Aterian (ATER) 10-Q 11 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Registrant Name	Aterian, Inc.
Entity Central Index Key	0001757715
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		30,624,056
Entity File Number	001-38937
Entity Tax Identification Number	83-1739858
Entity Address, Address Line One	37 East 18th Street
Entity Address, Address Line Two	7th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10003
City Area Code	347
Local Phone Number	676-1681
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of each class	Common Stock, $0.0001 par value per share
Trading Symbol(s)	ATER
Name of each exchange on which registered	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash	$ 34,995	$ 26,718
Accounts receivable—net	7,192	5,747
Inventory	55,026	31,582
Prepaid and other current assets	24,577	11,111
Total current assets	121,790	75,158
PROPERTY AND EQUIPMENT—net	166	169
GOODWILL AND OTHER INTANGIBLES—net	140,473	78,778
OTHER NON-CURRENT ASSETS	3,552	3,349
TOTAL ASSETS	265,981	157,454
CURRENT LIABILITIES:
Credit facility	14,319	12,190
Accounts payable	26,475	14,856
Term loan	21,600	21,600
Seller notes	10,677	16,231
Contingent earn-out liability	18,783	1,515
Accrued and other current liabilities	14,181	8,340
Total current liabilities	106,035	74,732
OTHER LIABILITIES	1,841	1,841
CONTINGENT EARN-OUT LIABILITY	35,951	21,016
TERM LOANS	83,689	36,483
Total liabilities	227,516	134,072
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized and 27,074,791 shares outstanding at December 31, 2020; 500,000,000 shares authorized and 30,590,796 shares outstanding at March 31, 2021	3	3
Additional paid-in capital	313,911	216,305
Accumulated deficit	(275,488)	(192,935)
Accumulated other comprehensive income	39	9
Total stockholders’ equity	38,465	23,382
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 265,981	$ 157,454

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares outstanding	30,590,796	27,074,791

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
NET REVENUE	$ 48,136	$ 25,628
COST OF GOODS SOLD	22,073	15,330
GROSS PROFIT	26,063	10,298
OPERATING EXPENSES:
Sales and distribution	25,069	13,910
Research and development	2,124	2,281
General and administrative	10,976	8,003
Change in fair value of contingent earn-out liabilities	15,645
TOTAL OPERATING EXPENSES:	53,814	24,194
OPERATING LOSS	(27,751)	(13,896)
INTEREST EXPENSE—net	4,420	1,109
CHANGE IN FAIR VALUE OF WARRANT LIABILITY	30,202
LOSS ON INITIAL ISSUANCE OF WARRANT	20,147
OTHER EXPENSE	33	25
LOSS BEFORE INCOME TAXES	(82,553)	(15,030)
NET LOSS	$ (82,553)	$ (15,030)
Net loss per share, basic and diluted	$ (3.15)	$ (0.99)
Weighted-average number of shares outstanding, basic and diluted	26,225,383	15,193,647

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
NET LOSS	$ (82,553)	$ (15,030)
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustments	30	(2)
Other comprehensive income (loss)	30	(2)
COMPREHENSIVE LOSS	$ (82,523)	$ (15,032)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)
Beginning balance at Dec. 31, 2019	$ 10,727	$ 2	$ 140,477	$ (129,809)	$ 57
Beginning balance, shares at Dec. 31, 2019		17,736,649
Net loss	(15,030)			(15,030)
Issuance of restricted common stock/awards, shares		439,145
Forfeiture of restricted common stock, shares		371,320
Stock-based compensation expense	7,439		7,439
Shares of restricted common stock retired in connection with vesting	(139)		(139)
Shares of restricted common stock retired in connection with vesting, shares		40,480
Other comprehensive loss	(2)				(2)
Ending balance at Mar. 31, 2020	2,995	$ 2	147,777	(144,839)	55
Ending balance, shares at Mar. 31, 2020		17,763,994
Beginning balance at Dec. 31, 2020	23,382	$ 3	216,305	(192,935)	9
Beginning balance, shares at Dec. 31, 2020		27,074,791
Net loss	(82,553)			(82,553)
Issuance of common stock upon exercise of stock option grants	$ 8,749		8,749
Issuance of common stock upon exercise of stock option grants, shares	978,495	978,495
Issuance of common stock related to exercise of warrants	$ 40,172		40,172
Issuance of common stock related to exercise of warrants, shares		1,039,960
Issuance of common stock in connection with acquisition of Healing Solutions assets	39,454		39,454
Issuance of common stock in connection with acquisition of Healing Solutions assets, shares		1,387,759
Issuance of restricted common stock/awards	3,427		3,427
Issuance of restricted common stock/awards, shares		109,791
Stock-based compensation expense	5,804		5,804
Other comprehensive loss	30				30
Ending balance at Mar. 31, 2021	$ 38,465	$ 3	$ 313,911	$ (275,488)	$ 39
Ending balance, shares at Mar. 31, 2021		30,590,796

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - Common Stock - shares	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Issuance of restricted common stock/awards, shares	439,145	109,791	439,145
Forfeiture of restricted common stock, shares			371,320

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
OPERATING ACTIVITIES:
Net loss	$ (82,553)	$ (15,030)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,204	41
Provision for sales returns	(100)	84
Amortization of deferred financing costs and debt discounts	3,963	304
Stock-based compensation	6,899	7,439
Loss from increase of contingent liabilities fair value	15,645
Loss in connection with warrant fair value	30,202
Loss on initial issuance of warrant	20,147
Other		33
