | 29,817,584 | 30,508,135 | |||||
Shares of stock may be issued upon the exercise | 1,293,589 | 1,800,000 | |||||
Warrants exercised during the period | 713,330 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock split conversion ratio | 1.3375 | ||||||
Shares authorized | 73,562,500 | ||||||
Common stock shares authorized | 300,000,000 | ||||||
Preferred stock shares authorized | 6,687,500 | 5,000,000 | |||||
Common stock, par or stated value per share | $ / shares | $ 0.001 | ||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.001 | ||||||
Subsequent Event [Member] | Adoption of 2021 Equity Award Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Shares of common stock reserved for issuance | 5,046,278 | ||||||
Percentage of shares of stock outstanding on an as converted basis | 5.00% | ||||||
Shares of stock may be issued upon the exercise | 37,847,090 | ||||||
Subsequent Event [Member] | Adoption of Employee Share Purchase Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Shares of common stock reserved for issuance | 504,627 | ||||||
Common stock, Price per share percentage | 85.00% | ||||||
Subsequent Event [Member] | Common Stock [Member] | SVB Credit Facility [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common stock issued | 713,330 | ||||||
Common stock closing price | $ / shares | $ 31.27 | ||||||
Warrants exercised during the period | 621,570 | ||||||
Subsequent Event [Member] | Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock split description | Each 1.0 Preferred Share issued and outstanding was reclassified as 1.3375 Preferred Shares | ||||||
Subsequent Event [Member] | Warrant [Member] | SVB Credit Facility [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Warrants exercise price | $ / shares | $ 4.0224 | ||||||
Common Class A [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common stock shares authorized | 66,875,000 | 66,875,000 | |||||
Common stock, par or stated value per share | $ / shares | $ 0.001 | $ 0.001 | |||||
Shares of common stock reserved for issuance | 13,372,288 | 13,691,186 | |||||
Common Class A [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock split description | Each 1.0 share of Class A common stock issued and outstanding was reclassified as 1.3375 shares of Class A common stock | ||||||
Common stock shares authorized | 66,875,000 | ||||||
Common Class A [Member] | Subsequent Event [Member] | Common Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock split conversion ratio | 1.3375 |