Eargo (EAR) 10-Q 24 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 19, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	Eargo, Inc.
Entity Central Index Key	0001719395
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		39,358,558
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	EAR
Security Exchange Name	NASDAQ
Entity File Number	001-39616
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3879805
Entity Address, Address Line One	2665 North First Street
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	650
Local Phone Number	351-7700
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 89,232	$ 110,500
Accounts receivable, net	12,253	12,547
Inventories	5,787	5,712
Prepaid expenses and other current assets	9,528	10,873
Total current assets	116,800	139,632
Operating lease right-of-use assets	6,794	7,165
Property and equipment, net	8,998	9,551
Intangible assets, net	1,526	1,681
Goodwill	873	873
Other assets	544	1,209
Total assets	135,535	160,111
Current liabilities:
Accounts payable	12,029	9,053
Accrued expenses	9,086	9,235
Sales returns reserve	13,686	13,827
Settlement liability	34,429	34,372
Long-term debt, current portion	5,000	3,333
Other current liabilities	2,070	1,813
Lease liability, current portion	805	750
Total current liabilities	77,105	72,383
Lease liability, noncurrent portion	6,501	6,640
Long-term debt, noncurrent portion	10,363	11,924
Total liabilities	93,969	90,947
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized as of March 31, 2022 and December 31, 2021, respectively; zero shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
Common stock; $0.0001 par value; 110,000,000 shares authorized as of March 31, 2022 and December 31, 2021, respectively; 39,344,518 and 39,307,093 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	4	4
Additional paid-in capital	429,019	425,972
Accumulated deficit	(387,457)	(356,812)
Total stockholders’ equity	41,566	69,164
Total liabilities and stockholders’ equity	$ 135,535	$ 160,111

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	39,344,518	39,307,093
Common stock, shares outstanding	39,344,518	39,307,093

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue, net	$ 9,176	$ 22,048
Cost of revenue	5,491	6,297
Gross profit	3,685	15,751
Operating expenses:
Research and development	5,847	4,778
Sales and marketing	13,290	16,855
General and administrative	14,934	7,487
Total operating expenses	34,071	29,120
Loss from operations	(30,386)	(13,369)
Other income (expense), net:
Interest income	5	11
Interest expense	(264)	(263)
Total other income (expense), net	(259)	(252)
Loss before income taxes	(30,645)	(13,621)
Net loss and comprehensive loss	(30,645)	(13,621)
Net loss attributable to common stockholders, basic and diluted	$ (30,645)	$ (13,621)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.78)	$ (0.36)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	39,323,386	38,283,360

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2020	$ 193,911	$ 4	$ 392,965	$ (199,058)
Beginning balance, Shares at Dec. 31, 2020		38,246,601
Stock-based compensation	5,449		5,449
Exercise of stock options	118		118
Exercise of stock options, Shares		51,467
Net loss and comprehensive loss	(13,621)			(13,621)
Ending balance at Mar. 31, 2021	185,857	$ 4	398,532	(212,679)
Ending balance, Shares at Mar. 31, 2021		38,298,068
Beginning balance at Dec. 31, 2021	69,164	$ 4	425,972	(356,812)
Beginning balance, Shares at Dec. 31, 2021		39,307,093
Stock-based compensation	3,024		3,024
Exercise of stock options	$ 92		92
Exercise of stock options, Shares	37,425	37,425
Restricted stock units cash settlement	$ (69)		(69)
Net loss and comprehensive loss	(30,645)			(30,645)
Ending balance at Mar. 31, 2022	$ 41,566	$ 4	$ 429,019	$ (387,457)
Ending balance, Shares at Mar. 31, 2022		39,344,518

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net loss	$ (30,645)	$ (13,621)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,419	735
Stock-based compensation	2,985	5,131
Non-cash interest expense and amortization of debt discount	105	103
Non-cash operating lease expense	371	295
Bad debt expense	174	62
Loss on disposal of property and equipment	28
Changes in operating assets and liabilities:
Accounts receivable	120	(1,608)
Inventories	(75)	276
Prepaid expenses and other current assets	1,345	565
Other assets	665	(24)
Accounts payable	2,962	715
Accrued expenses	107	(1,598)
Sales returns reserve	(141)	(1,387)
Settlement liability	57
Other current and noncurrent liabilities	257	1,364
Operating lease liabilities	(84)	(317)
Net cash used in operating activities	(20,350)	(9,309)
Investing activities:
Purchases of property and equipment	(685)	(296)
Capitalized software development costs	(257)	(1,074)
Net cash used in investing activities	(942)	(1,370)
Financing activities:
Proceeds from stock options exercised	93	118
Restricted stock units settled in cash	(69)
Net cash provided by financing activities	24	118
Net decrease in cash and cash equivalents	(21,268)	(10,561)
Cash and cash equivalents at beginning of period	110,500	212,185
Cash and cash equivalents at end of period	89,232	201,624
Non-cash operating activities:
Lease liability obtained in exchange for right-of-use asset		434
Non-cash investing and financing activities:
Property and equipment and capitalized software costs in accounts payable and accrued liabilities	116	330
Stock-based compensation included in capitalized software costs	39	318
Convertible preferred stock issuance costs included in accounts payable	$ 600	$ 600

