Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 16, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | Ra Medical Systems, Inc. | ||
Entity Central Index Key | 0001716621 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Trading Symbol | RMED | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 31,458,547 | ||
Entity Public Float | $ 24.1 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Ex transition period | false | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Security Exchange Name | NYSEAMER | ||
Entity Tax Identification Number | 38-3661826 | ||
Entity Address, Address Line One | 2070 Las Palmas Drive | ||
Entity File Number | 001-38677 | ||
Entity Address, City or Town | Carlsbad | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92011 | ||
City Area Code | 760 | ||
Local Phone Number | 804-1648 | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Auditor Name | HASKELL & WHITE LLP | ||
Auditor Firm ID | 200 | ||
Auditor Location | Irvine, California | ||
ICFR Auditor Attestation Flag | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 15,045 | $ 23,906 |
Accounts receivable, net | 21 | 24 |
Inventories | 986 | 877 |
Prepaid expenses and other current assets | 1,037 | 1,100 |
Current assets of discontinued operations | 1,713 | |
Total current assets | 17,089 | 27,620 |
Property and equipment, net | 1,809 | 2,527 |
Operating lease right-of-use assets | 2,110 | 2,484 |
Other non-current assets | 36 | 45 |
Long-term assets of discontinued operations | 762 | |
TOTAL ASSETS | 21,044 | 33,438 |
Current Liabilities | ||
Accounts payable | 988 | 471 |
Accrued expenses | 4,119 | 4,147 |
Current portion of operating lease liabilities | 283 | 356 |
Current portion of PPP promissory note | 421 | |
Current portion of equipment financing | 265 | |
Current liabilities of discontinued operations | 2,102 | |
Total current liabilities | 5,390 | 7,762 |
Operating lease liabilities | 1,981 | 2,264 |
PPP promissory note | 1,579 | |
Long-term liabilities of discontinued operations | 686 | |
Total liabilities | 7,371 | 12,291 |
Commitments and contingencies (Note 16) | ||
Stockholders’ Equity | ||
Preferred stock, $0.0001 par value, 10,000 shares authorized; no shares issued | ||
Common stock, $0.0001 par value, 300,000 shares authorized; 7,010 and 3,189 shares issued and outstanding at December 31, 2021 and 2020, respectively | 8 | 7 |
Additional paid-in capital | 191,937 | 174,342 |
Accumulated deficit | (178,272) | (153,202) |
Total stockholders’ equity | 13,673 | 21,147 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 21,044 | $ 33,438 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 7,010 | 3,189 |
Common stock, shares outstanding | 7,010 | 3,189 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net revenues | ||
Total net revenues | $ 22 | $ 259 |
Cost of revenues | ||
Total cost of revenues | 1,560 | 2,172 |
Gross loss | (1,538) | (1,913) |
Operating expenses | ||
Selling, general and administrative | 15,475 | 24,533 |
Research and development | 12,253 | 8,955 |
Total operating expenses | 27,728 | 33,488 |
Operating loss | (29,266) | (35,401) |
Other income (expense), net | ||
Other income (expense), net | (14) | 88 |
Gain on extinguishment of PPP promissory note (Note 9) | 2,023 | |
Total other income (expense), net | 2,009 | 88 |
Loss from continuing operations before income taxes | (27,257) | (35,313) |
Income taxes | 4 | 7 |
Loss from continuing operations | (27,261) | (35,320) |
Discontinued operations (Note 3) | ||
Income (loss) from discontinued operations (including gain on sale of $3,500 in 2021) before income taxes | 2,191 | (725) |
Income (loss) from discontinued operations | 2,191 | (725) |
Net loss | $ (25,070) | $ (36,045) |
Net income (loss) per share, basic and diluted | ||
Continuing operations | $ (5.39) | $ (20.79) |
Discontinued operations | 0.43 | (0.43) |
Total net loss per share, basic and diluted | $ (4.96) | $ (21.22) |
Weighted average common shares used in computing net income (loss) per share, basic and diluted | 5,055 | 1,699 |
Product Sales [Member] | ||
Net revenues | ||
Total net revenues | $ 22 | $ 254 |
Cost of revenues | ||
Total cost of revenues | 832 | 1,369 |
Service and Other [Member] | ||
Net revenues | ||
Total net revenues | 5 | |
Cost of revenues | ||
Total cost of revenues | $ 728 | $ 803 |
Statements of Operations (Paren
Statements of Operations (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Statement [Abstract] | |
Gain on sale of business | $ 3,473 |
Statements of Comprehensive Los
Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (25,070) | $ (36,045) |
Other comprehensive loss: | ||
Unrealized losses on short-term investments | (26) | |
Comprehensive loss | $ (25,070) | $ (36,071) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balances at Dec. 31, 2019 | $ 33,150 | $ 1 | $ 150,280 | $ 26 | $ (117,157) |
Balance (in shares) at Dec. 31, 2019 | 551 | ||||
Common stock issued, net | 11,625 | $ 5 | 11,620 | ||
Common stock issued (in shares) | 2,551 | ||||
Warrants issued, net | 7,492 | 7,492 | |||
Exercise of warrants | 827 | $ 1 | 826 | ||
Exercise of warrants (in shares) | 74 | ||||
Common stock issued pursuant to the vesting of restricted stock units and purchases under employee stock purchase plan | 42 | 42 | |||
Common stock issued pursuant to the vesting of restricted stock units and purchases under employee stock purchase plan (in shares) | 13 | ||||
Stock-based compensation | 4,082 | 4,082 | |||
Other comprehensive income (loss) | (26) | $ (26) | |||
Net loss | (36,045) | (36,045) | |||
Balances at Dec. 31, 2020 | 21,147 | $ 7 | 174,342 | (153,202) | |
Balance (in shares) at Dec. 31, 2020 | 3,189 | ||||
Common stock issued, net | 15,153 | $ 1 | 15,152 | ||
Common stock issued (in shares) | 3,901 | ||||
Warrants issued, net | 132 | 132 | |||
Restricted stock awards cancelled (shares) | (113) | ||||
Common stock issued pursuant to the vesting of restricted stock units and purchases under employee stock purchase plan | 74 | 74 | |||
Common stock issued pursuant to the vesting of restricted stock units and purchases under employee stock purchase plan (in shares) | 33 | ||||
Stock-based compensation | 2,237 | 2,237 | |||
Net loss | (25,070) | (25,070) | |||
Balances at Dec. 31, 2021 | $ 13,673 | $ 8 | $ 191,937 | $ (178,272) | |
Balance (in shares) at Dec. 31, 2021 | 7,010 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (25,070) | $ (36,045) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on sale of discontinued operations | (3,473) | |
Gain on extinguishment of PPP promissory note | (2,023) | |
Stock-based compensation | 2,237 | 4,082 |
Depreciation and amortization | 1,565 | 2,365 |
(Gain) loss on sales and disposals of property and equipment | (550) | 99 |
Provision for credit losses | 47 | 180 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 42 | 368 |
Inventories | (197) | 352 |
Prepaid expenses and other assets | 150 | 642 |
Accounts payable | 627 | (961) |
Accrued expenses | (390) | 1,706 |
Deferred revenue | (234) | (774) |
Other liabilities | (356) | (318) |
Net cash used in operating activities | (27,625) | (28,304) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of discontinued operations | 3,700 | |
Payment of fees related to sale of discontinued operations | (227) | |
Proceeds from sales of property and equipment | 594 | |
Purchases of property and equipment | (265) | (67) |
Proceeds from maturities of available-for-sale securities | 16,000 | |
Net cash provided by investing activities | 3,802 | 15,933 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock and warrants, net of placement agent fees | 15,528 | 19,887 |
Payment of offering costs related to the issuance of common stock and warrants | (375) | (770) |
Repayment of equipment financing | (265) | (293) |
Proceeds from purchases under employee stock purchase plan | 74 | 42 |
Proceeds from PPP promissory note | 2,000 | |
Proceeds from issuance of common stock in connection with the exercise of warrants | 827 | |
Net cash provided by financing activities | 14,962 | 21,693 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (8,861) | 9,322 |
CASH AND CASH EQUIVALENTS, beginning of year | 23,906 | 14,584 |
CASH AND CASH EQUIVALENTS, end of year | 15,045 | 23,906 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid property and equipment | 17 | |
Transfer of lasers from inventories to property and equipment | 207 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash payments for interest | 2 | $ 28 |
Cash payments for income taxes | $ 2 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1. Organization and Nature of Operations The Company Ra Medical Systems, Inc. (the “Company”) is a medical device company leveraging its advanced excimer laser-based platform for use in the treatment of vascular immune-mediated inflammatory diseases. Its excimer laser and single-use catheter system, together referred to as “DABRA”, is used as a tool in the treatment of peripheral artery disease (“PAD”). The Company was formed on September 4, 2002 in the state of California and reincorporated in Delaware on July 14, 2018. On August 16, 2021, the Company completed the sale of its Pharos dermatology business (the “Dermatology Business”). Accordingly, the financial information and operating results of the Dermatology Business has been presented as discontinued operations in the financial statements for all periods presented. Unless otherwise noted, discussion within these notes to financial statements relates to continuing operations. See Note 3. Discontinued Operations Effects of COVID-19 and Market Conditions The global effects of the novel coronavirus (“COVID-19”) have created significant volatility, uncertainty and economic disruption. Although the number of reported cases of COVID-19 has recently decreased, the ultimate effects of the COVID-19 on the Company’s business, operations and financial condition are unknown at this time. The Company expects that enrollment in its atherectomy clinical trial will continue to be affected by the uncertainly relating to COVID-19, as patients may continue to elect to postpone voluntary treatments and physicians’ offices are either remaining closed, operating at a reduced capacity or are in the process of reopening or returning to full capacity. The Company’s manufacturing facility located in Carlsbad, California is currently operational. The Company has experienced delays in receiving shipments of parts which has had an impact on the timing of its key engineering efforts but has not affected its ability to support its atherectomy clinical study. However, the extent to which COVID-19 impacts its business will depend on future developments which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain it or treat its impact, among others. The Company, like many companies, is also experiencing increased difficulty in attracting and retaining key personnel due to a tight labor market. Going Concern The Company has experienced recurring net losses from operations and negative cash flows from operating activities, has a significant accumulated deficit and expects to continue to incur net losses into the foreseeable future. The Company had an accumulated deficit of $178.3 million at December 31, 2021. For the year ended December 31, 2021, the Company used $27.6 million in cash for operating activities for continuing and discontinued operations. As of December 31, 2021, the Company had cash and cash equivalents of $15.0 million. Management expects operating losses and negative cash flows to continue for the foreseeable future with the Company’s reduced commercial footprint, and as the Company continues to incur costs related to its atherectomy clinical trial, engineering efforts to improve the shelf life of its catheters and develop next generation products and legal costs as further discussed in Note 16. Commitments and Contingencies Management believes that, based on the Company’s liquidity resources, there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least 12 months from the date of issuance of the financial statements. Although the Company bolstered its liquidity resources in 2021 and 2020, completed an equity financing in February 2022, resulting in net proceeds of $10.7 million, has an effective shelf registration statement and may receive additional funds from the exercise of its warrants depending on market conditions, management concluded that the aforementioned conditions, including the ongoing uncertainty related to the negative impacts of the COVID-19 pandemic, continue to raise substantial doubt about the Company’s ability to continue as a going concern within 12 months from the date of issuance of the financial statements. Management’s plans to address this uncertainty include raising additional funding, if necessary, through public or private equity or debt financings. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation as further described in Note 3. Discontinued Operations Use of Estimates The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The Segment Reporting After the sale of the Dermatology Business in August 2021, the Company began operating its business in one segment which includes all activities related to the research, development and manufacture of the DABRA system. The chief operating decision-maker reviews the operating results on an aggregate basis and manages the operations as a single operating segment. Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents primarily represent funds invested in readily available checking and money market accounts. The Company maintains deposits in financial institutions in excess of federally insured limits. Fair Value Measurements Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier value hierarchy is used to identify inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and Level 3 - Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. Fair Value of Financial Instruments Cash equivalents, trade accounts receivable and accounts payable are reported on the balance sheets at carrying value which approximates fair value due to the short-term maturities of these instruments. Accounts Receivable Trade accounts receivable are presented net of allowances for credit losses. The Company sells its catheters directly to distributors or physicians and maintains an allowance for credit losses for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. Delinquent accounts receivable are charged against the allowance for credit losses once the Company has determined the amounts are uncollectible. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The following table shows the activity in the allowance for credit losses for the periods presented (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of year $ 84 $ 305 Provision for credit losses 47 42 Deductions — (263 ) Balance at end of year $ 131 $ 84 Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technological developments or other economic factors. Although inventories are classified as current assets in the accompanying balance sheets, the Company anticipates that such inventories will be utilized beyond twelve months from December 31, 2021. Catheters are manufactured in-house and each catheter is tested at various stages of the manufacturing process for adherence to quality standards. Catheters that do not meet functionality specification at each test point are destroyed and immediately written off, with the expense recorded in cost of revenues in the statements of operations. Once manufactured, completed catheters that pass quality assurance, are sent to a third-party for sterilization and sealed in a sterile container. Upon return from the third-party sterilizer, a sample of catheters from each batch are re-tested. If the sample tests are successful, the batch is accepted into finished goods inventory. If the sample tests are unsuccessful, the entire batch is written off, with the expense recorded in cost of revenues in the statement of operations. Property and Equipment Property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives as follows: Computer hardware and software 4-5 years Furniture and fixtures 5 years Machinery and equipment 5-10 years Lasers 5 years Automobiles 5 years Leasehold improvements are depreciated over the shorter of the useful life of the leasehold improvement or the term of the underlying property’s lease. The Company periodically reviews the residual values and estimated useful lives of each class of its property and equipment for ongoing reasonableness, considering long-term views on its intended use of each class of property and equipment and the planned level of improvements to maintain and enhance assets within those classes. Effective January 1, 2022, based on management’s revised assessment of average laser on-time utilization, the Company changed the estimated useful life of its lasers to eight years. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the account balances and any resulting gain or loss is recognized in income for the period. The cost of repairs and maintenance is expensed as incurred, whereas significant betterments are capitalized. Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets for impairment when certain events or changes in circumstances indicate that the carrying value of the long-lived assets may not be recoverable. Should the sum of the undiscounted expected future net cash flows be less than the carrying value, the Company would recognize an impairment loss at that date. There were no impairment charges for the years ended December 31, 2021 or 2020. Product Warranty Products are warrantied against defects in material and workmanship when properly used for their intended purpose and appropriately maintained. Accordingly, the Company generally replaces catheters that kink or fail to calibrate. The product warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor. The product warranty liability also includes the estimated costs of a product recall. The warranty accrual is included in accrued expenses in the accompanying balance sheets. Warranty expenses are included in cost of revenues in the accompanying statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair and product recall costs and are included in current period warranty expense. Revenue Recognition The Company generates revenue from the sales of products and services. Product sales consist of the sales of catheters for use with the DABRA laser system. The Company has paused selling commercial product and is only selling catheters for use in the atherectomy clinical trial. The Company’s sales agreements generally do not include right-of-return provisions for any form of consideration, including partial refund or credit against amounts owed to the Company. Services and other revenues primarily consist of billable services, including fees related to DABRA laser commercial usage agreements. The Company determines revenue recognition incorporating the following steps: • Identification of each contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. The Company accounts for a contract with a customer when it has a legally enforceable contract with the customer, the arrangement identifies the rights of the parties, the contract has commercial substance, and the Company determines it is probable that it will collect the contract consideration. The Company recognizes revenue when control of the promised goods or services transfers to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Taxes collected from customers relating to goods or services and remitted to governmental authorities are excluded from revenue. Catheter Revenue When engaged in commercial sales, the Company enters into a DABRA laser commercial usage agreement or DABRA laser placement acknowledgement with each customer that is supplied a DABRA laser, collectively the “usage agreement”, which provides for specific terms of continued use of the DABRA laser, including a nominal periodic fee. The terms of a usage agreement typically allow the Company to place a DABRA laser at a customer’s specified location without a specified contract term. Under the usage agreement terms, the Company retains all ownership rights to the DABRA laser and is permitted to request the return of the equipment within 10 business days of notification. While the laser periodic fees are nominal, the usage agreement provides the Company the exclusive rights to supply related single-use catheters to the customer which aggregate the majority of the product sales revenue. There are no specified minimum purchase commitments for the catheters. The Company recognizes revenue associated with the usage agreements and catheter supply arrangements in accordance with Financial Accounting Standards Board “ Revenue from Contracts with Customers (Topic 606),” Distributor Transactions In certain markets outside the U.S., the Company sells products and provides services to customers through distributors that specialize in medical device products. The terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers. The Company accounts for these transactions in accordance with the Company’s revenue recognition policy described herein. Shipping and Handling Costs Shipping and handling charged to customers are included in net product sales. Shipping and handling costs are included in selling, general and administrative expenses in the accompanying statements of operations. Advertising Expense The Company expenses advertising costs as incurred. Research and Development Major components of research and development costs include personnel expenses, stock-based compensation, consulting, supplies and clinical trial expenses. Research and development expenses are charged to operations in the period they are incurred. Patents The Company expenses patent costs, including related legal costs, as incurred and records such costs as selling, general and administrative expenses in the accompanying statements of operations. Stock-Based Compensation The Company records stock-based compensation expense associated with stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) issued to employees, members of the Company’s board of directors and consultants in accordance with the authoritative guidance for stock-based compensation. The Company evaluates whether an award should be classified and accounted for as a liability award or equity award for all stock-based compensation awards granted. The cost of an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award using the Black-Scholes option pricing valuation model, or Black-Scholes model, which incorporates various assumptions including expected term, volatility and risk-free interest rate, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized, and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. Income taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other expense, respectively. Concentrations of Credit Risk Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below. Financial instruments, which potentially subject the Company to concentration of credit risk, consist of cash equivalent balances maintained in excess of Federal Depository Insurance Corporation limits, and accounts receivable which have no collateral or security. The Company monitors the financial condition of the banks in which it currently has deposits. The Company has not experienced any significant losses in this respect and believes that it is not exposed to any significant related risk. Exposure to losses on accounts receivable is dependent upon the individual customer’s financial condition. The Company monitors its exposure to credit losses and reserves for those accounts receivable that it deems to be not collectible. For the years ended December 31, 2021 and 2020, we had three and four individual customers, respectively, that represented greater than 10% of total net revenues. One individual customer represented greater than 10% of accounts receivable at each of December 31, 2021 and 2020. Significant Accounting Policies Related to Discontinued Operations Laser Sales The Company recognized revenue on laser sales at the point in time that control transferred to the customer. Control of the product typically transferred upon shipment. Warranty Service Revenue The Company typically provided a 12-month warranty with the purchase of its laser systems. Customers could extend the warranty period through the purchase of extended warranty service contracts. Extended warranty service contracts were sold with contract terms ranging from 12 to 60 months and covered periods after the end of the initial 12-month warranty period. The warranty provided the customer with maintenance services in addition to the assurance that the laser product complied with agreed-upon specifications. Therefore, the warranty service was treated as a separate performance obligation from the laser system. Warranty services were a stand-ready obligation, and the Company recognized revenue on a straight-line basis over the service contract term. Warranty service revenue was included in service and other revenue in the statements of operations. Contracts With Multiple Performance Obligations Certain of the Company’s contracts with customers contained multiple performance obligations. For these contracts, the Company accounted for individual products and services as separate performance obligations if they are distinct, which was if (i) a product or service is separately identifiable from other items in the arrangement and (ii) the customer can benefit from the product or service on its own or with other readily available resources. The transaction price was allocated to the separate performance obligations on a relative standalone selling price basis. The Company determined standalone selling prices based on observable prices of products or services sold separately in comparable circumstances to similar customers. Significant Financing Component For multi-year warranty service contracts in which there was a difference between the cash selling price and the consideration in the contract and a significant amount of time between the payment, which was due up-front, and delivery of the services (greater than one year), the Company recorded an adjustment for significant financing to reflect the time value of money. The Company recognized revenue associated with the cash selling price and interest expense using the effective interest method as the Company satisfied its performance obligation(s). The amount of interest expense the Company recognized over the contract term was based on the contract liability balance, which increased for the accrual of interest and decreased as services are provided. For services contracts that had an original duration of one year or less, the Company used the practical expedient applicable to such contracts and did not adjust the transaction price for the time value of money. Practical Expedients Elected As part of the Company’s adoption of Topic 606, the Company elected to use the following practical expedients: • not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company’s transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; • to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less; • to exclude government assessed taxes from the transaction price; and • not to recast revenue for contracts that begin and end in the same fiscal year. Contract Costs The Company capitalized costs to obtain contracts that were considered incremental and recoverable, such as sales commissions. The capitalized costs were amortized to selling, general and administrative expense over the estimated period of benefit of the asset, which was the contract term. The Company elected to use the practical expedient to expense the costs to obtain a contract when the amortization period was less than one year. Rental Income The Company also derived income pursuant to product operating lease agreements for its Pharos laser systems, prior to the sale of the Dermatology Business. Consequently, the Company retained title to the equipment. Depreciation expense on these leased lasers was recorded to cost of revenues on a straight-line basis. The costs to maintain these leased lasers were charged to cost of revenues as incurred. These lease arrangements contained one lease component (the laser) and one nonlease component (warranty service) for which the Company elected the practical expedient to not separate the nonlease component from the lease component. The Company accounted for the combined lease component as an operating lease and recognized lease income on a straight-line basis over the lease term. Recent Accounting Pronouncements As an emerging growth company, the Company may elect to adopt new or revised accounting standards when they become effective for non-public companies, which typically is later than public companies must adopt the standards. The Company has elected to take advantage of the extended transition period afforded by the JOBS Act and, as a result, will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-public companies. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Discontinued Operations | Note 3. Discontinued Operations Consistent with the Company’s continued focus on the PAD market, the Company completed the sale of its Dermatology Business to STRATA Skin Sciences, Inc. (“Strata”) on August 16, 2021, for cash proceeds of $3.7 million. The Company paid broker and legal fees of approximately $0.2 million related to the sale of the Dermatology Business. In addition, the Company issued a warrant to the broker to purchase 74,247 shares of common stock at an exercise price of $2.99 per share. The warrant is immediately exercisable and expires five years following the date of issuance. The warrant was valued at approximately $0.1 million on the grant date using the Black-Scholes option pricing model based on the following assumptions: expected volatility of 104.55%, risk-free interest rate of 0.32%, expected dividend yield of 0% and an expected term of 2.5 years. The Dermatology Business was previously disclosed as a separate reportable segment of the Company. The sale of the Dermatology Business resulted in a gain of $3.5 million which is included as a component of income from discontinued operations in the statement of operations for the year ended December 31, 2021. The Company has reported the results of the Dermatology Business in income (loss) from discontinued operations in the statements of operations and excluded such results from continuing operations for the years ended December 31, 2021 and 2020. The assets and liabilities of the Dermatology Business are recorded as assets of discontinued operations and liabilities of discontinued operations, respectively, in the balance sheet at December 31, 2020. Certain overhead costs previously allocated to the Dermatology Business for segment reporting purposes did not qualify for classification as discontinued operations and have been reallocated to continuing operations for the years ended December 31, 2021 and 2020. The following table summarizes the carrying amounts of the assets and liabilities included as discontinued operations in the balance sheet at December 31, 2020 (in thousands): December 31, 2020 Assets of discontinued operations Accounts receivable, net $ 214 Inventories 1,341 Prepaid expenses and other current assets 158 Property and equipment, net 684 Other long-term assets 78 Total assets of discontinued operations $ 2,475 Liabilities of discontinued operations Accounts payable $ 100 Accrued expenses 201 Deferred revenue 2,487 Total liabilities of discontinued operations $ 2,788 The assets and liabilities of discontinued operations have been classified as current and long-term, as applicable, in the balance sheet at December 31, 2020. The following table summarizes the major classes of items constituting income (loss) from discontinued operations in the statements of operations for each of the periods presented (in thousands): Year Ended December 31, 2021 2020 Net revenues Product sales $ 852 $ 1,154 Service and other 1,748 2,992 Total net revenues 2,600 4,146 Cost of revenues Product sales 1,201 1,522 Service and other 1,089 1,789 Total cost of revenues 2,290 3,311 Gross income 310 835 Operating expenses Selling, general and administrative 1,110 1,440 Research and development 388 54 Total operating expenses 1,498 1,494 Operating loss (1,188 ) (659 ) Interest income (expense), net (94 ) (66 ) Loss from discontinued operations (1,282 ) (725 ) Gain on sale of the Dermatology Business 3,473 — Income (loss) from discontinued operations $ 2,191 $ (725 ) Depreciation expense for the Dermatology Business was $0.3 million and $0.4 million for the years ended December 31, 2021 and 2020, respectively. There were no capital expenditures for the Dermatology Business during the years ended December 31, 2021 and 2020. The provision for credit losses for the Dermatology Business for the years ended December 31, 2021 and 2020 was nil and $0.1 million, respectively. Stock-based compensation expense for the Dermatology Business was approximately $18,000 and $0.2 million for the years ended December 31, 2021 and 2020, respectively. Stock-based compensation expense of approximately $0.1 million and $0.2 million was capitalized to inventory and property and equipment for the Dermatology Business during the years ended December 31, 2021 and 2020 , respectively . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements As of December 31, 2021 and 2020, cash equivalents of $9.4 million and $18.4 million, respectively, were comprised of money market funds which were measured at fair value on a recurring basis using Level 1 inputs. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 911 $ 547 Work in process 70 270 Finished goods 5 60 Inventories $ 986 $ 877 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment Net [Abstract] | |
Property and Equipment | Note 6. Property and Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Lasers $ 3,085 $ 3,194 Machinery and equipment 858 834 Computer hardware and software 353 353 Construction in progress 169 51 Leasehold improvements 145 119 Furniture and fixtures 48 48 Automobiles — 1,054 Property and equipment, gross 4,658 5,653 Accumulated depreciation (2,849 ) (3,126 ) Property and equipment, net $ 1,809 $ 2,527 Depreciation expense was $1.0 million and $1.6 million for the years ended December 31, 2021 and 2020, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Compensation and related benefits $ 2,004 $ 2,479 Accrued legal expenses 1,345 957 Accrued warranty (Note 8) 195 204 Other accrued expenses 575 507 Accrued expenses $ 4,119 $ 4,147 |
Accrued Warranty
Accrued Warranty | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty | Note 8. Accrued Warranty Activity in the product warranty accrual is included in accrued expenses and consisted of the following (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of year $ 204 $ 234 Claims satisfied (9 ) (53 ) Increase in warranty accrual — 19 Change in liability for pre-existing warranties — 4 Balance at end of year $ 195 $ 204 The accrued warranty balances at December 31, 2021 and 2020 each included $0.1 million relating to the voluntary recall of catheters, which was initiated in September 2019. |
Paycheck Protection Program Pro
Paycheck Protection Program Promissory Note | 12 Months Ended |
Dec. 31, 2021 | |
Paycheck Protection Program Promissory Note [Abstract] | |
Paycheck Protection Program Promissory Note | Note 9. Paycheck Protection Program Promissory Note In May 2020, the Company entered into a $2.0 million Paycheck Protection Program Promissory Note and Agreement (“PPP Promissory Note”) with a commercial bank under the Coronavirus Aid, Relief, and Economic Security Act “CARES Act”). The PPP Promissory Note bore interest at 1.0% per annum. Under the terms of the PPP Promissory Note, payments would have been due monthly beginning November 1, 2020, and the principal amount of the PPP Promissory Note, along with any unpaid interest, would have been due in May 2022. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 extended the deferral period for all loans to 10 months after the last day of the covered period. Under the revised terms, payments would have been due beginning August 2021, and the principal amount, along with unpaid interest, would have been due in May 2022. The principal and interest could be forgiven if the proceeds are used for forgivable purposes as defined by the terms in the PPP Promissory Note. The Company applied for full forgiveness under the provisions of the CARES Act in March 2021 and received approval by the Small Business Administration on June 24, 2021. Gain on extinguishment of the PPP Promissory Note of $2.0 million was included in other income (expense), net in the statement of operations for the year ended December 31, 2021. Interest expense on the PPP Promissory Note for the years ended December 31, 2021 and 2020 was $10,000 and $13,000, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Note 10. Operating Leases During the years ended December 31, 2021 and 2020, t he Company had two operating leases for office and manufacturing space which required it to pay base rent and certain utilities. Monthly rent expense was recognized on a straight-line basis over the terms of the leases. The office operating lease expired in December 2021 and the manufacturing operating lease expires in 2027. At December 31, 2021, the remaining lease term for the manufacturing operating lease was six years. The manufacturing operating lease is included in the balance sheet at the present value of the lease payments at a 7% discount rate, the rate of interest that the Company estimates it would pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment, as the lease does not provide an implicit rate. For the years ended December 31, 2021 and 2020, operating lease expense and cash paid were each $0.5 million. The Company recognized non-cash right-of-use assets and lease liabilities of $3.2 million upon adoption of ASU 2016-02 on January 1, 2019. de minimis The following table presents the lease liability related to the Company’s operating lease as of December 31, 2021 (in thousands): Years Ending December 31, 2022 $ 432 2023 445 2024 459 2025 472 2026 486 Thereafter 501 Total operating lease payments 2,795 Less: imputed interest (531 ) Total operating lease liability $ 2,264 |
Equipment Financing
Equipment Financing | 12 Months Ended |
Dec. 31, 2021 | |
Equipment Financing [Abstract] | |
Equipment Financing | Note 11. Equipment Financing During 2018, the Company entered into four loan agreements to finance 25 automobiles. The loans matured in 2021 and bore interest at a weighted average interest rate of 6.5%. These loans were secured by the automobiles. Interest expense for the years ended December 31, 2021 and 2020 was de minimis March 2021 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 12. Net Loss per Share The Company calculates basic net loss per share by dividing net loss by the weighted average number of common shares outstanding during the reporting period. A net loss cannot be diluted so when the Company is in a net loss position, basic and diluted loss per common share are the same. If in the future the Company achieves profitability, the denominator of a diluted earnings per common share calculation will include both the weighted average number of shares outstanding and the number of common stock equivalents, if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents include warrants, stock options and non-vested restricted stock awards and restricted stock units using the treasury stock method, along with the effect, if any, from outstanding convertible securities. The Company’s outstanding warrants to purchase common stock have participation rights to any dividends that may be declared in the future and are therefore considered to be participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to the participating securities since the holders have no contractual obligation to share in the losses of the Company. Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at December 31, 2021 consisted of warrants of 2,419,280, stock options of 108,448, restricted stock awards of 179,334, restricted stock units of 70,025 and Employee Stock Purchase Plan (“ESPP”) shares of 22,639. Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at December 31, 2020 consisted of warrants of 2,345,033, stock options of 142,171, restricted stock units of 33,548, restricted stock awards of 290,536 and ESPP shares of 3,200. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity [Abstract] | |