Changes in assets and liabilities:
Accounts receivable	(1,445)	(3,140)
Inventory	(15,355)	(8,044)
Prepaid and other current assets	(4,675)	540
Accounts payable, accrued and other liabilities	17,573	682
Cash used in operating activities	(8,495)	(17,091)
INVESTING ACTIVITIES:
Purchase of fixed assets	(20)	(18)
Cash used in investing activities	(15,300)	(18)
FINANCING ACTIVITIES:
Proceeds from warrant exercise	8,939
Proceeds from cancellation of warrant	16,957
Proceeds from exercise of stock options	8,749	(112)
Repayments on note payable to Smash	(4,737)
Proceeds from initial public offering, net of issuance costs		17,435
Borrowings from MidCap credit facility	14,531
Deferred financing costs from MidCap credit facility	(151)
Deferred offering costs		(139)
Insurance obligation payments	(951)	(965)
Capital lease obligation payments		(2)
Cash provided by financing activities	38,501	803
EFFECT OF EXCHANGE RATE ON CASH	(99)	3
NET CHANGE IN CASH AND RESTRICTED CASH FOR PERIOD	14,607	(16,303)
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD	30,097	30,789	$ 30,789
CASH AND RESTRICTED CASH AT END OF PERIOD	44,704	14,486	30,097
RECONCILIATION OF CASH AND RESTRICTED CASH
CASH	34,995	14,050
RESTRICTED CASH—Prepaid and other assets	9,580	307
RESTRICTED CASH—Other non-current assets	129	129
CASH AND RESTRICTED CASH AT END OF PERIOD	44,704	14,486	$ 30,097
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	252	759
Non-cash consideration paid to contractors	3,427
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Debt issuance costs not paid	246
Original issue discount	2,475
Fair value of contingent consideration liability	16,557
Discount of debt relating to warrants issuance	7,740
Issuance of common stock in connection with acquisition	39,454
Common stock issued for warrants	1,125
High Trails Term Loan
FINANCING ACTIVITIES:
Repayments of debt	(5,400)
Borrowings from term loan	14,025
Debt issuance costs	(1,136)
MidCap Credit Facility
FINANCING ACTIVITIES:
Repayments of debt	(12,325)	$ (15,414)
Healing Solutions LLC
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from increase of contingent liabilities fair value	625
INVESTING ACTIVITIES:
Purchase of fixed assets	$ (15,280)

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of Business	1. ORGANIZATION AND DESCRIPTION OF BUSINESS Aterian, Inc. and its subsidiaries, formerly known as Mohawk Group Holdings, Inc, (“Aterian” or the “Company”), is a technology-enabled consumer products platform that builds, acquires and partners with e-commerce brands. The Company’s proprietary software and highly agile supply chain helps creating for a growing base of data empowered e-commerce consumers. Aterian predominantly operates through online retail channels such as Amazon and Walmart, Inc. The Company owns and operates twelve brands, which were either incubated or purchased, selling products in multiple categories, including home and kitchen appliances, kitchenware, heating, cooling and air quality appliances (dehumidifiers, humidifiers and air conditioners), health and beauty products and essentials oils. Headquartered in New York, Aterian’s offices can be found in China, Philippines, Israel and Poland. Healing Solutions Acquisition — On February 2, 2021, the Company acquired certain of Healing Solutions, LLC (“Healing Solutions”) related to its retail and ecommerce business under the Healing Solutions’ brands, Tarvol, Sun Essential Oils and Artizen (among others), which primarily sells essential oils primarily through Amazon and other marketplaces (see Note 10). COVID-19 Pandemic — On January 30, 2020, the World Health Organization (the “WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) originating in Wuhan, China and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 pandemic, including the impact associated with preventative and precautionary measures that the Company, other businesses and governments are taking, continues to evolve as of the date of this report. As such, the future impact on the Company’s personnel, business and global operations, and on the Company’s suppliers, logistics providers, marketplaces and other business partners is uncertain and cannot be reasonably estimated at this time. Given the nature of the COVID-19 pandemic, it is possible that any and every aspect of the Company’s value chain could be disrupted, and such impact could have a material adverse impact on the Company’s business, financial condition, operating results and prospects. For example, with respect to certain products, the Company has been unable to replenish inventory or, ship into or receive inventory in its third-party warehouses, in each case on a timely basis. Further, in certain instances of the Company has had to delay the launch of new products due to sourcing and other supply chain constraints. The Company may also be unable to forecast demand for its products during the pendency of this pandemic and the Company may experience a substantial decrease in the demand for its products, most of which are considered not essential. In addition, the majority of the Company’s personnel are currently working remotely, which creates challenges in the way the Company operates its business, including, but not limited to, the manner in which the Company tests products and its ability to meet its reporting obligations. The Company’s ability to execute its operations could be further impacted if any of the Company’s key personnel contracts COVID-19. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, the continued widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s ability to access capital, which could in the future negatively affect its liquidity. Due to the uncertainty as to the severity and duration of the pandemic, the impact on the Company’s future revenues, profitability, liquidity, financial condition, business and results of operations is uncertain at this time. The COVID-19 pandemic began to have an unfavorable impact on the Company, including its key manufacturing partners, in January 2020. Substantially all of the Company’s products are sourced and manufactured in China, including new products that the Company expects to launch during 2021. In addition, the Company relies on its team in Shenzhen for a number of functions relating to product sourcing and development, among other things. The Company’s key manufacturing partner in China re-opened its facilities as of February 10, 2020 and reached and maintained over 90% capacity since early March 2020. During the second quarter of 2020, the Company preserved its liquidity and capital resources through various actions, which included delaying and negotiating the delay of payments to certain vendors, and the effect of such actions did not have an adverse impact on the Company’s business, including its relationships with these vendors. The Company’s operations rely on third-parties to manufacture its products, to provide logistics and warehousing services and to facilitate sales of its products, and accordingly the Company relies on the business continuity plans of these third parties to operate during the pandemic and has limited ability to influence their plans. To date the Company has had few material overall negative impacts to its business and operations from the COVID-19 pandemic. The Company has seen 87.8% growth in its net revenue for the quarter ended March 31, 2021 versus the corresponding period of the prior year. The shift of consumer spending from traditional retail to online spending has increased dramatically due to the COVID-19 pandemic. This has benefited the Company as historically over 90% of its net revenue comes from the sale of products online in the U.S. and it believes this shift to increased online consumer spending will continue even after the COVID-19 pandemic ends. The Company’s investments in its infrastructure and software and the expansion of its third-party warehousing network have also allowed the Company to continue to deliver its products, even when Amazon itself limited its delivery services. The Company has had no material impacts to its vendor or other business relationships to date and in certain circumstances it has been able to negotiate improved credit and other terms. Further, to date, none of the Company’s key operations vendors has had any material negative impacts related to COVID-19 or changes that have negatively affected the Company’s business, borrowing capabilities or financial covenants. During the first quarter of 2021, we have experienced some impacts to our margins as it relates to increased international freight demands, lack of ship containers and general international freight congestion due to the continued increase demand of goods being sold on ecommerce marketplaces. Further, we expect to see increases in last mile shipping costs as shipping providers continue to see increased demand due to the increase of goods sold on ecommerce marketplaces which stresses their delivery networks. We believe these short-term increases in cost to be primarily related to COVID-19 pandemic. Though the COVID-19 pandemic is fluid, the Company believes at this time that its business may continue to minimize the impact from this current pandemic given the Company’s ability to work remotely, continued consumer demand for products on e-commerce channels and the business continuity plans of its key manufacturing partners and other vendors. The Company believes this combination of factors may help to mitigate risk from the COVID-19 pandemic. The Company continues to consider the impact of COVID-19 on the assumptions and estimates used when preparing these consolidated financial statements including inventory valuation, and the impairment of long-lived assets. These assumptions and estimates may change as the current situation evolves or new events occur and additional information is obtained. If the economic conditions caused by COVID-19 worsen beyond what is currently estimated by management, such future changes may have an adverse impact on the Company's results of operations, financial position, and liquidity.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the Company’s audited consolidated financial statements as of that date. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 16, 2021 (the “Annual Report”). In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of March 31, 2021, the results of operations for the three months ended March 31, 2020 and 2021, the statements of stockholders’ equity for the three months ended March 31, 2020 and 2021, and cash flows for the three months ended March 31, 2020 and 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year. Use of Estimates — Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates . Principles of Consolidation — The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation . Restricted Cash — The Company has restricted cash with its primary banks for use as required minimum restricted capital for its Chinese subsidiary. As of December 31, 2020, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “current assets” on the condensed consolidated balance sheets and $3.