Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | Treace Medical Concepts, Inc. | |
Entity File Number | 001-40355 | |
Entity Tax Identification Number | 47-1052611 | |
Entity Address, Address Line One | 203 Fort Wade Rd | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | Ponte Vedra | |
Entity Address, Postal Zip Code | 32081 | |
City Area Code | 904 | |
Local Phone Number | 373-5940 | |
Entity Central Index Key | 0001630627 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
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, $0.001 par value | |
Trading Symbol | TMCI | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 52,781,693 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 119,621 | $ 18,079 |
Accounts receivable, net of allowance for doubtful accounts of $271 and $446 as of June 30, 2021 and December 31, 2020, respectively | 10,047 | 14,486 |
Inventories | 7,643 | 7,820 |
Prepaid expenses and other current assets | 3,512 | 593 |
Total current assets | 140,823 | 40,978 |
Property and equipment, net | 1,475 | 829 |
Total assets | 142,298 | 41,807 |
Current liabilities | ||
Accounts payable | 2,921 | 2,265 |
Accrued liabilities | 1,957 | 1,848 |
Accrued commissions | 2,553 | 3,513 |
Accrued compensation | 2,434 | 2,183 |
Short-term debt | 1,788 | |
Total current liabilities | 9,865 | 11,597 |
Derivative liability on term loan | 245 | 245 |
Long-term debt, net of discount of $723 and $811 as of June 30, 2021 and December 31, 2020, respectively | 29,277 | 29,189 |
Total liabilities | 39,387 | 41,031 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Additional paid-in capital | 131,734 | 14,166 |
Accumulated deficit | (28,868) | (21,353) |
Total stockholders’ equity | 102,911 | 776 |
Total liabilities and stockholders’ equity | 142,298 | 41,807 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders’ equity | ||
Preferred stock, value | 7,935 | |
Preferred Stock [Member] | ||
Stockholders’ equity | ||
Preferred stock, value | ||
Common Stock [Member] | ||
Stockholders’ equity | ||
Common stock, value | $ 45 | $ 28 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts receivable current | $ 271 | $ 446 |
Long term debt unamortized debt discount and issuance costs | $ 723 | $ 811 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 0 | 6,687,500 |
Preferred stock, shares issued | 0 | 6,687,475 |
Preferred stock, shares outstanding | 0 | 6,687,475 |
Preferred stock, liquidation preference, value | $ 0 | $ 8,000 |
Common Class B | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 0 | 1,000,000 |
Common stock share issued | 0 | 0 |
Common stock share outstanding | 0 | 0 |
Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock [Member] | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 300,000,000 | 66,875,000 |
Common stock share issued | 52,755,981 | 37,366,865 |
Common stock share outstanding | 52,755,981 | 37,366,865 |
Condensed Statement of Operatio
Condensed Statement of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 20,654 | $ 7,739 | $ 39,361 | $ 18,995 |
Cost of goods sold | 3,944 | 2,085 | 7,271 | 4,474 |
Gross profit | 16,710 | 5,654 | 32,090 | 14,521 |
Operating expenses | ||||
Sales and marketing | 14,010 | 4,789 | 26,158 | 12,127 |
Research and development | 2,422 | 982 | 4,290 | 2,415 |
General and administrative | 4,329 | 1,401 | 7,095 | 2,696 |
Total operating expenses | 20,761 | 7,172 | 37,543 | 17,238 |
Loss from operations | (4,051) | (1,518) | (5,453) | (2,717) |
Interest and other income, net | 6 | 3 | 7 | 36 |
Interest expense | (1,038) | (458) | (2,069) | (899) |
Other expense, net | (1,032) | (455) | (2,062) | (863) |
Net loss and comprehensive loss | (5,083) | (1,973) | (7,515) | (3,580) |
Convertible preferred stock cumulative and undeclared dividends | (39) | (159) | (196) | (318) |
Net loss attributable to common stockholders | $ (5,122) | $ (2,132) | $ (7,711) | $ (3,898) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.10) | $ (0.06) | $ (0.18) | $ (0.11) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 49,187,285 | 37,068,288 | 43,556,107 | 37,060,491 |
Condensed Statement of Stockhol
Condensed Statement of Stockholders' Equity (Deficit) - 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 | |||
Issuance of common stock upon exercise of stock options | 41 | 41 | |||
Issuance of common stock upon exercise of stock options, shares | 36,447 | ||||
Share-based compensation expense | 457 | 457 | |||
Net loss | (3,580) | (3,580) | |||
Balance at Ending at Jun. 30, 2020 | 79 | $ 7,935 | $ 28 | 13,382 | (21,266) |
Balance at Ending (in Shares) at Jun. 30, 2020 | 6,687,475 | 37,068,288 | |||
Balance at Beginning at Mar. 31, 2020 | 1,804 | $ 7,935 | $ 28 | 13,134 | (19,293) |
Balance at Beginning (in Shares) at Mar. 31, 2020 | 6,687,475 | 37,068,288 | |||
Share-based compensation expense | 248 | 248 | |||
Net loss | (1,973) | (1,973) | |||
Balance at Ending at Jun. 30, 2020 | 79 | $ 7,935 | $ 28 | 13,382 | (21,266) |
Balance at Ending (in Shares) at Jun. 30, 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 | |||
Issuance of common stock upon exercise of stock options | $ 763 | $ 2 | 761 | ||
Issuance of common stock upon exercise of stock options, shares | 962,633 | 962,633 | |||
Vesting of restricted stock awards, shares | 5,866 | ||||
Share-based compensation expense | $ 1,277 | 1,277 | |||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million | 107,610 | $ 7 | 107,603 | ||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million, shares | 6,953,125 | ||||
Issuance of common stock upon net exercise of warrants | $ 1 | (1) | |||
Issuance of common stock upon net exercise of warrants, shares | 621,570 | ||||
Conversion of convertible preferred stock and accrued dividends on convertible preferred stock into common stock | $ (7,935) | $ 7 | 7,928 | ||
Conversion of convertible preferred stock and accrued dividends on convertible preferred stock into common stock, shares | (6,687,475) | 6,845,922 | |||
Net loss | (7,515) | (7,515) | |||
Balance at Ending at Jun. 30, 2021 | 102,911 | $ 45 | 131,734 | (28,868) | |
Balance at Ending (in Shares) at Jun. 30, 2021 | 52,755,981 | ||||
Balance at Beginning at Mar. 31, 2021 | (684) | $ 7,935 | $ 30 | 15,136 | (23,785) |
Balance at Beginning (in Shares) at Mar. 31, 2021 | 6,687,475 | 38,057,416 | |||
Issuance of common stock upon exercise of stock options | 193 | 193 | |||
Issuance of common stock upon exercise of stock options, shares | 272,082 | ||||
Vesting of restricted stock awards, shares | 5,866 | ||||
Share-based compensation expense | 875 | 875 | |||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million | 107,610 | $ 7 | 107,603 | ||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million, shares | 6,953,125 | ||||
Issuance of common stock upon net exercise of warrants | $ 1 | (1) | |||
Issuance of common stock upon net exercise of warrants, shares | 621,570 | ||||
Conversion of convertible preferred stock and accrued dividends on convertible preferred stock into common stock | $ (7,935) | $ 7 | 7,928 | ||
Conversion of convertible preferred stock and accrued dividends on convertible preferred stock into common stock, shares | (6,687,475) | 6,845,922 | |||
Net loss | (5,083) | (5,083) | |||