Stockholders' Equity | Note 13. Equity Offerings In December 2021, the Company completed ATM offerings of 54,077 shares of common stock at a weighted average price of $1.79 per share. The Company received approximately $0.1 million in net proceeds, after deducting placement agent fees. During July 2021 and August 2021, the Company completed ATM offerings of 1,139,306 shares of common stock, at a weighted average price of $4.00 per share. The Company received approximately $4.4 million in net proceeds, after deducting placement agent fees. During May 2021 and June 2021, the Company completed ATM offerings of 2,582,019 shares of common stock at a weighted average price of $4.29 per share. The Company received approximately $10.6 million in net proceeds, after deducting placement agent fees. In February 2021, the Company completed an ATM offering of 35,768 shares of common stock at a price of $8.39 per share. The Company received approximately $0.3 million in net proceeds, after deducting placement agent fees. The Company also incurred $0.2 million in offering fees and other expenses in association with filing the related Registration Statement on Form S-3 with the SEC. In May 2020, the Company completed a public offering (the “May 2020 Offering”) of an aggregate of 888,888 shares of common stock, together with accompanying warrants to purchase up to an aggregate of 888,888 shares of common stock, at a public offering price of $11.25 per share and accompanying warrant. Each share of common stock was sold in the offering with one warrant to purchase one share of common stock. The warrants have an exercise price of $11.25 per share, are immediately exercisable, and expire five years following the date of issuance. Placement agent warrants were issued to purchase up to an aggregate of 62,222 shares of common stock, are immediately exercisable for an exercise price of $14.06, and expire five years following the date of issuance. The Company received approximately $8.7 million in net proceeds, after deducting placement agent fees and other offering expenses of $1.3 million. The warrants and placement agent warrants were valued at an aggregate $3.5 million using the Black-Scholes option pricing model based on the following assumptions; expected volatility 59.86%, risk-free interest rate 0.34%, expected dividend yield 0.00% and an expected term of 2.5 years. In June 2020, the Company issued 73,506 shares of common stock in connection with the exercise of warrants issued in the May 2020 Offering. In August 2020, the Company accompanying warrants to purchase up to an aggregate of shares of common stock, at an offering price of $ per share and accompanying warrant. Each share of common stock was sold in the offering with one warrant to purchase one share of common stock. The warrants have an exercise price of $ per share, are immediately exercisable, and expire five years following the date of issuance. Placement agent warrants were issued to purchase up to an aggregate of , are immediately exercisable for an exercise price of $10 , and expire five years following the date of issuance. The warrants and placement agent warrants were valued at an aggregate $4.0 million using the Black-Scholes option pricing model based on the following assumptions; expected volatility 59.72%, risk-free interest rate 0.17%, expected dividend yield 0.00% and an expected term of 2.5 years As of December 31, 2021, the Company had 2,186,811 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 14. Stock-Based Compensation 2018 Stock Compensation Plan In June 2018, the 2018 Stock Compensation Plan (the “Compensation Plan”) was established whereby 132,000 shares of the Company’s common stock were reserved for issuance. The Company’s board of directors authorized 76,076 replacement stock options and 53,633 replacement restricted stock units (collectively, the “Replacement Awards”) to eligible employees, directors and consultants for equity awards that had been granted under a previous plan. of the Company’s 2018 Equity Incentive Plan described below and, accordingly, no new awards were available for issuance under the Compensation Plan. The Replacement Awards vested at various times through January 2020. 2018 Equity Incentive Plan In September 2018, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2018 Equity Incentive Plan (the “2018 Plan”) which provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, performance-based stock awards and other forms of equity compensation to the Company’s employees, directors and consultants. 2020 Inducement Equity Incentive Plan In March 2020, the Company adopted the 2020 Inducement Equity Incentive Plan (the “2020 Plan”) for the purpose of attracting, retaining and incentivizing employees in furtherance of the Company’s success. The 2020 Plan was adopted without stockholder approval pursuant to Rule 303A.08 of the New York Stock Exchange. The 2020 Plan is used to offer equity awards as material inducements for new employees to join the Company. Upon adoption of the 2020 Plan, 32,000 shares of common stock were reserved for the granting of inducement stock options, restricted stock awards, restricted stock units and other forms of equity awards. As of December 31, 2021, 9,000 shares of common stock were reserved for future issuance under the 2020 Plan. Stock Options The following is a summary of stock option activity for employees of continuing operations and discontinued operations for the year ended December 31, 2021: Stock Options Weighted Average Exercise Price Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 2018 Plan 124,171 $ 363.31 2020 Plan 18,000 $ 25.50 142,171 $ 320.54 Forfeited (33,723 ) $ 240.17 Outstanding at December 31, 2021 108,448 $ 345.54 5.82 $ — Exercisable at December 31, 2021 88,324 $ 422.83 5.27 $ — Vested and expected to vest at December 31, 2021 108,448 $ 345.54 5.82 $ — The Company did not grant any stock options during the year ended December 31, 2021. The weighted average grant date fair value of stock options granted during the year ended December 31, 2020 under the 2018 Plan and 2020 Plan was $30.69 and $25.50, respectively. The fair value of the stock options granted during the year ended December 31, 2020 under the 2018 Plan and 2020 Plan was estimated using the Black Scholes option pricing model and the weighted average assumptions set forth below: 2018 Plan 2020 Plan Risk-free interest rate 1.30 % 0.50 % Volatility 58.96 % 58.33 % Expected dividend yield 0.00 % 0.00 % Expected life (in years) 5.8 6.3 Restricted Stock Units The following is a summary of the restricted stock unit activity for the 2018 Plan for employees of continuing operations and discontinued operations for the year ended December 31, 2021: Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 33,548 $ 21.93 Granted 61,259 $ 2.74 Vested (6,974 ) $ 45.12 Forfeited (17,808 ) $ 13.59 Outstanding at December 31, 2021 70,025 $ 4.37 Restricted Stock Awards In November 2020, the Company granted 266,161 RSAs under the 2018 Plan that were subject to both time-based vesting and the achievement of specific performance goals. During the year ended December 31, 2021, the Company determined that two of the three performance goals had not been achieved. As such, 74,998 RSAs were cancelled, and the previously recognized stock-based compensation expense of approximately $27,000 was reversed. A summary of the restricted stock award activity for employees of continuing operations and discontinued operations for the year ended December 31, 2021 is presented below: Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 2018 Plan 286,161 $ 4.77 2020 Plan 4,375 $ 25.50 290,536 $ 5.08 Granted 103,939 $ 4.82 Vested (88,781 ) $ 5.93 Cancelled (74,998 ) $ 4.81 Forfeited (51,362 ) $ 4.81 Outstanding at December 31, 2021 179,334 $ 4.71 Employee Stock Purchase Plan In September 2018, the Company’s board of directors adopted the 2018 Employee Stock Purchase Plan (the “ESPP”) which permits eligible employees to purchase the Company’s common stock at a discount through payroll deductions during defined offering periods. Eligible employees may elect to withhold up to 15% of their base earnings to purchase shares of the Company’s common stock at a price equal to 85% of the fair market value on the first day of the offering period or the purchase date, whichever is lower. For the years ended December 31, 2021 and 2020, cash received from the exercise of purchase rights under the ESPP was approximately $0.1 million and $42,000, respectively. As of December 31, 2021, the Company had issued 32,206 shares of common stock under the ESPP, and 4,764 shares of common stock were reserved for future issuance. Stock-based compensation expense recorded in operating expenses was as follows (in thousands): Year Ended December 31, 2021 2020 Selling, general and administrative $ 1,750 $ 3,235 Research and development 304 447 Stock-based compensation expense $ 2,054 $ 3,682 Stock-based compensation of $0.1 million and $0.2 million was capitalized to property and equipment and inventory during the years ended December 31, 2021 and 2020, respectively. Total unrecognized estimated stock-based compensation expense by award type and the remaining weighted average recognition period over which such expense is expected to be recognized at December 31, 2021 was as follows: Unrecognized Expense (in thousands) Remaining Weighted Average Recognition Period (in years) Stock options $ 313 1.7 Restricted stock awards $ 622 2.2 Restricted stock units $ 252 2.1 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes A reconciliation of the differences between the U.S. statutory federal income tax rate and the effective tax rate as provided in the statements of operations is as follows: Year Ended December 31, 2021 2020 Tax computed at the federal statutory rate 21.0 % 21.0 % State income taxes, net of federal benefits 1.3 5.1 Stock-based compensation (2.6 ) (2.2 ) Tax exempt income 1.7 — Deferred tax adjustments — (57.0 ) Nondeductible expenses — (0.1 ) Change in valuation allowance (21.4 ) 33.2 — — The federal and state income tax provision is summarized as follows (in thousands): Year Ended December 31, 2021 2020 Current Federal $ — $ — State 4 7 4 7 Deferred Federal — — State — — — — Income tax expense $ 4 $ 7 Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes, and (b) operating losses and tax credit carryforwards. The tax effects of significant components of the Company’s deferred tax assets (liabilities) are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 9,706 $ 3,720 Operating lease liabilities 556 691 Other accruals 71 101 Accrued compensation 399 448 Reserves 169 299 Deferred revenue — 642 Intangible assets 56 32 Stock-based compensation 4,605 4,910 Total gross deferred tax assets 15,562 10,843 Deferred tax liabilities: Property and equipment (348 ) (805 ) Operating lease right-of-use assets (518 ) (655 ) Other — (61 ) Total gross deferred tax liabilities (866 ) (1,521 ) Valuation allowance (14,696 ) (9,322 ) Total deferred taxes $ — $ — At December 31, 2021, the Company had available federal and state net operating loss carryforwards of approximately $39.2 million and $41.2 million, respectively, which may potentially be used to offset future federal and state taxable earnings. The federal net operating loss can be carried forward indefinitely and the state net operating losses begin expiring in 2030. Use of these net operating loss carryforwards may be significantly limited under the tax rules regarding the use of losses following an ownership change under Internal Revenue Code (“IRC”) Section 382. The Company has completed an IRC Section 382 analysis regarding the limitation of net operating losses through December 31, 2020 and determined that an ownership change occurred in May 2020. The Company calculated the limitation on net operating losses and other tax attributes and reduced the value of the deferred tax assets resulting in a tax expense impact of $20.8 million. The tax expense was offset by tax benefit recorded on the reduction in valuation allowance recorded for the deferred tax assets for the year ended December 31, 2020. The Company has not completed the IRC Section 382 analysis regarding the limitation of net operating losses for the year ended December 31, 2021. As of December 31, 2021, the Company does not have any unrecognized tax benefits. The Company does not anticipate that the amount of unrecognized tax benefits will significantly increase in the next 12 months. There were no interest and penalties accrued as of December 31, 2021. The Company files U.S. federal and various states income tax returns, which are subject to examination by the taxing authorities for years 2017 and later. However, the federal net operating loss carryover may be adjusted three years from the date the loss is utilized on an income tax return. ASC 740, Income Taxes On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which includes a number of provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. Under ASC 740, the effects of new legislation are recognized upon enactment. Accordingly, the effects of the CARES Act have been incorporated into the income tax provisions for the years ended December 31, 2021 and 2020. The CARES Act did not have a material impact on the income tax provisions for the years ended December 31, 2021 and 2020. The Consolidated Appropriations Act 2021 (“CAA”), which was signed into law on December 27, 2020, provided that deductions are allowed for otherwise deductible expenses paid with the proceeds of a Paycheck Protection Program loan that is forgiven and that the tax basis and other attributes of the borrower’s assets will not be reduced as a result of the loan forgiveness. Prior to the enactment of the CAA, the deductions paid with the proceeds of a PPP loan that was forgiven were not allowed. These provisions did not have a material impact on the income tax provisions for the years ended December 31, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Securities Class Action and Shareholder Derivative Litigation Update On June 7, 2019, a putative securities class action complaint captioned Derr v. Ra Medical Systems, Inc., et al., On November 12, 2021, following a private settlement mediation with the lead plaintiffs, the parties executed a stipulation of settlement that resolved the claims asserted in the securities class action. The settlement provides for a payment to the plaintiff class of $10.0 million. The proposed settlement requires both preliminary and final approval by the court. On February 11, 2022, the court granted preliminary approval of the settlement, scheduled a hearing on final approval of the settlement for June 13, 2022, and denied the pending motion to dismiss without prejudice. or if the proposed settlement otherwise does not become final, the parties will be returned to their litigation postures prior to the execution of the stipulation of settlement. Should the Company ultimately be found liable, the liability could have a material adverse effect on the Company’s financial condition and its results of operations for the period or periods in which such determination is made . On October 1, 2019, a shareholder derivative complaint captioned Noel Borg v. Dean Irwin, et al Settlement Agreements with the Department of Justice and Participating States As