Description of Business and Oth

Description of Business and Other Matters	3 Months Ended
	Mar. 31, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Other Matters	1. Description of business and other matters Eargo, Inc. (the “Company”) is a medical device company dedicated to improving the quality of life of people with hearing loss. The Company’s innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. DOJ investigation and settlement and claims audits On September 21, 2021, the Company was informed that it was the target of a criminal investigation by the U.S. Department of Justice (the “DOJ”) related to insurance reimbursement claims the Company submitted on behalf of its customers covered by various federal employee health plans under the Federal Employee Health Benefits (“FEHB”) program, which is administered by the Office of Personnel Management (the “OPM”) On April 29, 2022, the Company entered into a civil settlement agreement with the U.S. government that resolved the DOJ investigation related to the Company’s role in customer reimbursement claim submissions to various federal employee health plans under the FEHB program. The settlement agreement provided for the Company’s payment of approximately $34.4 million to the U.S. government and resolved allegations that the Company submitted or caused the submission of claims for payment to the FEHB program using unsupported hearing loss-related diagnostic codes. From the time the Company learned of the DOJ investigation and until December 8, 2021, the Company continued to process orders for customers with potential insurance benefits (including FEHB program members) but suspended all claims submission activities and has offered affected customers ( i.e. Beginning on December 8, 2021, the Company made the decision to stop accepting insurance benefits as a method of direct payment and it is uncertain when, if ever, the Company will resume accepting insurance benefits as a method of direct payment. While the Company intends to work with the government and third-party payors at the appropriate time with the objective of validating and establishing processes to support any future claims that it may submit for reimbursement, the Company may not be able to arrive at acceptable processes or submit any future claims. Total life-to-date payments the Company has received through March 31, 2022 from the government in relation to claims submitted under the FEHB program, net of any product returns and associated refunds, were approximately $44 million, which is unchanged from December 31, 2021. a settlement liability of $34.4 million as of March 31, 2022 and December 31, 2021. The settlement amount was treated as consideration payable to a customer and was recorded as a reduction of revenue in the third quarter of 2021. On May 2, 2022, the Company paid the settlement amount. The Company determined that customer transactions using insurance benefits as a method of direct payment occurring subsequent to learning of the DOJ investigation on September 21, 2021 did not meet the criteria for revenue recognition under Accounting Standards Codification (“ASC”) 606. As such, the Company did not recognize revenue for shipments to customers with potential insurance benefits, substantially all of whom were covered under the FEHB program, subsequent to that date. The Company estimated that a majority of customers with unsubmitted claims will choose to return the hearing aid system if their insurance provider denies their claim or the claim is ultimately not submitted by the Company for payment, resulting in an increase in expected product returns from such transactions that occurred prior to September 21, 2021 that was recorded during the year ended December 31, 2021. Of the $13.7 million sales returns reserve recorded as of March 31, 2022, $11.3 million relates to unsubmitted claims that are included in accounts receivable, net. Returns associated with unsubmitted claims will reduce the sales returns reserve, with a corresponding reduction in the related accounts receivable at the time the product is returned. Further, the Company also estimated that, in addition to the customers who choose to return their hearing aid systems, a significant number of customers whose claims are denied by insurance providers or not submitted by the Company for payment may not pay for or return the hearing aid system, resulting in bad debt expense that was recorded during the year ended December 31, 2021. Notwithstanding the settlement, the Company remains subject to prepayment review of claims by its largest third-party payor before . Liquidity and going concern The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The Company has incurred losses and negative cash flows from operations since its inception and management expects to incur additional substantial losses in the foreseeable future. As of March 31, 2022, the Company had cash and cash equivalents of $89.2 million and an accumulated deficit of $387.5 million. The Company believes that without any future financing, its current resources are insufficient to satisfy its obligations as they become due within one year after the date that the financial statements are issued. The negative cash flows and current lack of financial resources of the Company raise substantial doubt as to the Company’s ability to continue as a going concern. The Company’s future operating requirements will be substantial and it will need to raise significant additional resources to fund its operations through equity or debt financing, or some variation thereof. The Company is currently exploring fundraising opportunities to meet these capital requirements. If the Company is unable to raise additional funding to meet its operational needs, it will be forced to limit or cease its operations . The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainty. While over-the-counter (“ is

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and applicable rules and regulations of the SEC regarding interim financial reporting of Eargo, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, include all adjustments of a normal recurring nature necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on May 13, 2022. Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying unaudited condensed consolidated financial statements include, but are not limited to, the sales returns reserve, the present value of lease liabilities, the fair value of equity securities, the fair value of financial instruments, the allowance for credit losses, the net realizable value of inventory, the fair value of assets acquired in a business combination, the useful lives of long-lived assets, accrued product warranty reserve, legal and other contingencies, certain other accruals and recoverability of the Company’s net deferred tax assets and the related valuation allowance. Management periodically evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates. Significant accounting policies There have been no significant changes to the accounting policies during the three months ended March 31, 2022, as compared to the significant accounting policies described in Note 2 of the Notes to Consolidated Financial Statements in the Company’s audited consolidated financial statements included Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposit accounts, money market accounts and accounts receivable, including credit card receivables. The Company maintains its cash and cash equivalents, which may, at times, exceed federally insured limits, with financial institutions of high credit standing. As of March 31, 2022, the Company has not experienced any losses on its deposit accounts and money market accounts. As of March 31, 2022, the Company does not believe there is significant financial risk from nonperformance by the issuers of the Company’s deposit accounts and money market accounts. Approximately 95% and 93% of the Company’s gross accounts receivable as of March 31, 2022 and December 31, 2021, respectively, were for customers with insurance benefits, substantially all of whom were covered under the FEHB program. Furthermore, a pproximately 92% and 90% of the Company’s gross accounts receivable as of March 31, 2022 and December 31, 2021, respectively, were related to shipments of Eargo hearing aids to customers insured under a single insurance plan whose claims are processed through the Company’s largest third-party payor, which conducted the Primary Audit. The increase in gross accounts receivable as of March 31, 2022 was primarily due to the Primary Audit, during which certain claims with a service date after March 1, 2021, have not yet and may never be submitted for reimbursement. We remain subject to a prepayment review of claims by the payor who conducted the Primary Audit. Please see caption “DOJ investigation and settlement and claims audits” in Revenue recognition The Company’s revenue is generated from the sale of products (hearing aid systems and related accessories) and services (extended warranties). These products and services are primarily sold directly to customers through the Eargo website and the Company’s sales representatives. Under ASC 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by following a five step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Identify the contract with a customer . The Company generally considers completion of an Eargo sales order (which requires customer acceptance of the Company’s click-through terms and conditions for website sales and authorization of payment through credit card or another form of payment for sales made over the phone) as a customer contract provided that collection is considered probable. For payments that are not made upfront by credit card, the Company assesses insurance eligibility or customer creditworthiness based on credit checks, payment history, and/or other circumstances. For orders involving insurance payors, the Company validates customer eligibility and potential reimbursement amounts prior to shipping the product. If the criteria to establish a contract with a customer is not met, revenue is not recognized in accordance with ASC 606. Identify the performance obligations in the contract . Product performance obligations include hearing aid systems and related accessories and service performance obligations include extended warranty coverage. The Company also offers customers a one-time replacement of certain components of the hearing aid system for a fee (i.e., “loss and damage policy”), which represents an option with material right. However, as the historical redemption rate under the policy has been low, the option is not accounted for as a separate performance obligation. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. The Company has elected to treat shipping and handling activities performed after a customer obtains control of products as a fulfillment activity. Determine the transaction price and allocation to performance obligations . The transaction price in the Company’s customer contracts consists of both fixed and variable consideration. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes the 45-day right of return that applies to all products and the extended right of return offered for certain shipments involving insurance payors prior to December 8, 2021 (at which time the Company ceased accepting insurance benefits as a method of direct payment). Please see caption “DOJ investigation and settlement and claims audits” in Note 1 for more information regarding the extended right of return. To estimate product returns, the Company analyzes various factors, including historical return levels, current economic trends, and insurance coverage. Based on this information, the Company reserves a percentage of product sale revenue and accounts for the estimated impact as a reduction in the transaction price. Consideration paid or payable to a customer that is not for a distinct good or service is accounted for as a reduction of the transaction price and recorded as a reduction in revenue in the period it becomes payable. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for products (hearing aid systems and related accessories) is recognized at a point in time, which is generally upon shipment provided all other revenue recognition criteria have been met. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period would be one year or less. These incremental costs include processing fees paid to third-party financing vendors, who provide the Company’s customers with the option to finance their purchases. If a customer elects to utilize this service, the Company receives a non-recourse upfront payment for the product sold, less processing fee withheld by the financing vendor. These processing fees are recognized in cost of revenue in the condensed consolidated statements of operations and comprehensive loss as incurred. Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40),