Balance at Ending at Jun. 30, 2021 | $ 102,911 | $ 45 | $ 131,734 | $ (28,868) | |
Balance at Ending (in Shares) at Jun. 30, 2021 | 52,755,981 |
Condensed Statement of Stockh_2
Condensed Statement of Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||
Issuance cost and underwriting discount | $ 10.6 | $ 10.6 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (7,515) | $ (3,580) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 220 | 667 |
(Recovery) Provision for allowance for doubtful accounts | (72) | 228 |
Share-based compensation expense | 1,277 | 457 |
Amortization of debt issuance costs | 88 | 118 |
Provision for inventory obsolescence | 88 | 412 |
Net changes in operating assets and liabilities: | ||
Accounts Receivable | 4,511 | 3,532 |
Inventory | 89 | (2,590) |
Prepaid expenses and other assets | (2,919) | 178 |
Accounts payable | 656 | 1,071 |
Accrued liabilities | (600) | (3,233) |
Net cash used in operating activities | (4,177) | (2,740) |
Cash flows from investing activities | ||
Purchases of property and equipment | (866) | (923) |
Net cash used in investing activities | (866) | (923) |
Cash flows from financing activities | ||
Proceeds from SBA Loan | 1,788 | |
Repayments on SBA Loan | (1,788) | |
Proceeds from issuance of common stock upon initial public offering, net of issuance costs and underwriting fees of $10.6 million | 107,610 | |
Proceeds from exercise of employee stock options | 763 | 41 |
Net cash provided by financing activities | 106,585 | 1,829 |
Net increase (decrease) in cash and cash equivalents | 101,542 | (1,834) |
Cash and cash equivalents at beginning of period | 18,079 | 12,139 |
Cash and cash equivalents at end of period | 119,621 | $ 10,305 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,917 | |
NONCASH FINANCING ACTIVITIES: | ||
Issuance of common stock upon exercise of warrants | 1 | |
Conversion of convertible preferred stock and accrued dividends on convertible preferred stock into common stock | $ 7,935 |
Condensed Statements of Cash _2
Condensed Statements of Cash Flows (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Statement Of Cash Flows [Abstract] | |
Issuance costs and underwriting fees, net | $ 10.6 |
Formation and Business of the C
Formation and Business of the Company | 6 Months Ended |
Jun. 30, 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 orthopedic 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 its of 12,937,500 shares 6,953,125 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), price to the public of $17.00 per share. , after underwriting and expenses payable by the Company Forward Stock Split On April in connection with the IPO, an to implement a 1.3375-for-1 forward stock split (the “ ”), share of Series A convertible preferred stock (each a “ ”) In connection with the Forward Stock Split, the In lieu of issuing fractional shares in connection with the Forward Stock Split, the Company is obligated to pay cash in an amount equal to the fair value of such fractional shares (as determined in good faith by the Company’s Board of Directors). Coronavirus Pandemic The Company’s operations have been impacted by the coronavirus (“COVID-19”) pandemic beginning in 2020. In response to COVID-19, certain states within the United States implemented shelter-in-place rules requiring certain businesses not deemed “essential” to close and requiring elective procedures to be delayed. The Company’s revenue growth was adversely impacted, particularly by the restrictions on elective procedures, from March 2020 through May 2020, when such restrictions were largely eased. There is still uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the United States and international economies, especially as more potentially contagious and virulent variants of the virus are spreading. While the Company has experienced revenue growth during the pandemic, if states implement shelter-in-place rules again or medical facilities implement restrictions on elective surgeries , the Company may be required to adjust its forecasted revenues and operating results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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”) a nd 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 and six months ended June 30, 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 is shorter 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 and $0.1 million during the three and six months ended June 30, 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 and six months ended June 30, 2021 and 2020. No single customer accounted for more than 10% 10% 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. The 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 June 30, 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 June 30, 2021 and 2020, the Company recorded a provision for bad debts of $0 and $0.2 million, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded a recovery (provision) for bad debts of $0.1 million and $(0.2) 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 basis and includes primarily outsourced manufacturing costs and direct manufacturing overhead costs. The Company reviews inventory for obsolescence and writes down inventory, as necessary. For the three months ended June 30, 2021 and 2020, the Company recorded a provision of $0.1 million and $0.1 million, respectively, for obsolete inventory to cost of goods sold. For the six months ended June 30, 2021 and 2020, the Company recorded a provision of $0.1 million and $0.4 million, respectively, 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, were capitalized and recorded on the balance sheet. The deferred offering costs are offset against the proceeds received upon the closing of the IPO. At the closing of the IPO, the Company offset the proceeds received by $2.3 million in offering costs. As of June 30, 2021 and December 31, 2020, $0 and $0.2 million, respectively, in deferred offering costs were recorded on the condensed balance sheets. During the three and six months ended June 30, 2021 and 2020, the Company did not write off any deferred offering costs. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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 Leases Leases Leases method where entities may continue to apply the existing lease guidance during the comparative periods and apply the new lease requirements through a cumulative effect adjustment in the period of adoption rather than in the earliest period presented. The new standard is effective for the Company for fiscal years beginning after December 15, 2021 and early application is permitted. The Company is classified as an emerging growth company (“EGC”) as of March 31, 2021 and December 31, 2020 and has decided to take advantage of the extended transition period granted to EGCs for complying with new or revised accounting standards. This provision allows an EGC to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. The Company is currently assessing the impact that this standard may have on its financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 – The following assets and liabilities are measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds(1) $ 119,425 $ — $ — $ 119,425 Total $ 119,425 $ — $ — $ 119,425 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 June 30, 2021 and December 31, 2020. As discussed in Note 6, in July 2020, the Company entered into a non-revolving term loan facility (the “CRG Term Loan Facility”) with CRG Servicing LLC (“CRG”) and accounted for embedded features in the agreement as a derivative liability with an initial fair value of $0.2 million. The derivative liability was accounted for at fair value using the income approach and inputs consisting of (a) the probability of events occurring that trigger an event of default of the Company’s term loans under the CRG Term Loan Facility, ranging from 1% to 2%, (b) the prepayment premium payable upon early redemption, and (c) additional interest payable upon an event of default. The Company recognized no There were no assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2021 and December 31, 2020. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Cash and Cash Equivalents The Company’s cash and cash equivalents consisted of the following (in thousands): June 30, 2021 December 31, 2020 Cash $ 196 $ 502 Cash equivalents: Money market funds 119,425 17,577 Total cash and cash equivalents $ 119,621 $ 18,079 Property and equipment, net The Company’s property and equipment, net considered of the following (in thousands): June 30, 2021 December 31, 2020 Furniture and fixtures, and equipment $ 131 $ 131 Construction in progress 75 — Machinery and equipment 291 226 Capitalized surgical equipment 3,030 2,652 Computer equipment 196 150 Leasehold improvements 191 168 Software 138 138 Total property and equipment 4,052 3,465 Less: accumulated depreciation and amortization (2,577 ) (2,636 ) Property and equipment, net $ 1,475 $ 829 Depreciation and amortization expense on property and equipment was $0.1 million and $0.4 million for the three months ended June 30, 2021 and 2020, respectively. Depreciation and amortization expense on property and equipment was $0.2 million and $0.7 million for the six months ended June 30, 2021 and 2020, respectively. Accrued liabilities Accrued other liabilities consist of the following (in thousands): June 30, 2021 December 31, 2020 Accrued royalties expense $ 898 $ 1,032 Accrued expense 534 565 Other 525 251 Total accrued liabilities $ 1,957 $ 1,848 |
Long Term Debt
Long Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 6. Long Term Debt Silicon Valley Bank The Company entered into a Loan and Security Agreement dated April 18, 2018 (the “LSA”) with Silicon Valley Bank (“SVB”) as amended by a First Amendment to the Loan and Security (the “First Amendment”) dated February 14, 2019, a Second Amendment dated December 31, 2019 (the “Second Amendment”) and a Third Amendment dated August 3, 2020 (the “Third Amendment”). The LSA, as amended by the First Amendment, Second Amendment and Third Amendment (collectively the “SVB Credit Facility”) matures August 3, 2024. The Company borrowed $10.0 million upon execution of the First Amendment and $10.0 million upon execution of the Second Amendment and repaid the term loans in August 2020 using the proceeds received from the CRG Term Loan Facility (described below). Under the Third Amendment, the SVB Credit Facility provides for up to $10.0 million in a revolving line of credit. 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 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 of 1.00% of the revolving line of credit if the termination occurs before August 3, 2022. 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 gave the lender the right to purchase up to 713,330 shares of the Company’s Class A common stock (see Note 9). The Company did not have any balances outstanding under the revolving line of credit as of June 30, 2021 and December 31, 2020. As of June 30, 2021, 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. 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 through December 31, 2020. The Company is not required to make any principal payments until the maturity of the CRG Term Loan Facility and all outstanding principal and accrued interest are due upon the maturity of the CRG Term Loan Facility. Interest under the CRG Term Loan Facility is applied to outstanding principal and accrued interest at a rate of 13.00% per annum. In an event of default occurs, interest under the CRG Term Loan Facility will increase by 4.00 %. If the Company repays the CRG Term Loan Facility within one year of the borrowing date, the Company is required to pay a premium of 20.00 % of the aggregated outstanding principal amount of the loans that is repaid. If the Company repays the CRG Term Loan Facility between one and two years from the borrowing date, it is required to pay a premium of 11.00 % of the aggregated outstanding principal amount of the loans that is repaid. The CRG Term Loan Facility does not require a prepayment premium for loans being prepaid on the prepayment date that is longer than two years from the initial borrowing date. Under the terms of the CRG Term Loan Facility, the Company granted 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 June 30, 2021 and December 31, 2020, the balance outstanding under the CRG Term Loan Facility, net of debt issuance costs and debt discount, was $29.3 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, was scheduled to mature on April 22, 2022 and accrued interest at a fixed rate of 1% per annum, and was payable monthly. The Company repaid $1.8 million borrowed under the PPP Loan in March 2021. The Company’s debt consisted of the following (in thousands): June 30, December 31, 2021 2020 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 (723 ) (811 ) Total debt 29,277 30,977 Short-term debt — 1,788 Long-term debt $ 29,277 $ 29,189 As of June 30, 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 (723 ) Total short-term and long-term debt $ 29,277 During the three months ended June 30, 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 and six months ended June 30, 2021 and 2020, amortization of the debt discount was immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 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 has not commenced as of June 30, 2021. The future minimum rental obligations required under non-cancelable leases at June 30, 2021, including the future minimum rental obligations under the amended lease which had not commenced as of the period end, were as follows (in thousands): Fiscal Year 2021 (remaining) $ 439 2022 897 2023 722 2024 744 2025 & thereafter 925 Total minimum lease payments $ 3,727 Total rent expense was $0.1 million and $0.1 million for the three months ended June 30, 2021 and 2020, respectively. Total rent expense was $0.3 million and $0.1 million for the six months ended June 30, 2021 and 2020, respectively. 