previously announced on December 28, 2020, the Company entered into a settlement agreement (“Settlement Agreement”) with the U.S., acting through the Department of Justice and on behalf of the Office of Inspector General, and other settlement agreements with certain state attorneys general to resolve investigations and a related civil action concerning its marketing of the DABRA laser system and DABRA-related remuneration to certain physicians. Pursuant to the terms of the Settlement Agreement and the agreements with the participating states, (a) if the Company’s revenue exceeds $10 million in any of fiscal years 2021-2024, the Company also is required to pay for the corresponding year: $500,000 for 2021, $750,000 for 2022, $1 million for 2023, and $1.25 million for 2024; (b) if the Company is acquired or is otherwise involved in a change in control transaction before the end of 2024, the Company is required to pay an additional settlement amount of $5 million, plus 4% of the value attributed to the Company in the transaction, so long as the attributed value is in excess of $100 million, with the total change in control payment never to exceed $28 million; and (c) if the Company’s obligations under the Settlement Agreement are avoided by bankruptcy, the U.S. may rescind the releases and bring an action against the Company in which the Company agrees is not subject to an automatic stay, is not subject to any statute of limitations, estoppel or laches defense, and is a valid claim in the amount of $56 million, minus any prior change in control payments. Other Litigation In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management’s opinion, any potential loss resulting from the resolution of these matters will not have a material effect on the results of operations, financial position or cash flows of the Company. Services Agreement Pursuant to the terms of the Services Agreement between the Company and Strata, executed simultaneously with the sale of the Dermatology Business, the Company will continue to provide certain services to Strata, including certain support services and the sale of spare parts, through December 2022. Income earned and expenses incurred in accordance with the Services Agreement are recorded as other income (expense), net in the accompanying statement of operations for the year ended December 31, 2021. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Additional Information [Abstract] | |
Employee Benefit Plan | Note 17. Employee Benefit Plan In January 2019, the Company established a defined contribution plan under Section 401(k) of the Internal Revenue Code (“401(k) Plan”). Under the terms of the 401(k) Plan, all full-time employees are eligible to make voluntary contributions as a percentage or defined amount of compensation. The Company makes matching contributions based on 100% of each employee’s contribution up to 3% and 50% of contributions between 3% and 5%, with the match-eligible contribution limited to 4% of the employee’s eligible compensation. . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events On February 8, 2022, the Company closed the sale of shares under its public offering in which it sold 9,535,000 shares of common stock, 27,602,893 each of Series A and Series B warrants and 14,467,893 pre-funded warrants resulting in cash proceeds of approximately $10.2 million, net of $1.9 million of underwriting discounts and other offering expenses. In addition, the Company may incur additional offering expenses of between approximately $0.7 million and $0.9 million for a potential tail fee owed to its former placement agent. On February 10, 2022, the underwriter partially exercised its overallotment option and purchased an additional 1,245,116 shares of common stock, resulting in cash proceeds of approximately $0.5 million, net of underwriting discounts. On January 18, 2022, H.C. Wainwright & Co. delivered written notice to the Company that it was terminating the ATM Agreement dated January 26, 2021. During the year ended December 31, 2021, the Company sold 3,811,170 shares of common stock for gross proceeds of approximately $16.0 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation as further described in Note 3. Discontinued Operations |
Use of Estimates | Use of Estimates The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The |
Segment Reporting | Segment Reporting After the sale of the Dermatology Business in August 2021, the Company began operating its business in one segment which includes all activities related to the research, development and manufacture of the DABRA system. The chief operating decision-maker reviews the operating results on an aggregate basis and manages the operations as a single operating segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents primarily represent funds invested in readily available checking and money market accounts. The Company maintains deposits in financial institutions in excess of federally insured limits. |
Fair Value Measurements | Fair Value Measurements Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier value hierarchy is used to identify inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and Level 3 - Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash equivalents, trade accounts receivable and accounts payable are reported on the balance sheets at carrying value which approximates fair value due to the short-term maturities of these instruments. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are presented net of allowances for credit losses. The Company sells its catheters directly to distributors or physicians and maintains an allowance for credit losses for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. Delinquent accounts receivable are charged against the allowance for credit losses once the Company has determined the amounts are uncollectible. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The following table shows the activity in the allowance for credit losses for the periods presented (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of year $ 84 $ 305 Provision for credit losses 47 42 Deductions — (263 ) Balance at end of year $ 131 $ 84 |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technological developments or other economic factors. Although inventories are classified as current assets in the accompanying balance sheets, the Company anticipates that such inventories will be utilized beyond twelve months from December 31, 2021. Catheters are manufactured in-house and each catheter is tested at various stages of the manufacturing process for adherence to quality standards. Catheters that do not meet functionality specification at each test point are destroyed and immediately written off, with the expense recorded in cost of revenues in the statements of operations. Once manufactured, completed catheters that pass quality assurance, are sent to a third-party for sterilization and sealed in a sterile container. Upon return from the third-party sterilizer, a sample of catheters from each batch are re-tested. If the sample tests are successful, the batch is accepted into finished goods inventory. If the sample tests are unsuccessful, the entire batch is written off, with the expense recorded in cost of revenues in the statement of operations. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives as follows: Computer hardware and software 4-5 years Furniture and fixtures 5 years Machinery and equipment 5-10 years Lasers 5 years Automobiles 5 years Leasehold improvements are depreciated over the shorter of the useful life of the leasehold improvement or the term of the underlying property’s lease. The Company periodically reviews the residual values and estimated useful lives of each class of its property and equipment for ongoing reasonableness, considering long-term views on its intended use of each class of property and equipment and the planned level of improvements to maintain and enhance assets within those classes. Effective January 1, 2022, based on management’s revised assessment of average laser on-time utilization, the Company changed the estimated useful life of its lasers to eight years. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the account balances and any resulting gain or loss is recognized in income for the period. The cost of repairs and maintenance is expensed as incurred, whereas significant betterments are capitalized. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets for impairment when certain events or changes in circumstances indicate that the carrying value of the long-lived assets may not be recoverable. Should the sum of the undiscounted expected future net cash flows be less than the carrying value, the Company would recognize an impairment loss at that date. There were no impairment charges for the years ended December 31, 2021 or 2020. |
Product Warranty | Product Warranty Products are warrantied against defects in material and workmanship when properly used for their intended purpose and appropriately maintained. Accordingly, the Company generally replaces catheters that kink or fail to calibrate. The product warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor. The product warranty liability also includes the estimated costs of a product recall. The warranty accrual is included in accrued expenses in the accompanying balance sheets. Warranty expenses are included in cost of revenues in the accompanying statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair and product recall costs and are included in current period warranty expense. |
Revenue Recognition | Revenue Recognition The Company generates revenue from the sales of products and services. Product sales consist of the sales of catheters for use with the DABRA laser system. The Company has paused selling commercial product and is only selling catheters for use in the atherectomy clinical trial. The Company’s sales agreements generally do not include right-of-return provisions for any form of consideration, including partial refund or credit against amounts owed to the Company. Services and other revenues primarily consist of billable services, including fees related to DABRA laser commercial usage agreements. The Company determines revenue recognition incorporating the following steps: • Identification of each contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. The Company accounts for a contract with a customer when it has a legally enforceable contract with the customer, the arrangement identifies the rights of the parties, the contract has commercial substance, and the Company determines it is probable that it will collect the contract consideration. The Company recognizes revenue when control of the promised goods or services transfers to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Taxes collected from customers relating to goods or services and remitted to governmental authorities are excluded from revenue. Catheter Revenue When engaged in commercial sales, the Company enters into a DABRA laser commercial usage agreement or DABRA laser placement acknowledgement with each customer that is supplied a DABRA laser, collectively the “usage agreement”, which provides for specific terms of continued use of the DABRA laser, including a nominal periodic fee. The terms of a usage agreement typically allow the Company to place a DABRA laser at a customer’s specified location without a specified contract term. Under the usage agreement terms, the Company retains all ownership rights to the DABRA laser and is permitted to request the return of the equipment within 10 business days of notification. While the laser periodic fees are nominal, the usage agreement provides the Company the exclusive rights to supply related single-use catheters to the customer which aggregate the majority of the product sales revenue. There are no specified minimum purchase commitments for the catheters. The Company recognizes revenue associated with the usage agreements and catheter supply arrangements in accordance with Financial Accounting Standards Board “ Revenue from Contracts with Customers (Topic 606),” Distributor Transactions In certain markets outside the U.S., the Company sells products and provides services to customers through distributors that specialize in medical device products. The terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers. The Company accounts for these transactions in accordance with the Company’s revenue recognition policy described herein. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling charged to customers are included in net product sales. Shipping and handling costs are included in selling, general and administrative expenses in the accompanying statements of operations. |
Advertising Expense | Advertising Expense The Company expenses advertising costs as incurred. |
Research and Development | Research and Development Major components of research and development costs include personnel expenses, stock-based compensation, consulting, supplies and clinical trial expenses. Research and development expenses are charged to operations in the period they are incurred. |
Patents | Patents The Company expenses patent costs, including related legal costs, as incurred and records such costs as selling, general and administrative expenses in the accompanying statements of operations. |
Share-based Compensation | Stock-Based Compensation The Company records stock-based compensation expense associated with stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) issued to employees, members of the Company’s board of directors and consultants in accordance with the authoritative guidance for stock-based compensation. The Company evaluates whether an award should be classified and accounted for as a liability award or equity award for all stock-based compensation awards granted. The cost of an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award using the Black-Scholes option pricing valuation model, or Black-Scholes model, which incorporates various assumptions including expected term, volatility and risk-free interest rate, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized, and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. |