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the condensed consolidated balance sheet. As of March 31, 2021, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary and $0.3 million related to a letter of credit within “other non-current assets” on the condensed consolidated balance sheets, and $9.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the condensed consolidated balance sheets. Revenue Recognition —The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers . The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels and through wholesale channels. Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 Three Months Ended March 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 46,142 $ 1,802 $ 182 $ 48,126 Other 10 — — 10 Total net revenue $ 46,152 $ 1,802 $ 182 $ 48,136 Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2020 2021 (in thousands) Heating, cooling and air quality $ 9,877 $ 6,138 Kitchen appliances 7,025 12,150 Health and beauty 4,430 3,642 Personal protective equipment — 1,154 Cookware, kitchen tools and gadgets 994 6,098 Home office 498 809 Housewares 1,412 7,182 Essential oils and related accessories — 7,353 Other 1,031 3,428 Total net product revenue 25,267 47,954 PaaS 361 182 Total net revenue $ 25,628 $ 48,136 Fair Value of Financial Instruments — The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At March 31, 2021, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The Company’s credit facility is carried at amortized cost at December 31, 2020 and March 31, 2021 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 3 inputs. The Company categorizes its warrants potentially settleable in cash as Level 3 fair value measurements. The warrants potentially settleable in cash are measured at fair value on a recurring basis and are being marked to fair value at each reporting date until they are completely settled or meet the requirements to be accounted for as component of stockholders’ equity. Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table summarizes the fair value of the Company’s financial assets that are measured at fair value as of December 31, 2020 and March 31, 2021 (in thousands): December 31, 2020 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 26,718 $ — $ — Restricted cash 3,379 — — Liabilities: Fair market value of warrant liability — — 31,821 Estimated fair value of contingent earn-out considerations — — 22,531 March 31, 2021 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 34,995 $ — $ — Restricted cash 9,773 — — Liabilities: Fair market value of warrant liability — — 75,634 Estimated fair value of contingent earn-out considerations — — 54,734 Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, an estimate of lifetime expected credit losses is required. For available-for-sale debt securities, an allowance for credit losses will be required rather than a reduction to the carrying value of the asset. In July 2019, the FASB delayed the effective date for this ASU for private companies (including emerging growth companies) and will be effective for annual reporting periods beginning after December 15, 2022, with early adoption permitted. While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventory	3. Inventory consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Inventory on-hand $ 22,753 $ 39,235 Inventory in-transit 8,829 15,791 Inventory $ 31,582 $ 55,026 The Company’s Inventory on-hand is held either with Amazon or the Company’s other third-party warehouses. The Company does not have any contractual right of returns with its contract manufacturers. The Company’s Inventory on-hand held by Amazon was approximately $5.3 million and $10.5 million as of December 31, 2020 and March 31, 2021, respectively.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2021
Prepaid Expense And Other Assets Current [Abstract]
Prepaid Expenses and Other Current Assets	4. Prepaids and other current assets consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Prepaid inventory $ 4,361 $ 10,055 Restricted cash 3,250 9,344 Prepaid insurance 1,504 765 Other 1,996 4,413 Prepaid and other current assets $ 11,111 $ 24,577

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities And Other Liabilities [Abstract]
Accrued and Other Current Liabilities	5. Accrued expenses and other current liabilities consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Accrued compensation costs $ 293 $ 112 Accrued professional fees and consultants 483 1,861 Accrued logistics costs 1,068 2,978 Product related accruals 3,221 2,951 Sales tax payable 457 564 Sales return reserve 547 448 Accrued recall liability 22 22 Insurance financing 476 — Withholding tax — 3,168 All other accruals 1,773 2,077 Accrued and other current liabilities $ 8,340 $ 14,181 The Company sponsors, through its professional employer organization provider, a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. Currently, the Company does not match or make any contributions to the 401(k) plan.