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 June 30, 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 As of June 30, 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 0.4% 3.0% The Company recognized royalties’ expense of $0.9 million and $0.3 million for the three months ended June 30, 2021 and 2020, respectively, and $1.6 million and $0.8 million for the six months ended June 30, 2021 and 2020, respectively. For the three and six month periods ended June 30, 2021 and 2020, the aggregate royalty rate was 4.1% and 4.3%, 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 | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company has not recorded an income tax provision for the three and six months ended June 30, 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 $5.5 million and $5.5 million as of June 30, 2021 and December 31, 2020, respectively. There were no changes in the deferred tax asset valuation allowance for the three and six months ended June 30, 2021 and 2020. The Company had unused federal and state net operating loss carryforwards of approximately $14.6 million and $9.5 million, respectively as of June 30, 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 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 and six months ended June 30 , 2021 and 2020. The Company’s effective tax rate for the three and six months ended June 30 , 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 pandemic. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 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 shares of Series A convertible preferred stock (the “Preferred Shares”), with 6,687,475 shares issued and outstanding as of December 31, 2020. Immediately before the completion of the IPO, all outstanding Preferred Shares were converted into shares of the Company’s common stock. Accordingly, no Preferred Shares were outstanding as of June 30, 2021. Dividends —Dividends on the Preferred Shares accrued at the rate of 8% per annum on the original issue price and holders of the Preferred Shares had general preference rights with respect to dividends and distributions to holders of Common Stock. Accrued dividends were payable in cash or, at the election of the Company’s Board of Directors, paid in kind by issuing Class A Common Stock at the then per share value as determined by an independent appraiser. Upon the closing of the IPO in April 2021, the Company issued 158,447 shares of Class A Common Stock to settle accrued and unpaid Preferred Shares dividend of $2.5 million on the Preferred Shares. At December 31, 2020, the Company had accrued and unpaid Preferred Shares dividend of $2.3 million on the 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. Conversion — Before the Preferred Shares conversion into the Company’s common stock in connection with the IPO, the terms applicable to each Preferred Share provided that it was convertible, at the option of the holder at any time after the date of issuance and upon a deemed liquidation event, as defined in the Certificate of Incorporation, into the number of fully paid and non-assessable shares of Class A Common Stock as determined by dividing the original issue price per share of the Preferred Shares by the conversion price per share in effect at the time of conversion. The original conversion price per Preferred Share was the original issue price, and was subject to adjustment, as described in the Company’s Amended and Restated Certificate of Incorporation in effect at the time the Preferred Shares were originally issued. 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 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. The Amended and Restated Certificate of Incorporation in effect immediately before the Company’s IPO authorized the Company 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. Shares Reserved for Future Issuance As of June 30, 2021 and December 31, 2020, the Company had reserved shares of common stock for future issuances as follows: June 30, December 31, 2021 2020 Series A convertible preferred stock outstanding — 6,687,475 Warrants to purchase Class A common stock — 713,330 Common stock options and restricted stock awards issued and outstanding 8,501,658 8,081,828 Estimated preferred share conversion for dividends in kind — 334,316 Common stock available for future grants 238,742,361 — Class A common stock available for future grants — 13,691,186 Class B common stock available for future grants — 1,000,000 Total 247,244,019 30,508,135 Stock Option Plan 2021 Incentive Award Plan In April 2021, the Company’s Board of Directors and stockholders approved the 2021 Incentive 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 Company’s 2014 Stock Plan (“2014 Plan”) 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. At June 30, 2021, the 2021 Plan is authorized to grant awards for up to 3,682,837 shares of Common Stock which may include incentive stock options, non-statutory stock options, or stock purchase rights. Under the 2014 Plan, the Company was authorized to issue stock purchase rights and to grant options to purchase Class A Common Stock to employees, directors and consultants. Stock options under the 2014 Plan 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. No other awards can be granted under the 2014 Plan. 1,293,589 shares of common stock remain reserved for outstanding awards issued under the 2014 Stock Plan at the time of adoption of the 2021 Stock Plan. Activity under the Stock Plans is set forth below: Outstanding Options Number of Shares Weighted- Average Remaining Contractual Term (in Years) Weighted- Average Exercise Price Balance, December 31, 2020 8,081,828 6.86 $ 1.82 Options granted 1,375,310 $ 10.02 Options exercised (962,633 ) $ 0.81 Options canceled (11,871 ) $ 4.55 Balance, June 30, 2021 8,482,634 7.67 $ 3.83 Options vested and expected to vest at June 30, 2021 7,873,245 7.01 $ 3.60 Options vested and exercisable at June 30, 2021 4,420,030 5.71 $ 1.13 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 as of period end. Aggregate intrinsic values of options outstanding, options vested and expected to vest and options exercisable were $ 232.7 million, $ 217.8 million and $ 133.2 million as of June 30 , 2021, respectively. Restricted Stock Awards In June 2021, the Company granted restricted stock awards (“RSA”). During the three months ended June 30, 2021 and 2020, the Company granted 24,890 RSAs and 0 RSAs, respectively, and during the six months ended June 30, 2021 and 2020, the Company granted 24,890 RSAs and 0 RSAs, respectively. The Company had 19,024 RSAs and 0 RSAs outstanding as of June 30, 2021 and December 31, 2020, respectively. The weighted average grant-date fair value per share of RSAs outstanding as of June 30, 2021 and December 31, 2020 was $35.46 and $0, respectively. Employee Share Purchase Plan In April 2021, the Company’s Board of Directors and stockholders approved the 2021 Employee Stock Purchase Plan (“ESPP”). 