Cover Page Document
Cover Page Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 18, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Entity Registrant Name | BEYOND MEAT, INC. | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Central Index Key | 0001655210 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | false | ||
Entity Ex Transition Period | false | ||
Entity File Number | 001-38879 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Amendment Flag | false | ||
Entity Tax Identification Number | 26-4087597 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | BYND | ||
Security Exchange Name | NASDAQ | ||
Entity Address, Address Line One | 119 Standard Street | ||
Entity Address, City or Town | El Segundo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90245 | ||
City Area Code | 866 | ||
Local Phone Number | 756-4112 | ||
Entity Public Float | $ 7.2 | ||
Entity Common Stock, Shares Outstanding | 61,845,096 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year ended December 31, 2019 are incorporated herein by reference in Part III where indicated. |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 275,988 | $ 54,271 |
Accounts receivable | 40,080 | 12,626 |
Inventory | 81,596 | 30,257 |
Prepaid expenses and other current assets | 5,930 | 5,672 |
Total current assets | 403,594 | 102,826 |
Property, plant, and equipment, net | 47,474 | 30,527 |
Other non-current assets, net | 855 | 396 |
Total assets | 451,923 | 133,749 |
Current liabilities: | ||
Accounts payable | 26,923 | 17,247 |
Wages payable | 1,768 | 1,255 |
Accrued bonus | 4,129 | 2,312 |
Accrued expenses and other current liabilities | 3,805 | 2,391 |
Short-term borrowings under revolving credit line and bank term loan | 11,000 | 0 |
Short-term capital lease liabilities | 72 | 44 |
Stock warrant liability | 0 | 1,918 |
Total current liabilities | 47,697 | 25,167 |
Long-term liabilities: | ||
Revolving credit line | 0 | 6,000 |
Long-term portion of bank term loan, net | 14,637 | 19,388 |
Equipment loan, net | 4,932 | 5,000 |
Capital lease obligations and other long-term liabilities | 567 | 404 |
Total long-term liabilities | 20,136 | 30,792 |
Commitments and Contingencies (Note 9) | ||
Convertible preferred stock: | ||
Convertible preferred stock | 199,540 | |
Stockholders’ equity (deficit): | ||
Preferred stock, par value $0.0001 per share—500,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, par value $0.0001 per share—500,000,000 shares and 58,669,600 shares authorized at December 31, 2019 and 2018, respectively; 61,576,494 and 6,951,350 shares issued and outstanding at December 31, 2019 and 2018, respectively | 6 | 1 |
Additional paid-in capital | 526,199 | 7,921 |
Accumulated deficit | (142,115) | (129,672) |
Total stockholders’ equity (deficit) | 384,090 | (121,750) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | 451,923 | 133,749 |
Series A | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 2,000 |
Series B | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 4,999 |
Series C | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 14,882 |
Series D | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 24,948 |
Series E | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 17,214 |
Series F | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 29,840 |
Series G | ||
Convertible preferred stock: | ||
Convertible preferred stock | 0 | 55,658 |
Series H | ||
Convertible preferred stock: | ||
Convertible preferred stock | $ 0 | $ 49,999 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Convertible preferred stock, par value (in shares) | $ 0.0001 | |
Convertible preferred stock, authorized (in shares) | 43,882,867 | |
Convertible preferred stock, outstanding (in shares) | 41,562,111 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 58,669,600 |
Common stock, issued (in shares) | 61,576,494 | 6,951,350 |
Common stock, outstanding (in shares) | 61,576,494 | 6,951,350 |
Series A | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 3,333,500 |
Convertible preferred stock, issued (in shares) | 0 | 3,333,500 |
Convertible preferred stock, outstanding (in shares) | 0 | 3,333,500 |
Series B | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 4,802,260 |
Convertible preferred stock, issued (in shares) | 0 | 4,680,565 |
Convertible preferred stock, outstanding (in shares) | 0 | 4,680,565 |
Series C | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 8,076,643 |
Convertible preferred stock, issued (in shares) | 0 | 8,076,636 |
Convertible preferred stock, outstanding (in shares) | 0 | 8,076,636 |
Series D | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 8,713,207 |
Convertible preferred stock, issued (in shares) | 0 | 8,713,201 |
Convertible preferred stock, outstanding (in shares) | 0 | 8,713,201 |
Series E | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 4,740,531 |
Convertible preferred stock, issued (in shares) | 0 | 4,701,449 |
Convertible preferred stock, outstanding (in shares) | 0 | 4,701,449 |
Series F | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 4,866,776 |
Convertible preferred stock, issued (in shares) | 0 | 4,866,758 |
Convertible preferred stock, outstanding (in shares) | 0 | 4,866,758 |
Series G | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 5,140,257 |
Convertible preferred stock, issued (in shares) | 0 | 5,114,786 |
Convertible preferred stock, outstanding (in shares) | 0 | 5,114,786 |
Series H | ||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized (in shares) | 0 | 4,209,693 |
Convertible preferred stock, issued (in shares) | 0 | 2,075,216 |
Convertible preferred stock, outstanding (in shares) | 0 | 2,075,216 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net revenues | $ 297,897 | $ 87,934 | $ 32,581 |
Cost of goods sold | 198,141 | 70,360 | 34,772 |
Gross profit (loss) | 99,756 | 17,574 | (2,191) |
Research and development expenses | 20,650 | 9,587 | 5,722 |
Selling, general and administrative expenses | 74,726 | 34,461 | 17,143 |
Restructuring expenses | 4,869 | 1,515 | 3,509 |
Total operating expenses | 100,245 | 45,563 | 26,374 |
Loss from operations | (489) | (27,989) | (28,565) |
Other expense, net: | |||
Interest expense | (3,071) | (1,128) | (1,002) |
Remeasurement of warrant liability | (12,503) | (1,120) | (385) |
Other, net | 3,629 | 352 | (427) |
Total other expense, net | (11,945) | (1,896) | (1,814) |
Loss before taxes | (12,434) | (29,885) | (30,379) |
Income tax expense | 9 | 1 | 5 |
Net loss | $ (12,443) | $ (29,886) | $ (30,384) |
Net loss per share available to common stockholders—basic and diluted (in dollars per share) | $ (0.29) | $ (4.75) | $ (5.57) |
Weighted average common shares outstanding—basic and diluted | 42,274,777 | 6,287,172 | 5,457,629 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Loans to Related Parties | Accumulated Deficit | IPO | IPOCommon Stock | IPOAdditional Paid-in Capital | Secondary Offering | Secondary OfferingCommon Stock | Secondary OfferingAdditional Paid-in Capital | Series F | Series G | Series H |
Beginning balance (in shares) at Dec. 31, 2016 | 34,355,941 | |||||||||||||
Beginning balance at Dec. 31, 2016 | $ 93,804 | |||||||||||||
Preferred Stock | ||||||||||||||
Conversion of convertible notes upon issuance of Series G preferred stock(inclusive of $1,123 adjustment upon conversion (in shares) | 1,026,367 | |||||||||||||
Conversion of convertible notes upon issuance of Series G preferred stock (inclusive of $1,123 adjustment upon conversion) | $ 11,123 | |||||||||||||
Issuance of Series G preferred stock, net of issuance costs (in shares) | 16,168 | 3,962,735 | ||||||||||||
Issuance of Series G preferred stock, net of issuance costs | $ 79 | $ 43,188 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 39,361,211 | |||||||||||||
Ending balance at Dec. 31, 2017 | $ 148,194 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2016 | 5,278,305 | |||||||||||||
Beginning balance at Dec. 31, 2016 | (66,573) | $ 1 | $ 3,779 | $ (951) | $ (69,402) | |||||||||
Common Stock | ||||||||||||||
Net loss available to common stockholders | (30,384) | (30,384) | ||||||||||||
Issuance of common stock upon conversion of convertible preferred stock | 0 | |||||||||||||
Reclassification of warrant liability to additional paid-in capital upon closing of the initial public offering | $ 0 | |||||||||||||
Exercise of common stock options (in shares) | 446,201 | 446,201 | ||||||||||||
Exercise of common stock options | $ 379 | 379 | ||||||||||||
Share-based compensation | 665 | 665 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 5,724,506 | |||||||||||||
Ending balance at Dec. 31, 2017 | $ (95,913) | $ 1 | 4,823 | (951) | (99,786) | |||||||||
Preferred Stock | ||||||||||||||
Issuance of Series G preferred stock, net of issuance costs (in shares) | 125,684 | 2,075,216 | ||||||||||||
Issuance of Series G preferred stock, net of issuance costs | $ 1,347 | $ 49,999 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 41,562,111 | 4,866,758 | 5,114,786 | 2,075,216 | ||||||||||
Ending balance at Dec. 31, 2018 | $ 199,540 | $ 29,840 | $ 55,658 | $ 49,999 | ||||||||||
Common Stock | ||||||||||||||
Net loss available to common stockholders | (29,886) | (29,886) | ||||||||||||
Issuance of common stock upon conversion of convertible preferred stock | 0 | |||||||||||||
Reclassification of warrant liability to additional paid-in capital upon closing of the initial public offering | $ 0 | |||||||||||||
Exercise of common stock options (in shares) | 1,139,962 | 1,139,962 | ||||||||||||
Exercise of common stock options | $ 1,369 | 1,369 | ||||||||||||
Share-based compensation | 2,241 | 2,241 | ||||||||||||
Re-purchase of common stock (in shares) | (48,909) | |||||||||||||
Re-purchase of common stock | (514) | (514) | ||||||||||||
Grant of restricted stock (in shares) | 135,791 | |||||||||||||
Grant of restricted stock | 2 | 2 | ||||||||||||
Payoff of promissory notes receivable for restricted stock purchase | 951 | 951 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 6,951,350 | |||||||||||||
Ending balance at Dec. 31, 2018 | $ (121,750) | $ 1 | 7,921 | 0 | (129,672) | |||||||||
Preferred Stock | ||||||||||||||
Issuance of common stock upon conversion of convertible preferred stock (in shares) | (41,562,111) | |||||||||||||
Issuance of common stock upon conversion of convertible preferred stock | $ (199,540) | |||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 0 | 0 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | |||||||||||
Common Stock | ||||||||||||||
Net loss available to common stockholders | (12,443) | (12,443) | ||||||||||||
Issuance of common stock upon conversion of convertible preferred stock (in shares) | 41,562,111 | 11,068,750 | 250,000 | |||||||||||
Issuance of common stock upon conversion of convertible preferred stock | 199,540 | $ 4 | 199,536 | $ 252,453 | $ 1 | $ 252,452 | $ 37,394 | $ 37,394 | ||||||
Issuance of common stock upon exercise of common stock warrants (in shares) | 214,875 | |||||||||||||
Issuance of common stock upon exercise of common stock warrants | 0 | |||||||||||||
Reclassification of warrant liability to additional paid-in capital upon closing of the initial public offering | $ 14,421 | 14,421 | ||||||||||||
Exercise of common stock options (in shares) | 1,429,756 | 1,529,408 | ||||||||||||
Exercise of common stock options | $ 2,669 | 2,669 | ||||||||||||
Share-based compensation | 11,806 | 11,806 | ||||||||||||
Ending balance at Dec. 31, 2019 | $ 384,090 | |||||||||||||
Beginning balance (in shares) at Sep. 28, 2019 | 0 | |||||||||||||
Beginning balance at Sep. 28, 2019 | $ 0 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 0 | 0 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | |||||||||||
Beginning balance (in shares) at Sep. 28, 2019 | 61,576,494 | |||||||||||||
Beginning balance at Sep. 28, 2019 | 384,090 | $ 6 | $ 526,199 | $ 0 | $ (142,115) | |||||||||
Common Stock | ||||||||||||||
Net loss available to common stockholders | (452) | |||||||||||||
Ending balance at Dec. 31, 2019 | $ 384,090 |
Statements of Convertible Pre_2
Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Series G | ||
Temporary equity, adjustment upon conversion | $ 1,123 | |
Temporary equity, issuance costs | $ 27 | 267 |
Series F | ||
Temporary equity, issuance costs | $ 21 | |
Series H | ||
Temporary equity, issuance costs | $ 284 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss available to common stockholders | $ (12,443) | $ (29,886) | $ (30,384) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 8,106 | 4,921 | 3,181 |
Non-cash expenses related to convertible note | 0 | 0 | 1,123 |
Share-based compensation expense | 12,807 | 2,241 | 665 |
Loss on sale of fixed assets | 93 | 76 | 0 |
Amortization of debt issuance costs | 181 | 109 | 37 |
Change in preferred and common stock warrant liabilities | 12,503 | 1,120 | 385 |
Restructuring loss on write-off of fixed assets | 0 | 0 | 2,302 |
Net change in operating assets and liabilities: | |||
Accounts receivable | (27,454) | (9,045) | (2,702) |
Inventories | (51,339) | (22,113) | (1,959) |
Prepaid expenses and other assets | (2,362) | 325 | (795) |
Accounts payable | 10,149 | 10,455 | 2,361 |
Accrued expenses and other current liabilities | 2,743 | 3,798 | 464 |
Long-term liabilities | 21 | 278 | 49 |
Net cash used in operating activities | (46,995) | (37,721) | (25,273) |
Cash flows used in investing activities: | |||
Purchases of property, plant and equipment | (23,795) | (22,228) | (7,908) |
Proceeds from sale of fixed assets | 0 | 67 | 0 |
Purchases of property, plant and equipment held for sale | (2,123) | (1,022) | 0 |
Proceeds from sale of assets held for sale | 299 | 0 | 0 |
Payment of security deposits | (545) | (59) | (207) |
Net cash used in investing activities | (26,164) | (23,242) | (8,115) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock pursuant to the initial public offering, net of issuance costs | 254,868 | 0 | 0 |
Proceeds from issuance of common stock pursuant to the secondary public offering, net of issuance costs | 37,394 | 0 | 0 |
Proceeds from convertible note issuance | 0 | 0 | 10,000 |
Proceeds from revolving credit line | 0 | 6,000 | 2,500 |
Proceeds from term loan borrowing | 0 | 20,000 | 0 |
Proceeds from equipment loan borrowing | 0 | 5,000 | 0 |
Proceeds from payoff of notes receivable for restricted stock purchase | 0 | 951 | 0 |
Repayments on revolving credit line | 0 | (2,500) | 0 |
Repayment on term loan | 0 | (1,000) | (500) |
Repayment of Missouri Note | 0 | (1,450) | 0 |
Payments of capital lease obligations | (55) | (153) | (221) |
Proceeds from exercise of stock options | 2,669 | 1,369 | 379 |
Proceeds from restricted stock exercise | 0 | 2 | 0 |
Payments of deferred offering costs | 0 | (2,415) | 0 |
Debt issuance costs | 0 | (437) | 0 |
Payment for repurchase of common stock | 0 | (514) | 0 |
Net cash provided by financing activities | 294,876 | 76,199 | 55,425 |
Net increase in cash and cash equivalents | 221,717 | 15,236 | 22,037 |
Cash and cash equivalents at the beginning of the period | 54,271 | 39,035 | 16,998 |
Cash and cash equivalents at the end of the period | 275,988 | 54,271 | 39,035 |
Cash paid during the period for: | |||
Interest | 3,019 | 924 | 269 |
Taxes | 9 | 4 | 3 |
Non-cash investing and financing activities: | |||
Capital lease obligations for the purchase of property, plant and equipment | 225 | 85 | 35 |
Issuance of convertible preferred stock warrants in connection with debt | 0 | 248 | 0 |
Non-cash additions to property, plant and equipment | 1,418 | 1,146 | 1,376 |
Offering costs, accrued not yet paid | 0 | 745 | 0 |
Reclassification of warrant liability to additional paid-in capital upon closing of the initial public offering | 14,421 | 0 | 0 |
Conversion of convertible preferred stock to common stock upon initial public offering | 199,540 | 0 | 0 |
Series H | |||
Cash flows from financing activities: | |||
Proceeds from preferred stock offering, net of offering costs | 0 | 49,999 | 0 |
Series G | |||
Cash flows from financing activities: | |||
Proceeds from preferred stock offering, net of offering costs | 0 | 1,347 | 43,188 |
Series F | |||
Cash flows from financing activities: | |||
Proceeds from preferred stock offering, net of offering costs | $ 0 | $ 0 | $ 79 |
Introduction
Introduction | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction | Introduction The Company Beyond Meat, Inc., a Delaware corporation (the “Company”), is one of the fastest growing food companies in the United States, offering a portfolio of revolutionary plant-based meats. The Company builds meat directly from plants, an innovation that enables consumers to experience the taste, texture and other sensory attributes of popular animal-based meat products while enjoying the nutritional and environmental benefits of eating the Company’s plant-based meat products. The Company’s brand commitment, “Eat What You Love,” represents a strong belief that by eating the Company’s plant-based meats, consumers can enjoy more, not less, of their favorite meals, and by doing so, help address concerns related to human health, climate change, resource conservation and animal welfare. The Company’s primary production facilities are located in Columbia, Missouri, and research and development and administrative offices are located in El Segundo, California. In addition to its own production facilities, the Company uses co-manufacturers in various locations in the United States, and, in 2019, the Company commenced co-manufacturing in Canada and also expanded its partnership with one of its distributors to co-manufacture the Company’s products at a new manufacturing facility built by this distributor in the Netherlands , construction of which was completed in the first quarter of 2020. The Company sells to a variety of customers in the retail and foodservice channels throughout the United States and internationally primarily through distributors who purchase, store, sell, and deliver the Company’s products. In addition, the Company sells directly to customers in the retail and restaurant and foodservice channels who handle their own distribution. Substantially all of the Company’s long-lived assets are located in the United States. On September 7, 2018, the Company changed its name from Savage River, Inc. to Beyond Meat, Inc. Subsequent to the year ended December 31, 2019, on January 14, 2020, the Company registered its new subsidiary, Beyond Meat EU B.V., in the Netherlands. Initial Public Offering On May 6, 2019, the Company completed its initial public offering (“IPO”) of common stock in which it sold 11,068,750 shares. The shares began trading on the Nasdaq Global Select Market on May 2, 2019. The shares were sold at a public offering price of $25.00 per share for net proceeds of approximately $252.4 million , after deducting underwriting discounts and commissions of $19.4 million and issuance costs of approximately $4.9 million payable by the Company. Upon the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock automatically converted into 41,562,111 shares of common stock on a one -for-one basis, and warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for a total of 160,767 shares of common stock. Secondary Public Offering On August 5, 2019, the Company completed a secondary public offering of common stock in which it sold 250,000 shares and the selling stockholders sold 3,487,500 shares. The shares were sold at a public offering price of $160.00 per share for net proceeds to the Company of approximately $37.4 million , after deducting underwriting discounts and commissions of $1.5 million and issuance costs of approximately $1.1 million payable by the Company. Total Secondary Offering issuance costs paid in 2019 were approximately $2.2 million , of which approximately $1.1 million |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Fiscal Year The Company operates on a fiscal calendar year, and each interim quarter is comprised of one 5-week period and two 4-week periods, with each week ending on a Saturday. The Company’s fiscal year always begins on January 1 and ends on December 31. As a result, the Company’s first and fourth fiscal quarters may have more or fewer days included than a traditional 91 -day fiscal quarter. Segment Information The Company has one operating segment and one reportable segment, as the Company’s chief operating decision maker, who is the Company’s Chief Executive Officer, reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. Management’s Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates made by the Company include trade promotion accruals; useful lives of property, plant and equipment; valuation of deferred tax assets; valuation of inventory; and the valuation of the fair value of common stock and preferred stock used to determine stock compensation expense and in the remeasurement of warrants and liabilities. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results could differ from those estimates and such differences may be material to the financial statements. Reverse Stock Split On January 2, 2019, the Company effected a 3 -to- 2 reverse stock split of its outstanding common stock and convertible preferred stock, including outstanding stock options and common and convertible preferred stock warrants. The reverse stock split did not result in an adjustment to par value. All references in the accompanying financial statements and related notes to the number of shares of common stock, convertible preferred stock, warrants and options to purchase common stock and per share data reflect the effect of the reverse stock split. Cash and Cash Equivalents The Company maintains cash balances at two financial institutions in the United States. The cash balances may, at times, exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation or FDIC up to $250,000 . The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market accounts . Prior to 2018, the Company did not hold any cash equivalents. Accounts Receivable The Company records accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any anticipated losses on the accounts receivable balances and recorded in allowance for doubtful accounts. Allowance for doubtful accounts is calculated based on the Company’s history of write-offs, level of past due accounts, and relationships with and economic status of the Company’s distributors or customers. The Company had no allowance for doubtful accounts as of December 31, 2019 or 2018. Inventories and Cost of Goods Sold Inventories are recorded at lower of cost or net realizable value. The Company accounts for inventory using the weighted average cost method. In addition to product cost, inventory costs include expenditures such as direct labor and certain supply and overhead expenses including in-bound shipping and handling costs incurred in bringing the inventory to its existing condition and location. Inventories are comprised primarily of raw materials, direct labor, and overhead costs. Weighted average cost method is used to absorb raw materials, direct labor, and overhead into inventory. The Company reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on historical demand, and the age of the inventory, among other factors. Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation and are depreciated using the straight-line method over the following estimated useful lives: Leasehold improvements Shorter of lease term or estimated useful life Furniture and fixtures 3 years Manufacturing equipment 5 to 10 years Research and development equipment 5 to 10 years Software and computer equipment 3 years Vehicles 5 years Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the asset or the remaining lease term. When assets are sold or retired, the asset and related accumulated depreciation are removed from the respective account balances and any gain or loss on disposal is included in loss from operations. Expenditures for repairs and maintenance are charged directly to expense when incurred. See Note 5 . Impairment of Long-Lived Assets Long-lived assets, including property and equipment, are reviewed by management for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. When events or circumstances indicate that impairment may be present, management evaluates the probability that future undiscounted net cash flows received will be less than the carrying amount of the asset. If projected future undiscounted cash flows are less than the carrying value of an asset, then such assets are written down to their fair values. Other than the write off of certain property, plant and equipment in connection with the restructuring efforts disclosed in Note 3 , the Company concluded that no long-lived assets were impaired during the fiscal years ended December 31, 2019, 2018 and 2017. Deferred Offering Costs Offering costs, consisting primarily of legal, accounting, printing and filing services, and other direct fees and costs related to the IPO, were capitalized and offset against proceeds from the IPO. Total IPO issuance costs were $4.9 million , of which $2.4 million was incurred and paid as of December 31, 2018 and an additional $2.5 million was incurred and paid in 2019 . Total Secondary Offering costs paid in 2019 were approximately $2.2 million , of which approximately $1.1 million was capitalized to reflect the costs associated with the issuance of new shares and offset against proceeds from the Secondary Offering. The remainder of the Secondary Offering costs were associated with the expense of selling existing shares by the selling stockholders and were recorded in SG&A expenses in the statement of operations for 2019. There were no unpaid IPO issuance costs or Secondary Offering issuance costs in accounts payable or prepaid IPO issuance costs in prepaid expenses as of December 31, 2019 . Stock Warrant Liability The Company accounted for freestanding warrants outstanding to purchase shares of its common stock or, prior to its IPO, its convertible preferred stock or common stock, as a liability, as the underlying shares of convertible preferred stock and common stock were contingently redeemable and, therefore, could have obligated the Company to transfer assets at some point in the future. The warrants were recorded at fair value upon issuance and were subject to remeasurement at each balance sheet date. Any change in fair value has been recognized in the statements of operations in Total other expense, net. Prior to the IPO, the Company had outstanding warrants to purchase an aggregate of 60,002 shares of its common stock at an exercise price of $3.00 per share, 121,694 shares of its Series B convertible preferred stock at an exercise price of $1.07 per share and 39,073 shares of its Series E convertible preferred stock at an exercise price of $3.68 per share. On May 6, 2019, in connection with the IPO, the warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for a total of 160,767 shares of common stock at the same respective exercise price per share. Subsequent to the closing of the IPO, all outstanding warrants to purchase shares of common stock were cashless exercised. Income Taxes The Company is subject to federal and state income taxes. The Company uses the asset and liability method of accounting for income taxes as set forth in the authoritative guidance for accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the respective carrying amounts and tax basis of assets and liabilities. A valuation allowance is established against the portion of deferred tax assets that the Company believes will not be realized on a more likely than not basis. With respect to uncertain tax positions, the Company recognizes in its financial statements those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. The Company’s policy is to recognize, when applicable, interest and penalties on uncertain tax positions as part of income tax expense. See Note 10 . Fair Value of Financial Instruments The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows: • Level 1 —Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 —Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant value drivers are observable. • Level 3 —Valuations derived from valuation techniques in which significant value drivers are unobservable. The Company’s financial instruments include cash equivalents, accounts receivable, accounts payable, and accrued expenses, for which the carrying amounts approximate fair value due to the short-term maturity of these financial instruments. Based on the borrowing rates currently available to the Company for debt with similar terms, the carrying value of the line of credit, term debt with its bank, and equipment loan approximate fair value as well. The Company had no financial instruments measured at fair value on a recurring basis as of December 31, 2019 , other than the liability classified share-settled obligation to one of the Company’s executive officers as discussed in Note 8 which represents a Level 1 financial instrument . Prior to the IPO, the stock warrant liability was measured at fair value using Level 3 inputs upon issuance and at each reporting date. Inputs used to determine the estimated fair value of the warrant liability as of the valuation date included expected term of the warrants, the risk-free interest rate, volatility, and the fair value of underlying shares. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis based on the fair value hierarchy as of December 31, 2018 : December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Financial Liabilities: Preferred stock warrant liability $ — $ — $ 1,441 $ 1,441 Common stock warrant liability — — 477 477 Total $ — $ — $ 1,918 $ 1,918 There were no transfers of financial assets or liabilities into or out of Level 1, Level 2 or Level 3 for 2019, 2018 and 2017. The key assumptions used in the Black-Scholes option-pricing model for the valuation of the preferred stock warrant liability upon re-measurement were as follows: For the Year Ended December 31, 2018 2017 Expected term (in years) 2.0 3.0 Fair value of underlying shares $19.02 $3.00 Volatility 55.0% 55.0% Risk-free interest rate 2.48% 1.98% Dividend yield — — Generally, increases or decreases in the fair value of the underlying convertible preferred stock or common stock would result in a directionally similar impact in the fair value measurement of the associated warrant liability. The following table sets forth a summary of the changes in the fair value of the preferred and common stock warrant liabilities: Year Ended December 31, (in thousands) 2019 2018 2017 Beginning balance $ 1,918 $ 550 $ 165 Fair value of warrants issued during the period — 248 — Change in fair value of warrant liability 12,503 1,120 385 Reclassification of warrant liability to additional paid-in capital in connection with the IPO (14,421 ) — — Ending balance $ — $ 1,918 $ 550 The Company remeasured and reclassified the common stock warrant liability to additional paid-in-capital in connection with the IPO. T he final re-measurement of the preferred stock warrant was based upon the publicly available stock price on the conversion date. Subsequent to the closing of the IPO, all outstanding warrants to purchase shares of common stock were cashless exercised and no warrants were outstanding as of December 31, 2019 . Leases The Company leases certain equipment used for research and development and operations under both capital and operating lease agreements. An asset and a corresponding liability for the capital lease obligations are established for the cost of a capital lease. Capital lease assets are included in property, plant and equipment, net in the Company’s balance sheets. Operating lease costs are recognized as rent expense on a straight-line basis over the applicable lease terms. See Note 9 . Contingencies The Company is subject to a range of claims, lawsuits, and administrative proceedings that arise in the ordinary course of business. The Company accrues a liability (which amount includes litigation costs expected to be incurred) and charges operations for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated, in accordance with the recognition criteria of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 450, Contingencies . Estimating liabilities and costs associated with these matters require significant judgment based upon the professional knowledge and experience of management and its legal counsel. See Note 9 . Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which, along with subsequent ASUs, amends the existing accounting standards for revenue recognition (“Topic 606”). This guidance is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to receive when products are transferred to customers. ASU 2014-09 was effective for the Company beginning January 1, 2019. The majority of the Company’s contracts with customers generally consist of a single performance obligation to transfer promised goods. Based on the Company’s evaluation process and review of its contracts with customers, the timing and amount of revenue recognized based on ASU 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company has therefore concluded that the adoption of ASU 2014-09 did not have a material impact on its financial position, results of operations, or cash flows. Revenue is recognized at the point in which the performance obligation under the terms of a contract with the customer have been satisfied and control has transferred. The Company’s performance obligation is typically defined as the accepted purchase order, or the contract, with the customer which requires the Company to deliver the requested products at agreed upon prices at the time and location of the customer’s choice. The Company does not offer warranties or a right to return on the products it sells except in the instance of a product recall. Revenue is measured as the amount of consideration the Company expects to receive in exchange for fulfilling the performance obligation. Sales and other taxes the Company collects concurrent with the sale of products are excluded from revenue. The Company's normal payment terms vary by the type and location of its customers and the products offered. The time between invoicing and when payment is due is not significant. None of the Company's customer contracts as of December 31, 2019 contains a significant financing component. The Company routinely offers sales discounts and promotions through various programs to its customers and consumers. These programs include rebates, temporary on shelf price reductions, off invoice discounts, retailer advertisements, product coupons and other trade activities. Provision for discounts and incentives are recorded in the same period in which the related revenues are recognized. At the end of each accounting period, the Company recognizes a liability for estimated sales discounts that have been incurred but not paid which totaled $1.6 million and $0.8 million as of December 31, 2019 and 2018 , respectively. The offsetting charge is recorded as a reduction of revenues in the same period when the expense is incurred. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The incremental cost to obtain contracts was not material . The Company’s net revenues by platform and channel are included in the tables below: Year Ended December 31, (in thousands) 2019 2018 2017 Net revenues: Gross Fresh Platform $ 306,585 $ 81,686 $ 18,109 Gross Frozen Platform 17,772 15,896 19,588 Less: Discounts (26,460 ) (9,648 ) (5,116 ) Net revenues $ 297,897 $ 87,934 $ 32,581 Year Ended December 31, (in thousands) 2019 2018 2017 Net revenues: Retail $ 144,809 $ 50,779 $ 25,490 Restaurant and Foodservice 153,088 37,155 7,091 Net revenues $ 297,897 $ 87,934 $ 32,581 Two distributors accounted for approximately 17% and 16% , respectively, of the Company’s gross revenues in 2019 ; three distributors accounted for approximately 32% , 21% and 13% , respectively, of the Company’s gross revenues in 2018 and three distributors accounted for approximately 38% , 10% and 10% , respectively, of the Company’s gross revenues in 2017 . No other distributor or customer accounted for more than 10% of the Company’s gross revenues in 2019, 2018 or 2017. The Company’s international net revenues (which exclude revenues from Canada) are included in the Company’s retail and restaurant and foodservice channels and were approximately 16% , 7% and 1% , respectively, of the Company’s net revenues in 2019, 2018 and 2017. Net revenues from sales to the Canadian market are included with net revenues from sales to the United States market. Earnings (Loss) Per Share Earnings (loss) per share (“EPS”) represents net income available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS represents net income available to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of potential common shares outstanding during the period. Such potential common shares include options, unvested restricted stock, restricted stock units (“RSUs”), contracts classified as assets or liabilities that are required or assumed to be share-settled under the two-class method, warrants and convertible preferred stock. The Company calculates basic and diluted EPS available to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of convertible preferred stock issued and outstanding prior to the IPO to be participating securities. Under the two-class method, the net loss available to common stockholders is not allocated to the convertible preferred stock as the holders of convertible preferred stock issued and outstanding prior to the IPO did not have a contractual obligation to share in losses. Computation of EPS for the year ended December 31, 2019 also excludes adjustments under the two-class method relating to a liability classified, share-settled obligation to an executive officer to deliver a variable number of shares based on a fixed monetary amount because the shares to be delivered are not participating securities as they do not have voting rights and are not entitled to participate in dividends until they are issued. N onvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence nonvested restricted stock shares are deemed to be participating securities. Under the two-class method, net income, but not net loss, available to nonvested restricted stockholders is excluded from net income available to common stockholders for purposes of calculating basic and diluted EPS. N et loss available to common stockholders is not allocated to unvested restricted stock as the holders of unvested restricted stock do not have a contractual obligation to share in losses. In periods when the Company records net loss, all potential common shares are excluded in the computation of EPS because their inclusion would be anti-dilutive. See Note 11 . Prepaid Expenses Prepaid expenses primarily include prepaid rent and insurance, which are expensed in the period to which they relate. Selling, General and Administrative (“SG&A”) Expenses SG&A expenses are primarily comprised of selling, marketing expenses and administrative expenses, share-based compensation, outbound shipping and handling costs, non-manufacturing rent expense, depreciation and amortization expense on non-manufacturing assets and other non-production operating expenses. Selling and marketing expenses include share-based compensation awards to brand ambassadors, advertising costs, costs associated with consumer promotions, product samples and sales aids incurred to acquire new customers, retain existing customers and build brand awareness. Administrative expenses include the expenses related to management, accounting, legal, IT, and other office functions. Advertising costs are expensed as incurred. Advertising costs in the years ended December 31, 2019, 2018 and 2017 were $0.3 million , $62,000 and $0.3 million , respectively. Non-advertising related components of the Company’s total marketing expenditures primarily include costs associated with consumer promotions, product sampling, and sales aids, which are also included in SG&A. Shipping and Handling Costs The Company does not bill its distributors or customers shipping and handling fees. The Company’s products are predominantly shipped to its distributors or customers as “FOB Destination,” with control of the products transferred to the customer at the destination. In-bound shipping and handling costs incurred in manufacturing a product are included in inventory and reflected in cost of goods sold when the sale of that product is recognized. Outbound shipping and handling costs are considered as fulfillment costs and are recorded in SG&A expenses. Outbound shipping and handling costs included in SG&A expenses in 2019 , 2018 and 2017 were $10.9 million , $6.1 million and $3.4 million , respectively. Outbound shipping and handling costs in the year ended December 31, 2017 included $0.8 million related to the termination of the exclusive supply agreement with a co-manufacturer. There were no such costs in 2019 or 2018. Research and Development Research and development costs, which includes enhancements to existing products and new product development, are expensed in the period incurred. Research and development expenses primarily consist of personnel and related expenses for the Company’s research and development staff, including salaries, benefits, bonuses, and share-based compensation, scale-up expenses, and depreciation and amortization expense on research and development assets. Research and development expenses in the years ended December 31, 2019, 2018 and 2017, were $20.7 million , $9.6 million , and $5.7 million , respectively. Share-Based Compensation The Company measures all share-based compensation cost at the grant date, based on the fair values of the awards that are ultimately expected to vest, and recognizes that cost as an expense in its statements of operations over the requisite service period. The Company estimates the fair value of option awards using the Black-Scholes option valuation model, which requires management to make certain assumptions for estimating the fair value of stock options at the date of grant including the fair value and projected volatility of the underlying common stock and the expected term of the award. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimates, in management’s opinion, the existing models may not necessarily provide a reliable single measure of the fair value of the Company’s stock options. Although the fair value of stock options is determined using an option valuation model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. In addition, the Company estimates the expected impact of forfeited awards and recognizes share-based compensation cost only for those awards ultimately expected to vest. If actual forfeiture rates differ materially from the Company’s estimates, share-based compensation expense could differ significantly from the amounts the Company has recorded in the current period. The Company periodically reviews actual forfeiture experience and will revise its estimates, as necessary. The Company will recognize as compensation cost the cumulative effect of the change in estimated forfeiture rates on current and prior periods in earnings of the period of revision. As a result, if the Company revises its assumptions and estimates, the Company’s share-based compensation expense could change materially in the future. See Note 8 . Employee Benefit Plan On January 1, 2017 the Company initiated a 401(k) retirement saving plan (“401-K Plan”) for the benefit of eligible employees. Under terms of this plan, eligible employees are able to make contributions of their wages on a tax-deferred basis. The Company has incurred $0.2 million , $0 and $0 in matching contribution to the 401-K Plan in 2019, 2018 and 2017, respectively. Restructuring Plan The Company accounts for exit or disposal of activities in accordance with ASC 420, Exit or Disposal Cost Obligations . The Company defines a business restructuring as an exit or disposal activity that includes but is not limited to a program which is planned and controlled by management and materially changes either the scope of a business or the manner in which that business is conducted. Business restructuring charges may include (i) contract termination costs and (ii) other related costs associated with exit or disposal activities. Contract termination costs include costs to terminate a contract or costs that will continue to be incurred under the contract without benefit to the Company. A liability is recognized and measured at its fair value when the Company either terminates the contract or ceases using the rights conveyed by the contract. See Note 3 . Related-Party Transactions Seth Goldman The Company entered into a consulting agreement with Seth Goldman, the Company’s Executive Chair, on March 2, 2016, which was amended and restated on November 15, 2018 and further amended on April 8, 2019. Pursuant to the consulting agreement, the Company paid Mr. Goldman $20,210.33 per month for services rendered under the consulting agreement. Effective February 27, 2020, Seth Goldman resigned as Executive Chair of the Company. Upon such resignation, Mr. Goldman will continue to serve in his capacity as a Class I director and Chairman of the Board of the Company. In connection with Mr. Goldman’s resignation as Executive Chair, the Company and Mr. Goldman terminated the consulting agreement effective as of February 27, 2020. Total consulting fees paid to Mr. Goldman under the consulting agreement prior to its termination in 2019, 2018 and 2017 were $265,548 , $189,583 and $160,417 , respectively. In addition, Mr. Goldman is entitled to receive a bonus for service in 2019 in the amount of $121,260 , which was paid in the first quarter of 2020. Bernhard van Lengerich The Company first entered into an advisor agreement with Food System Strategies, LLC in October 2015. Bernhard van Lengerich. Ph.D., a member of the Company’s Board of Directors, is the Chief Executive Officer of Food System Strategies, LLC. Pursuant to this advisor agreement, the Company paid Food System Strategies, LLC $4,000 for each day Dr. van Lengerich provided services, provided the Company paid Food System Strategies, LLC for at least two days of services per month. In February 2016, the Company entered into a new advisor agreement with Food System Strategies, LLC, which superseded the original agreement and provided for a $25,000 monthly retainer and a non-qualified stock option covering 532,590 shares, which vested in equal monthly installments over three years in consideration of Dr. van Lengerich providing services as the Company’s interim Chief Technical Officer and head of research and development, and the increased time commitment associated with these roles. In December 2016, the advisor agreement was amended to provide for a $10,000 monthly retainer to reflect the fact that Dr. van Lengerich would only be providing advisory services five to six days a month going forward. Effective December 31, 2019, the Company and Food System Strategies, LLC agreed that the term of the advisor agreement would end. Total advisor fees paid to Food System Strategies, LLC for the services of Mr. van Lengerich in 2019, 2018 and 2017 were $120,000 (including amounts paid in 2020), $140,000 and $125,000 , respectively. Donald Thompson In 2018 , the Company incurred consulting costs payable to a company associated with Donald Thompson, a member of the Company’s Board of Directors, in the amount of $121,546 . The Company did not incur any such consulting costs in 2017 or 2019 . Loans to Related Parties In connection with the issuance of restricted stock and for value received, in December 2015, the nonemployee members of our Board of Directors entered into a promissory note to pay the Company the principal sum of $951,245 with interest at a fixed rate of 1.68% per annum, compounded annually, on the unpaid balance of such principal sum. The promissory notes were secured by a pledge of the common stock issued to the nonemployee board members. In determining the accounting for the promissory notes, management evaluated the legal provisions of the promissory notes as well as the Company’s intent to fully collect on the outstanding note amounts. The Company collected on the promissory notes in their entirety in 2018. Recently Adopted Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which makes amendments to the gu |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In May 2017, management approved a plan to terminate the Company’s exclusive supply agreement (the “Agreement”) with one of its co-manufacturers, due to non-performance under the Agreement and on May 23, 2017, the Company notified the co-manufacturer of its decision to terminate the Agreement. In accordance with the Company’s policy of reviewing long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, the Company determined that as of May 23, 2017, the date the Company notified the co-manufacturer of its decision to terminate the Agreement, the assets held in possession of the co-manufacturer were no longer recoverable. The Company recorded restructuring expenses of $3.5 million in 2017, of which $2.3 million were related to the impairment write-off of long-lived assets comprised of certain unrecoverable equipment located at the co-manufacturer’s site and company-paid leasehold improvements to the co-manufacturer’s facility pursuant to the Agreement, and $1.2 million was primarily related to legal and other expenses associated with the dispute with the co-manufacturer (see Note 9 ). In addition, the Company recorded $2.4 million in write-off of unrecoverable inventory held at the co-manufacturer’s site which is included in cost of goods sold (see Note 4 ) and $1.2 million in expenses related to the dispute in SG&A expenses in the Company’s statement of operations in 2017 . In 2019 and 2018 , the Company recorded $4.9 million and $1.5 million , respectively, in restructuring expenses related to this dispute, which consisted primarily of legal and other expenses. See Note 9 for further information. As of December 31, 2019 and 2018 , the Company had $1.1 million and $0 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Major classes of inventory were as follows: December 31, (in thousands) 2019 2018 Raw materials and packaging $ 36,884 $ 13,756 Work in process 17,958 2,517 Finished goods 26,754 13,984 Total $ 81,596 $ 30,257 The Company wrote off $2.4 million in unrecoverable inventory related to the termination of an exclusive supply agreement with one of the Company’s co-manufacturers which was recorded in cost of goods sold in its statement of operations for the year ended December 31, 2017. The Company wrote off $6.4 million , $0.8 million and $0 in excess and obsolete inventories and recognized that expense in cost of goods sold in its statements of operations for the years ended December 31, 2019, 2018 and 2017, respectively. There was no write down of inventory to lower of cost or net realizable value at December 31, 2019 or 2018. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment are stated at cost and capital lease assets are included. A summary of property, plant, and equipment as of December 31, 2019 and 2018 , is as follows: December 31, (in thousands) 2019 2018 Manufacturing equipment $ 37,939 $ 25,314 Research and development equipment 8,933 6,088 Leasehold improvements 7,620 7,080 Capital leases 1,108 882 Software 274 60 Furniture and fixtures 433 195 Vehicles 210 210 Assets not yet placed in service 11,666 3,374 Total property, plant and equipment $ 68,183 $ 43,203 Less: accumulated depreciation and amortization 20,709 12,676 Property, plant and equipment, net $ 47,474 $ 30,527 Depreciation and amortization expense in 2019 , 2018 , and 2017 was $8.1 million , $4.9 million , and 3.2 million , respectively. Of the total depreciation and amortization expense in 2019 , 2018 and 2017, $5.7 million , $3.7 million and $2.9 million , respectively, were recorded in cost of goods sold, $2.4 million , $1.2 million and $0.3 million , respectively, were recorded in research and development expenses, and $71,000 , $13,000 and $0 , respectively, were recorded in SG&A expenses, in the Company’s statements of operations. The Company had $2.6 million and $1.0 million in property, plant and equipment concluded to meet the criteria for assets held for sale in prepaid expenses and other current assets on the balance sheets as of December 31, 2019 and 2018 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt balances are detailed below: December 31, (in thousands) 2019 2018 2018 Revolving Credit Facility (defined below) $ 6,000 $ 6,000 2018 Term Loan Facility (defined below) 20,000 20,000 Equipment financing loan 5,000 5,000 Debt issuance costs (431 ) (612 ) Total debt outstanding $ 30,569 $ 30,388 Less: current portion of long-term debt 11,000 — Long-term debt $ 19,569 $ 30,388 The Company records debt issuance costs as a reduction of carrying value of the debt in the accompanying balance sheets. As of December 31, 2019 and 2018 , debt issuance costs, net of amortization, totaled $0.4 million and $0.6 million , respectively. Debt issuance costs are amortized as interest expense over the term of the loan for which amortization of $0.2 million , $93,000 and 37,000 was recorded in 2019 , 2018 and 2017 , respectively. Amended and Restated Loan and Security Agreement In June 2018, the Company refinanced its then existing revolving credit facility and term loan facility under a loan and security agreement with Silicon Valley Bank (“SVB”) (the “Amended LSA”). The Amended LSA includes a $6.0 million revolving credit facility (the “2018 Revolving Credit Facility”) and a term loan facility (the “2018 Term Loan Facility”) comprised of (i) a $10.0 million term loan advance at closing, (ii) a conditional $5.0 million term loan advance, if no event of default has occurred and is continuing through the borrowing date, and (iii) an additional conditional term loan advance of $5.0 million if no event of default has occurred and is continuing based upon a minimum level of gross profit for the trailing 12 -month period. The 2018 Term Loan Facility has a floating interest rate that is equal to 4.0% above the prime rate, with interest payable monthly and principal amortizing commencing on July 1, 2020, and will mature in June 2022. Borrowings under the 2018 Revolving Credit Facility carry a variable annual interest rate of prime rate plus 0.75% to 1.25% with an additional 5% on the outstanding balances in the event of a default. The 2018 Revolving Credit Facility matures in June 2020. The 2018 Term Loan Facility and the 2018 Revolving Credit Facility (the “SVB Credit Facilities,”) contain customary negative financial covenants that limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets and merge or consolidate. The SVB Credit Facilities also contain customary affirmative financial covenants, including delivery of audited financial statements. The Company was in compliance with the financial covenants in the SVB Credit Facilities as of December 31, 2019 . The SVB Credit Facilities are secured by an interest in the Company’s assets including manufacturing equipment, inventory, contract rights or rights to payment of money, leases, license agreements, general intangibles, and cash. In conjunction with the execution of the Amended LSA, the Company issued two common stock warrants one each to SVB and its affiliate to provide the ability to purchase an aggregate of 60,002 shares of the Company’s common stock at an exercise price of $3.00 per share. The common stock warrants were fully exercisable on the date of the grant and had a term of 10 years . The Company also paid a commitment fee of $30,000 to SVB in connection with the execution of the Amended LSA. Subsequent to the closing of the IPO, all outstanding warrants to purchase shares of common stock were cashless exercised and no warrants were outstanding as of December 31, 2019 . As of December 31, 2019 , and 2018 , the Company had $6.0 million and $20.0 million in borrowings on the 2018 Revolving Credit Facility and 2018 Term Loan Facility, respectively, and had no availability to borrow under either of these loan facilities. In 2019 and 2018 , the Company incurred $2.2 million and $0.9 million , respectively, in interest expense related to the SVB Credit Facilities. In 2017, the Company incurred $0.1 million in interest expense related to the predecessor credit facilities with SVB. The interest rates on the 2018 Revolving Credit Facility and the 2018 Term Loan Facility at December 31, 2019 were 5.5% and 8.75% , respectively. Equipment Loan Facility In September 2018, the Company entered into an agreement with Structural Capital Investments II, LP, or Structural Capital, wherein Structural Capital agreed to provide an equipment loan facility to the Company in the amount of $5.0 million for the purpose of purchasing equipment. Subject to Structural Capital’s approval, the Company may request that they advance an additional $5.0 million or an aggregate of $10.0 million . The equipment loan facility matures on May 1, 2022, carries an interest rate of 6.25% plus the greater of 4.75% or the prime rate and is secured by the financed equipment. Principal repayments begin six months or 18 months after loan draw depending on the Company achieving certain financial milestones, and therefore, are paid over a period of 37 months or 25 months , respectively. As of June 30, 2019, the Company achieved all of the milestones and, therefore, monthly installment repayments of principal are expected to begin on December 31, 2020. The Company is also required to offer Structural Capital the right to purchase up to an aggregate of $1.0 million of the Company’s capital stock or any other equity interest in any transaction where the Company receives gross proceeds of at least $10.0 million . The equipment loan facility has a prepayment penalty of 2% during the first two years of the term and 1% thereafter. The Company must also pay a final payment fee of 13% of the facility commitment amount on the maturity date and such other date as the advances become due and such fee will increase by 1% if certain milestones are achieved. The Company had $5.0 million in borrowings outstanding as of December 31, 2019 and 2018 under the equipment loan facility. The interest rate on the equipment loan facility at December 31, 2019 and 2018 was 11.0% and 11.5% , respectively. For 2019 , 2018 and 2017 , the Company recorded $0.6 million , $0.2 million , and $0 , respectively, in interest expense related to the equipment loan facility. The Company was in compliance with the financial covenants contained in the equipment loan facility as of December 31, 2019 . Promissory Note The Company entered into a note with the Missouri Department of Economic Development in the amount of $1.5 million on December 20, 2013 or the Missouri Note. The principal was due and payable on December 20, 2021. The Missouri Note carried a fixed interest rate of 2.0% per year, payable quarterly, commencing on December 31, 2016. The Company recognized interest expense of $29,000 , in 2017. On June 28, 2018, the Missouri Note was paid in full. Convertible Promissory Notes From August 2017 through November 2017, the Company issued $10.0 million in Convertible Promissory Notes (“2017 Convertible Notes”) to several purchasers of the Series G Preferred Stock, two of whom were 5% stockholders and two were non-employee members of the Company’s Board of Directors. The 2017 Convertible Notes were due six months after the issuance date. The 2017 Convertible Notes had a fixed interest rate of 5% per year during their term and permitted the holders to convert the notes to Series G Preferred Stock at 90% of the cash price per share. The outstanding principal and all accrued but unpaid interest under the 2017 Convertible Notes were converted into 1,026,367 shares of Series G Preferred Stock beginning in November 2017. The number of shares issued was calculated based on the quotient obtained by dividing the outstanding principal and all accrued interest by 90% of the cash price per share of the Series G Preferred Stock issuance. In connection with the accounting for the 2017 Convertible Notes, a debt discount of $1.1 million was recognized at issuance, of which $0.7 million was recognized as a component of interest expense through the date of conversion. The remaining unamortized discount of $0.4 million was recorded in other expense at the date of conversion. Stock Warrant Liability In connection with its financing arrangements, the Company issued warrants to purchase shares of its convertible preferred stock. For one of the financing arrangements, the Company issued warrants to purchase 121,694 shares of Series B convertible preferred stock at an exercise price of $1.07 per share. For a separate financing arrangement, the Company issued warrants to purchase 39,073 shares of Series E convertible preferred stock at an exercise price of $3.68 per share. In connection with the Company’s refinancing of its credit facilities with SVB, the Company issued to SVB and its affiliates warrants to purchase an aggregate of 60,002 shares of its common stock at an exercise price of $3.00 per share. Upon the closing of the IPO, the warrants exercisable for convertible preferred stock were automatically converted into warrants exercisable for a total of 160,767 shares of common stock at the same respective exercise price per share. Subsequent to the closing of the IPO, all outstanding warrants to purchase shares of common stock were cashless exercised and no warrants were outstanding as of December 31, 2019 . See Note 2 for further information on the warrant liabilities. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) and Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) and Convertible Preferred Stock | Stockholders’ Equity (Deficit) and Convertible Preferred Stock Upon the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock automatically converted into 41,562,111 shares of common stock on a one -for-one basis. On May 6, 2019, the Company filed a Restated Certificate of Incorporation authorizing the Company to issue 500,000,000 shares of common stock, $0.0001 par value per share, and 500,000 shares of undesignated preferred stock, $0.0001 par value per share, with rights and preferences determined by the Company’s Board of Directors at the time of issuance of such shares. On August 5, 2019, the Company completed its Secondary Offering of common stock, in which it sold 250,000 shares of common stock, $0.0001 par value. As of December 31, 2019 , the Company had 61,576,494 shares of common stock issued and outstanding. As of December 31, 2018 , the Company’s shares consisted of 58,669,600 authorized shares of common stock, par value $0.0001 per share, of which 6,951,350 shares were issued and outstanding, and 43,882,867 authorized shares of preferred stock, par value $0.0001 per share, of which 3,333,500 shares of Series A Preferred Stock, 4,680,565 shares of Series B Preferred Stock, 8,076,636 shares of Series C Preferred Stock, 8,713,201 shares of Series D Preferred Stock, 4,701,449 shares of Series E Preferred Stock, 4,866,758 shares of Series F Preferred Stock, 5,114,786 shares of Series G Preferred Stock and 2,075,216 shares of Series H Preferred Stock were issued and outstanding. The Company has not declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation On April 11, 2011, the Company’s stockholders approved the 2011 Equity Incentive Plan (“2011 Plan”), and most recently amended the 2011 Plan on April 10, 2019. The 2011 Plan was amended, restated and re-named the 2018 Equity Incentive Plan (“2018 Plan”), which became effective as of April 30, 2019, the day prior to the effectiveness of the registration statement filed in connection with the IPO. The remaining shares available for issuance under the 2011 Plan were added to the shares reserved for issuance under the 2018 Plan. The 2018 Plan provides for the grant of stock options (including incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, Restricted Stock Units (“RSUs”), performance units, and performance shares to the Company’s employees, directors, and consultants. The maximum aggregate number of shares that may be issued under the 2018 Plan is 14,482,356 shares of the Company’s common stock. In addition, the number of shares reserved for issuance under the 2018 Plan will be increased automatically on the first day of each fiscal year beginning with the 2020 fiscal year, by a number equal to the least of: (i) 2,144,521 shares; (ii) 4.0% of the shares of common stock outstanding on the last day of the prior fiscal year; or (iii) such number of shares determined by the Company’s Board of Directors. The 2018 Plan may be amended, suspended or terminated by the Company’s Board of Directors at any time, provided such action does not impair the existing rights of any participant, subject to stockholder approval of any amendment to the 2018 Plan as required by applicable law or listing requirements. Unless sooner terminated by the Company’s Board of Directors, the 2018 Plan will automatically terminate on November 14, 2028. The following awards were made pursuant to the 2018 Plan in the year ended December 31, 2019 : (i) options to purchase 264,033 shares of common stock were granted to certain employees on April 3, 2019, having an exercise price of $20.02 per share, (ii) options to purchase (A) 1,000,000 shares of common stock were granted to executive officers on April 18, 2019, (B) 48,999 shares of common stock were granted to certain employees on April 29, 2019, and (C) 50,000 shares of common stock were granted to certain executive officers on May 1, 2019, in each case to be effective upon and subject to the effectiveness of the registration statement relating to the Company’s IPO and having an exercise price equal to the IPO price of $25.00 per share, (iii) awards covering 99,433 shares of restricted stock were granted to nonemployees on April 18, 2019 at a purchase price of $0.01 per share to be issued upon payment of the purchase price, (iv) an option to purchase 125,000 shares of common stock was granted to an executive officer on June 10, 2019, having an exercise price of $168.10 per share, (v) 70,360 RSUs with a grant date fair value of $168.10 per unit were granted to certain employees on June 10, 2019, (vi) an option to purchase 5,073 shares of common stock was granted to an executive officer on August 1, 2019, having