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair value measurements There were no financial assets and liabilities outstanding that were remeasured at fair value on a recurring basis as of March 31, 2022 or December 31, 2021. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The fair value of the Company’s outstanding term loan is estimated using the net present value of the payments, discounted at an interest rate that is consistent with a market interest rate. The fair value of the outstanding term loan approximates the carrying amount as the term loan bears a floating rate that approximates the market interest rate.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Components	4. Balance sheet components Inventories Inventories consist primarily of raw materials related to component parts and finished goods. The following is a summary of the Company’s inventories by category: March 31, December 31, 2022 2021 (in thousands) Raw materials $ 1,525 $ 1,905 Finished goods 4,262 3,807 Total inventories $ 5,787 $ 5,712 Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: March 31, December 31, 2022 2021 (in thousands) Advanced payroll deposits $ 3,599 $ 3,889 Prepaid insurance fees 2,217 2,945 Prepaid marketing costs 2,221 1,948 Prepaid software subscription 1,080 1,468 Other 411 623 Total prepaid expenses and other current assets $ 9,528 $ 10,873 Property and equipment, net Property and equipment, net, consists of the following: March 31, December 31, 2022 2021 (in thousands) Capitalized software $ 11,579 $ 11,569 Tools and lab equipment 4,806 4,712 Furniture and fixtures 906 906 Leasehold improvements 876 861 Computer and equipment 456 401 18,623 18,449 Less accumulated depreciation and amortization (9,625 ) (8,898 ) Total property and equipment, net $ 8,998 $ 9,551 Depreciation and amortization expense for the three months ended March 31, 2022 and 2021 amounted to $1.3 million and $0.7 million, respectively, which includes amortization of capitalized software costs of $1.0 million and $0.2 million, respectively. Intangible assets, net Intangible assets, net consist of the following: March 31, 2022 Gross carrying value Accumulated amortization Net carrying value (in thousands) Developed technologies $ 1,700 $ 319 $ 1,381 Other 290 145 145 Total intangible assets, net $ 1,990 $ 464 $ 1,526 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value (in thousands) Developed technologies $ 1,700 $ 212 $ 1,488 Other 290 97 193 Total intangible assets, net $ 1,990 $ 309 $ 1,681 Amortization expense was $0.2 million for the three months ended March 31, 2022. The following table summarizes estimated future amortization expense of finite-lived intangible assets, net as of March 31, 2022: Amount (in thousands) Remainder of 2022 $ 463 2023 425 2024 425 2025 213 Total $ 1,526 Accrued expenses Accrued expenses consist of the following: March 31, December 31, 2022 2021 (in thousands) Accrued compensation $ 4,428 $ 4,845 Accrued warranty reserve 4,240 4,014 Refunds due to customers 418 376 Total accrued expenses $ 9,086 $ 9,235 Sales returns reserve The sales returns reserve consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Sales returns reserve, beginning balance $ 13,827 $ 4,326 Reduction of revenue 4,584 6,304 Utilization of sales returns reserve (4,725 ) (7,691 ) Sales returns reserve, ending balance $ 13,686 $ 2,939 Of the $13.7 million sales returns reserve recorded as of March 31, 2022, $11.3 million relates to unsubmitted claims from shipments prior to September 22, 2021 (at which time the Company suspended all claims submissions activities) that are included in accounts receivable, net. Returns associated with unsubmitted claims will reduce the sales returns reserve, with a corresponding reduction in the related accounts receivable at the time the product is returned. Allowance for credit losses The allowance for credit losses consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Allowance for credit losses, beginning balance $ 4,838 $ 1,868 Charged to expense 174 62 Accounts written off, net of recoveries (292 ) (298 ) Allowance for credit losses, ending balance $ 4,720 $ 1,632 Accrued warranty reserve The accrued warranty reserve consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Accrued warranty reserve, beginning balance $ 4,014 $ 2,390 Charged to cost of revenue 958 950 Utilization of accrued warranty reserve (732 ) (353 ) Accrued warranty reserve, ending balance $ 4,240 $ 2,987