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. The Company has not yet commenced any enrollment periods under the ESPP. Stock-Based Compensation During the three months ended June 30, 2021 and 2020, the Company granted stock options to employees to purchase an aggregate of 863,716 and 17,500 shares, respectively, of the Company’s common stock. During the six months ended June 30, 2021 and 2020, the Company granted stock options to employees to purchase an aggregate of 1,375,310 and 379,725 shares, respectively. The weighted-average grant date fair value of the employee stock options granted during the three months ended June 30, 2021 and 2020 were $6.46 and $2.41 per share, respectively. The weighted-average grant date fair value of the employee stock options granted during the six months ended June 30, 2021 and 2020 were $4.98 and $1.92 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 June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 5.27 - 6.25 years 2.67 years 1.97 - 6.25 years 2.67 - 2.97 years Expected volatility 35.57% - 36.55% 49.29% 35.57% - 55.60% 37.09% - 49.29% Risk-free interest rate 1.03% - 1.07% 0.23% 0.07% - 1.07% 0.23% - 1.53% Expected dividend yield 0.00% 0.00% 0.00% 0.00% Expected Term The expected term represents the period that the stock options are expected to remain outstanding. For stock options issued subsequent to the IPO, the Company’s expected term is calculated using the simplified method, which is available where there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant. The midpoint between the vesting date and the maximum contractual expiration is used as the expected term under this method. Prior to the IPO, 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 had insufficient 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 U.S. Treasury notes with maturities approximately equal to the stock-based awards’ expected term. 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 Prior to the IPO, the fair value of the Company’s common stock was 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 determined 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. Subsequent to the IPO, the fair value of the Company’s common stock is determined based on its closing price. Stock-Based Compensation Expense Stock-based compensation expense is reflected in the statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales and marketing expense $ 370 $ 86 $ 517 $ 181 Research and development expense 103 59 166 108 General and administrative expense 402 103 594 168 Total $ 875 $ 248 $ 1,277 $ 457 As of June 30, 2021 and December 31, 2020, there was $10.3 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 1.86 years and 3.01 years, respectively. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 10. 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 and six months ended June 30, 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): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator Net loss $ (5,083 ) $ (1,973 ) $ (7,515 ) $ (3,580 ) Adjust: Convertible preferred stock cumulative and undeclared dividends (39 ) (159 ) (196 ) (318 ) Net loss attributable to common stockholders (5,122 ) (2,132 ) (7,711 ) (3,898 ) Denominator Weighted-average common stock outstanding, basic and diluted 49,187,285 37,068,288 43,556,107 37,060,491 Net loss per share attributable to common stockholders, basic and diluted $ (0.10 ) $ (0.06 ) $ (0.18 ) $ (0.11 ) 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: June 30, December 31, 2021 2020 Series A convertible preferred stock outstanding — 6,687,475 Warrants to purchase Class A common stock — 713,330 Common stock option and restricted stock awards issued and outstanding 8,501,658 8,081,828 Total 8,501,658 15,482,633 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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”) a nd 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 and six months ended June 30, 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 is shorter 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 and $0.1 million during the three and six months ended June 30, 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 and six months ended June 30, 2021 and 2020. No single customer accounted for more than 10% 10% |
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. The 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 June 30, 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 June 30, 2021 and 2020, the Company recorded a provision for bad debts of $0 and $0.2 million, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded a recovery (provision) for bad debts of $0.1 million and $(0.2) 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 basis and includes primarily outsourced manufacturing costs and direct manufacturing overhead costs. The Company reviews inventory for obsolescence and writes down inventory, as necessary. For the three months ended June 30, 2021 and 2020, the Company recorded a provision of $0.1 million and $0.1 million, respectively, for obsolete inventory to cost of goods sold. For the six months ended June 30, 2021 and 2020, the Company recorded a provision of $0.1 million and $0.4 million, respectively, 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, were capitalized and recorded on the balance sheet. The deferred offering costs are offset against the proceeds received upon the closing of the IPO. At the closing of the IPO, the Company offset the proceeds received by $2.3 million in offering costs. As of June 30, 2021 and December 31, 2020, $0 and $0.2 million, respectively, in deferred offering costs were recorded on the condensed balance sheets. During the three and six months ended June 30, 2021 and 2020, the Company did not write off any deferred offering costs. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 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 is shorter Software 3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis – The following assets and liabilities are measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds(1) $ 119,425 $ — $ — $ 119,425 Total $ 119,425 $ — $ — $ 119,425 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 June 30, 2021 and December 31, 2020. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Cash and Cash Equivalents | The Company’s cash and cash equivalents consisted of the following (in thousands): June 30, 2021 December 31, 2020 Cash $ 196 $ 502 Cash equivalents: Money market funds 119,425 17,577 Total cash and cash equivalents $ 119,621 $ 18,079 |
Summary of Property and Equipment, Net | The Company’s property and equipment, net considered of the following (in thousands): June 30, 2021 December 31, 2020 Furniture and fixtures, and equipment $ 131 $ 131 Construction in progress 75 — Machinery and equipment 291 226 Capitalized surgical equipment 3,030 2,652 Computer equipment 196 150 Leasehold improvements 191 168 Software 138 138 Total property and equipment 4,052 3,465 Less: accumulated depreciation and amortization (2,577 ) (2,636 ) Property and equipment, net $ 1,475 $ 829 |
Summary of Accrued Other Liabilities | Accrued other liabilities consist of the following (in thousands): June 30, 2021 December 31, 2020 Accrued royalties expense $ 898 $ 1,032 Accrued expense 534 565 Other 525 251 Total accrued liabilities $ 1,957 $ 1,848 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Instruments | The Company’s debt consisted of the following (in thousands): June 30, December 31, 2021 2020 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 (723 ) (811 ) Total debt 29,277 30,977 Short-term debt — 1,788 Long-term debt $ 29,277 $ 29,189 |