Credit Facility and Term Loans

Credit Facility and Term Loans	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Credit Facility and Term Loans	6. The Company’s credit facility consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) MidCap Credit Facility $ 12,905 $ 15,085 Less: deferred debt issuance costs (702 ) (757 ) Less: discount associated with issuance of warrants (13 ) (9 ) Total MidCap Credit Facility $ 12,190 $ 14,319 MidCap Credit Facility and Term Loan On November 23, 2018, the Company entered into the three-year Funding IV Trust (“MidCap”) as agent and lenders party thereto (the “Lenders”) a rate of the London Interbank Offered Rate (“LIBOR”) On December 1, 2020, the Company, certain of the Company’s subsidiaries and MidCap entered into an amendment to the Credit Facility, (i) providing for a $30.0 million revolving credit facility, which could be increased, subject to certain conditions, to $50.0 million, The Credit Facility contained a minimum liquidity financial covenant that required the Company to maintain a minimum of $6.5 million in cash on hand or availability in the Credit Facility. The Company was in compliance with the financial covenants contained within the Credit Facility as of December 31, 2020 and March 31, 2021. As of December 31, 2020, there was $12.9 million outstanding on the Credit Facility and an available balance of approximately $1.4 million and as of March 31, 2021, there was $15.1 million outstanding on the Credit Facility. The Company recorded interest expense from the Credit Facility of approximately $0.5 million and $ 0.3 0.1 Subsequent to the three months ended March 31, 2021, the Company paid off all obligations owing under, and terminated, the Credit Facility (Note 12). Horizon Term Loan On December 31, 2018, the Company entered into a term loan agreement (the “Horizon Loan Agreement”) with Horizon Technology Finance Corporation (“Horizon”). As part of the Horizon Loan Agreement, the Company obtained a four-year exceeded 2.50% for outstanding borrowings, and payments on principal were made on a monthly basis. On December 1, 2020, the Company paid off all remaining obligations under the Horizon Term Loan for $15.0 million and terminated the Horizon Term Loan. The Company recorded interest expense from the Horizon Term Loan of $0.5 million and $0.0 million for the three months ended March 31, 2020 and 2021, respectively, which included $0.1 million and $ million, respectively, relating to debt issuance costs High Trail Loan December 2020 Note On December 1, 2020, the Company refinanced the Horizon Term Loan through the issuance of the December 2020 Note to High Trail SA. The Company received gross proceeds of $38.0 million in exchange for the December 2020 Note with an aggregate principal amount of $43.0 million. The December 2020 Note was to be repaid over 24 equal monthly cash payments of $1.8 million. The December 2020 Note consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) December 2020 Note $ 43,000 $ 37,600 Less: deferred debt issuance costs (2,207 ) (1,717 ) Less: discount associated with issuance of warrants (9,839 ) (7,842 ) Less: discount associated with original issuance of loan (4,692 ) (3,740 ) High Trail warrant 31,821 67,609 Total December 2020 Note 58,083 91,910 Less-current portion (21,600 ) (21,600 ) Term loan-non current portion $ 36,483 $ 70,310 The December 2020 Note contained a minimum liquidity financial covenant that required the Company to maintain a minimum of $10.0 million in unrestricted cash on hand. to maintain Adjusted EBITDA amounts for the 12-month period ending on such day, as defined in the December 2020 Note. The Company was in compliance with the December 2020 Note’s financial covenants as of December 31, 2020 and March 31, 2021. High Trail February 2021 Note On February 2, 2021, the Company entered into a securities purchase agreement with High Trail Investments ON LLC (“High Trail ON” and, together with High Trail SA, “High Trail”) for a 0% coupon senior secured promissory note in an aggregate principal amount of $16.5 million (as amended, the “February 2021 Note”) that was to mature on February 1, 2023. February 2021 Note consisted of the following as of March 31, 2021: March 31, 2021 (in thousands) February 2021 Note $ 16,500 Less: deferred debt issuance costs (1,331 ) Less: discount associated with issuance of warrants (7,407 ) Less: discount associated with original issuance of loan (2,368 ) High Trail warrant 8,026 Total February 2021 Note 13,420 Less-current portion — Term loan-non current portion $ 13,420 The Company recorded interest expense from December 2020 Note of $1.1 million for the year-ended December 31, 2020, which included $0.2 million relating to debt issuance costs. The Company recorded interest expense from December 2020 Note and February 2021 Note of $3.9 million for the quarter-ended March 31, 2021, which included $0.5 million relating to debt issuance costs. The Company was in compliance with February 2021 Note financial covenants as of March 31, 2021. Warrants In connection with the issuance of the December 2020 Note, the Company issued to High Trail SA a warrant to purchase an aggregate of 2,864,133 shares of its common stock at an exercise price of $9.01 per share (the “December Warrant”). The December Warrant initially provided that it would be exercisable on June 1, 2021, expire five years from the date of issuance and be exercisable on a cash basis, unless there was not an effective registration statement covering the resale of the shares issuable upon exercise of the December Warrant, in which case the December Warrant would also be exercisable on