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and contingencies Operating leases In September 2021, the Company entered into a lease agreement, as amended, for office and laboratory space located in San Jose, California. The lease commenced in September 2021 and has a 93-month term with two 60-month renewal options, which are not reasonably certain of being exercised. The Company also leases office space in Nashville, Tennessee, with a lease term that expires in March 2023. Variable lease payments are primarily comprised of common area maintenance. The ROU asset and corresponding lease liability for the Company’s operating leases were estimated using a weighted-average incremental borrowing rate of 7.7%. The weighted-average remaining lease term is 7.06 years. For the three months ended March 31, 2022, the Company incurred $0.5 million of operating lease costs. Variable lease payments for operating expenses and costs related to short-term leases were immaterial for the three months ended March 31, 2022 and March 31, 2021. As of March 31, 2022, undiscounted future minimum lease payments due under the non-cancelable operating leases are as follows: Operating leases (in thousands) Remainder of 2022 $ 1,103 2023 1,114 2024 1,081 2025 1,331 2026 1,372 Thereafter 3,607 Total minimum future lease payments 9,608 Present value adjustment for minimum lease commitments (2,302 ) Total lease liability $ 7,306 Legal and other contingencies The Company is involved in legal proceedings in the ordinary course of its business and may become involved in additional legal proceedings. Other than those listed below, the Company does not believe that any lawsuits or claims currently pending against it, individually or in the aggregate, are material or will have a material adverse effect on its financial condition, results of operations or cash flows. The Company may enter into settlement discussions, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders. Unless stated otherwise, the matters discussed below, if decided adversely or settled by the Company, individually or in the aggregate, may result in a liability material to the Company’s financial condition, results of operations or cash flows. The Company is also subject to review from federal and state taxing authorities in order to validate the amounts of income, sales and/or use taxes which have been claimed and remitted. The Company has estimated exposure and established reserves for its estimated sales tax audit liability. In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products, when used for their intended purposes, infringe the intellectual property rights of such other third parties, or other claims made against certain parties. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in any particular claim. DOJ Investigation and Settlement. On September 21, 2021, the Company was informed that it was the target of a criminal investigation by the DOJ related to insurance reimbursement claims the Company submitted on behalf of its customers covered by various federal employee health plans under the FEHB program. The investigation also pertained to the Company’s role in customer reimbursement claim submissions to federal employee health plans. Additionally, the Company was the subject of an ongoing claims audit by an insurance company that is the Company’s largest third-party payor and was informed by such insurance company that the DOJ was the principal contact related to the subject matter of the audit. In addition to such audit, the Company has been subject to a number of other audits of insurance reimbursement claims submitted to additional third-party payors. One of these claims audits does not relate to claims submitted under the FEHB program. On January 4, 2022, the DOJ confirmed to the Company that the investigation had been referred to the Civil Division of the DOJ and the U.S. Attorney’s Office for the Northern District of Texas and the criminal investigation was no longer active. On April 29, 2022, the Company entered into a civil settlement agreement with the U.S. government that resolved the DOJ investigation, including allegations that the Company violated the False Claims Act by knowingly submitting or causing the submission of false claims for payment under the FEHB program during the period from February 1, 2021 through September 22, 2021. The settlement agreement provided for the payment by the Company of approximately $34.4 million to the U.S. government and resolved allegations that the Company submitted or caused the submission of claims for payment to the FEHB program using unsupported hearing loss-related diagnostic codes. As of March 31, 2022 and December 31, 2021, the Company recorded a $34.4 million settlement liability in the condensed consolidated balance sheets in connection with the settlement. The settlement amount was treated as consideration payable to a customer and was recorded as a reduction in revenue in the third quarter of 2021. On May 2, 2022, the Company paid the settlement amount. The settlement of the investigation may not resolve all of the audits of insurance reimbursement claims by additional third-party payors, and additionally the Company remains subject to a prepayment review of claims by the payor who conducted the Primary Audit. The Company will need to work with applicable third-party payors to establish processes Securities Class Action. Fazio v. Eargo, Inc., Christian Gormsen, & Adam Laponis. , No. 21-cv-07848 (N.D. Cal. Oct. 6, 2021); Chung v. Eargo, Inc., Christian Gormsen, & Adam Laponis. , No. 21-cv-08597 (N.D. Cal. Nov. 4, 2021); IBEW Local 353 Pension Plan v. Eargo, Inc., Christian Gormsen, Adam Laponis, Josh Makower, Juliet Bakker, Peter Tuxen Bisgaard, Doug Hughes, Geoff Pardo, Nina Richardson, A. Brooke Seawell, David Wu, J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, & William Blair & Company, L.L.C. , No. 21-cv-08747 (N.D. Cal. Nov. 10, 2021). On October 6, 2021, putative shareholder Joseph Fazio filed a purported securities class action against the Company and certain of its officers (the “Fazio action”). Plaintiff alleges that certain of the Company’s disclosures about its business, operations, and prospects, including reimbursements from third-party payors, violated federal securities laws. Fazio voluntarily dismissed his complaint on December 6, 2021. On November 4, 2021, putative shareholder Alden Chung filed a substantially similar purported class action lawsuit (the “Chung action”). On November 10, 2021, putative shareholder IBEW Local 353 Pension Plan filed a similar purported class action, and also asserted claims under the federal securities laws against current and former members of the Company’s Board of Directors (the “Board of Directors”) and the underwriters of the Company’s October 15, 2020 initial public offering of common stock (the “IBEW action”). These class actions, which seek damages and other relief, were filed in the U.S. District Court for the Northern District of California . The Fazio and Chung actions were brought purportedly on behalf of a class of investors who purchased or otherwise acquired Eargo securities between February 25, 2021 and September 22, 2021. The IBEW Local 353 action was brought purportedly on behalf of a class of investors who purchased or otherwise acquired: ( i ) Eargo shares in or traceable to the Company’s October 15, 2020 initial public offering of common stock; and/or (ii) shares of Eargo common stock between October 15, 2020 and September 22, 2021. On January 5, 2022, the court consolidated the foregoing class actions (as consolidated, the “Securities Class Action”) under the caption In re Eargo , Inc. Securities Litigation , No. 21-cv-08597-CRB, and appointed IBEW Local 353 Pension Plan and Xiaobin Cai as Lead Plaintiffs and Bernstein Litowitz Berger & Grossmann LLP and Block & Leviton LLP as Lead Counsel. Lead Plaintiffs filed a consolidated amended complaint, which purports to extend the class period through March 2, 2022, on May 20, 2022. Defendants intend to file a motion to dismiss . The Company intends to vigorously defend the Securities Class Action and cannot reasonably estimate any loss or range of loss that may arise from the litigation. Accordingly, the Company can provide no assurance as to the scope and outcome of this matter and no assurance as to whether its business, financial position, results of operations, or cash flows will not be materially adversely affected. Derivative Action. Wolfson v. Christian Gormsen, Joshua Makower, Douglas J. Hughes, Nina Louise Richardson, Katie J. Bayne, Peter Tuxen Bisgaard, A. Brooke Seawell, David Wu, and Eargo, Inc. , No. 21-cv-09342 (N.D. Cal. Dec. 3, 2021). On December 3, 2021, putative shareholder Barbara Wolfson filed a derivative complaint purportedly on Eargo’s behalf against members of the Board of Directors and the Company as nominal defendant (the “Derivative Action”). Plaintiff asserts, among other things, that the defendants breached their fiduciary duties by allegedly failing to implement and maintain an effective system of internal controls related to the Company’s financial reporting, public disclosures and compliance with laws, rules and regulations governing the business. Plaintiff purports to assert derivative claims on the Company’s behalf for alleged violations of Section 14(a) of the Securities Exchange Act of 1934, as amended, breach of fiduciary duty, waste of corporate assets, and aiding and abetting. On March 1, 2022, the court entered the parties’ stipulation staying the Derivative Action until the anticipated motion to dismiss in the Securities Class Action is decided. The defendants intend to vigorously defend the Derivative Action and cannot reasonably estimate any loss or range of loss that may arise from the litigation. Accordingly, the Company can provide no assurance as to the scope and outcome of this matter and no assurance