Income Taxes | Income taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other expense, respectively. |
Concentrations of Credit Risk | Concentrations of Credit Risk Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below. Financial instruments, which potentially subject the Company to concentration of credit risk, consist of cash equivalent balances maintained in excess of Federal Depository Insurance Corporation limits, and accounts receivable which have no collateral or security. The Company monitors the financial condition of the banks in which it currently has deposits. The Company has not experienced any significant losses in this respect and believes that it is not exposed to any significant related risk. Exposure to losses on accounts receivable is dependent upon the individual customer’s financial condition. The Company monitors its exposure to credit losses and reserves for those accounts receivable that it deems to be not collectible. For the years ended December 31, 2021 and 2020, we had three and four individual customers, respectively, that represented greater than 10% of total net revenues. One individual customer represented greater than 10% of accounts receivable at each of December 31, 2021 and 2020. |
Discontinued Operations | Significant Accounting Policies Related to Discontinued Operations Laser Sales The Company recognized revenue on laser sales at the point in time that control transferred to the customer. Control of the product typically transferred upon shipment. Warranty Service Revenue The Company typically provided a 12-month warranty with the purchase of its laser systems. Customers could extend the warranty period through the purchase of extended warranty service contracts. Extended warranty service contracts were sold with contract terms ranging from 12 to 60 months and covered periods after the end of the initial 12-month warranty period. The warranty provided the customer with maintenance services in addition to the assurance that the laser product complied with agreed-upon specifications. Therefore, the warranty service was treated as a separate performance obligation from the laser system. Warranty services were a stand-ready obligation, and the Company recognized revenue on a straight-line basis over the service contract term. Warranty service revenue was included in service and other revenue in the statements of operations. Contracts With Multiple Performance Obligations Certain of the Company’s contracts with customers contained multiple performance obligations. For these contracts, the Company accounted for individual products and services as separate performance obligations if they are distinct, which was if (i) a product or service is separately identifiable from other items in the arrangement and (ii) the customer can benefit from the product or service on its own or with other readily available resources. The transaction price was allocated to the separate performance obligations on a relative standalone selling price basis. The Company determined standalone selling prices based on observable prices of products or services sold separately in comparable circumstances to similar customers. Significant Financing Component For multi-year warranty service contracts in which there was a difference between the cash selling price and the consideration in the contract and a significant amount of time between the payment, which was due up-front, and delivery of the services (greater than one year), the Company recorded an adjustment for significant financing to reflect the time value of money. The Company recognized revenue associated with the cash selling price and interest expense using the effective interest method as the Company satisfied its performance obligation(s). The amount of interest expense the Company recognized over the contract term was based on the contract liability balance, which increased for the accrual of interest and decreased as services are provided. For services contracts that had an original duration of one year or less, the Company used the practical expedient applicable to such contracts and did not adjust the transaction price for the time value of money. Practical Expedients Elected As part of the Company’s adoption of Topic 606, the Company elected to use the following practical expedients: • not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company’s transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; • to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less; • to exclude government assessed taxes from the transaction price; and • not to recast revenue for contracts that begin and end in the same fiscal year. Contract Costs The Company capitalized costs to obtain contracts that were considered incremental and recoverable, such as sales commissions. The capitalized costs were amortized to selling, general and administrative expense over the estimated period of benefit of the asset, which was the contract term. The Company elected to use the practical expedient to expense the costs to obtain a contract when the amortization period was less than one year. Rental Income The Company also derived income pursuant to product operating lease agreements for its Pharos laser systems, prior to the sale of the Dermatology Business. Consequently, the Company retained title to the equipment. Depreciation expense on these leased lasers was recorded to cost of revenues on a straight-line basis. The costs to maintain these leased lasers were charged to cost of revenues as incurred. These lease arrangements contained one lease component (the laser) and one nonlease component (warranty service) for which the Company elected the practical expedient to not separate the nonlease component from the lease component. The Company accounted for the combined lease component as an operating lease and recognized lease income on a straight-line basis over the lease term. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements As an emerging growth company, the Company may elect to adopt new or revised accounting standards when they become effective for non-public companies, which typically is later than public companies must adopt the standards. The Company has elected to take advantage of the extended transition period afforded by the JOBS Act and, as a result, will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-public companies. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Losses | The following table shows the activity in the allowance for credit losses for the periods presented (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of year $ 84 $ 305 Provision for credit losses 47 42 Deductions — (263 ) Balance at end of year $ 131 $ 84 |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives as follows: Computer hardware and software 4-5 years Furniture and fixtures 5 years Machinery and equipment 5-10 years Lasers 5 years Automobiles 5 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Included as Discontinued Operations and Income (Loss) from Discontinued Operations | The following table summarizes the carrying amounts of the assets and liabilities included as discontinued operations in the balance sheet at December 31, 2020 (in thousands): December 31, 2020 Assets of discontinued operations Accounts receivable, net $ 214 Inventories 1,341 Prepaid expenses and other current assets 158 Property and equipment, net 684 Other long-term assets 78 Total assets of discontinued operations $ 2,475 Liabilities of discontinued operations Accounts payable $ 100 Accrued expenses 201 Deferred revenue 2,487 Total liabilities of discontinued operations $ 2,788 The following table summarizes the major classes of items constituting income (loss) from discontinued operations in the statements of operations for each of the periods presented (in thousands): Year Ended December 31, 2021 2020 Net revenues Product sales $ 852 $ 1,154 Service and other 1,748 2,992 Total net revenues 2,600 4,146 Cost of revenues Product sales 1,201 1,522 Service and other 1,089 1,789 Total cost of revenues 2,290 3,311 Gross income 310 835 Operating expenses Selling, general and administrative 1,110 1,440 Research and development 388 54 Total operating expenses 1,498 1,494 Operating loss (1,188 ) (659 ) Interest income (expense), net (94 ) (66 ) Loss from discontinued operations (1,282 ) (725 ) Gain on sale of the Dermatology Business 3,473 — Income (loss) from discontinued operations $ 2,191 $ (725 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 911 $ 547 Work in process 70 270 Finished goods 5 60 Inventories $ 986 $ 877 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Lasers $ 3,085 $ 3,194 Machinery and equipment 858 834 Computer hardware and software 353 353 Construction in progress 169 51 Leasehold improvements 145 119 Furniture and fixtures 48 48 Automobiles — 1,054 Property and equipment, gross 4,658 5,653 Accumulated depreciation (2,849 ) (3,126 ) Property and equipment, net $ 1,809 $ 2,527 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Compensation and related benefits $ 2,004 $ 2,479 Accrued legal expenses 1,345 957 Accrued warranty (Note 8) 195 204 Other accrued expenses 575 507 Accrued expenses $ 4,119 $ 4,147 |
Accrued Warranty (Tables)
Accrued Warranty (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule Product Warranty Accrual Included in Accrued Expenses | Activity in the product warranty accrual is included in accrued expenses and consisted of the following (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of year $ 204 $ 234 Claims satisfied (9 ) (53 ) Increase in warranty accrual — 19 Change in liability for pre-existing warranties — 4 Balance at end of year $ 195 $ 204 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturities | The following table presents the lease liability related to the Company’s operating lease as of December 31, 2021 (in thousands): Years Ending December 31, 2022 $ 432 2023 445 2024 459 2025 472 2026 486 Thereafter 501 Total operating lease payments 2,795 Less: imputed interest (531 ) Total operating lease liability $ 2,264 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Options Activity | The following is a summary of stock option activity for employees of continuing operations and discontinued operations for the year ended December 31, 2021: Stock Options Weighted Average Exercise Price Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 2018 Plan 124,171 $ 363.31 2020 Plan 18,000 $ 25.50 142,171 $ 320.54 Forfeited (33,723 ) $ 240.17 Outstanding at December 31, 2021 108,448 $ 345.54 5.82 $ — Exercisable at December 31, 2021 88,324 $ 422.83 5.27 $ — Vested and expected to vest at December 31, 2021 108,448 $ 345.54 5.82 $ — |
Schedule of Fair Value of Options Using the Black Scholes Option Pricing Model and Assumptions Used | The fair value of the stock options granted during the year ended December 31, 2020 under the 2018 Plan and 2020 Plan was estimated using the Black Scholes option pricing model and the weighted average assumptions set forth below 2018 Plan 2020 Plan Risk-free interest rate 1.30 % 0.50 % Volatility 58.96 % 58.33 % Expected dividend yield 0.00 % 0.00 % Expected life (in years) 5.8 6.3 |
Schedule of Restricted Stock Units Activity | The following is a summary of the restricted stock unit activity for the 2018 Plan for employees of continuing operations and discontinued operations for the year ended December 31, 2021: Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 33,548 $ 21.93 Granted 61,259 $ 2.74 Vested (6,974 ) $ 45.12 Forfeited (17,808 ) $ 13.59 Outstanding at December 31, 2021 70,025 $ 4.37 |
Schedule of Restricted Stock Awards Activity | A summary of the restricted stock award activity for employees of continuing operations and discontinued operations for the year ended December 31, 2021 is presented below: Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 2018 Plan 286,161 $ 4.77 2020 Plan 4,375 $ 25.50 290,536 $ 5.08 Granted 103,939 $ 4.82 Vested (88,781 ) $ 5.93 Cancelled (74,998 ) $ 4.81 Forfeited (51,362 ) $ 4.81 Outstanding at December 31, 2021 179,334 $ 4.71 |
Schedule of Stock-based Compensation Expense Recorded in Operating Expenses | Stock-based compensation expense recorded in operating expenses was as follows (in thousands): Year Ended December 31, 2021 2020 Selling, general and administrative $ 1,750 $ 3,235 Research and development 304 447 Stock-based compensation expense $ 2,054 $ 3,682 |
Schedule of Unrecognized Estimated Stock Based Compensation Expense by Award Type | Total unrecognized estimated stock-based compensation expense by award type and the remaining weighted average recognition period over which such expense is expected to be recognized at December 31, 2021 was as follows: Unrecognized Expense (in thousands) Remaining Weighted Average Recognition Period (in years) Stock options $ 313 1.7 Restricted stock awards $ 622 2.2 Restricted stock units $ 252 2.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Differences between United States Statutory Federal Income Tax Rate and Effective Tax Rate | A reconciliation of the differences between the U.S. statutory federal income tax rate and the effective tax rate as provided in the statements of operations is as follows: Year Ended December 31, 2021 2020 Tax computed at the federal statutory rate 21.0 % 21.0 % State income taxes, net of federal benefits 1.3 5.1 Stock-based compensation (2.6 ) (2.2 ) Tax exempt income 1.7 — Deferred tax adjustments — (57.0 ) Nondeductible expenses — (0.1 ) Change in valuation allowance (21.4 ) 33.2 — — |
Summary of Federal and State Income Tax Provision | The federal and state income tax provision is summarized as follows (in thousands): Year Ended December 31, 2021 2020 Current Federal $ — $ — State 4 7 4 7 Deferred Federal — — State — — — — Income tax expense $ 4 $ 7 |