an exercise price of $176.04 per share, (vii) 14,862 RSUs with a grant date fair value of $176.04 per unit were granted to certain employees and a consultant on August 1, 2019, (viii) options to purchase 78,820 shares of common stock having an exercise price of $84.45 were granted on October 31, 2019 to certain employees including an option to purchase 68,590 shares of common stock granted to executive officer, and (ix) 87,974 RSUs with a grant date fair value of $84.45 per unit were granted on October 31, 2019 to certain ambassadors and employees including 34,295 RSUs granted to an executive officer. As of December 31, 2019 and 2018 , there were 5,170,976 and 5,120,293 shares, respectively, issuable under stock options outstanding, 149,004 and 0 shares, respectively, issuable under unvested RSUs outstanding, 5,864,738 and 4,335,331 shares, respectively, issued for stock option exercises, RSU settlement, and restricted stock grants, and 3,297,638 and 6,859 shares, respectively, available for grant under the 2018 Plan. Stock Options For the periods presented, the fair value of options was estimated using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.3% 2.8% 2.0% Average expected term (years) 6.1 5.8 5.9 Expected volatility 55.0% 55.0% 55.0% Dividend yield — — — • Risk-Free Interest Rate: The yield on actively traded non-inflation indexed US Treasury notes with the same maturity as the expected term of the underlying options was used as the average risk-free interest rate. • Expected Term: As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, the Company’s expected term is based on the simplified method, generally calculated as the mid-point between the vesting date and the end of the contractual term. • Expected Volatility: As the Company has only been a public entity since May 2, 2019, there is not a substantive share price history to calculate volatility and, as such, the Company has elected to use an approximation based on the volatility of other comparable public companies, which compete directly with the Company, over the expected term of the options. • Dividend Yield: The Company has not issued regular dividends on common shares in the past nor does the Company expect to issue dividends in the future. Forfeiture Rate: The Company estimates the forfeiture rate at the time of grant based on past awards canceled, the number of awards granted, and vesting terms and adjusted, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The cumulative effect on current and prior periods of a change in the estimated number of awards likely to vest is recognized in compensation cost in the period of the change. The Plan generally provides that the Board of Directors may set the vesting schedule applicable to grants approved under the 2011 Plan. Option grants approved under the 2018 Plan typically vest 25% of the total award on the first anniversary of the grant date, and thereafter ratably monthly vesting over the remaining 3.0 years of the award. The Company has not granted equity awards with performance-based vesting conditions. Option grants in 2019 generally vest 25% of the total award on the first anniversary of the vesting commencement date, and thereafter ratably vesting monthly over the remaining three-year period. The stock option grant to one executive officer on August 1, 2019 vests monthly over a 48-month period. The stock option grant to another executive officer on October 31, 2019 begins vesting on the second anniversary of the vesting commencement date and vests monthly thereafter over a 24-month period. Options granted in the year ended December 31, 2018 and prior have a variety of different vesting schedules and have a contractual life of 10 years . The following table summarizes the Company’s stock option activity during the period from December 31, 2016 through December 31, 2019 : Number Weighted Weighted Aggregate Intrinsic Value (in thousands) (1) Outstanding at December 31, 2016 4,879,850 $ 0.83 8.2 $ 3,557 Granted 382,476 $ 1.56 — — Exercised (446,201 ) $ 0.85 — 347 Cancelled/Forfeited (609,096 ) $ 0.97 — — Outstanding at December 31, 2017 4,207,029 $ 0.88 7.2 $ 8,936 Granted 2,136,012 $ 6.49 — — Exercised (1,139,962 ) $ 1.20 — 5,722 Cancelled/Forfeited (82,786 ) $ 2.03 — — Outstanding at December 31, 2018 5,120,293 $ 3.13 7.3 $ 81,371 Granted 1,571,925 $ 39.01 — — Exercised (1,429,756 ) $ 1.87 — 121,591 Cancelled/Forfeited (91,486 ) $ 9.33 — — Outstanding at December 31, 2019 5,170,976 $ 14.28 7.5 $ 329,879 Vested and exercisable at December 31, 2019 2,533,199 $ 2.32 6.0 $ 185,671 Vested and expected to vest at December 31, 2019 3,761,031 $ 8.55 6.9 $ 256,967 __________ (1) Aggregate intrinsic value is calculated as the difference between the value of common stock on the transaction date and the exercise price multiplied by the number of shares issuable under the stock option. During the years ended December 31, 2019 , 2018 and 2017, the Company recorded in aggregate $6.3 million , $1.5 million , and $0.5 million , respectively, of share-based compensation expense related to options issued to employees and nonemployees. The share-based compensation expense is included in cost of goods sold, research and development expenses and SG&A expenses in the Company’s statements of operations. As of December 31, 2019 , there was $10.4 million in unrecognized compensation expense related to nonvested stock option awards which is expected to be recognized over 3.1 years . Restricted Stock Units RSU awards in the year ended December 31, 2019 generally vest 25% of the total award on the first anniversary of the grant date, and thereafter ratably vesting quarterly over the remaining three years of the award. The RSU award to one executive officer on August 1, 2019 vests quarterly over 16 quarters. The RSU award to a consultant on August 1, 2019 was scheduled to vest monthly over a 12-month period, however a portion of this award was forfeited upon termination of the consulting agreement. The RSU award to another executive officer on October 31, 2019 begins vesting on the 27th month anniversary of the vesting commencement date and vests over 8 quarters. In addition to the grants to employees and consultants, on October 31, 2019, the Company granted 30,496 RSUs to nonemployees serving as the Company’s brand ambassadors. These RSUs generally vest over a period of less than one year from the date of grant, with 22,620 RSUs subject to immediate vesting upon grant. The following table summarizes the Company’s RSU activity in 2019 : Number of Units Weighted Unvested at January 1, 2019 — $ — Granted 173,196 $ 126.29 Vested (23,552 ) $ 84.84 Cancelled/Forfeited (640 ) $ — Unvested at December 31, 2019 149,004 $ 132.73 During the years ended December 31, 2019 , 2018 and 2017 , the Company recorded in aggregate $3.7 million , $0 , and $0 , respectively, of share-based compensation expense related to RSUs. The share-based compensation expense is included in cost of goods sold, research and development expense and SG&A expenses in the Company’s statements of operations. As of December 31, 2019 , there was $5.1 million in unrecognized compensation expense related to nonvested RSUs which is expected to be recognized over 3.3 years . Share-Settled Obligation Share-based compensation expense in 2019 includes $1.0 million in accrual for a liability classified, share-settled obligation to an executive officer related to a sign-on award pursuant to the terms of the executive officer’s offer letter with the Company. The Company is obligated to deliver a variable number of shares based on a fixed monetary amount on the first annual anniversary of the executive officer’s commencement date and on each quarterly anniversary thereafter through the second annual anniversary of the executive officer’s commencement date. The liability classified award is considered unearned until the requirements for issuance of the shares are met and is included in Accrued expenses and other current liabilities on the Company’s balance sheet as of December 31, 2019. There were no such liability classified share-settled obligations in 2018 and 2017. As of December 31, 2019, there was $6.0 million in unrecognized compensation expense related to this share-settled obligation which is expected to recognized over 1.7 years . Restricted Stock to Nonemployees In April 2019, the Company’s Board of Directors approved the issuance of 99,433 shares of restricted stock with a fair value of $20.02 per share and a purchase price of $0.01 per share to nonemployees serving as the Company’s brand ambassadors. The Company has the right to repurchase the unvested shares upon a voluntary or involuntary termination of a brand ambassador’s service; however, as shares vest monthly over 24 months , they are being released from the repurchase option (and all such shares will be released from the repurchase option by May 18, 2021). In October 2018, the Company’s Board of Directors approved the issuance of 135,791 shares of restricted stock with a fair value of $17.03 per share and a purchase price of $0.02 per share to nonemployees serving as the Company’s brand ambassadors. The Company has the right to repurchase the unvested shares upon a voluntary or involuntary termination of a brand ambassador’s service; however, as shares vest monthly over 12 to 24 months , they are being released from the repurchase option (and all such shares will be released from the repurchase option by November 1, 2020). The following table summarizes the Company’s restricted stock activity: Number Weighted Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2017 — — $ — Granted 135,791 — $ 17.03 Vested/Released (35,664 ) — $ 17.03 Cancelled/Forfeited — — $ — Unvested at December 31, 2018 100,127 1.6 $ 17.03 Granted 99,433 — $ 20.02 Vested/Released (87,239 ) — $ 19.21 Cancelled/Forfeited (23,333 ) — $ — Unvested at December 31, 2019 88,988 1.2 $ 19.49 As of December 31, 2019 , 88,988 shares of restricted stock had been purchased by nonemployee brand ambassadors which remained subject to vesting requirements and repurchase pursuant to restricted stock purchase agreements. During 2019 , 2018 and 2017, the Company recorded in aggregate $1.8 million , $0.7 million and $0 , respectively, of share-based compensation expense related to restricted stock issued to nonemployee brand ambassadors, which is included in SG&A expenses in the Company’s statements of operations. As of December 31, 2019 , there was $1.7 million in unrecognized compensation expense related to nonvested restricted stock, which is expected to be recognized over 1.2 years . Restricted Stock and Loans to Related Parties In December 2015, the Company’s Board of Directors approved the issuance of 1,006,658 shares of restricted stock to nonemployee board members. The Company had the option of repurchasing the shares; however, as shares vest monthly over 36 months , they were being released from the repurchase option (and all such shares were released from the repurchase option by November 1, 2018). In connection with the issuance and for value received, the nonemployee board members entered into promissory notes to pay the Company the principal sum of $951,245 with interest at a fixed rate of 1.68% per annum, compounded annually, on the unpaid balance of such principal sum. The promissory notes are secured by a pledge of the common stock issued to the nonemployee board members. The loans are classified as a reduction to stockholders’ deficit in the accompanying balance sheets. In determining the accounting for the promissory notes, management evaluated the legal provisions of the promissory notes as well as the Company’s intent to fully collect on the outstanding note amounts. The Company collected on the promissory notes in their entirety in July 2018. Common Stock Repurchase In July 2018, the Company repurchased 48,909 shares of common stock from one of its individual investors at a negotiated price of $10.50 per share. Employee Stock Purchase Plan On November 15, 2018, the Company’s Board of Directors adopted its 2018 Employee Stock Purchase Plan (“2018 ESPP”), which was subsequently approved by the Company’s stockholders and became effective on April 30, 2019, the day immediately prior to the effectiveness of the registration statement filed in connection with the IPO. The 2018 ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code (the “Code”) for U . S . employees. In addition, the 2018 ESPP authorizes grants of purchase rights that do not comply with Section 423 of the Code under a separate non-423 component for non-U.S. employees and certain non-U.S. service providers. The Company has reserved 804,195 shares of common stock for issuance under the 2018 ESPP. In addition, the number of shares reserved for issuance under the 2018 ESPP will be increased automatically on the first day of each fiscal year for a period of up to ten years , starting with the 2020 fiscal year, by a number equal to the least of: (i) 536,130 shares; (ii) 1% of the shares of common stock outstanding on the last day of the prior fiscal year; or (iii) such lesser number of shares determined by the Company’s Board of Directors. The 2018 ESPP is expected to be implemented through a series of offerings under which participants are granted purchase rights to purchase shares of the Company’s common stock on specified dates during such offerings. The administrator has not yet approved an offering under the 2018 ESPP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has operating leases for its corporate offices including its research and development center, its manufacturing facilities and its warehouses, and capital and operating leases for certain of the Company’s equipment. The following table represents the Company’s commitments as of December 31, 2019 including future minimum lease payments required under noncancelable lease obligations: (in thousands) Capital Lease Operating Lease (1) Purchase Commitments Year Ended December 31, 2020 $ 86 $ 1,878 $ 22,684 2021 80 1,813 21,418 2022 71 1,817 — 2023 58 1,840 — 2024 30 1,353 — Thereafter — 5,167 — $ 13,868 $ 44,102 Total minimum lease payments $ 325 Less: imputed interest (4.1% to 15.9%) (34 ) Total capital lease obligations $ 291 Less: current portion of capital lease obligations (72 ) Long-term capital lease obligations $ 219 ___________ (1) Excludes lease payments during two-year lease extension entered into subsequent to the year ended December 31, 2019 for one of the Company’s manufacturing facilities in Columbia, Missouri. See Note 12 . Total rent expense in 2019, 2018 and 2017 was $2.7 million , $1.7 million and $1.0 million , respectively. Rent expense is reflected in cost of goods sold, research and development expenses and SG&A expenses in the statements of operations for all the periods presented. Purchase Commitments As of December 31, 2019 , the Company had committed to purchase pea protein inventory totaling $44.1 million , approximately $22.7 million in 2020 and $21.4 million in 2021. Subsequent to the year ended December 31, 2019, on January 10, 2020, the Company and Roquette Frères (“Roquette”) entered into a multi-year sales agreement pursuant to which Roquette will provide the Company with plant-based protein. See Note 12 . Litigation On May 25, 2017, Don Lee Farms, a division of Goodman Food Products, Inc., filed a complaint against the Company in the Superior Court of the State of California for the County of Los Angeles asserting claims for breach of contract, misappropriation of trade secrets, unfair competition under the California Business and Professions Code, money owed and due, declaratory relief and injunctive relief, each arising out of our decision to terminate an exclusive supply agreement between the Company and Don Lee Farms. The Company denies all of these claims and filed counterclaims on July 27, 2017, alleging breach of contract, unfair competition under the California Business and Professions Code and conversion. In October 2018, the former co-manufacturer filed an amended complaint that added one of the Company’s current contract manufacturers as a defendant, principally for claims arising from the current contract manufacturer’s alleged use of the former co-manufacturer’s alleged trade secrets, and for replacing the former co-manufacturer as one of the Company’s current co-manufacturers. The current contract manufacturer filed an answer denying all of Don Lee Farms’ claims and a cross-complaint against Beyond Meat asserting claims of total and partial equitable indemnity, contribution, and repayment. On March 11, 2019, Don Lee Farms filed a second amended complaint to add claims of fraud and negligent misrepresentation against the Company. On May 30, 2019, the judge denied the Company’s motion to dismiss the fraud and negligent misrepresentation claims, allowing the claims to proceed. On June 19, 2019, the Company filed an answer denying Don Lee Farms' claims. On January 27, 2020, Don Lee Farms filed a third amended complaint to add three individual defendants, all of whom are current or former employees of the Company, including Mark Nelson, the Company’s Chief Financial Officer and Treasurer, to Don Lee Farms’ existing fraud and negligent misrepresentation claims alleging that those individuals were involved in the alleged fraud and negligent misrepresentations. The individual defendants deny all allegations of fraud and negligent misrepresentations. On January 24, 2020, a writ judge granted Don Lee Farms a right to attach in the amount of $628,689 on the grounds that Don Lee Farms had established a “probable validity” of its claim that the Company owes it money for a small batch of unpaid invoices. This determination was not made by the trial judge. The trial judge has yet to determine the legitimacy or merits of Don Lee Farms’ claims. The previous trial date, May 18, 2020, has been continued. Trial is currently set for February 8, 2021. Don Lee Farms is seeking from Beyond Meat and the current contract manufacturer unspecified compensatory and punitive damages, declaratory and injunctive relief, including the prohibition of Beyond Meat’s use or disclosure of the alleged trade secrets, and attorneys’ fees and costs. The Company is seeking from Don Lee Farms monetary damages, restitution of monies paid to Don Lee Farms, and attorneys’ fees and costs. The current contract manufacturer is seeking indemnity, contribution, or repayment from the Company of any or all damages that the current contract manufacturer may be found liable to Don Lee Farms, and attorneys’ fees and costs. The Company believes it was justified in terminating the supply agreement with Don Lee Farms, that the Company did not misappropriate their alleged trade secrets, that the Company is not liable for the fraud or negligent misrepresentation alleged in the proposed second amended complaint, that Don Lee Farms is liable for the conduct alleged in our cross-complaint, and that the Company is not liable to ProPortion for any indemnity, contribution, or repayment, including for any damages or attorneys’ fees and costs. The Company is currently in the process of litigating this matter and intends to vigorously defend itself and its current and former employees against the claims. The Company cannot assure you that Don Lee Farms or the current contract manufacturer will not prevail in all or some of their claims against the Company or the individual defendants, or that the Company will prevail in some or all of its claims against Don Lee Farms. For example, if Don Lee Farms succeeds in the lawsuit, the Company could be required to pay damages, including but not limited to contract damages reasonably calculated at what the Company would have paid Don Lee Farms to produce its products through 2019, the end of the contract term, and Don Lee Farms could also claim some ownership in the intellectual property associated with the production of certain of the Company’s products or in the products themselves, and thus claim a stake in the value the Company has derived and will derive from the use of that intellectual property after the Company terminated its supply agreement with Don Lee Farms. Based on the Company’s current knowledge, the Company has determined that the amount of any material loss or range of any losses that is reasonably possible to result from this lawsuit is not estimable. On January 30, 2020, Larry Tran, a purported shareholder of Beyond Meat, filed a putative securities class action lawsuit in the United States District Court for the Central District of California against Beyond Meat and two of the Company’s executive officers, the Company’s President and CEO, Ethan Brown, and the Company’s Chief Financial Officer and Treasurer, Mark Nelson. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false or misleading statements, and alleged non-disclosure of material facts, related to the Company’s public disclosures regarding the Company’s ongoing litigation with Don Lee Farms during the proposed class period of May 2, 2019 to January 27, 2020. The Company believes the claims are without merit and intends to vigorously defend all claims asserted. On March 16, 2020, Eric Weiner, a purported shareholder of Beyond Meat, filed a shareholder derivative lawsuit in the United States District Court for the Central District of California, putatively on behalf of the Company, against two of the Company’s executive officers, the Company’s President and CEO, Ethan Brown, and the Company’s Chief Financial Officer and Treasurer, Mark Nelson, and each of the Company’s directors, including one former director, who signed the Company’s initial public offering registration statement. The lawsuit asserts claims under Sections 10(b) and 21D of the Exchange Act, claims of breaches of fiduciary duty as directors and/or officers of Beyond Meat, and claims of unjust enrichment and waste of corporate assets, all relating to the Company’s ongoing litigation with Don Lee Farms, related actions taken by Beyond Meat and the named individuals during the period of May 2, 2019 to March 16, 2020, and the securities case brought against the Company. Based on the early stage of this matter, the Company is unable to estimate potential losses, if any, related to this lawsuit. On March 18, 2020, Kimberly Brink and Melvyn Klein, purported shareholders of Beyond Meat, filed a shareholder derivative lawsuit in the United States District Court for the Central District of California, putatively on behalf of the Company, against two of the Company’s executive officers, the Company’s President and CEO, Ethan Brown, and the Company’s Chief Financial Officer and Treasurer, Mark Nelson, and each of the Company’s directors who signed the Company’s initial public offering registration statement. The lawsuit asserts claims under Sections 10(b) and 21D of the Exchange Act, claims of breaches of fiduciary duty as directors and/or officers of Beyond Meat, and claims of unjust enrichment and waste of corporate assets, all relating to the Company’s ongoing litigation with Don Lee Farms, related actions taken by Beyond Meat and the named individuals during the period of May 2, 2019 to March 18, 2020, and the securities case brought against the Company . Based on the early stage of this matter, the Company is unable to estimate potential losses, if any, related to this lawsuit. Also on March 18, 2020, Nazrin Massaro filed a putative class action lawsuit in the United States District Court for the Southern District of California against Beyond Meat and People for the Ethical Treatment of Animals, Inc. (“PETA”). The lawsuit asserts claims under the Telephone Consumer Protection Act and alleges that PETA sent unsolicited text message advertisements promoting the Company’s products to the putative class members in violation of consumers’ privacy rights. The lawsuit further alleges that PETA sent the text messages at the direction, and/or under the control, of Beyond Meat. The plaintiff seeks injunctive relief and damages on behalf of herself and the putative class members. The Company believes the claims are without merit and intends to vigorously defend all claims asserted. The Company is involved in various other legal proceedings, claims, and litigation arising in the ordinary course of business. Based on the facts currently available, the Company does not believe that the disposition of such matters that are pending or asserted will have a material effect on its financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes was as follows: (in thousands) Year Ended December 31, Current: 2019 2018 2017 Federal $ — $ — $ — State 9 1 5 $ 9 $ 1 $ 5 Deferred: Federal $ — $ — $ — State — — — $ — $ — $ — Provision for income tax $ 9 $ 1 $ 5 The Company has provided a 100% valuation allowance on its deferred tax assets. Provision for income taxes in 2019, 2018 and 2017 is primarily for taxes payable to the states. A reconciliation of income tax expense from continuing operations to the amount computed by applying the statutory federal income tax rate to the net loss from continuing operations is summarized as follows: Year Ended December 31, (in thousands) 2019 2018 2017 U.S. income tax at federal statutory rate $ (2,611 ) $ (6,276 ) $ (10,329 ) State income tax, net of federal benefits (2,550 ) (1,072 ) (1,041 ) Stock warrant liability 2,626 — — Share-based compensation (21,236 ) (615 ) 81 Research and development credits (8 ) (6 ) (4 ) Return to provision and other — 29 — Change in tax rates 73 668 11,783 Other (98 ) 363 470 Change in valuation allowance 23,813 6,910 (955 ) Provision for income tax $ 9 $ 1 $ 5 Significant components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are shown below. A valuation allowance has been recorded to offset the net deferred tax assets as of December 31, 2019 and 2018, as the realization of such assets does not meet the more-likely-than-not threshold. December 31, (in thousands) 2019 2018 Deferred Tax Assets: Net operating loss (NOL) $ 50,663 $ 29,634 Intangibles 1,252 1,407 Share-based compensation 2,704 83 Interest — 148 Inventory reserve 1,509 — Other 204 628 Total gross deferred tax assets 56,332 31,900 Deferred Tax liabilities: Property, plant and equipment 904 283 Total gross deferred tax liabilities 904 283 Valuation allowance 55,428 31,617 Net deferred tax assets (liabilities) $ — $ — As of December 31, 2019, and 2018, management assessed the realizability of deferred tax assets and evaluated the need for an amount of a valuation allowance for deferred tax assets on a jurisdictional basis. This evaluation utilizes the framework contained in ASC 740, Income Taxes , pursuant to which management analyzed all positive and negative evidence available at the balance sheet date to determine whether all or some portion of the deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more likely than not (a probability level of more than 50%) that they will not be realized. In concluding on the evaluation, management placed significant emphasis on guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” Based upon available evidence, it was concluded on a more-likely-than-not basis that certain deferred tax assets were not realizable as of December 31, 2019. Accordingly, a valuation allowance of $55.4 million has been recorded to offset these deferred tax assets. The change in valuation allowance for the year ended December 31, 2019 from 2018 was an increase of $23.8 million . As of December 31, 2018, the Company has accumulated federal and state net operating loss carryforwards of approximately $119.7 million and $92.3 million , respectively. As of December 31, 2019, the Company has accumulated federal and state net operating loss carryforwards of approximately $209.5 million and $143.8 million , respectively. Approximately $117.7 million of the federal net operating losses do not expire and the remaining federal and state tax loss carryforwards begin to expire in 2031 and 2032, respectively, unless previously utilized. Utilization of the Company’s net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company is currently analyzing ownership shifts since inception to determine the limitation, if any. The Company adopted ASU 2016-09 in the first quarter of 2018. Under ASU 2016-09, the Company no longer records excess tax benefits and certain tax deficiencies related to share-based payments to employees in additional paid-in capital. Instead, the Company will recognize all income tax effects of share-based awards in its statement of operations when awards vest or are settled. All excess tax benefits not previously recognized were to be recorded to retained earnings as a cumulative effect adjustment upon adoption. Upon adoption, no adjustment to retained earnings was necessary due to the Company’s valuation allowance position. In 2018, approximately $0.2 million attributable to excess tax benefits on share-based compensation that had not been previously recognized were added to the NOL with a corresponding increase to the valuation allowance. Tax Cuts and Jobs Act The Tax Cuts and Jobs Act or the Tax Act was enacted in the United States on December 22, 2017. The Tax Act reduced the United States federal corporate income tax rate to 21% from 35%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-sourced earnings. In 2017 the Company recorded provisional amounts for certain enactment-date effects of the Tax Act by applying the guidance in Staff Accounting Bulletin No. 118 or SAB 118 because the Company had not yet completed its enactment-date accounting for these effects. The Company completed its accounting for all of the enactment-date income tax effects of the Act as of December 31, 2018 and did not recognize adjustments to the provisional amounts recorded at December 31, 2017. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 2018 Gross unrecognized tax benefits at the beginning of the year $ 1,846 $ 1,201 Increases related to current year positions 1,695 888 Increases/Decreases related to prior year positions (205 ) (243 ) Gross unrecognized tax benefits at the end of the year $ 3,336 $ 1,846 As of December 31, 2019 and 2018, the Company had $3.1 million and $1.1 million , respectively, of unrecognized tax benefits from research and development tax credits, none of which, if recognized, would affect the Company’s effective tax rate. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2019, 2018 and 2017, interest and penalties recognized were insignificant. The Company does not expect any significant increases or decreases to its unrecognized tax benefits within the next 12 months. The Company files U.S. federal and state income tax returns in jurisdictions with varying statute of limitations. The Company’s tax years from 2011 (inception) are subject to examination by the United States and state authorities due to the carry forward of unutilized net operating losses and research and development credits. |
Net Loss Per Share Available to
Net Loss Per Share Available to Common Stockholders | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Available to Common Stockholders | Net Loss Per Share Available to Common Stockholders The Company calculates basic and diluted net loss per share available to common stockholders in conformity with the two-class method required for companies with participating securities. See Note 2 . Computation of EPS for the year ended December 31, 2019 excludes the dilutive effect of 5,170,976 shares issuable under stock options and 149,004 RSUs, because the Company incurred a net loss and their inclusion would be anti-dilutive. Computation of EPS for the year ended December 31, 2019 also excludes adjustments under the two-class method relating to a liability classified, share-settled obligation to an executive officer to deliver a variable number of shares based on a fixed monetary amount because the shares to be delivered are not participating securities as they do not have voting rights and are not entitled to participate in dividends until they are issued. Computation of EPS for the years ended December 31, 2018 and 2017 excludes the dilutive effect of 5,120,293 and 4,207,029 shares, respectively, issuable under stock options because the Company incurred net losses and their inclusion would have been antidilutive. (in thousands, except share and per share amounts) Year Ended December 31, 2019 2018 2017 Numerator: Net loss available to common stockholders $ (12,443 ) $ (29,886 ) $ (30,384 ) Denominator: Weighted average common shares outstanding—basic 42,274,777 6,287,172 5,457,629 Dilutive effect of stock equivalents resulting from stock options, RSUs, common stock warrants, preferred stock warrants and convertible preferred stock (as converted) — — — Weighted average common shares outstanding—diluted 42,274,777 6,287,172 5,457,629 Net loss per share available to common stockholders—basic and diluted $ (0.29 ) $ (4.75 ) $ (5.57 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because the impact of including them would have been antidilutive: Year Ended December 31, 2019 2018 2017 Options to purchase common stock 5,170,976 — — Restricted stock units 149,004 — — Convertible preferred stock (as converted) — 39,953,983 39,361,211 Preferred stock warrants — 160,767 160,767 Total 5,319,980 40,114,750 39,521,978 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Multi-Year Sales Agreement with Roquette Subsequent to the year ended December 31, 2019, on January 10, 2020, the Company and Roquette Frères (“Roquette”) entered into a multi-year sales agreement pursuant to which Roquette will provide the Company with plant-based protein. The agreement expires on December 31, 2022; however it can be terminated after 18 months under certain circumstances. This agreement increases the amount of plant-based protein to be supplied by Roquette in each of 2020, 2021 and 2022 compared to the amount supplied 2019. The plant-based protein sourced under the supply agreement is secured on a purchase order basis regularly, per specified minimum monthly and semi-annual quantities, throughout the term. The Company is not required to purchase plant-based protein in amounts in excess of such specified minimum quantities; however the Company has the option to increase such minimum quantities for delivery in each of 2021 and 2022. The total annual amount purchased each year by the Company must be at least the minimum amount specified in the agreement, which totals in the aggregate $154.1 million over the term of the agreement. The Company also has the right to be indemnified by Roquette in certain circumstances. Extension of Facility Lease Effective March 16, 2020, the Company entered into an agreement to extend the lease for one of its facilities in Columbia, Missouri, for an additional term of two years ending in June 2022. The aggregate lease amount for the additional two-year term is $0.5 million . COVID-19 Pandemic In December 2019, a novel strain of coronavirus disease (“COVID-19”) was first reported in Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization declared COVID-19 a pandemic. The extent of COVID-19’s effect on the Company’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As a result, it is not currently possible to ascertain the overall impact of COVID-19 on the Company’s business. However, if the pandemic continues to evolve into a severe worldwide health crisis, the disease could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following table presents selected unaudited quarterly financial data for each full quarterly period of 2019 and 2018: Three Months Ended (1) (in thousands) Mar. 31, 2018 Jun. 30, 2018 Sep. 29, 2018 Dec. 31, 2018 Mar. 30, 2019 Jun. 29, 2019 Sep. 28, 2019 Dec. 31, 2019 Net revenues $ 12,776 $ 17,367 $ 26,277 $ 31,514 $ 40,206 $ 67,251 $ 91,961 $ 98,479 Cost of goods sold 10,719 14,755 21,235 23,651 29,435 44,510 59,178 65,018 Gross profit 2,057 2,612 5,042 7,863 10,771 22,741 32,783 33,461 Gross margin 16.1 % 15.0 % 19.2 % 25.0 % 26.8 % 33.8 % 35.6 % 34.0 % Research and development expenses 1,605 2,497 2,165 3,320 4,498 4,212 5,951 5,989 Selling, general and administrative expenses 5,737 7,043 10,353 11,328 11,177 15,515 20,944 27,090 Restructuring expenses 294 348 528 345 394 847 2,319 1,309 Total operating expenses 7,636 9,888 13,046 14,993 16,069 20,574 29,214 34,388 (Loss) income from operations (5,579 ) (7,276 ) (8,004 ) (7,130 ) (5,298 ) 2,167 3,569 (927 ) Other (expense) income: Interest expense (47 ) (28 ) (313 ) (740 ) (733 ) (741 ) (855 ) (742 ) Remeasurement of warrant liability (129 ) (130 ) (994 ) 133 (759 ) (11,744 ) — — Other, net 59 38 (31 ) 286 141 898 1,385 1,205 Total other (expense) income, net (117 ) (120 ) (1,338 ) (321 ) (1,351 ) (11,587 ) 530 463 (Loss) income before taxes (5,696 ) (7,396 ) (9,342 ) (7,451 ) (6,649 ) (9,420 ) 4,099 (464 ) Income tax expense (benefit) — — — 1 — 21 — (12 ) Net (loss) income $ (5,696 ) $ (7,396 ) $ (9,342 ) $ (7,452 ) $ (6,649 ) $ (9,441 ) $ 4,099 $ (452 ) Net (loss) income per share available to common stockholders: Basic $ (0.98 ) $ (1.22 ) $ (1.45 ) $ (1.10 ) $ (0.95 ) $ (0.24 ) $ 0.07 $ (0.01 ) Diluted $ (0.98 ) $ (1.22 ) $ (1.45 ) $ (1.10 ) $ (0.95 ) $ (0.24 ) $ 0.06 $ (0.01 ) ______________ (1) The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Fiscal Year | Fiscal Year The Company operates on a fiscal calendar year, and each interim quarter is comprised of one 5-week period and two 4-week periods, with each week ending on a Saturday. The Company’s fiscal year always begins on January 1 and ends on December 31. As a result, the Company’s first and fourth fiscal quarters may have more or fewer days included than a traditional 91 -day fiscal quarter. |
Segment Information | Segment Information The Company has one operating segment and one reportable segment, as the Company’s chief operating decision maker, who is the Company’s Chief Executive Officer, reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. |
Management’s Use of Estimates | Management’s Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company maintains cash balances at two financial institutions in the United States. The cash balances may, at times, exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation or FDIC up to $250,000 . The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market accounts |
Accounts Receivable | Accounts Receivable The Company records accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any anticipated losses on the accounts |
Inventories and Cost of Goods Sold | Inventories and Cost of Goods Sold |
Inventories and Cost of Goods Sold | Inventories and Cost of Goods Sold Inventories are recorded at lower of cost or net realizable value. The Company accounts for inventory using the weighted average cost method. In addition to product cost, inventory costs include expenditures such as direct labor and certain supply and overhead expenses including in-bound shipping and handling costs incurred in bringing the inventory to its existing condition and location. Inventories are comprised primarily of raw materials, direct labor, and overhead costs. Weighted average cost method is used to absorb raw materials, direct labor, and overhead into inventory. The Company reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on historical demand, and the age of the inventory, among other factors. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation and are depreciated using the straight-line method over the following estimated useful lives: Leasehold improvements Shorter of lease term or estimated useful life Furniture and fixtures 3 years Manufacturing equipment 5 to 10 years Research and development equipment 5 to 10 years Software and computer equipment 3 years Vehicles 5 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Deferred Offering Costs | Deferred Offering Costs |
Stock Warrant Liability | Stock Warrant Liability The Company accounted for freestanding warrants outstanding to purchase shares of its common stock or, prior to its IPO, its convertible preferred stock or common stock, as a liability, as the underlying shares of convertible preferred stock and common stock were contingently redeemable and, therefore, could have obligated the Company to transfer assets at some point in the future. The warrants were recorded at fair value upon issuance and were subject to remeasurement at each balance sheet date. Any change in fair value has been recognized in the statements of operations in Total other expense, net. |
Income Taxes | Income Taxes The Company is subject to federal and state income taxes. The Company uses the asset and liability method of accounting for income taxes as set forth in the authoritative guidance for accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the respective carrying amounts and tax basis of assets and liabilities. A valuation allowance is established against the portion of deferred tax assets that the Company believes will not be realized on a more likely than not basis. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows: • Level 1 —Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 —Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant value drivers are observable. • Level 3 —Valuations derived from valuation techniques in which significant value drivers are unobservable. The Company’s financial instruments include cash equivalents, accounts receivable, accounts payable, and accrued expenses, for which the carrying amounts approximate fair value due to the short-term maturity of these financial instruments. Based on the borrowing rates currently available to the Company for debt with similar terms, the carrying value of the line of credit, term debt with its bank, and equipment loan approximate fair value as well. |
Leases | Leases |
Contingencies | Contingencies The Company is subject to a range of claims, lawsuits, and administrative proceedings that arise in the ordinary course of business. The Company accrues a liability (which amount includes litigation costs expected to be incurred) and charges operations for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated, in accordance with the recognition criteria of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 450, Contingencies |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which, along with subsequent ASUs, amends the existing accounting standards for revenue recognition (“Topic 606”). This guidance is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to receive when products are transferred to customers. ASU 2014-09 was effective for the Company beginning January 1, 2019. The majority of the Company’s contracts with customers generally consist of a single performance obligation to transfer promised goods. Based on the Company’s evaluation process and review of its contracts with customers, the timing and amount of revenue recognized based on ASU 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company has therefore concluded that the adoption of ASU 2014-09 did not have a material impact on its financial position, results of operations, or cash flows. Revenue is recognized at the point in which the performance obligation under the terms of a contract with the customer have been satisfied and control has transferred. The Company’s performance obligation is typically defined as the accepted purchase order, or the contract, with the customer which requires the Company to deliver the requested products at agreed upon prices at the time and location of the customer’s choice. The Company does not offer warranties or a right to return on the products it sells except in the instance of a product recall. Revenue is measured as the amount of consideration the Company expects to receive in exchange for fulfilling the performance obligation. Sales and other taxes the Company collects concurrent with the sale of products are excluded from revenue. The Company's normal payment terms vary by the type and location of its customers and the products offered. The time between invoicing and when payment is due is not significant. None of the Company's customer contracts as of December 31, 2019 contains a significant financing component. The Company routinely offers sales discounts and promotions through various programs to its customers and consumers. These programs include rebates, temporary on shelf price reductions, off invoice discounts, retailer advertisements, product coupons and other trade activities. Provision for discounts and incentives are recorded in the same period in which the related revenues are recognized. At the end of each accounting period, the Company recognizes a liability for estimated sales discounts that have been incurred but not paid which totaled $1.6 million and $0.8 million as of December 31, 2019 and 2018 , respectively. The offsetting charge is recorded as a reduction of revenues in the same period when the expense is incurred. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The incremental cost to obtain contracts was not material . Shipping and Handling Costs |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share (“EPS”) represents net income available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS represents net income available to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of potential common shares outstanding during the period. Such potential common shares include options, unvested restricted stock, restricted stock units (“RSUs”), contracts classified as assets or liabilities that are required or assumed to be share-settled under the two-class method, warrants and convertible preferred stock. The Company calculates basic and diluted EPS available to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considers all series of convertible preferred stock issued and outstanding prior to the IPO to be participating securities. Under the two-class method, the net loss available to common stockholders is not allocated to the convertible preferred stock as the holders of convertible preferred stock issued and outstanding prior to the IPO did not have a contractual obligation to share in losses. Computation of EPS for the year ended December 31, 2019 also excludes adjustments under the two-class method relating to a liability classified, share-settled obligation to an executive officer to deliver a variable number of shares based on a fixed monetary amount because the shares to be delivered are not participating securities as they do not have voting rights and are not entitled to participate in dividends until they are issued. N onvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence nonvested restricted stock shares are deemed to be participating securities. Under the two-class method, net income, but not net loss, available to nonvested restricted stockholders is excluded from net income available to common stockholders for purposes of calculating basic and diluted EPS. N |