Debt Obligations

Debt Obligations	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt Obligations	6. Debt obligations 2018 Loan Agreement In June 2018, the Company entered into a Loan and Security Agreement (the “2018 Loan Agreement”) with Silicon Valley Bank, as amended in January 2019, May 2020 and September 2020 (the “Third Amendment”). The Company’s existing subsidiaries are, and any additional future domestic subsidiaries of the Company are required to be, co-borrowers jointly and severally liable under the 2018 Loan Agreement . The Company borrowed $15.0 million under the Third Amendment in September 2020 and used $10.2 million of the proceeds to repay the existing term loan. The term loan under the Third Amendment matures in September 2024 with interest-only monthly payments until July 2022. The term loan accrues interest at a per annum rate equal to the Wall Street Journal prime rate plus 1.0% (4.50% as of March 31, 2022) and includes a final payment fee equal to 6.25% of the original aggregate principal amount. In connection with the execution of the Third Amendment, the Company issued Silicon Valley Bank a warrant to purchase 53,487 shares of Series E convertible preferred stock. The estimated fair value of the warrants at issuance was recorded as a discount on the loan and is amortized to interest expense over the term of the agreement using the effective interest method. Borrowings under the Third Amendment are collateralized by substantially all the assets of the Company, excluding intellectual property (but including rights to payment and proceeds thereof). The Third Amendment contains customary affirmative and restrictive covenants, including with respect to the Company’s ability to enter into fundamental transactions, incur additional indebtedness, grant liens, pay any dividend or make any distributions to its holders, make investments, merge or consolidate with any other person or engage in transactions with the Company’s affiliates, but do not include any financial covenants. The Company was in compliance with all of the covenants as of March 31, 2022. As of March 31, 2022, outstanding principal on the term loan and accrual for the final payment fee amounted to $15.5 million. During the three months ended March 31, 2022 and 2021, the Company recognized interest expense related to the term loans of $0.3 million and $0.3 million, respectively, which is inclusive of amortization of debt discount. The effective interest rate was 7.25% as of March 31, 2022.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	7. Stock-based compensation Total stock-based compensation is as follows: Three months ended March 31, 2022 2021 (in thousands) Cost of revenue $ 22 $ 186 Research and development 985 1,067 Sales and marketing 637 1,856 General and administrative 1,341 2,022 Total stock-based compensation $ 2,985 $ 5,131 Stock-based compensation costs capitalized as part of capitalized software costs was less than $0.1 million and $0.3 million during the three months ended March 31, 2022 and March 31, 2021, respectively. Equity incentive plans As of March 31, 2022, 5,060,304 shares of common stock are issuable upon the exercise of outstanding awards under the 2010 Equity Incentive Plan. As of March 31, 2022, the Company had reserved 8,964,966 shares of common stock for issuance under the 2020 Equity Incentive Plan (the “2020 Plan”), of which 6,612,353 are available for issuance in connection with grants of future awards. As a result of the uncertainty created by the DOJ investigation and the ongoing claims audits, the Company suspended its practice of granting equity awards to new hires, except for new restricted stock units (“RSU”) grants that the Company has the option to settle in cash at the time of vesting, suspended its ESPP and deferred the settlement of outstanding RSUs, each effective as of November 9, 2021. All equity awards that are currently outstanding continue to vest in accordance with their existing vesting schedules. Stock options Stock option activity for the three months ended March 31, 2022 is set forth below: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Balance December 31, 2021 5,406,815 $ 4.87 7.88 $ 12,860 Grants — — Exercises (37,425 ) 2.49 Cancelled/forfeited (15,291 ) 17.44 Balance March 31, 2022 5,354,099 $ 4.85 7.65 $ 13,601 Vested and exercisable at March 31, 2022 2,653,892 $ 3.43 7.08 $ 7,626 There were no options granted during the three months ended March 31, 2022. The weighted-average grant-date fair value of options granted during the three months ended March 31, 2021 was $29.13 per share. The aggregate intrinsic values of options outstanding and vested and exercisable were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock. As of March 31, 2022, total unrecognized stock-based compensation related to outstanding unvested stock options was $11.6 million, which the Company expects to recognize over a remaining weighted-average period of approximately 2.2 years. Restricted stock units RSUs granted under the 2020 Plan are share awards that generally entitle the holder to receive freely tradable shares of the Company’s common stock upon vesting. However, the Company has deferred the settlement of outstanding RSUs effective November 9, 2021. The RSUs cannot be transferred and the awards are subject to forfeiture if the holder’s service to the Company terminates prior to the release of the vesting restrictions. RSU activity for the three months ended March 31, 2022 is set forth below: Number of shares Weighted average grant date fair value per share Balance December 31, 2021 348,451 $ 43.19 RSUs granted 1,641,480 5.18 RSUs vested (18,551 ) 49.65 RSUs forfeited (11,208 ) 42.48 Balance March 31, 2022 1,960,172 $ 11.30 As of March 31, 2022, total unrecognized stock-based compensation related to unvested RSUs was $20.8 million, which the Company expects to recognize over a remaining weighted-average period of approximately 3.7 years. As of December 31, 2021, there were 17,310 RSUs that had vested but not settled, which settled for $0.1 million in cash during the three months ended March 31, 2022. As of March 31, 2022, there were 18,551 RSUs that had vested but not settled. Performance-based restricted stock units In June 2021, the Company granted 80,000 RSUs with performance-based vesting conditions that primarily related to the achievement of certain minimum sales of Eargo hearing aid systems and that must be met by December 31, 2022 for the awards to vest. The vesting conditions were deemed probable as of March 31, 2022. The grant date fair value of the awards was $3.0 million. None of these awards have vested or were forfeited as of March 31, 2022. Employee stock purchase plan As of March 31, 2022, the Company reserved 1,502,310 shares of common stock for issuance under the ESPP, of which 1,327,567 are available for future issuance. The ESPP provides for consecutive, overlapping 24-month offering periods, which are generally divided into four purchase periods of approximately six months. The offering periods are scheduled to start on the first trading day on or after May 16 and November 16 of each year. Contributions under the ESPP are generally limited to a maximum of 15% of an employee’s eligible compensation. Each offering period consists of four six-month purchase periods. On each purchase date, which falls on the last date of each purchase period, ESPP participants will purchase shares of common stock at a price per share equal to 85% of the lesser of (1) the fair market value per share of the common stock at the start of the offering period or (2) the fair market value of the common stock on the purchase date. The ESPP was suspended on November 9, 2021, and there were no offering periods in effect during the three months ended March 31, 2022.