Summary of Maturities of Long-term Debt | As of June 30, 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 (723 ) Total short-term and long-term debt $ 29,277 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Obligations Required Under Non-cancelable Leases including Amended Lease | The future minimum rental obligations required under non-cancelable leases at June 30, 2021, including the future minimum rental obligations under the amended lease which had not commenced as of the period end, were as follows (in thousands): Fiscal Year 2021 (remaining) $ 439 2022 897 2023 722 2024 744 2025 & thereafter 925 Total minimum lease payments $ 3,727 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Summary of the Company had Reserved Shares of Common Stock for Future Issuances | As of June 30, 2021 and December 31, 2020, the Company had reserved shares of common stock for future issuances as follows: June 30, December 31, 2021 2020 Series A convertible preferred stock outstanding — 6,687,475 Warrants to purchase Class A common stock — 713,330 Common stock options and restricted stock awards issued and outstanding 8,501,658 8,081,828 Estimated preferred share conversion for dividends in kind — 334,316 Common stock available for future grants 238,742,361 — Class A common stock available for future grants — 13,691,186 Class B common stock available for future grants — 1,000,000 Total 247,244,019 30,508,135 |
Summary of Activity under Stock Plans | Activity under the Stock Plans is set forth below: Outstanding Options Number of Shares Weighted- Average Remaining Contractual Term (in Years) Weighted- Average Exercise Price Balance, December 31, 2020 8,081,828 6.86 $ 1.82 Options granted 1,375,310 $ 10.02 Options exercised (962,633 ) $ 0.81 Options canceled (11,871 ) $ 4.55 Balance, June 30, 2021 8,482,634 7.67 $ 3.83 Options vested and expected to vest at June 30, 2021 7,873,245 7.01 $ 3.60 Options vested and exercisable at June 30, 2021 4,420,030 5.71 $ 1.13 |
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 June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 5.27 - 6.25 years 2.67 years 1.97 - 6.25 years 2.67 - 2.97 years Expected volatility 35.57% - 36.55% 49.29% 35.57% - 55.60% 37.09% - 49.29% Risk-free interest rate 1.03% - 1.07% 0.23% 0.07% - 1.07% 0.23% - 1.53% Expected dividend yield 0.00% 0.00% 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): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales and marketing expense $ 370 $ 86 $ 517 $ 181 Research and development expense 103 59 166 108 General and administrative expense 402 103 594 168 Total $ 875 $ 248 $ 1,277 $ 457 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator Net loss $ (5,083 ) $ (1,973 ) $ (7,515 ) $ (3,580 ) Adjust: Convertible preferred stock cumulative and undeclared dividends (39 ) (159 ) (196 ) (318 ) Net loss attributable to common stockholders (5,122 ) (2,132 ) (7,711 ) (3,898 ) Denominator Weighted-average common stock outstanding, basic and diluted 49,187,285 37,068,288 43,556,107 37,060,491 Net loss per share attributable to common stockholders, basic and diluted $ (0.10 ) $ (0.06 ) $ (0.18 ) $ (0.11 ) |
Summary of Potentially Dilutive Securities Excluded from Computation 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: June 30, December 31, 2021 2020 Series A convertible preferred stock outstanding — 6,687,475 Warrants to purchase Class A common stock — 713,330 Common stock option and restricted stock awards issued and outstanding 8,501,658 8,081,828 Total 8,501,658 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 | Jun. 30, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Company incorporation date of incorporation | Jul. 29, 2013 | |||
Stock issued during the period shares including sale by the existing shareholders | 12,937,500 | |||
Sale of stock issue price per share | $ / shares | $ 17 | |||
underwriting discounts and commissions | $ | $ 8.3 | |||
Adjustment to additional paid in capital stock issuance costs | $ | $ 2.3 | |||
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 | |||
Common stock, par or stated value per share | $ / shares | $ 0.001 | |||
Preferred stock par or stated value per share | $ / shares | $ 0.001 | |||
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 | |||
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 | $ | $ 107.6 | |||
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] | ||||
Stock shares issued during the period shares dividends | 158,447 | |||
Stock shares issued during the period value dividends | $ | $ 2.5 | |||
Preferred stock shares authorized | 0 | 6,687,500 | ||
Preferred stock par or stated value per share | $ / shares | $ 0.001 | $ 0.001 |
Summary of Property and Equipme
Summary of Property and Equipment Depreciation Estimated Useful Lives (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
Furniture Fixtures and Equipment [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 [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) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segment | Segment | 1 | ||||
Number of operating segment | Segment | 1 | ||||
Net of an allowance for doubtful accounts | $ 300 | $ 300 | $ 400 | ||
Recovery (provision) for bad debts | 0 | $ 200 | 72 | $ (228) | |
Provision for inventory obsolescence | 88 | 412 | |||
Proceeds from IPO used for offering costs | 2,300 | ||||
Deferred offering costs | 0 | 0 | $ 200 | ||
Obsolescence [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Provision for inventory obsolescence | 100 | $ 100 | $ 100 | $ 400 | |
Capitalized Surgical Instruments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of its capitalized instruments | 3 years | ||||
Minimum [Member] | Capitalized Surgical Instruments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of its capitalized instruments | 18 months | ||||
Decrease in depreciation expense | $ 100 | $ 100 | |||
Maximum [Member] | Revenue Benchmark [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Maximum [Member] | Accounts Receivable [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Maximum [Member] | Capitalized Surgical Instruments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of its capitalized instruments | 36 months | ||||
Decrease in depreciation expense | $ 200 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - Minimum [Member] | Jun. 30, 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 Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Derivative liability | $ 200 | |
Fair Value, Recurring [Member] | ||
Assets: | ||
Money market funds | 119,425 | $ 17,577 |
Total | 119,425 | 17,577 |
Liabilities: | ||
Derivative liability | 245 | 245 |
Total | 245 | 245 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Money market funds | 119,425 | 17,577 |
Total | 119,425 | 17,577 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Liabilities: | ||
Derivative liability | 245 | 245 |
Total | $ 245 | $ 245 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liability | $ 0.2 | $ 0.2 | ||
Adjustment to fair value of derivative liability | $ 0 | $ 0 | $ 0 | $ 0 |
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 Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash | $ 196 | $ 502 | ||
Money market funds | 119,425 | 17,577 | ||
Total cash and cash equivalents | $ 119,621 | $ 18,079 | $ 10,305 | $ 12,139 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,052 | $ 3,465 |
Less: accumulated depreciation and amortization | (2,577) | (2,636) |
Property and equipment, net | 1,475 | 829 |
Furniture and Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 131 | 131 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 75 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 291 | 226 |