Prepaid Expenses | Prepaid Expenses Prepaid expenses primarily include prepaid rent and insurance, which are expensed in the period to which they relate. |
Selling, General and Administrative Expenses | Selling, General and Administrative (“SG&A”) Expenses SG&A expenses are primarily comprised of selling, marketing expenses and administrative expenses, share-based compensation, outbound shipping and handling costs, non-manufacturing rent expense, depreciation and amortization expense on non-manufacturing assets and other non-production operating expenses. Selling and marketing expenses include share-based compensation awards to brand ambassadors, advertising costs, costs associated with consumer promotions, product samples and sales aids incurred to acquire new customers, retain existing customers and build brand awareness. Administrative expenses include the expenses related to management, accounting, legal, IT, and other office functions. Advertising costs are expensed as incurred. Advertising costs in the years ended December 31, 2019, 2018 and 2017 were $0.3 million , $62,000 and $0.3 million , respectively. Non-advertising related components of the Company’s total marketing expenditures primarily include costs associated with consumer promotions, product sampling, and sales aids, which are also included in SG&A. |
Research and Development | Research and Development |
Share-Based Compensation | Share-Based Compensation The Company measures all share-based compensation cost at the grant date, based on the fair values of the awards that are ultimately expected to vest, and recognizes that cost as an expense in its statements of operations over the requisite service period. The Company estimates the fair value of option awards using the Black-Scholes option valuation model, which requires management to make certain assumptions for estimating the fair value of stock options at the date of grant including the fair value and projected volatility of the underlying common stock and the expected term of the award. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimates, in management’s opinion, the existing models may not necessarily provide a reliable single measure of the fair value of the Company’s stock options. Although the fair value of stock options is determined using an option valuation model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. |
Employee Benefit Plan | Employee Benefit Plan |
Restructuring Plan | Restructuring Plan The Company accounts for exit or disposal of activities in accordance with ASC 420, Exit or Disposal Cost Obligations . The Company defines a business restructuring as an exit or disposal activity that includes but is not limited to a program which is planned and controlled by management and materially changes either the scope of a business or the manner in which that business is conducted. Business restructuring charges may include (i) contract termination costs and (ii) other related costs associated with exit or disposal activities. |
Recently Adopted and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which makes amendments to the guidance in GAAP on the classification and measurement of financial instruments. ASU 2016-01 significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The Company adopted and implemented ASU 2016-01 for the year ended December 31, 2019. Adoption of ASU 2016-01 did not have a material impact on the Company’s financial position, results of operations, or cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statements of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments” or ASU 2016-15, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows. ASU 2016-15 is effective for annual periods (including interim periods) beginning after December 15, 2018 for business entities that are not public, should be applied retrospectively, and early adoption is permitted. The Company adopted ASU 2016-15 for the year ended December 31, 2019. Adoption of 2016-15 did not have a material impact on the Company’s financial position, results of operations, or cash flows. In June 2018, the FASB issued ASU No. 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). Under ASU 2018-07, the measurement of equity-classified nonemployee awards will be fixed at the grant date, and nonpublic entities are allowed to account for nonemployee awards using certain practical expedients that are already available for employee awards. The amendments in ASU 2018-07 are effective for nonpublic business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than the Company’s adoption date of Topic 606. The Company early adopted ASU 2018-07 beginning January 1, 2019 along with its adoption of ASU 2014-09. Pursuant to ASU 2018-07, the measurement of equity classified nonemployee awards will be fixed at the grant date, as compared to the previous requirement to remeasure the awards through the performance completion date. New Accounting Pronouncements As an “emerging growth company,” (“EGC”) the Jumpstart Our Business Startups Act, (the “JOBS Act”), allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company expects to lose its EGC status upon the filing of the Form 10-K for the year ending December 31, 2020, when it expects to qualify as a Large Accelerated Filer based upon the current market capitalization of the Company according to Rule 12b-2 of the Exchange Act. Therefore, the Company has elected to use the adoption dates applicable to public companies beginning in the first quarter of 2020 and the adoption dates for the new accounting pronouncements disclosed below have been evaluated under such premise . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02” or “ASC 842”). ASU 2016-02 requires lessees to generally recognize most operating leases on the balance sheets but record expenses on the income statements in a manner similar to current accounting. ASU 2016-02 along with subsequent ASU’s on Topic 842 is effective for public companies for the annual reporting period beginning after December 15, 2018. As described above, the Company has elected to use the adoption dates applicable to public companies beginning in the first quarter of 2020, and, therefore, effective for the Company beginning January 1, 2020. Based on analysis of leases and other contracts, the Company currently believes the most significant impact of ASC 842 on its accounting will be the balance sheet impact of its operating leases, which will significantly increase assets and liabilities. The Company plans to elect the package of practical expedients available under the transition provisions of ASC 842, including (i) not reassessing whether expired or existing contracts contain leases, (ii) lease classification, and (iii) not revaluing initial direct costs for existing leases. Also, the Company plans to elect the practical expedient which will allow aggregation of non-lease components with the related lease components. Lastly, the Company will apply the modified retrospective adoption method, utilizing the simplified transition option available in ASC 842, which allows entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. The impact of applying ASC 842 effective as of January 1, 2020 to the Company’s statements of operations and cash flows is not expected to be significant. The Company currently expects the adoption to result in an increase of between $11 million and $13 million in operating lease liabilities based on the present value of the remaining minimum rental payments using discount rates as of the effective date and an increase of between $11 million and $13 million in operating right-of-use assets. In December 18, 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740)” (“ASU 2019-12”). ASU 2019-12 eliminates the need for an organization to analyze whether the following apply in a given period (1) exception to the incremental approach for intra-period tax allocation (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (3) exceptions in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 also is designed to improve financial statement preparers’ application of income tax-related guidance and simplify GAAP for (1) franchise taxes that are partially based on income, (2) transactions with a government that result in a step-up in the tax basis of goodwill, (3) separate financial statements of legal entities that are not subject to tax, and (4) enacted changes in tax laws in interim periods. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. ASU 2019-12 is effective for the Company beginning in January 1, 2021. Adoption of ASU 2019-12 is not expected to result in any material changes to the way the tax provision is prepared and is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of property, plant, and equipment | Property, plant and equipment are carried at cost less accumulated depreciation and are depreciated using the straight-line method over the following estimated useful lives: Leasehold improvements Shorter of lease term or estimated useful life Furniture and fixtures 3 years Manufacturing equipment 5 to 10 years Research and development equipment 5 to 10 years Software and computer equipment 3 years Vehicles 5 years December 31, 2019 and 2018 , is as follows: December 31, (in thousands) 2019 2018 Manufacturing equipment $ 37,939 $ 25,314 Research and development equipment 8,933 6,088 Leasehold improvements 7,620 7,080 Capital leases 1,108 882 Software 274 60 Furniture and fixtures 433 195 Vehicles 210 210 Assets not yet placed in service 11,666 3,374 Total property, plant and equipment $ 68,183 $ 43,203 Less: accumulated depreciation and amortization 20,709 12,676 Property, plant and equipment, net $ 47,474 $ 30,527 |
Schedule of financial instruments measured at fair value | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis based on the fair value hierarchy as of December 31, 2018 : December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Financial Liabilities: Preferred stock warrant liability $ — $ — $ 1,441 $ 1,441 Common stock warrant liability — — 477 477 Total $ — $ — $ 1,918 $ 1,918 |
Schedule of fair value valuation | The key assumptions used in the Black-Scholes option-pricing model for the valuation of the preferred stock warrant liability upon re-measurement were as follows: For the Year Ended December 31, 2018 2017 Expected term (in years) 2.0 3.0 Fair value of underlying shares $19.02 $3.00 Volatility 55.0% 55.0% Risk-free interest rate 2.48% 1.98% Dividend yield — — |
Schedule of changes in fair value | The following table sets forth a summary of the changes in the fair value of the preferred and common stock warrant liabilities: Year Ended December 31, (in thousands) 2019 2018 2017 Beginning balance $ 1,918 $ 550 $ 165 Fair value of warrants issued during the period — 248 — Change in fair value of warrant liability 12,503 1,120 385 Reclassification of warrant liability to additional paid-in capital in connection with the IPO (14,421 ) — — Ending balance $ — $ 1,918 $ 550 |
Schedule of net revenues by platform and channel | The Company’s net revenues by platform and channel are included in the tables below: Year Ended December 31, (in thousands) 2019 2018 2017 Net revenues: Gross Fresh Platform $ 306,585 $ 81,686 $ 18,109 Gross Frozen Platform 17,772 15,896 19,588 Less: Discounts (26,460 ) (9,648 ) (5,116 ) Net revenues $ 297,897 $ 87,934 $ 32,581 Year Ended December 31, (in thousands) 2019 2018 2017 Net revenues: Retail $ 144,809 $ 50,779 $ 25,490 Restaurant and Foodservice 153,088 37,155 7,091 Net revenues $ 297,897 $ 87,934 $ 32,581 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of major classes of inventory | Major classes of inventory were as follows: December 31, (in thousands) 2019 2018 Raw materials and packaging $ 36,884 $ 13,756 Work in process 17,958 2,517 Finished goods 26,754 13,984 Total $ 81,596 $ 30,257 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | Property, plant and equipment are carried at cost less accumulated depreciation and are depreciated using the straight-line method over the following estimated useful lives: Leasehold improvements Shorter of lease term or estimated useful life Furniture and fixtures 3 years Manufacturing equipment 5 to 10 years Research and development equipment 5 to 10 years Software and computer equipment 3 years Vehicles 5 years December 31, 2019 and 2018 , is as follows: December 31, (in thousands) 2019 2018 Manufacturing equipment $ 37,939 $ 25,314 Research and development equipment 8,933 6,088 Leasehold improvements 7,620 7,080 Capital leases 1,108 882 Software 274 60 Furniture and fixtures 433 195 Vehicles 210 210 Assets not yet placed in service 11,666 3,374 Total property, plant and equipment $ 68,183 $ 43,203 Less: accumulated depreciation and amortization 20,709 12,676 Property, plant and equipment, net $ 47,474 $ 30,527 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt balances | The Company’s debt balances are detailed below: December 31, (in thousands) 2019 2018 2018 Revolving Credit Facility (defined below) $ 6,000 $ 6,000 2018 Term Loan Facility (defined below) 20,000 20,000 Equipment financing loan 5,000 5,000 Debt issuance costs (431 ) (612 ) Total debt outstanding $ 30,569 $ 30,388 Less: current portion of long-term debt 11,000 — Long-term debt $ 19,569 $ 30,388 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of fair value assumptions | For the periods presented, the fair value of options was estimated using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.3% 2.8% 2.0% Average expected term (years) 6.1 5.8 5.9 Expected volatility 55.0% 55.0% 55.0% Dividend yield — — — |
Schedule of stock option activity | The following table summarizes the Company’s stock option activity during the period from December 31, 2016 through December 31, 2019 : Number Weighted Weighted Aggregate Intrinsic Value (in thousands) (1) Outstanding at December 31, 2016 4,879,850 $ 0.83 8.2 $ 3,557 Granted 382,476 $ 1.56 — — Exercised (446,201 ) $ 0.85 — 347 Cancelled/Forfeited (609,096 ) $ 0.97 — — Outstanding at December 31, 2017 4,207,029 $ 0.88 7.2 $ 8,936 Granted 2,136,012 $ 6.49 — — Exercised (1,139,962 ) $ 1.20 — 5,722 Cancelled/Forfeited (82,786 ) $ 2.03 — — Outstanding at December 31, 2018 5,120,293 $ 3.13 7.3 $ 81,371 Granted 1,571,925 $ 39.01 — — Exercised (1,429,756 ) $ 1.87 — 121,591 Cancelled/Forfeited (91,486 ) $ 9.33 — — Outstanding at December 31, 2019 5,170,976 $ 14.28 7.5 $ 329,879 Vested and exercisable at December 31, 2019 2,533,199 $ 2.32 6.0 $ 185,671 Vested and expected to vest at December 31, 2019 3,761,031 $ 8.55 6.9 $ 256,967 __________ (1) Aggregate intrinsic value is calculated as the difference between the value of common stock on the transaction date and the exercise price multiplied by the number of shares issuable under the stock option. |
Schedule of RSU activity | The following table summarizes the Company’s RSU activity in 2019 : Number of Units Weighted Unvested at January 1, 2019 — $ — Granted 173,196 $ 126.29 Vested (23,552 ) $ 84.84 Cancelled/Forfeited (640 ) $ — Unvested at December 31, 2019 149,004 $ 132.73 |
Schedule of restricted stock activity | The following table summarizes the Company’s restricted stock activity: Number Weighted Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2017 — — $ — Granted 135,791 — $ 17.03 Vested/Released (35,664 ) — $ 17.03 Cancelled/Forfeited — — $ — Unvested at December 31, 2018 100,127 1.6 $ 17.03 Granted 99,433 — $ 20.02 Vested/Released (87,239 ) — $ 19.21 Cancelled/Forfeited (23,333 ) — $ — Unvested at December 31, 2019 88,988 1.2 $ 19.49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments under contractual obligations | The following table represents the Company’s commitments as of December 31, 2019 including future minimum lease payments required under noncancelable lease obligations: (in thousands) Capital Lease Operating Lease (1) Purchase Commitments Year Ended December 31, 2020 $ 86 $ 1,878 $ 22,684 2021 80 1,813 21,418 2022 71 1,817 — 2023 58 1,840 — 2024 30 1,353 — Thereafter — 5,167 — $ 13,868 $ 44,102 Total minimum lease payments $ 325 Less: imputed interest (4.1% to 15.9%) (34 ) Total capital lease obligations $ 291 Less: current portion of capital lease obligations (72 ) Long-term capital lease obligations $ 219 ___________ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | The provision for income taxes was as follows: (in thousands) Year Ended December 31, Current: 2019 2018 2017 Federal $ — $ — $ — State 9 1 5 $ 9 $ 1 $ 5 Deferred: Federal $ — $ — $ — State — — — $ — $ — $ — Provision for income tax $ 9 $ 1 $ 5 |
Schedule of effective income tax rate reconciliation | A reconciliation of income tax expense from continuing operations to the amount computed by applying the statutory federal income tax rate to the net loss from continuing operations is summarized as follows: Year Ended December 31, (in thousands) 2019 2018 2017 U.S. income tax at federal statutory rate $ (2,611 ) $ (6,276 ) $ (10,329 ) State income tax, net of federal benefits (2,550 ) (1,072 ) (1,041 ) Stock warrant liability 2,626 — — Share-based compensation (21,236 ) (615 ) 81 Research and development credits (8 ) (6 ) (4 ) Return to provision and other — 29 — Change in tax rates 73 668 11,783 Other (98 ) 363 470 Change in valuation allowance 23,813 6,910 (955 ) Provision for income tax $ 9 $ 1 $ 5 |
Schedule of deferred tax assets and liabilities | A valuation allowance has been recorded to offset the net deferred tax assets as of December 31, 2019 and 2018, as the realization of such assets does not meet the more-likely-than-not threshold. December 31, (in thousands) 2019 2018 Deferred Tax Assets: Net operating loss (NOL) $ 50,663 $ 29,634 Intangibles 1,252 1,407 Share-based compensation 2,704 83 Interest — 148 Inventory reserve 1,509 — Other 204 628 Total gross deferred tax assets 56,332 31,900 Deferred Tax liabilities: Property, plant and equipment 904 283 Total gross deferred tax liabilities 904 283 Valuation allowance 55,428 31,617 Net deferred tax assets (liabilities) $ — $ — |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 2018 Gross unrecognized tax benefits at the beginning of the year $ 1,846 $ 1,201 Increases related to current year positions 1,695 888 Increases/Decreases related to prior year positions (205 ) (243 ) Gross unrecognized tax benefits at the end of the year $ 3,336 $ 1,846 |
Net Loss Per Share Available _2