Net Loss Per Share Attributable

Net Loss Per Share Attributable To Common Stockholders	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share Attributable To Common Stockholders	8. Net loss per share attributable to common stockholders The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three months ended March 31, 2022 2021 Common stock options issued and outstanding 5,354,099 6,319,155 Restricted stock units 2,040,172 253,300 Shares issuable pursuant to ESPP — 176,867 Total 7,394,271 6,749,322

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent events Settlement of DOJ investigation On April 29, 2022, the Company entered into a civil settlement agreement with the U.S. government that resolved the DOJ investigation related to the Company’s role in customer reimbursement claim submissions to various federal employee health plans under the FEHB program. On May 2, 2022, the Company paid the settlement amount of $34.4 million.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and applicable rules and regulations of the SEC regarding interim financial reporting of Eargo, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, include all adjustments of a normal recurring nature necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on May 13, 2022.
Use of Estimates	Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying unaudited condensed consolidated financial statements include, but are not limited to, the sales returns reserve, the present value of lease liabilities, the fair value of equity securities, the fair value of financial instruments, the allowance for credit losses, the net realizable value of inventory, the fair value of assets acquired in a business combination, the useful lives of long-lived assets, accrued product warranty reserve, legal and other contingencies, certain other accruals and recoverability of the Company’s net deferred tax assets and the related valuation allowance. Management periodically evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates.
Concentration of Credit Risk	Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposit accounts, money market accounts and accounts receivable, including credit card receivables. The Company maintains its cash and cash equivalents, which may, at times, exceed federally insured limits, with financial institutions of high credit standing. As of March 31, 2022, the Company has not experienced any losses on its deposit accounts and money market accounts. As of March 31, 2022, the Company does not believe there is significant financial risk from nonperformance by the issuers of the Company’s deposit accounts and money market accounts. Approximately 95% and 93% of the Company’s gross accounts receivable as of March 31, 2022 and December 31, 2021, respectively, were for customers with insurance benefits, substantially all of whom were covered under the FEHB program. Furthermore, a pproximately 92% and 90% of the Company’s gross accounts receivable as of March 31, 2022 and December 31, 2021, respectively, were related to shipments of Eargo hearing aids to customers insured under a single insurance plan whose claims are processed through the Company’s largest third-party payor, which conducted the Primary Audit. The increase in gross accounts receivable as of March 31, 2022 was primarily due to the Primary Audit, during which certain claims with a service date after March 1, 2021, have not yet and may never be submitted for reimbursement. We remain subject to a prepayment review of claims by the payor who conducted the Primary Audit. Please see caption “DOJ investigation and settlement and claims audits” in
Revenue Recognition	Revenue recognition The Company’s revenue is generated from the sale of products (hearing aid systems and related accessories) and services (extended warranties). These products and services are primarily sold directly to customers through the Eargo website and the Company’s sales representatives. Under ASC 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by following a five step process: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Identify the contract with a customer . The Company generally considers completion of an Eargo sales order (which requires customer acceptance of the Company’s click-through terms and conditions for website sales and authorization of payment through credit card or another form of payment for sales made over the phone) as a customer contract provided that collection is considered probable. For payments that are not made upfront by credit card, the Company assesses insurance eligibility or customer creditworthiness based on credit checks, payment history, and/or other circumstances. For orders involving insurance payors, the Company validates customer eligibility and potential reimbursement amounts prior to shipping the product. If the criteria to establish a contract with a customer is not met, revenue is not recognized in accordance with ASC 606. Identify the performance obligations in the contract . Product performance obligations include hearing aid systems and related accessories and service performance obligations include extended warranty coverage. The Company also offers customers a one-time replacement of certain components of the hearing aid system for a fee (i.e., “loss and damage policy”), which represents an option with material right. However, as the historical redemption rate under the policy has been low, the option is not accounted for as a separate performance obligation. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. The Company has elected to treat shipping and handling activities performed after a customer obtains control of products as a fulfillment activity. Determine the transaction price and allocation to performance obligations . The transaction price in the Company’s customer contracts consists of both fixed and variable consideration. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes the 45-day right of return that applies to all products and the extended right of return offered for certain shipments involving insurance payors prior to December 8, 2021 (at which time the Company ceased accepting insurance benefits as a method of direct payment). Please see caption “DOJ investigation and settlement and claims audits” in Note 1 for more information regarding the extended right of return. To estimate product returns, the Company analyzes various factors, including historical return levels, current economic trends, and insurance coverage. Based on this information, the Company reserves a percentage of product sale revenue and accounts for the estimated impact as a reduction in the transaction price. Consideration paid or payable to a customer that is not for a distinct good or service is accounted for as a reduction of the transaction price and recorded as a reduction in revenue in the period it becomes payable. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to, historical discounting trends for products and services, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for products (hearing aid systems and related accessories) is recognized at a point in time, which is generally upon shipment provided all other revenue recognition criteria have been met. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period would be one year or less. These incremental costs include processing fees paid to third-party financing vendors, who provide the Company’s customers with the option to finance their purchases. If a customer elects to utilize this service, the Company receives a non-recourse upfront payment for the product sold, less processing fee withheld by the financing vendor. These processing fees are recognized in cost of revenue in the condensed consolidated statements of operations and comprehensive loss as incurred.
Recently Adopted Accounting Pronouncements	Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40),

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Inventories	Inventories consist primarily of raw materials related to component parts and finished goods. The following is a summary of the Company’s inventories by category: March 31, December 31, 2022 2021 (in thousands) Raw materials $ 1,525 $ 1,905 Finished goods 4,262 3,807 Total inventories $ 5,787 $ 5,712
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: March 31, December 31, 2022 2021 (in thousands) Advanced payroll deposits $ 3,599 $ 3,889 Prepaid insurance fees 2,217 2,945 Prepaid marketing costs 2,221 1,948 Prepaid software subscription 1,080 1,468 Other 411 623 Total prepaid expenses and other current assets $ 9,528 $ 10,873
Summary of Property And Equipment, Net	Property and equipment, net, consists of the following: March 31, December 31, 2022 2021 (in thousands) Capitalized software $ 11,579 $ 11,569 Tools and lab equipment 4,806 4,712 Furniture and fixtures 906 906 Leasehold improvements 876 861 Computer and equipment 456 401 18,623 18,449 Less accumulated depreciation and amortization (9,625 ) (8,898 ) Total property and equipment, net $ 8,998 $ 9,551
Summary of Intangible Assets, Net	Intangible assets, net consist of the following: March 31, 2022 Gross carrying value Accumulated amortization Net carrying value (in thousands) Developed technologies $ 1,700 $ 319 $ 1,381 Other 290 145 145 Total intangible assets, net $ 1,990 $ 464 $ 1,526 December 31, 2021 Gross carrying value Accumulated amortization Net carrying value (in thousands) Developed technologies $ 1,700 $ 212 $ 1,488 Other 290 97 193 Total intangible assets, net $ 1,990 $ 309 $ 1,681
Summary of Estimated Future Amortization Expense of Finite-lived Intangible Assets, Net	The following table summarizes estimated future amortization expense of finite-lived intangible assets, net as of March 31, 2022: Amount (in thousands) Remainder of 2022 $ 463 2023 425 2024 425 2025 213 Total $ 1,526
Summary of Accrued Expenses	Accrued expenses consist of the following: March 31, December 31, 2022 2021 (in thousands) Accrued compensation $ 4,428 $ 4,845 Accrued warranty reserve 4,240 4,014 Refunds due to customers 418 376 Total accrued expenses $ 9,086 $ 9,235
Summary of Sales Returns Reserve	The sales returns reserve consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Sales returns reserve, beginning balance $ 13,827 $ 4,326 Reduction of revenue 4,584 6,304 Utilization of sales returns reserve (4,725 ) (7,691 ) Sales returns reserve, ending balance $ 13,686 $ 2,939
Summary of Allowance for Credit Losses	The allowance for credit losses consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Allowance for credit losses, beginning balance $ 4,838 $ 1,868 Charged to expense 174 62 Accounts written off, net of recoveries (292 ) (298 ) Allowance for credit losses, ending balance $ 4,720 $ 1,632
Summary of Accrued Warranty Reserve	The accrued warranty reserve consists of the following activity: Three months ended March 31, 2022 2021 (in thousands) Accrued warranty reserve, beginning balance $ 4,014 $ 2,390 Charged to cost of revenue 958 950 Utilization of accrued warranty reserve (732 ) (353 ) Accrued warranty reserve, ending balance $ 4,240 $ 2,987