Capitalized Surgical Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,030 | 2,652 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 196 | 150 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 191 | 168 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 138 | $ 138 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization expense | $ 100 | $ 400 | $ 220 | $ 667 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued royalties expense | $ 898 | $ 1,032 |
Accrued expense | 534 | 565 |
Other | 525 | 251 |
Total accrued liabilities | $ 1,957 | $ 1,848 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | Aug. 03, 2020 | Jul. 31, 2020 | Apr. 22, 2020 | Feb. 14, 2019 | Apr. 18, 2018 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Apr. 28, 2021 |
Debt Instrument [Line Items] | ||||||||||
Class of warrants or rights number of shares issuable on conversion of warrants | 713,330 | |||||||||
Closing share price | $ 31.27 | |||||||||
Exercise price of warrants | $ 4.0224 | |||||||||
Long term debt fixed rate of interest | 13.00% | |||||||||
Long term debt net of unamortized debt issuance costs and discount | $ 29,277,000 | $ 30,977,000 | ||||||||
SVB Credit Facility And CRG Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expenses | 1,000,000 | $ 400,000 | ||||||||
Common Stock [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Class of warrants or rights number of shares issuable on conversion of warrants | 621,570 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit outstanding | 0 | 0 | ||||||||
CRG Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Maturity Date | Jun. 30, 2025 | |||||||||
Debt Instrument, Face Amount | $ 50,000,000 | |||||||||
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 | |||||||||
Proceeds from long term loan from the bank | 30,000,000 | |||||||||
Debt discount gross | 200,000 | |||||||||
Long term debt net of unamortized debt issuance costs and discount | 29,300,000 | 29,200,000 | ||||||||
CRG Term Loan Facility [Member] | Third Party [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs gross | 500,000 | |||||||||
CRG Term Loan Facility [Member] | CRG [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs gross | $ 200,000 | |||||||||
CRG Term Loan Facility [Member] | Early Repayment Within One Year [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt prepayment premium percentage | 20.00% | |||||||||
CRG Term Loan Facility [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] | ||||||||||
Long-term Debt, Maturity Date | Apr. 22, 2022 | |||||||||
Proceeds from long term loan from the bank | $ 1,800,000 | |||||||||
Long term debt fixed rate of interest | 1.00% | |||||||||
Repayment of long term debt borrowed from the bank | $ 1,800,000 | |||||||||
Loan and Security Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Maturity Date | Aug. 3, 2024 | |||||||||
Payment of debt issuance costs | $ 300,000 | |||||||||
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% | |||||||||
Loan and Security Agreement [Member] | Term Loans [Member] | Prime Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument variable interest rate spread percentage | 2.25% | |||||||||
First Amendment [Member] | Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings | $ 10,000,000 | |||||||||
Second Amendment [Member] | Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings | $ 10,000,000 | |||||||||
Third Amendment, SVB Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit current borrowing capacity | $ 10,000,000 | |||||||||
Third Amendment, SVB Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings | $ 10,000,000 | |||||||||
Debt instrument variable interest rate spread percentage | 1.00% | |||||||||
Long term debt instrument variable interest rate percentage | 5.00% | |||||||||
Debt instrument termination fee percentage | 1.00% |
Long Term Debt - Summary of Lon
Long Term Debt - Summary of Long-term Debt Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total term loans | $ 30,000 | $ 31,788 |
Less: debt discount and issuance costs | (723) | (811) |
Total short-term and long-term debt | 29,277 | 30,977 |
Short-term debt | 1,788 | |
Long-term debt | 29,277 | 29,189 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2025 | $ 30,000 | |
Total principal payments | 30,000 | $ 31,788 |
Less: Unamortized debt discount and debt issuance costs | (723) | (811) |
Total short-term and long-term debt | $ 29,277 | $ 30,977 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 |
Other Commitments [Line Items] | |||||||
Operating lease year of expiration | 2026 | ||||||
Operating lease rental expense | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.1 | |||
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 | $ 0.9 | $ 0.3 | $ 1.6 | $ 0.8 | |||
Royalty as a percentage of net sales for the period | 4.10% | 4.30% | 4.10% | 4.30% | |||
Royalty Agreement with Certain Members of the Surgeon Advisory Board [Member] | 10 Years from the First Sale of the Commercial Product [Member] | Maximum [Member] | |||||||
Other Commitments [Line Items] | |||||||
Royalty as a percentage of net sales | 3.00% | 3.00% | |||||
Royalty Agreement with Certain Members of the Surgeon Advisory Board [Member] | 10 Years from the First Sale of the Commercial Product [Member] | Minimum [Member] | |||||||
Other Commitments [Line Items] | |||||||
Royalty as a percentage of net sales | 0.40% | 0.40% | |||||
Operating Lease Amendment Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Lessee operating, extended term of contract | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Obligations Required Under Non-cancelable Leases including Amended Lease (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 (remaining) | $ 439 |
2022 | 897 |
2023 | 722 |
2024 | 744 |
2025 & thereafter | 925 |
Total minimum lease payments | $ 3,727 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||||
Income tax provision | $ 0 | $ 0 | $ 0 | $ 0 | |
Valuation allowance offsetting deferred tax assets | 5.5 | 5.5 | $ 5.5 | ||
Change in the deferred tax asset valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Operating loss carry forwards expiration year | 2034 | ||||
Stock ownership percentage | 5.00% | 50.00% | |||
Number of years determining ownership change | 3 years | ||||
Annual effective tax rate | 25.50% | 25.50% | 25.50% | 25.50% | |
Research Tax Credit Carryforward [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Research and development tax credit carry forwards | $ 0.4 | $ 0.4 | 0.4 | ||
Research and development tax credit carry forwards expiration year | 2037 | ||||
Domestic Tax Authority [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Unused federal operating loss carryforwards | 14.6 | $ 14.6 | 14.6 | ||
State and Local Jurisdiction [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Unused federal operating loss carryforwards | $ 9.5 | $ 9.5 | $ 9.5 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 27, 2021 | Apr. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Apr. 26, 2021 | Apr. 21, 2021 |
Class Of Stock [Line Items] | |||||||||
Preferred shares authorized | 5,000,000 | ||||||||
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. | ||||||||