a cashless exercise basis at High Trail SA’s election. The December Warrant included a provision that gave the Company the right to require High Trail SA to exercise the December Warrant if the price of the common stock of the Company exceeded 200% of the exercise price of the December Warrant for 20 consecutive trading days and certain other conditions were satisfied. The Company utilized the Monte-Carlo Simulation model to determine the fair value of the December Warrant. Due to the complexity of the warrants issued, the Company uses an outside expert to assist in providing the mark to market fair valuation of the liabilities over the reporting periods in which the original agreement was in effect. Inputs used to determine estimated fair value of the warrant liabilities include the fair value of the underlying stock at the valuation date, the term of the warrants, and the expected volatility of the underlying stock. The significant unobservable input used in the fair value measurement of the warrant liabilities is the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term result in a directionally similar impact to the periodic fair value measurement of the outstanding warrant liability, and are recorded within the Change in fair market value of warranty line item on the statement of operations. On February 8, 2021, the Company entered into a letter agreement with High Trail SA (the “Letter Agreement”), pursuant to which, among other things, (i) the Company and High Trail SA agreed to amend the terms of the December Warrant, to provide that the December Warrant was immediately exercisable on a cash basis, (ii) High Trail SA agreed to exercise 980,000 shares of the Company’s common stock subject to the December December December (the “Stockholder Meeting”) to issue shares of the Company’s common stock in excess of the limitations imposed by Nasdaq Listing Standard Rule 5635(a) and/or 5635(d) (collectively, the “Nasdaq Rules”) pursuant to the Additional Warrant (as defined below), the Note, the February Note, that certain Warrant to purchase common stock issued by the Company to High Trail ON on February 2, 2021 (as amended, the “ February Warrant ”) and that certain Asset Purchase Agreement, dated February 2, 2021, by and among the Company and Truweo , LLC, as purchaser, Healing Solutions, Jason R. Hope, and for the purposes of Section 5.11 and Article VII, Super Transcontinental Holdings LLC (the “Asset Purchase Agreement”), (v) the Company agreed to issue to High Trail SA a warrant to purchase 750,000 shares of the Company’s common stock (the “Additional Warrant”), (vi) the Company agreed to prepare and file by March 26, 2021 a registration statement (the “Registration Statement”) with the Securities and Exchange Commission for the purpose of registering for resale the December Warrant Shares and the shares issuable upon exercise of the Penny Warrant (the “Penny Warrant Shares”), and (vii) High Trail SA agreed, for the first 30 days following the effectiveness of the Registration Statement, not to sell, or otherwise transfer or dispose of the December Warrant Shares or Penny Warrant Shares on any day in an amount that is greater than 10 % of the trading volume of the Company’s common stock for such day. Pursuant to the Letter Agreement, High Trail SA exercised the December Warrant The 2022 Note Amendment and the 2023 Note Amendment amend the December 2020 Note and the February 2021 Note, respectively, to provide that no shares of common stock may be issued pursuant thereto unless the Company obtains the Stockholder Approvals to issue shares of Company’s common stock pursuant thereto in excess of the limitations imposed by the Nasdaq Rules. The Warrant Amendment amends the February Warrant to provide that: (i) it may only be exercised for up to 134,348 shares of Company’s common stock unless the Company obtained the Stockholder Approval contemplated by the Nasdaq Rules to issue additional shares of Company’s common stock in excess of 134,348 shares, (ii) its term shall be the later of five years from the date of issuance and the date that is one year from the date that the Stockholder Approvals are obtained, and (iii) the beneficial ownership limitation is increased from 4.99% to 9.99%. As of December 1, 2020, the initial fair value of the December Warrant on issuance was $10.5 million, which has been recorded as a debt discount against the December 2020 Note. During the year ended December 31, 2020, the fair value amount of this warrant liability was approximately $31.8 million which includes a change of fair value impact of approximately $21.3 million. During the quarter ended March 31, 2021, the fair value amount of the December 2020 Note and February 2021 Note warrant liability was approximately $75.6 million which includes a change of fair value impact of approximately $50.3 million which includes change in fair value of warrant liability and loss on initial issuance of warrant. The December Warrant is classified as a liability on the consolidated balance sheet as the December Warrant contains certain change of control provisions that would benefit the holder as it relates to the calculation of the value of the warrant under certain circumstances. Interest Expense, Net Interest expense, net consisted of the following for the three months ended March 31, 2020 and 2021: Three Months Ended March 31, 2020 March 31, 2021 (in thousands) Interest expense $ 1,133 $ 4,753 Interest income (24 ) (333 ) Total Interest expense, net $ 1,109 $ 4,420