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Schedule of Undiscounted Future Minimum Lease Payments Due under Non-cancelable Operating Leases	As of March 31, 2022, undiscounted future minimum lease payments due under the non-cancelable operating leases are as follows: Operating leases (in thousands) Remainder of 2022 $ 1,103 2023 1,114 2024 1,081 2025 1,331 2026 1,372 Thereafter 3,607 Total minimum future lease payments 9,608 Present value adjustment for minimum lease commitments (2,302 ) Total lease liability $ 7,306

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Total Stock-based Compensation	Total stock-based compensation is as follows: Three months ended March 31, 2022 2021 (in thousands) Cost of revenue $ 22 $ 186 Research and development 985 1,067 Sales and marketing 637 1,856 General and administrative 1,341 2,022 Total stock-based compensation $ 2,985 $ 5,131
Summary of Stock Option Activity	Stock options Stock option activity for the three months ended March 31, 2022 is set forth below: Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Balance December 31, 2021 5,406,815 $ 4.87 7.88 $ 12,860 Grants — — Exercises (37,425 ) 2.49 Cancelled/forfeited (15,291 ) 17.44 Balance March 31, 2022 5,354,099 $ 4.85 7.65 $ 13,601 Vested and exercisable at March 31, 2022 2,653,892 $ 3.43 7.08 $ 7,626
Schedule of RSU Activity	RSU activity for the three months ended March 31, 2022 is set forth below: Number of shares Weighted average grant date fair value per share Balance December 31, 2021 348,451 $ 43.19 RSUs granted 1,641,480 5.18 RSUs vested (18,551 ) 49.65 RSUs forfeited (11,208 ) 42.48 Balance March 31, 2022 1,960,172 $ 11.30

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable To Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share	The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three months ended March 31, 2022 2021 Common stock options issued and outstanding 5,354,099 6,319,155 Restricted stock units 2,040,172 253,300 Shares issuable pursuant to ESPP — 176,867 Total 7,394,271 6,749,322

Description of Business - Addit

Description of Business - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 29, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Settlement Liability	$ 34,400
Insurance claims received under FEHB program		$ 44,000
Settlement liability			$ 34,400
Sales returns reserve		13,686	13,827	$ 2,939	$ 4,326
Reduction in revenue related to unpaid claims		11,300
Cash and cash equivalents		89,232	110,500
Accumulated deficit		$ 387,457	$ 356,812

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
ASU 2019-12
Summary Of Significant Accounting Policies [Line Items]
Change In Accounting Principle Accounting Standards Update Adoption Date	Jan. 1, 2022
Change In Accounting Principle Accounting Standards Update Adopted	true
Change In Accounting Principle Accounting Standards Update Immaterial Effect	true
ASU 2020-06
Summary Of Significant Accounting Policies [Line Items]
Change In Accounting Principle Accounting Standards Update Adoption Date	Jan. 1, 2022
Change In Accounting Principle Accounting Standards Update Adopted	true
Change In Accounting Principle Accounting Standards Update Immaterial Effect	true
Accounts Receivable | Credit Concentration Risk | FEHB
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	95.00%	93.00%
Accounts Receivable | Credit Concentration Risk | Eargo Hearing Aids
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	92.00%	90.00%

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Financial assets outstanding	$ 0	$ 0
Financial liabilities outstanding	$ 0	$ 0

Balance Sheet Components - Summ

Balance Sheet Components - Summary of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,525	$ 1,905
Finished goods	4,262	3,807
Total inventories	$ 5,787	$ 5,712

Balance Sheet Components - Su_2

Balance Sheet Components - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Advanced payroll deposits	$ 3,599	$ 3,889
Prepaid insurance fees	2,217	2,945
Prepaid marketing costs	2,221	1,948
Prepaid software subscription	1,080	1,468
Other	411	623
Total prepaid expenses and other current assets	$ 9,528	$ 10,873

Balance Sheet Components - Su_3

Balance Sheet Components - Summary of Property And Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 18,623	$ 18,449
Less accumulated depreciation and amortization	(9,625)	(8,898)
Total property and equipment, net	8,998	9,551
Tools and Lab Equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	4,806	4,712
Capitalized Software
Property Plant And Equipment [Line Items]
Total property and equipment, gross	11,579	11,569
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment, gross	906	906
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	876	861
Computer and Equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 456	$ 401

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization expense	$ 1,300	$ 700
Amortization of capitalized software costs	1,000	200
Amortization expense	200
Sales returns reserve	13,686	$ 2,939	$ 13,827	$ 4,326
Reduction in revenue related to unpaid claims	$ 11,300

Balance Sheet Components - Su_4

Balance Sheet Components - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Gross carrying value	$ 1,990	$ 1,990
Accumulated amortization	464	309
Net carrying value	1,526	1,681
Developed Technologies
Finite Lived Intangible Assets [Line Items]
Gross carrying value	1,700	1,700
Accumulated amortization	319	212
Net carrying value	1,381	1,488
Other
Finite Lived Intangible Assets [Line Items]
Gross carrying value	290	290
Accumulated amortization	145	97
Net carrying value	$ 145	$ 193

Balance Sheet Components - Su_5

Balance Sheet Components - Summary of Estimated Future Amortization Expense of Finite-lived Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2022	$ 463
2023	425
2024	425
2025	213
Net carrying value	$ 1,526	$ 1,681

Balance Sheet Components - Su_6

Balance Sheet Components - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Accrued compensation	$ 4,428	$ 4,845
Accrued warranty reserve	4,240	4,014
Refunds due to customers	418	376
Total accrued expenses	$ 9,086	$ 9,235