Common stock shares authorized | 300,000,000 | ||||||||
Shares of common stock reserved for issuance | 247,244,019 | 247,244,019 | 30,508,135 | ||||||
Employees stock options, shares granted | 863,716 | 17,500 | 1,375,310 | 379,725 | |||||
Method used to determine the fair value of stock options | Black-Scholes option pricing model | ||||||||
Unvested unrecognized stock-based compensation expense | $ 10.3 | $ 10.3 | $ 4.1 | ||||||
2021 Incentive Award Plan [Member] | |||||||||
Class Of Stock [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 | ||||||||
Stock Plan grant awards authorized | 1,293,589 | 1,293,589 | 3,682,837 | ||||||
2014 Plan [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock Plan grant awards authorized | 0 | 0 | |||||||
Stock options, Terms | ten years | ||||||||
Stock options, vesting period | 5 years | ||||||||
Aggregate intrinsic values of options outstanding | $ 232.7 | $ 232.7 | |||||||
Aggregate intrinsic values of options exercisable | $ 133.2 | 133.2 | |||||||
Aggregate intrinsic values of options vest and option exercisable | $ 217.8 | ||||||||
Restricted Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares granted | 24,890 | 0 | 24,890 | 0 | |||||
Shares outstanding | 19,024 | 19,024 | 0 | ||||||
Weighted average grant-date fair value | $ 35.46 | $ 35.46 | $ 0 | ||||||
Employee Share Purchase Plan [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares of common stock reserved for issuance | 504,627 | ||||||||
Common stock, Price per share percentage | 85.00% | ||||||||
Employee Stock Option [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Employees stock options, weighted-average grant date fair value | $ 6.46 | $ 2.41 | $ 4.98 | $ 1.92 | |||||
Weighted-average period of recognition | 1 year 10 months 9 days | 3 years 3 days | |||||||
IPO [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million, shares | 6,953,125 | ||||||||
Convertible Preferred Stock [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Preferred shares authorized | 6,687,500 | ||||||||
Preferred shares issued | 6,687,475 | ||||||||
Preferred shares outstanding | 0 | 0 | 6,687,475 | ||||||
Common Class A [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares of common stock reserved for issuance | 13,691,186 | ||||||||
Common Class A [Member] | IPO [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of common stock from initial public offering, net of issuance costs and underwriting discount of $10.6 million, shares | 158,447 | ||||||||
Class A Common Stock Voting Shares [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock shares authorized | 66,875,000 | ||||||||
Common stock, shares authorized | 50,000,000 | ||||||||
Class B Common Stock Non Voting Shares [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock shares authorized | 1,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Company had Reserved Shares of Common Stock for Future Issuances (Detail) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 247,244,019 | 30,508,135 |
Common stock available for future grants | 238,742,361 | |
Series A convertible preferred stock outstanding [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Series A convertible preferred stock outstanding | 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 | |
Class A common stock available for future issuance [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 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 | |
Share-based Payment Arrangement, Option and Restricted Stock Awards [Member] | ||
Shares Reserved For Future Issuance [Line Items] | ||
Common stock available for future issuance | 8,501,658 | 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 | 334,316 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity under Stock Plans (Detail) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share Based Arrangements To Obtain Goods And Services [Abstract] | ||
Number of Shares Outstanding Options of Beginning Balance | 8,081,828 | |
Number of Shares Outstanding of Option Granted | 1,375,310 | |
Number of Shares Outstanding of Options Exercised | (962,633) | |
Number of Shares Outstanding of Options Canceled | (11,871) | |
Number of Shares Outstanding of Ending Balance | 8,482,634 | 8,081,828 |
Options vested and expected to vest at June 30, 2021 | 7,873,245 | |
Options vested and exercisable at June 30, 2021 | 4,420,030 | |
Outstanding Options Weighted-Average Remaining Contractual Term | 7 years 8 months 1 day | 6 years 10 months 9 days |
Options vested and expected to vest at June 30, 2021 | 7 years 3 days | |
Options vested and exercisable at June 30, 2021 | 5 years 8 months 15 days | |
Weighted-Average Exercise Price Beginning Balance | $ 1.82 | |
Weighted-Average Exercise Price, Options granted | 10.02 | |
Weighted-Average Exercise Price, Options exercised | 0.81 | |
Weighted-Average Exercise Price, Options canceled | 4.55 | |
Weighted-Average Exercise Price, Ending Balance | 3.83 | $ 1.82 |
Options vested and expected to vest at March 31, 2021 | 3.60 | |
Options vested and exercisable at March 31, 2021 | $ 1.13 |
Stockholders' Equity - Summar_3
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 2 years 8 months 1 day | |||
Expected volatility | 49.29% | |||
Expected volatility (Minimum) | 35.57% | 35.57% | 37.09% | |
Expected volatility (Maximum) | 36.55% | 55.60% | 49.29% | |
Risk-free interest rate | 0.23% | |||
Risk-free interest rate (Minimum) | 1.03% | 0.07% | 0.23% | |
Risk-free interest rate (Maximum) | 1.07% | 1.07% | 1.53% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 3 months 7 days | 1 year 11 months 19 days | 2 years 8 months 1 day | |
Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 3 months | 6 years 3 months | 2 years 11 months 19 days |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Stock-Based Compensation Expense is Reflected in the Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 875 | $ 248 | $ 1,277 | $ 457 |
Sales and marketing expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 370 | 86 | 517 | 181 |
Research and development expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 103 | 59 | 166 | 108 |
General and administrative expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 402 | $ 103 | $ 594 | $ 168 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator | ||||
Net loss | $ (5,083) | $ (1,973) | $ (7,515) | $ (3,580) |
Convertible preferred stock cumulative and undeclared dividends | (39) | (159) | (196) | (318) |
Net loss attributable to common stockholders | $ (5,122) | $ (2,132) | $ (7,711) | $ (3,898) |
Denominator | ||||
Weighted-average common stock outstanding, basic and diluted | 49,187,285 | 37,068,288 | 43,556,107 | 37,060,491 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.10) | $ (0.06) | $ (0.18) | $ (0.11) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares Outstanding (Detail) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 8,501,658 | 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 | |
Warrants to Purchase Class A Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 713,330 | |
Common Stock Option and Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Diluted weighted average shares outstanding | 8,501,658 | 8,081,828 |