Net Loss Per Share Available to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per common share | (in thousands, except share and per share amounts) Year Ended December 31, 2019 2018 2017 Numerator: Net loss available to common stockholders $ (12,443 ) $ (29,886 ) $ (30,384 ) Denominator: Weighted average common shares outstanding—basic 42,274,777 6,287,172 5,457,629 Dilutive effect of stock equivalents resulting from stock options, RSUs, common stock warrants, preferred stock warrants and convertible preferred stock (as converted) — — — Weighted average common shares outstanding—diluted 42,274,777 6,287,172 5,457,629 Net loss per share available to common stockholders—basic and diluted $ (0.29 ) $ (4.75 ) $ (5.57 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because the impact of including them would have been antidilutive: Year Ended December 31, 2019 2018 2017 Options to purchase common stock 5,170,976 — — Restricted stock units 149,004 — — Convertible preferred stock (as converted) — 39,953,983 39,361,211 Preferred stock warrants — 160,767 160,767 Total 5,319,980 40,114,750 39,521,978 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The following table presents selected unaudited quarterly financial data for each full quarterly period of 2019 and 2018: Three Months Ended (1) (in thousands) Mar. 31, 2018 Jun. 30, 2018 Sep. 29, 2018 Dec. 31, 2018 Mar. 30, 2019 Jun. 29, 2019 Sep. 28, 2019 Dec. 31, 2019 Net revenues $ 12,776 $ 17,367 $ 26,277 $ 31,514 $ 40,206 $ 67,251 $ 91,961 $ 98,479 Cost of goods sold 10,719 14,755 21,235 23,651 29,435 44,510 59,178 65,018 Gross profit 2,057 2,612 5,042 7,863 10,771 22,741 32,783 33,461 Gross margin 16.1 % 15.0 % 19.2 % 25.0 % 26.8 % 33.8 % 35.6 % 34.0 % Research and development expenses 1,605 2,497 2,165 3,320 4,498 4,212 5,951 5,989 Selling, general and administrative expenses 5,737 7,043 10,353 11,328 11,177 15,515 20,944 27,090 Restructuring expenses 294 348 528 345 394 847 2,319 1,309 Total operating expenses 7,636 9,888 13,046 14,993 16,069 20,574 29,214 34,388 (Loss) income from operations (5,579 ) (7,276 ) (8,004 ) (7,130 ) (5,298 ) 2,167 3,569 (927 ) Other (expense) income: Interest expense (47 ) (28 ) (313 ) (740 ) (733 ) (741 ) (855 ) (742 ) Remeasurement of warrant liability (129 ) (130 ) (994 ) 133 (759 ) (11,744 ) — — Other, net 59 38 (31 ) 286 141 898 1,385 1,205 Total other (expense) income, net (117 ) (120 ) (1,338 ) (321 ) (1,351 ) (11,587 ) 530 463 (Loss) income before taxes (5,696 ) (7,396 ) (9,342 ) (7,451 ) (6,649 ) (9,420 ) 4,099 (464 ) Income tax expense (benefit) — — — 1 — 21 — (12 ) Net (loss) income $ (5,696 ) $ (7,396 ) $ (9,342 ) $ (7,452 ) $ (6,649 ) $ (9,441 ) $ 4,099 $ (452 ) Net (loss) income per share available to common stockholders: Basic $ (0.98 ) $ (1.22 ) $ (1.45 ) $ (1.10 ) $ (0.95 ) $ (0.24 ) $ 0.07 $ (0.01 ) Diluted $ (0.98 ) $ (1.22 ) $ (1.45 ) $ (1.10 ) $ (0.95 ) $ (0.24 ) $ 0.06 $ (0.01 ) ______________ (1) The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Introduction (Details)
Introduction (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | May 06, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsidiary, Sale of Stock [Line Items] | |||||
Payments of deferred offering costs | $ 0 | $ 2,415 | $ 0 | ||
IPO | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction (in shares) | 11,068,750 | ||||
Sale of stock, price per share (in dollars per share) | $ 25 | ||||
Proceeds from IPO, net | $ 252,400 | ||||
Underwriting discounts and commissions | 19,400 | ||||
Sale of stock, issuance costs | $ 4,900 | ||||
Number of common stock shares converted | 41,562,111 | ||||
Number of shares issued for each share of convertible preferred stock converted (in shares) | 1 | ||||
Payments of deferred offering costs | 2,500 | $ 2,400 | |||
Deferred offering costs | $ 4,900 | 4,900 | |||
Secondary Offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Sale of stock, price per share (in dollars per share) | $ 160 | ||||
Proceeds from IPO, net | $ 37,400 | ||||
Underwriting discounts and commissions | 1,500 | ||||
Sale of stock, issuance costs | $ 1,100 | ||||
Selling stockholders sold (in shares) | 3,487,500 | ||||
Payments of deferred offering costs | 2,200 | ||||
Deferred offering costs | $ 1,100 | ||||
Over-allotment option | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Selling stockholders sold (in shares) | 250,000 | ||||
Common Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of common stock shares converted | 41,562,111 | ||||
Common Stock | IPO | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of common stock shares converted | 11,068,750 | ||||
Number of shares able to purchase | 160,767 | ||||
Common Stock | Secondary Offering | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of common stock shares converted | 250,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Apr. 08, 2019USD ($) | Jan. 02, 2019 | Dec. 31, 2016USD ($) | Feb. 28, 2016USD ($)shares | Dec. 31, 2015USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jan. 01, 2020USD ($) | May 06, 2019USD ($)shares | May 05, 2019$ / sharesshares |
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Number of operating segments | segment | 1 | |||||||||||||||||||
Number of reportable segments | segment | 1 | |||||||||||||||||||
Stock split, conversion ratio | 1.5 | |||||||||||||||||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||
Deferred offering costs, incurred and paid | 0 | 2,415,000 | $ 0 | |||||||||||||||||
Accrued stock issuance costs | $ 0 | |||||||||||||||||||
Warrants outstanding (in shares) | shares | 0 | 0 | ||||||||||||||||||
Liability for estimated sales discounts | $ 1,600,000 | 800,000 | $ 1,600,000 | 800,000 | ||||||||||||||||
Advertising costs | 300,000 | 62,000 | 300,000 | |||||||||||||||||
Cost of goods sold | 65,018,000 | $ 59,178,000 | $ 44,510,000 | $ 29,435,000 | 23,651,000 | $ 21,235,000 | $ 14,755,000 | $ 10,719,000 | 198,141,000 | 70,360,000 | 34,772,000 | |||||||||
Research and development expenses | $ 5,989,000 | $ 5,951,000 | $ 4,212,000 | $ 4,498,000 | $ 3,320,000 | $ 2,165,000 | $ 2,497,000 | $ 1,605,000 | 20,650,000 | 9,587,000 | 5,722,000 | |||||||||
Matching contribution | $ 200,000 | $ 0 | $ 0 | |||||||||||||||||
Stock options granted (in shares) | shares | 1,571,925 | 2,136,012 | 382,476 | |||||||||||||||||
Promissory note receivable | $ 951,245 | |||||||||||||||||||
Fixed interest rate | 1.68% | |||||||||||||||||||
Series B | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Number of warrants issued (in shares) | shares | 121,694 | 121,694 | 121,694 | |||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 1.07 | $ 1.07 | $ 1.07 | |||||||||||||||||
Series E | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Number of warrants issued (in shares) | shares | 39,073 | 39,073 | 39,073 | |||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 3.68 | $ 3.68 | $ 3.68 | |||||||||||||||||
IPO | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Deferred offering costs | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | |||||||||||||||||
Deferred offering costs, incurred and paid | 2,500,000 | $ 2,400,000 | ||||||||||||||||||
IPO | Common Stock | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Number of warrants issued (in shares) | shares | 160,767 | |||||||||||||||||||
Secondary Offering | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Deferred offering costs | $ 1,100,000 | 1,100,000 | ||||||||||||||||||
Deferred offering costs, incurred and paid | 2,200,000 | |||||||||||||||||||
Shipping and Handling | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Cost of goods sold | $ 10,900,000 | $ 6,100,000 | $ 3,400,000 | |||||||||||||||||
Distributor One | Customer Concentration Risk | Revenue Benchmark | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Concentration risk | 17.00% | 32.00% | 38.00% | |||||||||||||||||
Distributor Two | Customer Concentration Risk | Revenue Benchmark | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Concentration risk | 16.00% | 21.00% | 10.00% | |||||||||||||||||
Distributor Three | Customer Concentration Risk | Revenue Benchmark | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Concentration risk | 13.00% | 10.00% | ||||||||||||||||||
International | Geographic Concentration Risk | Revenue Benchmark | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Concentration risk | 16.00% | 7.00% | 1.00% | |||||||||||||||||
Donald Thompson | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Consulting fees, related party | $ 0 | $ 121,546 | $ 0 | |||||||||||||||||
Consulting Agreement | Executive Chair | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Monthly transaction amount | $ 20,210.33 | |||||||||||||||||||
Consulting fees, related party | 265,548 | 189,583 | 160,417 | |||||||||||||||||
Bonus | Executive Chair | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Consulting fees, related party | 121,260 | |||||||||||||||||||
Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Daily transaction amount | $ 4,000 | |||||||||||||||||||
Amended Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Monthly transaction amount | $ 10,000 | $ 25,000 | ||||||||||||||||||
Consulting fees, related party | $ 120,000 | 140,000 | 125,000 | |||||||||||||||||
Non-qualified Stock Option | Amended Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Stock options granted (in shares) | shares | 532,590 | |||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||
Minimum | Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Days of service | 2 days | |||||||||||||||||||
Minimum | Amended Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Days of service | 5 days | |||||||||||||||||||
Maximum | Amended Advisor Agreement | Food System Strategies, LLC | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Days of service | 6 days | |||||||||||||||||||
SVB Credit Facilities | Common Stock | Line of Credit | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Number of warrants issued (in shares) | shares | 60,002 | 60,002 | 60,002 | |||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 3 | $ 3 | $ 3 | |||||||||||||||||
Contract Termination | Shipping and Handling | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Cost of goods sold | $ 0 | $ 0 | $ 800,000 | |||||||||||||||||
ASU 2016-02 | Adjustment | Forecast | Minimum | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Operating lease liabilities | $ 11,000,000 | |||||||||||||||||||
Operating right-of-use assets | 11,000,000 | |||||||||||||||||||
ASU 2016-02 | Adjustment | Forecast | Maximum | ||||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||||
Operating lease liabilities | 13,000,000 | |||||||||||||||||||
Operating right-of-use assets | $ 13,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of property, plant, and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Manufacturing equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Manufacturing equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Research and development equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Research and development equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of financial instruments measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | $ 0 | $ 1,918 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,918 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,918 | |
Preferred stock warrant liability | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 1,441 | |
Preferred stock warrant liability | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 0 | |
Preferred stock warrant liability | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 0 | |
Preferred stock warrant liability | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 1,441 | |
Common stock warrant liability | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 477 | |
Common stock warrant liability | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 0 | |
Common stock warrant liability | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | 0 | |
Common stock warrant liability | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock warrant liability | $ 477 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of fair value valuation (Details) | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term (in years) | 2 years | 3 years |
Fair value of underlying shares | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 19.02 | 3 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.550 | 0.550 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0248 | 0.0198 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of changes in fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||
Beginning balance | $ 1,918 | $ 550 | $ 1,918 | $ 550 | $ 165 | ||||||
Fair value of warrants issued during the period | 0 | 248 | 0 | ||||||||
Change in fair value of warrant liability | $ 0 | $ 0 | $ 11,744 | $ 759 | $ (133) | $ 994 | $ 130 | $ 129 | 12,503 | 1,120 | 385 |
Reclassification of warrant liability to additional paid-in capital in connection with the IPO | (14,421) | 0 | 0 | ||||||||
Ending balance | $ 0 | $ 1,918 | $ 0 | $ 1,918 | $ 550 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of net revenues by platform and channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Less: Discounts | $ (26,460) | $ (9,648) | $ (5,116) | ||||||||
Net revenues | $ 98,479 | $ 91,961 | $ 67,251 | $ 40,206 | $ 31,514 | $ 26,277 | $ 17,367 | $ 12,776 | 297,897 | 87,934 | 32,581 |
Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 144,809 | 50,779 | 25,490 | ||||||||
Restaurant and Foodservice | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | 153,088 | 37,155 | 7,091 | ||||||||
Gross Fresh Platform | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Gross revenues | 306,585 | 81,686 | 18,109 | ||||||||
Gross Frozen Platform | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Gross revenues | $ 17,772 | $ 15,896 | $ 19,588 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4,900,000 | $ 1,500,000 | $ 3,500,000 |
Impairment write-off of long-lived assets | 2,300,000 | ||
Legal and other restructuring costs | 1,200,000 | ||
Inventory write-down | 6,400,000 | 800,000 | 0 |
Accrued unpaid liabilities, contract termination | $ 1,100,000 | $ 0 | |
SG&A Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,200,000 | ||
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Inventory write-down | $ 2,400,000 |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | |||
Raw materials and packaging | $ 36,884,000 | $ 13,756,000 | |
Work in process | 17,958,000 | 2,517,000 | |
Finished goods | 26,754,000 | 13,984,000 | |
Total | 81,596,000 | 30,257,000 | |
Inventory write-down | $ 6,400,000 | $ 800,000 | $ 0 |
Contract Termination | |||
Inventory [Line Items] | |||
Inventory write-down | $ 2,400,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant, and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 68,183 | $ 43,203 |
Less: accumulated depreciation and amortization | 20,709 | 12,676 |
Property, plant and equipment, net | 47,474 | 30,527 |
Manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 37,939 | 25,314 |
Research and development equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 8,933 | 6,088 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 7,620 | 7,080 |
Capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,108 | 882 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 274 | 60 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 433 | 195 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 210 | 210 |
Assets not yet placed in service | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 11,666 | $ 3,374 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 8,106,000 | $ 4,921,000 | $ 3,181,000 |
Assets held-for-sale | 2,600,000 | 1,000,000 | |
Cost of Goods Sold | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 5,700,000 | 3,700,000 | 2,900,000 |
Research and Development Expense | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 2,400,000 | 1,200,000 | 300,000 |
SG&A Expense | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 71,000 | $ 13,000 | $ 0 |
Debt - Schedule of debt balance
Debt - Schedule of debt balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (431) | $ (612) |
Total debt outstanding | 30,569 | 30,388 |
Less: current portion of long-term debt | 11,000 | 0 |
Long-term debt | 19,569 | 30,388 |
2018 Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt, outstanding balance | 6,000 | 6,000 |
2018 Term Loan Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt, outstanding balance | 20,000 | 20,000 |
Equipment Loan Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt, outstanding balance | $ 5,000 | $ 5,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Nov. 30, 2017USD ($)purchasershares | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | May 06, 2019shares | May 05, 2019$ / sharesshares | Dec. 20, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||
Cost of goods sold | $ 65,018,000 | $ 59,178,000 | $ 44,510,000 | $ 29,435,000 | $ 23,651,000 | $ 21,235,000 | $ 14,755,000 | $ 10,719,000 | $ 198,141,000 | $ 70,360,000 | $ 34,772,000 | ||||||
Debt issuance costs | 431,000 | $ 612,000 | 431,000 | 612,000 | |||||||||||||
Amortization of debt issuance costs | 181,000 | $ 109,000 | $ 37,000 | ||||||||||||||
Expected term | 2 years | 2 years | 3 years | ||||||||||||||
Right to purchase capital stock | $ 0 | $ 1,918,000 | $ 0 | $ 1,918,000 | |||||||||||||
Warrants outstanding (in shares) | shares | 0 | 0 | |||||||||||||||
Line of Credit | SVB Credit Facilities | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest expense | $ 2,200,000 | 900,000 | $ 100,000 | ||||||||||||||
Line of Credit | 2018 Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable annual interest rate, additional upon default | 5.00% | ||||||||||||||||
Debt, outstanding balance | $ 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | |||||||||||||
Current borrowing capacity | $ 0 | 0 | $ 0 | 0 | |||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||||||
Line of Credit | 2018 Term Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, outstanding balance | $ 20,000,000 | 20,000,000 | $ 20,000,000 | 20,000,000 | |||||||||||||
Current borrowing capacity | $ 0 | 0 | $ 0 | 0 | |||||||||||||
Interest rate | 8.75% | 8.75% | |||||||||||||||
Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 5,000,000 | $ 5,000,000 | |||||||||||||||
Variable annual interest rate | 6.25% | ||||||||||||||||
Debt, outstanding balance | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | 5,000,000 | |||||||||||||
Interest expense | $ 600,000 | $ 200,000 | 0 | ||||||||||||||
Interest rate | 11.00% | 11.50% | 11.00% | 11.50% | |||||||||||||
Stated rate | 4.75% | 4.75% | |||||||||||||||
Right to purchase capital stock | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
Threshold gross proceeds on equity transaction | $ 10,000,000 | ||||||||||||||||
Commitment fee percentage | 13.00% | ||||||||||||||||
Commitment fee, percent increase | 1.00% | 1.00% | |||||||||||||||
Promissory Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 1,500,000 | ||||||||||||||||
Interest expense | $ 29,000 | ||||||||||||||||
Stated rate | 2.00% | ||||||||||||||||
Convertible Promissory Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 10,000,000 | ||||||||||||||||
Stated rate | 5.00% | ||||||||||||||||
Debt term | 6 months | ||||||||||||||||
Debt, conversion feature, percent of cash price per share | 90.00% | ||||||||||||||||
Debt discount | $ 1,100,000 | ||||||||||||||||
Advance at closing | Line of Credit | 2018 Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 6,000,000 | 6,000,000 | |||||||||||||||
Advance at closing | Line of Credit | 2018 Term Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 10,000,000 | 10,000,000 | |||||||||||||||
Variable annual interest rate | 4.00% | ||||||||||||||||
Advance if no event of default | Line of Credit | 2018 Term Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 5,000,000 | 5,000,000 | |||||||||||||||
Advance if no event of default, based on minimum level of gross profit | Line of Credit | 2018 Term Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 5,000,000 | $ 5,000,000 | |||||||||||||||
Advance upon Structural Capital's approval | Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt, face amount | $ 10,000,000 | $ 10,000,000 | |||||||||||||||
Debt, additional face amount | $ 5,000,000 | $ 5,000,000 | |||||||||||||||
Payments begin six months after loan draw | Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt term | 37 months | ||||||||||||||||
Payments begin 18 months after loan draw | Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt term | 25 months | ||||||||||||||||
First two years | Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Prepayment penalty, percent of facility | 2.00% | 2.00% | |||||||||||||||
Prepayment penalty, period | 2 years | ||||||||||||||||
Thereafter | Line of Credit | Equipment Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Prepayment penalty, percent of facility | 1.00% | 1.00% | |||||||||||||||
Minimum | Line of Credit | 2018 Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable annual interest rate | 0.75% | ||||||||||||||||
Maximum | Line of Credit | 2018 Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable annual interest rate | 1.25% | ||||||||||||||||
Common Stock | Line of Credit | SVB Credit Facilities | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of warrants issued (in shares) | shares | 60,002 | 60,002 | 60,002 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 3 | $ 3 | $ 3 | ||||||||||||||
Expected term | 10 years | 10 years | |||||||||||||||
Commitment fee | $ 30,000 | ||||||||||||||||
Series B | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of warrants issued (in shares) | shares | 121,694 | 121,694 | 121,694 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 1.07 | $ 1.07 | $ 1.07 | ||||||||||||||
Series E | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of warrants issued (in shares) | shares | 39,073 | 39,073 | 39,073 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 3.68 | $ 3.68 | $ 3.68 | ||||||||||||||
Series G | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Conversion of convertible notes upon issuance of Series G preferred stock(inclusive of $1,123 adjustment upon conversion (in shares) | shares | 1,026,367 | 1,026,367 | |||||||||||||||
Series G | Convertible Promissory Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of purchasers | purchaser | 2 | ||||||||||||||||
IPO | Common Stock | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of warrants issued (in shares) | shares | 160,767 | ||||||||||||||||
Interest expense | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Amortization of debt issuance costs | $ 200,000 | $ 93,000 | $ 37,000 | ||||||||||||||
Interest expense | Convertible Promissory Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt discount recognized | 700,000 | ||||||||||||||||
Other expense | Convertible Promissory Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt discount recognized | $ 400,000 | ||||||||||||||||
Two Purchasers | Series G | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Ownership percentage | 5.00% |
Stockholders_ Equity (Deficit_2
Stockholders’ Equity (Deficit) and Convertible Preferred Stock (Details) - $ / shares | May 06, 2019 | Dec. 31, 2019 | Sep. 28, 2019 | Aug. 05, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 58,669,600 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Convertible preferred stock, authorized (in shares) | 43,882,867 | ||||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | ||||||