Balance Sheet Components - Su_7

Balance Sheet Components - Summary of Sales Returns Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Sales returns reserve, beginning balance	$ 13,827	$ 4,326
Reduction of revenue	4,584	6,304
Utilization of sales returns reserve	(4,725)	(7,691)
Sales returns reserve, ending balance	$ 13,686	$ 2,939

Balance Sheet Components - Su_8

Balance Sheet Components - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Receivables [Abstract]
Allowance for credit losses, beginning balance	$ 4,838	$ 1,868
Charged to expense	174	62
Accounts written off, net of recoveries	(292)	(298)
Allowance for credit losses, ending balance	$ 4,720	$ 1,632

Balance Sheet Components - Su_9

Balance Sheet Components - Summary of Accrued Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Accrued warranty reserve, beginning balance	$ 4,014	$ 2,390
Charged to cost of revenue	958	950
Utilization of accrued warranty reserve	(732)	(353)
Accrued warranty reserve, ending balance	$ 4,240	$ 2,987

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2021Option	Mar. 31, 2022USD ($)	Apr. 29, 2022USD ($)	Dec. 31, 2021USD ($)
Commitments And Contingencies [Line Items]
Operating lease, term of contract	93 months
Operating lease, renewal term	60 months
Operating lease number of renewal options | Option	2
ROU asset and operating lease liability, weighted-average incremental borrowing rate	7.70%
Operating lease, weighted-average remaining lease term	7 years 21 days
Operating lease costs		$ 500
Settlement liability		34,429		$ 34,372
Civil Settlement Agreement
Commitments And Contingencies [Line Items]
Settlement liability		$ 34,400		$ 34,400
Civil Settlement Agreement | Subsequent Event | U.S. Government
Commitments And Contingencies [Line Items]
Settlement liability			$ 34,400

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Undiscounted Future Minimum Lease Payments Due under Non-cancelable Operating Leases (Details) $ in Thousands	Mar. 31, 2022USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2022	$ 1,103
2023	1,114
2024	1,081
2025	1,331
2026	1,372
Thereafter	3,607
Total minimum future lease payments	9,608
Present value adjustment for minimum lease commitments	(2,302)
Total lease liability	$ 7,306

Debt Obligations - Additional I

Debt Obligations - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2020	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Interest expense		$ 264	$ 263
Amendments 2018 Loan Agreement
Debt Instrument [Line Items]
Proceeds from borrowings	$ 15,000
Repayments on outstanding debt	$ 10,200
Maturity period	2024-09
Term loans, interest rate terms		The term loan under the Third Amendment matures in September 2024 with interest-only monthly payments until July 2022. The term loan accrues interest at a per annum rate equal to the Wall Street Journal prime rate plus 1.0% (4.50% as of March 31, 2022) and includes a final payment fee equal to 6.25% of the original aggregate principal amount.
Debt, final payment as percentage of original aggregate principal amount	6.25%
Accrued final payment fee		$ 15,500
Interest expense		$ 300	$ 300
Effective interest rate		7.25%
Amendments 2018 Loan Agreement | Series E Convertible Preferred Stock | Silicon Valley Bank
Debt Instrument [Line Items]
Warrants issued to purchase shares of convertible preferred stock	53,487
Amendments 2018 Loan Agreement | Wall Street Journal Prime Rate
Debt Instrument [Line Items]
Term loans, interest rate	1.00%	4.50%

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Total Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 2,985	$ 5,131
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	22	186
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	985	1,067
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	637	1,856
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,341	$ 2,022

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jun. 30, 2021	Oct. 31, 2020	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation costs capitalized			$ 39	$ 318
Shares of common stock issuable upon exercise of outstanding awards			2,653,892
Options granted			0
Weighted-average grant-date fair value of options granted				$ 29.13
Unrecognized stock-based compensation related to outstanding unvested stock options			$ 11,600
Unrecognized stock-based compensation related to outstanding unvested stock options, period of recognition			2 years 2 months 12 days
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation related to outstanding unvested stock options, period of recognition			3 years 8 months 12 days
Unrecognized compensation cost related to the RSUs			$ 20,800
Outstanding RSUs vested but not settled			18,551		17,310
Outstanding RSUs vested and settled in cash			$ 100
Number of shares, RSUs granted			1,641,480
Number of shares, RSUs vested			18,551
Number of shares, RSUs forfeited			11,208
Performance-based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, RSUs granted	80,000
Share-based compensation, options grants in period, grant date fair value			$ 3,000
Number of shares, RSUs vested			0
Number of shares, RSUs forfeited			0
2010 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock issuable upon exercise of outstanding awards			5,060,304
2020 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance			8,964,966
Number of shares available for grant			6,612,353
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance			1,502,310
Number of shares available for grant			1,327,567
Employees eligible compensation maximum percentage			15.00%
Purchase shares of common stock at price per share equal to lesser		85.00%
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation costs capitalized			$ 100

Stock-based Compensation - Su_2

Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of shares, Balance	5,406,815
Number of shares, Grants	0
Number of shares, Exercises	(37,425)
Number of shares, Cancelled/forfeited	(15,291)
Number of shares, Balance	5,354,099	5,406,815
Number of shares, Vested and exercisable	2,653,892
Weighted average exercise price, Balance	$ 4.87
Weighted average exercise price, Exercises	2.49
Weighted average exercise price, Cancelled/forfeited	17.44
Weighted average exercise price, Balance	4.85	$ 4.87
Weighted average exercise price, Vested and exercisable	$ 3.43
Weighted average remaining contractual term, Balance	7 years 7 months 24 days	7 years 10 months 17 days
Weighted average remaining contractual term, Vested and exercisable	7 years 29 days
Aggregate intrinsic value, Balance	$ 13,601	$ 12,860
Aggregate intrinsic value, Vested and exercisable	$ 7,626

Stock-based Compensation - Su_3

Stock-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, Balance | shares	348,451
Number of shares, RSUs granted | shares	1,641,480
Number of shares, RSUs vested | shares	(18,551)
Number of shares, RSUs forfeited | shares	(11,208)
Number of shares, Balance | shares	1,960,172
Weighted average grant date fair value per share, Balance | $ / shares	$ 43.19
Weighted average grant date fair value per share, RSUs granted | $ / shares	5.18
Weighted average grant date fair value per share, RSUs vested | $ / shares	49.65
Weighted average grant date fair value per share, RSUs forfeited | $ / shares	42.48
Weighted average grant date fair value per share, Balance | $ / shares	$ 11.30

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable To Common Stockholders - Summary of Outstanding Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	7,394,271	6,749,322
Common Stock Options Issued and Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	5,354,099	6,319,155
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	2,040,172	253,300
Shares Issuable Pursuant to ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		176,867

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ in Millions	May 02, 2022USD ($)
Civil Settlement Agreement | Subsequent Event
Subsequent Event [Line Items]
Settlement liability	$ 34.4