Significant Components of Deferred Tax Assets (Liabilities) | The tax effects of significant components of the Company’s deferred tax assets (liabilities) are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 9,706 $ 3,720 Operating lease liabilities 556 691 Other accruals 71 101 Accrued compensation 399 448 Reserves 169 299 Deferred revenue — 642 Intangible assets 56 32 Stock-based compensation 4,605 4,910 Total gross deferred tax assets 15,562 10,843 Deferred tax liabilities: Property and equipment (348 ) (805 ) Operating lease right-of-use assets (518 ) (655 ) Other — (61 ) Total gross deferred tax liabilities (866 ) (1,521 ) Valuation allowance (14,696 ) (9,322 ) Total deferred taxes $ — $ — |
Organization and Nature of Op_2
Organization and Nature of Operations - Additional Information (Details) - USD ($) $ in Thousands | Feb. 08, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Organization And Nature Of Operations [Line Items] | |||
Accumulated deficit | $ 178,272 | $ 153,202 | |
Net cash used in operating activities | 27,625 | 28,304 | |
Cash and cash equivalents | $ 15,045 | $ 23,906 | |
Subsequent Event | |||
Organization And Nature Of Operations [Line Items] | |||
Proceeds from equity financing | $ 10,700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2022 | Dec. 31, 2021SegmentCustomer | Dec. 31, 2020Customer |
Number of operating segments | Segment | 1 | ||
Tax benefit likely of being realized upon ultimate settlement description | measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | ||
Capitalized contract cost amortization period | 1 year | ||
Minimum [Member] | |||
Regular warranty service contracts term | 12 months | ||
Maximum [Member] | |||
Extended warranty service contracts term | 60 months | ||
Customer Concentration Risk | Revenue Benchmark | |||
Number of individual customers representing greater than 10% of bench mark | 3 | 4 | |
Customer Concentration Risk | Revenue Benchmark | Three Individual Customers | |||
Concentration risk, percentage | 10.00% | ||
Customer Concentration Risk | Revenue Benchmark | Four Individual Customers | |||
Concentration risk, percentage | 10.00% | ||
Customer Concentration Risk | Accounts Receivable | |||
Number of individual customers representing greater than 10% of bench mark | 1 | 1 | |
Customer Concentration Risk | Accounts Receivable | One Customer | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Lasers | |||
Estimated useful life | 5 years | ||
Subsequent Event | Lasers | |||
Estimated useful life | 8 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Balance at beginning of year | $ 84 | $ 305 |
Provision for credit losses | 47 | 42 |
Deductions | (263) | |
Balance at end of year | $ 131 | $ 84 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Furniture And Fixtures [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Lasers [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Automobiles [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Computer Hardware And Software [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
Minimum [Member] | Machinery And Equipment [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Computer Hardware And Software [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Machinery And Equipment [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) | Aug. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Common stock, shares issued | 7,010 | 3,189 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Gain on sale of business | $ 3,473,000 | ||
Dermatology [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Depreciation expense | 300,000 | $ 400,000 | |
Capital expenditure | 0 | 0 | |
Provision for credit losses | 100,000 | ||
Stock based compensation expense | 18,000 | 200,000 | |
Stock based compensation expense capitalized to inventory and property and equipment | 100,000 | $ 200,000 | |
Dermatology [Member] | Disposition by Sale [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Gain on sale of business | $ 3,500,000 | ||
Dermatology [Member] | Discontinued Operations [Member] | Disposition by Sale [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Cash on disposition of business | $ 3,700,000 | ||
Broker and legal fees on disposal | $ 200,000 | ||
Dermatology [Member] | Warrant [Member] | Discontinued Operations [Member] | Disposition by Sale [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Common stock, shares issued | 74,247 | ||
Common stock, par value | $ 2.99 | ||
Warrant expiry period | 5 years | ||
Warrant | $ 100,000 | ||
Expected volatility rate | 104.55% | ||
Risk free interest rate | 0.32% | ||
Expected dividend rate | 0.00% | ||
Expected term | 2 years 6 months |
Discontinued Operations - Summa
Discontinued Operations - Summary of Carrying Amounts of Assets and Liabilities Included as Discontinued Operations in Condensed Balance Shee (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Assets of discontinued operations | |
Accounts receivable, net | $ 214 |
Inventories | 1,341 |
Prepaid expenses and other current assets | 158 |
Property and equipment, net | 684 |
Other long-term assets | 78 |
Total assets of discontinued operations | 2,475 |
Liabilities of discontinued operations | |
Accounts payable | 100 |
Accrued expenses | 201 |
Deferred revenue | 2,487 |
Total liabilities of discontinued operations | $ 2,788 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Major Classes of Items Constituting Income (Loss) from Discontinued Operations in Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total net revenues | $ 2,600 | $ 4,146 |
Total cost of revenues | 2,290 | 3,311 |
Gross income | 310 | 835 |
Total operating expenses | 1,498 | 1,494 |
Operating loss | (1,188) | (659) |
Interest income (expense), net | (94) | (66) |
Loss from discontinued operations | (1,282) | (725) |
Gain on sale of business | 3,473 | |
Income (loss) from discontinued operations | 2,191 | (725) |
Service and Other [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total net revenues | 1,748 | 2,992 |
Total cost of revenues | 1,089 | 1,789 |
Selling, General And Administrative [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total operating expenses | 1,110 | 1,440 |
Research And Development [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total operating expenses | 388 | 54 |
Product Sales [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total net revenues | 852 | 1,154 |
Total cost of revenues | $ 1,201 | $ 1,522 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value disclosure of cash equivalents | $ 9.4 | $ 18.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 911 | $ 547 |
Work in process | 70 | 270 |
Finished goods | 5 | 60 |
Inventories | $ 986 | $ 877 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,658 | $ 5,653 |
Accumulated depreciation | (2,849) | (3,126) |
Property and equipment, net | 1,809 | 2,527 |
Lasers | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,085 | 3,194 |
Machinery And Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 858 | 834 |
Automobiles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,054 | |
Computer Hardware And Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 353 | 353 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 145 | 119 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 48 | 48 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 169 | $ 51 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation | $ 1 | $ 1.6 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | |||
Compensation and related benefits | $ 2,004 | $ 2,479 | |
Accrued legal expenses | 1,345 | 957 | |
Accrued warranty (Note 8) | 195 | 204 | $ 234 |
Other accrued expenses | 575 | 507 | |
Accrued expenses | $ 4,119 | $ 4,147 |
Accrued Warranty - Schedule Pro
Accrued Warranty - Schedule Product Warranty Accrual Included in Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of year, Accrued warranty | $ 204 | $ 234 |
Claims satisfied | (9) | (53) |
Increase in warranty accrual | 19 | |
Change in liability for pre-existing warranties | 4 | |
Balance at end of year, Accrued warranty | $ 195 | $ 204 |
Accrued Warranty - Additional I
Accrued Warranty - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Product Warranty Liability [Line Items] | |||
Accrued warranty (Note 8) | $ 195,000 | $ 204,000 | $ 234,000 |
Catheters [Member] | Product Recall [Member] | |||
Product Warranty Liability [Line Items] | |||
Accrued warranty (Note 8) | $ 100,000 | $ 100,000 |
Paycheck Protection Program P_2
Paycheck Protection Program Promissory Note - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain on extinguishment of PPP promissory note (Note 9) | $ 2,023,000 | ||
PPP Promissory Note [Member] | CARES Act [Member] | |||
Paycheck protection program, amount | $ 2,000,000 | ||
Interest rate | 1.00% | ||
Payments due, beginning date | Nov. 1, 2020 | ||
Payments due, ending date | 2022-05 | ||
Gain on extinguishment of PPP promissory note (Note 9) | 2,000,000 | ||
Interest expense | $ 10,000 | $ 13,000 | |
Deferral period for all loans | 10 months | ||
Debt instrument, description | payments would have been due beginning August 2021, and the principal amount, along with unpaid interest, would have been due in May 2022. The principal and interest could be forgiven if the proceeds are used for forgivable purposes as defined by the terms in the PPP Promissory Note. |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Lease | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($) | |
Operating Leased Assets [Line Items] | |||
Number of leases | Lease | 2 | ||
Operating lease, discount rate | 7.00% | ||
Operating lease, weighted average remaining lease term | 6 years | ||
Operating lease expense | $ 500 | $ 500 | |
Operating lease , cash payment | 500 | 500 | |
Operating lease right-of-use-assets amortization | 400 | 400 | |
Operating lease right-of-use assets | 2,110 | $ 2,484 | |
Operating lease, liability | $ 2,264 | ||
ASU 2016-02 [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease right-of-use assets | $ 3,200 | ||
Operating lease, liability | $ 3,200 | ||
Office Building [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease expiration period | 2021 | ||
Manufacturing Facility [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease expiration period | 2027 |
Operating Leases - Lease Liabil
Operating Leases - Lease Liabilities Related to Operating Leases Presented within Condensed Balance Sheet (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 432 |
2023 | 445 |
2024 | 459 |
2025 | 472 |
2026 | 486 |
Thereafter | 501 |
Total operating lease payments | 2,795 |
Less: imputed interest | (531) |
Total operating lease liability | $ 2,264 |
Equipment Financing - Additiona
Equipment Financing - Additional Information (Details) - Automobile Loan [Member] | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2018agreementAutomobile | |
Debt Instrument [Line Items] | |||
Number of loan agreements | agreement | 4 | ||
Interest expense | $ | $ 28,000 | ||
Number of automobiles financed | Automobile | 25 | ||
Weighted average interest rate | 6.50% | ||
Debt instruments maturity year | 2021 | ||
Debt instruments maturity date | Mar. 31, 2021 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Loss allocated to participating securities | $ 0 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common share equivalents excluded from computation of diluted net loss per share | 108,448 | 142,171 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common share equivalents excluded from computation of diluted net loss per share | 2,419,280 | 2,345,033 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common share equivalents excluded from computation of diluted net loss per share | 179,334 | 33,548 |
Employee Stock Purchase Plan [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common share equivalents excluded from computation of diluted net loss per share | 22,639 | 3,200 |
Restricted Stock Awards (RSAs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive common share equivalents excluded from computation of diluted net loss per share | 70,025 | 290,536 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 | Jun. 30, 2020 | May 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 300,000 | 300,000 | |||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||
Proceeds from issuance of common stock | $ 16 | ||||
Stock issued during period shares warrants Exercised | 73,506 | ||||
May 2020 Offering [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 888,888 | ||||
Proceeds from issuance of common stock | $ 8.7 | ||||
Other offering expenses | 1.3 | ||||
Valuation of warrants | $ 3.5 | ||||
Volatility rate | 59.86% | ||||
Risk-free interest rate | 0.34% | ||||
Expected dividend yield | 0.00% | ||||
Expected terms (In Years) | 2 years 6 months | ||||
May 2020 Offering [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock, par value | $ 11.25 | ||||
Equity offering description | Each share of common stock was sold in the offering with one warrant to purchase one share of common stock | ||||
Warrants issued price per share | $ 11.25 | ||||
Warrants expire period | 5 years | ||||
May 2020 Offering [Member] | Maximum [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Warrants issued during period | 888,888 | ||||
May 2020 Offering [Member] | Placement Agent Warrants [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Warrants issued price per share | $ 14.06 | ||||
Common stock expire period | 5 years | ||||
May 2020 Offering [Member] | Placement Agent Warrants [Member] | Maximum [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Placement agent warrants issued | 62,222 | ||||
August 2020 Offering [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 1,371,429 | ||||
Proceeds from issuance of common stock | $ 10.4 | ||||
Other offering expenses | 1.6 | ||||
Valuation of warrants | $ 4 | ||||
Volatility rate | 59.72% | ||||
Risk-free interest rate | 0.17% | ||||
Expected dividend yield | 0.00% | ||||