Common stock, issued (in shares) | 61,576,494 | 6,951,350 | |||||
Common stock, outstanding (in shares) | 61,576,494 | 6,951,350 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 41,562,111 | 39,361,211 | 34,355,941 | |||
Series A | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 3,333,500 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 3,333,500 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 3,333,500 | |||||
Series B | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 4,802,260 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 4,680,565 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 4,680,565 | |||||
Series C | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 8,076,643 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 8,076,636 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 8,076,636 | |||||
Series D | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 8,713,207 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 8,713,201 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 8,713,201 | |||||
Series E | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 4,740,531 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 4,701,449 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 4,701,449 | |||||
Series F | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 4,866,776 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 4,866,758 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 4,866,758 | |||||
Series G | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 5,140,257 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 5,114,786 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 5,114,786 | |||||
Series H | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred stock, authorized (in shares) | 0 | 4,209,693 | |||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | $ 0.0001 | |||||
Convertible preferred stock, issued (in shares) | 0 | 2,075,216 | |||||
Convertible preferred stock, outstanding (in shares) | 0 | 2,075,216 | |||||
IPO | |||||||
Class of Stock [Line Items] | |||||||
Number of common stock shares converted | 41,562,111 | ||||||
Number of shares issued for each share of convertible preferred stock converted (in shares) | 1 | ||||||
Convertible preferred stock, authorized (in shares) | 500,000 | ||||||
Convertible preferred stock, par value (in shares) | $ 0.0001 | ||||||
Over-allotment option | |||||||
Class of Stock [Line Items] | |||||||
Selling stockholders sold (in shares) | 250,000 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | Oct. 31, 2019 | Aug. 01, 2019 | Jun. 10, 2019 | May 01, 2019 | Apr. 30, 2019 | Apr. 29, 2019 | Apr. 18, 2019 | Apr. 03, 2019 | Nov. 15, 2018 | Apr. 30, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock options granted (in shares) | 1,571,925 | 2,136,012 | 382,476 | ||||||||||||||||
Exercise price (in dollars per share) | $ 39.01 | $ 6.49 | $ 1.56 | ||||||||||||||||
Stock options outstanding (in shares) | 5,170,976 | 5,120,293 | 4,207,029 | 5,120,293 | 5,170,976 | 4,879,850 | |||||||||||||
Promissory note receivable | $ 951,245 | ||||||||||||||||||
Fixed interest rate | 1.68% | ||||||||||||||||||
2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Shares authorized for issuance | 14,482,356 | 14,482,356 | |||||||||||||||||
Stock options outstanding (in shares) | 5,170,976 | 5,120,293 | 5,120,293 | 5,170,976 | |||||||||||||||
Shares issued | 4,335,331 | 5,864,738 | |||||||||||||||||
Shares available for grant | 3,297,638 | 6,859 | 6,859 | 3,297,638 | |||||||||||||||
Beginning 2020 Fiscal Year | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Additional shares authorized annually | 2,144,521 | ||||||||||||||||||
Percent of common stock outstanding, per year | 4.00% | ||||||||||||||||||
Employee Stock Options | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 10 years | ||||||||||||||||||
Share-based compensation expense | $ 6,300,000 | $ 1,500,000 | $ 500,000 | ||||||||||||||||
Unrecognized compensation expense | $ 10,400,000 | $ 10,400,000 | |||||||||||||||||
Unrecognized compensation expense, period of recognition | 3 years 1 month 6 days | ||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 173,196 | ||||||||||||||||||
Fair value per share (in dollars per share) | $ 132.73 | $ 0 | $ 0 | $ 132.73 | |||||||||||||||
Shares issued, unvested | 149,004 | 0 | 0 | 149,004 | |||||||||||||||
Share-based compensation expense | $ 3,700,000 | $ 0 | $ 0 | ||||||||||||||||
Unrecognized compensation expense, period of recognition | 3 years 3 months 18 days | ||||||||||||||||||
Unrecognized share-based compensation expense | $ 5,100,000 | $ 5,100,000 | |||||||||||||||||
Restricted stock price (in dollars per share) | $ 126.29 | ||||||||||||||||||
Restricted Stock Units | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 14,862 | ||||||||||||||||||
Fair value per share (in dollars per share) | $ 176.04 | ||||||||||||||||||
Shares issued, unvested | 149,004 | 0 | 0 | 149,004 | |||||||||||||||
Common Stock | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Unrecognized compensation expense, period of recognition | 1 year 8 months 12 days | ||||||||||||||||||
Unrecognized share-based compensation expense | $ 6,000,000 | $ 6,000,000 | |||||||||||||||||
Share-based compensation expense accrued, not issued | $ 1,000,000 | ||||||||||||||||||
Restricted Stock | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 99,433 | 135,791 | 1,006,658 | 99,433 | 135,791 | ||||||||||||||
Purchase price (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.02 | ||||||||||||||||
Fair value per share (in dollars per share) | $ 17.03 | $ 19.49 | $ 17.03 | $ 0 | $ 17.03 | $ 19.49 | |||||||||||||
Shares issued, unvested | 88,988 | 100,127 | 0 | 100,127 | 88,988 | ||||||||||||||
Vesting period | 24 months | 36 months | |||||||||||||||||
Share-based compensation expense | $ 1,800,000 | $ 700,000 | $ 0 | ||||||||||||||||
Unrecognized share-based compensation expense | $ 1,700,000 | $ 1,700,000 | |||||||||||||||||
Restricted stock price (in dollars per share) | $ 20.02 | $ 20.02 | $ 17.03 | ||||||||||||||||
Shares of restricted stock purchased by nonemployees (in shares) | 88,988 | 88,988 | |||||||||||||||||
Weighted average remaining contractual life | 1 year 2 months 12 days | 1 year 7 months 6 days | |||||||||||||||||
Restricted Stock | Minimum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 12 months | ||||||||||||||||||
Restricted Stock | Maximum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 24 months | ||||||||||||||||||
Employee Stock | 2018 ESPP | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Shares authorized for issuance | 804,195 | ||||||||||||||||||
Additional shares authorized annually | 536,130 | ||||||||||||||||||
Percent of common stock outstanding, per year | 1.00% | ||||||||||||||||||
Period of additional shares authorized | 10 years | ||||||||||||||||||
Employee | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock options granted (in shares) | 78,820 | 48,999 | 264,033 | ||||||||||||||||
Exercise price (in dollars per share) | $ 84.45 | $ 25 | $ 20.02 | ||||||||||||||||
Employee | Restricted Stock Units | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 87,974 | 70,360 | |||||||||||||||||
Fair value per share (in dollars per share) | $ 84.45 | $ 168.10 | |||||||||||||||||
Nonemployee | Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 30,496 | ||||||||||||||||||
Vesting period | 1 year | 12 months | |||||||||||||||||
Nonemployee | Restricted Stock | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 99,433 | ||||||||||||||||||
Purchase price (in dollars per share) | $ 0.01 | ||||||||||||||||||
Executive Officer, one | Employee | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock options granted (in shares) | 5,073 | 125,000 | 50,000 | 1,000,000 | |||||||||||||||
Exercise price (in dollars per share) | $ 176.04 | $ 168.10 | $ 25 | $ 25 | |||||||||||||||
Executive Officer, one | Employee | Employee Stock Options | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 24 months | 48 months | |||||||||||||||||
Executive Officer, one | Employee | Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 2 years | 4 years | |||||||||||||||||
Executive Officer, one | Employee | Restricted Stock Units | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 34,295 | ||||||||||||||||||
Executive Officer, two | Employee | 2018 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock options granted (in shares) | 68,590 | ||||||||||||||||||
First Anniversary | Employee Stock Options | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||
First Anniversary | Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||
Thereafter | Employee Stock Options | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||
Thereafter | Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||
Immediately | Nonemployee | Restricted Stock Units | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Granted (in shares) | 22,620 | ||||||||||||||||||
Common Stock | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Re-purchase of common stock (in shares) | 48,909 | 48,909 | |||||||||||||||||
Share price (in dollars per share) | $ 10.50 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of fair value assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 2.30% | 2.80% | 2.00% |
Average expected term (years) | 6 years 1 month 6 days | 5 years 9 months 18 days | 5 years 10 months 24 days |
Expected volatility | 55.00% | 55.00% | 55.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Stock Options | ||||
Outstanding, beginning balance (in shares) | 5,120,293 | 4,207,029 | 4,879,850 | |
Granted (in shares) | 1,571,925 | 2,136,012 | 382,476 | |
Exercised (in shares) | (1,429,756) | (1,139,962) | (446,201) | |
Cancelled/Forfeited (in shares) | (91,486) | (82,786) | (609,096) | |
Outstanding, ending balance (in shares) | 5,170,976 | 5,120,293 | 4,207,029 | 4,879,850 |
Weighted Average Exercise Price | ||||
Outstanding, beginning balance (in dollars per share) | $ 3.13 | $ 0.88 | $ 0.83 | |
Granted (in dollars per share) | 39.01 | 6.49 | 1.56 | |
Exercised (in dollars per share) | 1.87 | 1.20 | 0.85 | |
Cancelled/Forfeited (in dollars per share) | 9.33 | 2.03 | 0.97 | |
Outstanding, ending balance (in dollars per share) | $ 14.28 | $ 3.13 | $ 0.88 | $ 0.83 |
Weighted Average Remaining Contractual Life (Years) | ||||
Weighted average remaining contractual life, outstanding | 7 years 6 months | 7 years 3 months 18 days | 7 years 2 months 12 days | 8 years 2 months 12 days |
Weighted average remaining contractual life, vested and exercisable | 6 years | |||
Weighted average remaining contractual life, vested and expected to vest | 6 years 10 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning balance | $ 81,371 | $ 8,936 | $ 3,557 | |
Exercised | 121,591 | 5,722 | 347 | |
Outstanding, ending balance | $ 329,879 | $ 81,371 | $ 8,936 | $ 3,557 |
Number of Stock Options, Vested and exercisable (in shares) | 2,533,199 | |||
Number of Stock Options, Vested and expected to vest (in shares) | 3,761,031 | |||
Weighted Average Exercise Price, Vested and exercisable (in dollars per share) | $ 2.32 | |||
Weighted Average Exercise Price, Vested and expected to vest (in dollars per share) | $ 8.55 | |||
Aggregate intrinsic value, vested and exercisable | $ 185,671 | |||
Aggregate intrinsic value, vested and expected to vest | $ 256,967 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of restricted stock and RSU activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2019 | Oct. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||||
Number of Shares of Restricted Stock | |||||
Outstanding, beginning balance (in shares) | 0 | ||||
Granted (in shares) | 173,196 | ||||
Vested (in shares) | (23,552) | ||||
Cancelled/Forfeited (in shares) | (640) | ||||
Outstanding, ending balance (in shares) | 149,004 | 0 | |||
Weighted Average Grant Date Fair Value Per Share | |||||
Weighted Average Grant Date Fair Value Per Share, Beginning balance (in dollars per share) | $ 0 | ||||
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | 126.29 | ||||
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 84.84 | ||||
Weighted Average Grant Date Fair Value Per Share, Cancelled/Forfeited (in dollars per share) | 0 | ||||
Weighted Average Grant Date Fair Value Per Share, Ending balance (in dollars per share) | $ 132.73 | $ 0 | |||
Restricted Stock | |||||
Number of Shares of Restricted Stock | |||||
Outstanding, beginning balance (in shares) | 100,127 | 0 | |||
Granted (in shares) | 99,433 | 135,791 | 1,006,658 | 99,433 | 135,791 |
Vested (in shares) | (87,239) | (35,664) | |||
Cancelled/Forfeited (in shares) | (23,333) | 0 | |||
Outstanding, ending balance (in shares) | 88,988 | 100,127 | |||
Weighted Average Remaining Contractual Life (Years) | |||||
Weighted Average Remaining Contractual Life, Unvested (Years) | 1 year 2 months 12 days | 1 year 7 months 6 days | |||
Weighted Average Grant Date Fair Value Per Share | |||||
Weighted Average Grant Date Fair Value Per Share, Beginning balance (in dollars per share) | $ 17.03 | $ 0 | |||
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | $ 20.02 | 20.02 | 17.03 | ||
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 19.21 | 17.03 | |||
Weighted Average Grant Date Fair Value Per Share, Cancelled/Forfeited (in dollars per share) | 0 | 0 | |||
Weighted Average Grant Date Fair Value Per Share, Ending balance (in dollars per share) | $ 17.03 | $ 19.49 | $ 17.03 |
Commitments and Contingencies -
Commitments and Contingencies - Leases and Purchase Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Lease Obligations | |||
2020 | $ 86 | ||
2021 | 80 | ||
2022 | 71 | ||
2023 | 58 | ||
2024 | 30 | ||
Thereafter | 0 | ||
Total minimum lease payments | 325 | ||
Less: imputed interest (4.1% to 15.9%) | (34) | ||
Total capital lease obligations | 291 | ||
Less: current portion of capital lease obligations | (72) | $ (44) | |
Long-term capital lease obligations | 219 | ||
Operating Lease Obligations | |||
2020 | 1,878 | ||
2021 | 1,813 | ||
2022 | 1,817 | ||
2023 | 1,840 | ||
2024 | 1,353 | ||
Thereafter | 5,167 | ||
Total operating lease payments | 13,868 | ||
Purchase Commitments | |||
2020 | 22,684 | ||
2021 | 21,418 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Purchase commitments, total | 44,102 | ||
Rent expense | $ 2,700 | $ 1,700 | $ 1,000 |
Minimum | |||
Capital Lease Obligations | |||
Interest rate | 4.10% | ||
Maximum | |||
Capital Lease Obligations | |||
Interest rate | 15.90% |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) - Former Co-manufacturer Complaint - Pending Litigation | Jan. 24, 2020USD ($) | Oct. 31, 2018defendant |
Loss Contingencies [Line Items] | ||
Number of defendants | defendant | 1 | |
Subsequent Event | ||
Loss Contingencies [Line Items] | ||
Damages sought | $ | $ 628,689 |
Income Taxes - Schedule of comp
Income Taxes - Schedule of components of income tax expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 0 | $ 0 | $ 0 | ||||||||
State | 9 | 1 | 5 | ||||||||
Total current | 9 | 1 | 5 | ||||||||
Deferred: | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 0 | 0 | 0 | ||||||||
Total deferred | 0 | 0 | 0 | ||||||||
Provision for income tax | $ (12) | $ 0 | $ 21 | $ 0 | $ 1 | $ 0 | $ 0 | $ 0 | $ 9 | $ 1 | $ 5 |
Income Taxes - Schedule of effe
Income Taxes - Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. income tax at federal statutory rate | $ (2,611) | $ (6,276) | $ (10,329) | ||||||||
State income tax, net of federal benefits | (2,550) | (1,072) | (1,041) | ||||||||
Stock warrant liability | 2,626 | 0 | 0 | ||||||||
Share-based compensation | (21,236) | (615) | 81 | ||||||||
Research and development credits | (8) | (6) | (4) | ||||||||
Return to provision and other | 0 | 29 | 0 | ||||||||
Change in tax rates | 73 | 668 | 11,783 | ||||||||
Other | (98) | 363 | 470 | ||||||||
Change in valuation allowance | 23,813 | 6,910 | (955) | ||||||||
Provision for income tax | $ (12) | $ 0 | $ 21 | $ 0 | $ 1 | $ 0 | $ 0 | $ 0 | $ 9 | $ 1 | $ 5 |
Income Taxes - Schedule of defe
Income Taxes - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Net operating loss (NOL) | $ 50,663 | $ 29,634 |
Intangibles | 1,252 | 1,407 |
Share-based compensation | 2,704 | 83 |
Interest | 0 | 148 |
Inventory reserve | 1,509 | 0 |
Other | 204 | 628 |
Total gross deferred tax assets | 56,332 | 31,900 |
Deferred Tax liabilities: | ||
Property, plant and equipment | (904) | (283) |
Total gross deferred tax liabilities | (904) | (283) |
Valuation allowance | 55,428 | 31,617 |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 55,428 | $ 31,617 | ||
Increase in valuation allowance | 23,800 | |||
Unrecognized tax benefits | 3,336 | 1,846 | $ 1,201 | |
Research and development tax credits | ||||
Tax Credit Carryforward [Line Items] | ||||
Unrecognized tax benefits | 3,100 | 1,100 | ||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 209,500 | 119,700 | ||
Operating loss carryforwards, not subject to expiration | 117,700 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | $ 143,800 | 92,300 | ||
ASU 2016-09 | Restatement adjustment | ||||
Tax Credit Carryforward [Line Items] | ||||
Increase in valuation allowance | $ 200 | |||
Operating loss carryforwards | $ 200 |
Income Taxes - Schedule of unre
Income Taxes - Schedule of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross unrecognized tax benefits at the beginning of the year | $ 1,846 | $ 1,201 |
Increases related to current year positions | 1,695 | 888 |
Increases/Decreases related to prior year positions | (205) | (243) |
Gross unrecognized tax benefits at the end of the year | $ 3,336 | $ 1,846 |
Net Loss Per Share Available _3
Net Loss Per Share Available to Common Stockholders - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 5,319,980 | 40,114,750 | 39,521,978 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 5,170,976 | 5,120,293 | 4,207,029 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 149,004 |
Net Loss Per Share Available _4
Net Loss Per Share Available to Common Stockholders - Schedule of basic and diluted net loss per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss available to common stockholders | $ (452) | $ 4,099 | $ (9,441) | $ (6,649) | $ (7,452) | $ (9,342) | $ (7,396) | $ (5,696) | $ (12,443) | $ (29,886) | $ (30,384) |
Denominator: | |||||||||||
Weighted average common shares outstanding—basic | 42,274,777 | 6,287,172 | 5,457,629 | ||||||||
Dilutive effect of stock equivalents resulting from stock options, RSUs, common stock warrants, preferred stock warrants and convertible preferred stock (as converted) (in shares) | 0 | 0 | 0 | ||||||||
Weighted average common shares outstanding—diluted | 42,274,777 | 6,287,172 | 5,457,629 | ||||||||
Net loss per share available to common stockholders—basic and diluted (in dollars per share) | $ (0.29) | $ (4.75) | $ (5.57) |
Net Loss Per Share Available _5
Net Loss Per Share Available to Common Stockholders - Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 5,319,980 | 40,114,750 | 39,521,978 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 5,170,976 | 0 | 0 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 149,004 | 0 | 0 |
Convertible preferred stock (as converted) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 0 | 39,953,983 | 39,361,211 |
Preferred stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 0 | 160,767 | 160,767 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Mar. 16, 2020 | Jan. 20, 2020 | Jan. 10, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Aggregate purchase commitment | $ 44,102 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Purchase agreement, term | 18 months | |||
Aggregate purchase commitment | $ 154,100 | |||
Operating lease, expense | $ 500 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 98,479 | $ 91,961 | $ 67,251 | $ 40,206 | $ 31,514 | $ 26,277 | $ 17,367 | $ 12,776 | $ 297,897 | $ 87,934 | $ 32,581 |
Cost of goods sold | 65,018 | 59,178 | 44,510 | 29,435 | 23,651 | 21,235 | 14,755 | 10,719 | 198,141 | 70,360 | 34,772 |
Gross profit (loss) | $ 33,461 | $ 32,783 | $ 22,741 | $ 10,771 | $ 7,863 | $ 5,042 | $ 2,612 | $ 2,057 | 99,756 | 17,574 | (2,191) |
Gross margin | 34.00% | 35.60% | 33.80% | 26.80% | 25.00% | 19.20% | 15.00% | 16.10% | |||
Research and development expenses | $ 5,989 | $ 5,951 | $ 4,212 | $ 4,498 | $ 3,320 | $ 2,165 | $ 2,497 | $ 1,605 | 20,650 | 9,587 | 5,722 |
Selling, general and administrative expenses | 27,090 | 20,944 | 15,515 | 11,177 | 11,328 | 10,353 | 7,043 | 5,737 | 74,726 | 34,461 | 17,143 |
Restructuring expenses | 1,309 | 2,319 | 847 | 394 | 345 | 528 | 348 | 294 | 4,869 | 1,515 | 3,509 |
Total operating expenses | 34,388 | 29,214 | 20,574 | 16,069 | 14,993 | 13,046 | 9,888 | 7,636 | 100,245 | 45,563 | 26,374 |
Loss from operations | (927) | 3,569 | 2,167 | (5,298) | (7,130) | (8,004) | (7,276) | (5,579) | (489) | (27,989) | (28,565) |
Other (expense) income: | |||||||||||
Interest expense | (742) | (855) | (741) | (733) | (740) | (313) | (28) | (47) | (3,071) | (1,128) | (1,002) |
Remeasurement of warrant liability | 0 | 0 | (11,744) | (759) | 133 | (994) | (130) | (129) | (12,503) | (1,120) | (385) |
Other, net | 1,205 | 1,385 | 898 | 141 | 286 | (31) | 38 | 59 | 3,629 | 352 | (427) |
Total other expense, net | 463 | 530 | (11,587) | (1,351) | (321) | (1,338) | (120) | (117) | (11,945) | (1,896) | (1,814) |
Loss before taxes | (464) | 4,099 | (9,420) | (6,649) | (7,451) | (9,342) | (7,396) | (5,696) | (12,434) | (29,885) | (30,379) |
Income tax expense | (12) | 0 | 21 | 0 | 1 | 0 | 0 | 0 | 9 | 1 | 5 |
Net loss | $ (452) | $ 4,099 | $ (9,441) | $ (6,649) | $ (7,452) | $ (9,342) | $ (7,396) | $ (5,696) | $ (12,443) | $ (29,886) | $ (30,384) |
Net (loss) income per share available to common stockholders: | |||||||||||
Basic (in dollars per share) | $ (0.01) | $ 0.07 | $ (0.24) | $ (0.95) | $ (1.10) | $ (1.45) | $ (1.22) | $ (0.98) | |||
Diluted (in dollars per share) | $ (0.01) | $ 0.06 | $ (0.24) | $ (0.95) | $ (1.10) | $ (1.45) | $ (1.22) | $ (0.98) |