Expected terms (In Years) | 2 years 6 months | ||||
Common stock reserve for issuance | 2,186,811 | ||||
August 2020 Offering [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock, par value | $ 8.75 | ||||
Equity offering description | Each share of common stock was sold in the offering with one warrant to purchase one share of common stock | ||||
Warrants issued price per share | $ 8.75 | ||||
Warrants expire period | 5 years | ||||
August 2020 Offering [Member] | Maximum [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Warrants issued during period | 1,371,429 | ||||
August 2020 Offering [Member] | Placement Agent Warrants [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock reserve for issuance | 74,247 | 158,222 | |||
August 2020 Offering [Member] | Placement Agent Warrants [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Warrants issued price per share | $ 10 | ||||
Common stock expire period | 5 years | ||||
August 2020 Offering [Member] | Placement Agent Warrants [Member] | Maximum [Member] | Warrant [Member] | |||||
Class Of Stock [Line Items] | |||||
Placement agent warrants issued | 96,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2020 | Sep. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Mar. 31, 2020 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense, recognized | $ 2,054,000 | $ 3,682,000 | |||||
Stock-based compensation | $ 2,237,000 | $ 4,082,000 | |||||
2018 Stock Compensation Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock reserve for issuance | 188,307 | 132,000 | |||||
Maximum annual increase of outstanding stock reserved for future issuance, Percentage | 5.00% | ||||||
Number of shares available for grant under the plan | 65,285 | 65,285 | |||||
Weighted average grant date fair value of stock options granted | $ 30.69 | ||||||
2020 Inducement Equity Incentive Plan (the "2020 plan") [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock reserve for issuance | 9,000 | 32,000 | |||||
2020 Stock Compensation Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average grant date fair value of stock options granted | $ 25.50 | ||||||
2018 Employee Stock Purchase Plan (ESPP) [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock reserve for issuance | 11,870 | 4,764 | |||||
Maximum annual increase of outstanding stock reserved for future issuance, Percentage | 1.25% | ||||||
Eligible employees withhold percentage of earnings to purchase shares of common stock | 15.00% | ||||||
Percentage of fair market value of share of common stock to purchase | 85.00% | ||||||
Shares issued under employee stock purchase plan | 32,206 | ||||||
Cash received from the exercise of purchase rights | $ 100,000 | $ 42,000 | |||||
Stock Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 0 | ||||||
Stock-based compensation | $ 100,000 | $ 200,000 | |||||
Stock Options [Member] | 2018 Stock Compensation Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Authorized replacement stock options and restricted stock units | 76,076 | ||||||
Restricted Stock Units (RSUs) [Member] | 2018 Stock Compensation Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Authorized replacement stock options and restricted stock units | 53,633 | ||||||
Restricted Stock Units (RSUs) [Member] | 2018 Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares granted | 61,259 | ||||||
Restricted Stock Awards (RSAs) [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares granted | 103,939 | ||||||
Shares cancelled | 74,998 | ||||||
Restricted Stock Awards (RSAs) [Member] | 2018 Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares granted | 266,161 | ||||||
Shares cancelled | 74,998 | ||||||
Stock-based compensation expense, recognized | $ 27,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Options Activity (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Options outstanding | |
Beginning balance | shares | 142,171 |
Forfeited | shares | (33,723) |
Ending balance | shares | 108,448 |
Exercisable at the end of the period | shares | 88,324 |
Vested and expected to vest at the end of the period | shares | 108,448 |
Weighted Average Exercise Price | |
Beginning balance | $ / shares | $ 320.54 |
Forfeited | $ / shares | 240.17 |
Outstanding at December 31, 2021 | $ / shares | 345.54 |
Exercisable at the end of the period | $ / shares | 422.83 |
Vested and expected to vest at the end of the period | $ / shares | $ 345.54 |
Weighted Average Remaining Life (in years) | |
Weighted Average Remaining Life (in years) | 5 years 9 months 25 days |
Exercisable at the end of the period | 5 years 3 months 7 days |
Vested and expected to vest at the end of the period | 5 years 9 months 25 days |
2018 Stock Compensation Plan [Member] | |
Options outstanding | |
Beginning balance | shares | 124,171 |
Weighted Average Exercise Price | |
Beginning balance | $ / shares | $ 363.31 |
2020 Plan [Member] | |
Options outstanding | |
Beginning balance | shares | 18,000 |
Weighted Average Exercise Price | |
Beginning balance | $ / shares | $ 25.50 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Options Using the Black Scholes Option Pricing Model and Weighted Average Assumptions Used (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2020 | |
2018 Stock Compensation Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk free interest rate | 1.30% |
Expected volatility rate | 58.96% |
Expected dividend rate | 0.00% |
Expected term | 5 years 9 months 18 days |
2020 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk free interest rate | 0.50% |
Expected volatility rate | 58.33% |
Expected dividend rate | 0.00% |
Expected term | 6 years 3 months 18 days |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - 2018 Plan [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted Stock Units | |
Beginning balance | shares | 33,548 |
Granted | shares | 61,259 |
Vested | shares | (6,974) |
Forfeited | shares | (17,808) |
Ending balance | shares | 70,025 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 21.93 |
Granted | $ / shares | 2.74 |
Vested | $ / shares | 45.12 |
Forfeited | $ / shares | 13.59 |
Ending balance | $ / shares | $ 4.37 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Restricted Stock Awards Activity (Details) - Restricted Stock Awards (RSAs) [Member] - $ / shares | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance | 290,536 | ||
Granted | 103,939 | ||
Vested | (88,781) | ||
Cancelled | (74,998) | ||
Forfeited | (51,362) | ||
Ending balance | 179,334 | 290,536 | |
Beginning balance | $ 5.08 | ||
Granted | $ 4.82 | ||
Vested | 5.93 | ||
Cancelled | 4.81 | ||
Forfeited | 4.81 | ||
Ending balance | $ 4.71 | $ 5.08 | |
2018 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance | 286,161 | ||
Granted | 266,161 | ||
Cancelled | (74,998) | ||
Ending balance | 286,161 | ||
Beginning balance | $ 4.77 | ||
Ending balance | $ 4.77 | ||
2020 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance | 4,375 | ||
Ending balance | 4,375 | ||
Beginning balance | $ 25.50 | ||
Ending balance | $ 25.50 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Stock-based Compensation Expense Recorded in Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation in operating expenses | $ 2,054 | $ 3,682 |
Selling, General And Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation in operating expenses | 1,750 | 3,235 |
Research And Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation in operating expenses | $ 304 | $ 447 |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Unrecognized Estimated Stock Based Compensation Expense by Award Type (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 313 |
Remaining Weighted Average Recognition Period | 1 year 8 months 12 days |
Restricted Stock Awards (RSAs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 622 |
Remaining Weighted Average Recognition Period | 2 years 2 months 12 days |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 252 |
Remaining Weighted Average Recognition Period | 2 years 1 month 6 days |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Differences between United States Statutory Federal Income Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax computed at the federal statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefits | 1.30% | 5.10% |
Stock-based compensation | (2.60%) | (2.20%) |
Tax exempt income | 1.70% | |
Deferred tax adjustments | (57.00%) | |
Nondeductible expenses | (0.10%) | |
Change in valuation allowance | (21.40%) | 33.20% |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal and State Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
State | $ 4 | $ 7 |
Current federal and state income tax expense | 4 | 7 |
Deferred | ||
Income tax expense | $ 4 | $ 7 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 9,706 | $ 3,720 |
Operating lease liabilities | 556 | 691 |
Other accruals | 71 | 101 |
Accrued compensation | 399 | 448 |
Reserves | 169 | 299 |
Deferred revenue | 642 | |
Intangible assets | 56 | 32 |
Stock-based compensation | 4,605 | 4,910 |
Total gross deferred tax assets | 15,562 | 10,843 |
Deferred tax liabilities: | ||
Property and equipment | (348) | (805) |
Operating lease right-of-use assets | (518) | (655) |
Other | (61) | |
Total gross deferred tax liabilities | (866) | (1,521) |
Valuation allowance | $ (14,696) | $ (9,322) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards expiration year | 2030 |
Deferred tax expense impact | $ 20,800,000 |
Unrecognized tax benefits | 0 |
Anticipated amount of unrecognized tax benefits significantly increase or decrease in next 12 months | 0 |
Unrecognized tax benefits accrued interest and penalties | $ 0 |
Income tax examination years under examination | 2017 and later |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 39,200,000 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 41,200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Mar. 18, 2022 | Nov. 12, 2021 | Dec. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | |||||
Revenue | $ 22,000 | $ 259,000 | |||
Settlement Agreement | |||||
Loss Contingencies [Line Items] | |||||
Settlement amount , year 2021 | $ 500,000 | ||||
Settlement year one | 2021 | ||||
Settlement amount , year 2022 | $ 750,000 | ||||
Settlement year two | 2022 | ||||
Settlement amount , year 2023 | $ 1,000,000 | ||||
Settlement year three | 2023 | ||||
Settlement amount , year 2024 | $ 1,250,000 | ||||
Settlement year four | 2024 | ||||
Business acquisition, settlement amount | $ 5,000,000 | ||||
Business acquisition additional settlement percentage | 4.00% | ||||
Business acquisition, transaction costs | $ 100,000,000 | ||||
Business acquisition change In control payments | 28,000,000 | ||||
Settlement claim | 56,000,000 | ||||
Maximum [Member] | Settlement Agreement | |||||
Loss Contingencies [Line Items] | |||||
Revenue | $ 10,000,000 | ||||
Securities Class Action and Shareholder Derivative Litigation | |||||
Loss Contingencies [Line Items] | |||||
Settlement provided for a payment to plaintiff class | $ 10,000,000 | ||||
Securities Class Action and Shareholder Derivative Litigation | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 600,000 | ||||
Litigation settlement expense | 1,000,000 | ||||
Securities Class Action and Shareholder Derivative Litigation | Subsequent Event | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement amount | $ 400,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits, description | In January 2019, the Company established a defined contribution plan under Section 401(k) of the Internal Revenue Code (“401(k) Plan”). Under the terms of the 401(k) Plan, all full-time employees are eligible to make voluntary contributions as a percentage or defined amount of compensation. The Company makes matching contributions based on 100% of each employee’s contribution up to 3% and 50% of contributions between 3% and 5%, with the match-eligible contribution limited to 4% of the employee’s eligible compensation. | ||
Defined contribution plan, description | All full-time employees are eligible to make voluntary contributions as a percentage or defined amount of compensation. The Company makes matching contributions based on 100% of each employee’s contribution up to 3% and 50% of contributions between 3% and 5%, with the match-eligible contribution limited to 4% of the employee’s eligible compensation. | ||
Defined benefit contribution plan expense | $ 0.3 | $ 0.3 | |
First Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, maximum (percentage) | 100.00% | ||
Maximum contribution per employee (percentage) | 3.00% | ||
Second Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, maximum (percentage) | 50.00% | ||
Third Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution per employee (percentage) | 4.00% | ||
Minimum [Member] | Second Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution per employee (percentage) | 3.00% | ||
Maximum [Member] | Second Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution per employee (percentage) | 5.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 10, 2022 | Feb. 08, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||
Sale of common stock | 3,811,170 | ||
Proceeds from issuance of common stock | $ 16 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock issued (in shares) | 9,535,000 | ||
Cash proceeds | $ 10.2 | ||
Underwriting discounts and other offering expenses | 1.9 | ||
Subsequent Event | Minimum [Member] | |||
Subsequent Event [Line Items] | |||
Additional offering expenses | 0.7 | ||
Subsequent Event | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Additional offering expenses | $ 0.9 | ||
Subsequent Event | Series A and Series B Warrants | |||
Subsequent Event [Line Items] | |||
Common stock issued (in shares) | 27,602,893 | ||
Subsequent Event | Pre-funded Warrants | |||
Subsequent Event [Line Items] | |||
Common stock issued (in shares) | 14,467,893 | ||
Subsequent Event | Over Allotment Option | |||
Subsequent Event [Line Items] | |||
Common stock issued (in shares) | 1,245,116 | ||
Cash proceeds | $ 0.5 |