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	7. The Company has three equity plans: 2014 Amended and Restated Equity Incentive Plan The board of directors of stockholders approved, an amendment and restatement of the 2014 Equity Incentive Plan (as amended, the “2014 Plan”). As of March 31, 2021, 56,458 shares were reserved for awards available for future issuance under the Aterian 2014 Plan. 2018 Equity Incentive Plan The Company’s board of directors adopted the Aterian 93,615 Options granted to date under the 2014 Plan and the 2018 Plan generally vest either: (i) over a four-year three-year 33 1/3 66 2/3 2019 Equity Plan The Company’s board of directors adopted the Aterian, Inc. 2019 Equity Plan (the “2019 Equity Plan”) on March 20, 2019. The 2019 Equity Plan was approved by its stockholders on May 24, 2019. As of December 31, 2020, no 70 The following is a summary of stock option activity during the three months ended March 31, 2021: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2021 1,570,728 $ 9.09 7.71 $ 12,756 Options granted — $ — — $ — Options exercised (978,495 ) $ 9.01 — $ — Options cancelled — $ — — $ — Balance—March 31, 2021 592,233 $ 9.22 7.56 $ 12,013 Exercisable as of March 31, 2021 370,183 $ 9.09 7.48 $ 7,556 Vested and expected to vest as of March 31, 2021 592,233 $ 9.22 7.56 $ 12,013 As of March 31, 2021, the total unrecognized compensation expense related to unvested options was $2.9 million, which the Company expects to recognize over an estimated weighted average period of 0.55 years. A summary of restricted stock award activity within the Company’s equity plans and changes for the three months ended March 31, 2021 is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2021 3,259,389 $ 13.51 Granted — $ — Vested (542,834 ) $ 15.77 Forfeited — $ — Nonvested at March 31, 2021 2,716,555 $ 11.81 On March 12, 2020, 371,320 shares of restricted common stock were forfeited and treated as a cancellation with remaining unrecognized expense for the unvested awards recognized on the date of cancellation. The Company did not reverse previously recognized compensation expenses as a result of these cancellations. As of March 31, 2020, the total unrecognized compensation expense related to unvested shares of restricted common stock was $14.7 million, which the Company expects to recognize over an estimated weighted-average period of one year. As of March 31, 2021, the total unrecognized compensation expense related to unvested shares of restricted common stock was $8.6 million, which the Company expects to recognize over an estimated weighted-average period of 0.69 years. Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes the total stock-based compensation expense by function, including expense related to consultants, for the three months ended March 31, 2020 and 2021: Three Months Ended March 31, 2020 2021 (in thousands) Sales and distribution expenses $ 1,592 $ 955 Research and development expenses 1,273 883 General and administrative expenses 4,574 5,061 Total stock-based compensation expense $ 7,439 $ 6,899

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	8 . Basic net loss per share is determined by dividing net loss by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is determined by dividing net loss by diluted weighted-average shares outstanding. Diluted weighted-average shares reflect the dilutive effect, if any, of potentially dilutive shares of common stock, such as options to purchase common stock calculated using the treasury stock method and convertible notes using the “if-converted” method. In periods with reported net operating losses, all options to purchase common stock are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. The Company’s shares of restricted common stock are entitled to receive dividends and hold voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Accordingly, although the vesting commences upon the elimination of the contingency, the shares of restricted common stock are considered a participating security and the Company is required to apply the two-class method to consider the impact of the shares of restricted common stock on the calculation of basic and diluted earnings per share. The Company is currently in a net loss position and is therefore not required to present the two-class method; however, in the event the Company is in a net income position, the two-class method must be applied by allocating all earnings during the period to shares of common stock and shares of restricted common stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2020 2021 (in thousands) Net loss $ (15,030 ) $ (82,553 ) Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted 15,193,647 26,225,383 Net loss per share, basic and diluted $ (0.99 ) $ (3.15 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9 . Legal Proceedings —The Company is party to various actions and claims arising in the normal course of business. The Company does not believe that the final outcome of these matters will have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. In addition, the Company maintains what it believes is adequate insurance coverage to further mitigate risk. However, no assurance can be given that the final outcome of such proceedings will not materially impact the Company’s condensed consolidated financial condition or results of operations. Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. Sales or Other Similar Taxes — Based on the location of the Company’s current operations, the majority of sales tax is collected and remitted either by the Company or on its behalf by e-commerce marketplaces in most states within the United States. To date, the Company has had no actual or threatened sales and use tax claims from any state where it does not already claim nexus or any state where it sold products prior to claiming nexus. However, the Company believes that the likelihood of incurring a liability as a result of sales tax nexus being asserted by certain states where it sold products prior to claiming nexus is probable. As of each of December 31, 2020 and March 31, 2021, the Company estimates that the potential liability, including current sales tax payable is approximately $0.5 million and $0.6 million, respectively, which has been recorded as an accrued liability. The Company believes this is the best estimate of an amount due to taxing agencies, given that such a potential loss is an unasserted liability that would be contested and subject to negotiation between the Company and the state, or decided by a court. U.S. Department of Energy — In September 2019, the Company received a Test Notice from the U.S. Department of Energy (“DOE”) indicating that a certain dehumidifier model may not comply with applicable energy-conservation standards. The DOE requested that the Company provide it with several model units for DOE testing. If the Company is determined to have violated certain energy-conservation standards, it could be fined pursuant to DOE guidelines, and this civil penalty may be material to the Company’s consolidated financial statements. The Company intends to vigorously defend itself. The Company has submitted to the DOE testing process, made a good-faith effort to provide necessary notice as practicable, and included in a formal response to the DOE copies of the energy-efficiency report and certification that were issued for the dehumidifier model at the time of production. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the Test Notice received from the DOE. As of the date of the issuance of these financial statements, the Company cannot reasonably estimate what, if any, penalties may be levied. U.S. Environmental Protection Agency — In September 2019, the Company received notice from the U.S. Environmental Protection Agency (“EPA”) that certain of its dehumidifier products were identified by the Association of Home Appliance Manufacturers (“AHAM”) as failing to comply with EPA ENERGY STAR requirements. For an appliance to be ENERGY STAR certified, it must meet standards promulgated by the EPA and enforced through EPA-accredited certification bodies and laboratories. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the AHAM testing determination pursuant to EPA guidelines. While a resolution remains pending, the Company is not selling or marketing the products identified by the EPA. The Company cannot be certain that these products will eventually be certified by the EPA, and the Company may incur costs that cannot presently be calculated in the event that the Company needs to make changes to the manner in which these products are manufactured and sold. In April 2020, the Company received notice from the EPA with respect to regulatory compliance and the advertising associated with certain of its dehumidifier products. The Company believes that its products are compliant, and the Company is currently in discussions with the EPA to resolve the matter. The EPA has placed a hold on the sale of certain of the Company's dehumidifier inventory while it reviews the matter with the Company. The Company cannot be certain of the outcome with the EPA, and the Company may incur costs and penalties that cannot presently be calculated in the event that the Company is unable to resolve this matter with the EPA.

Acquisition

Acquisition	3 Months Ended
	Mar. 31, 2021
Business Combinations [Abstract]
Acquisition	10. ACQUISITION On February 2, 2021 (the “Closing Date”), the Company entered into and closed the Asset Purchase Agreement with Healing Solutions. Pursuant to the Asset Purchase Agreement, the Company purchased and acquired certain assets of Healing Solutions (the “Healing Solutions Assets”) related to Healing Solutions’ retail and e-commerce business under the Healing Solutions’ brands, Tarvol, Sun Essential Oils and Artizen (among others), which primarily sells essential oils through Amazon and other marketplaces (the “Asset Purchase”). The Acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations. As consideration for the Asset Purchase, the Company (i) paid to Healing Solutions $15.3 million in cash (the “Cash Purchase Price”), and (ii) issued 1,387,759 within 60 days of closing In addition, Healing Solutions will also be entitled to receive 170,042 shares of common stock (up to a maximum of 280,000 shares pursuant to certain terms and valuation at the measurement date) in respect of certain inventory. The shares will be issued to Healing Solutions following the final determination of inventory values pursuant to the terms of the Asset Purchase Agreement, which determination is expected to occur approximately nine to ten months following the Closing Date and such shares will be subject to vesting restrictions which will lapse on the date that is the one-year anniversary after the Closing Date. Pursuant to the terms of the Asset Purchase Agreement, Seller is required to use its commercially reasonable efforts to identify one or more suppliers of finished goods inventory of all SKUs that constitute assets acquired in the Asset Purchase (“New Suppliers”) and to initiate discussions with such New Suppliers for the purpose of negotiating new supply agreements between Purchaser or its affiliates, on the one hand, and the New Supplier, on the other hand, for the purchase of such SKUs following the Closing on terms acceptable to Purchaser in its sole discretion, acting reasonably. If, on or before the date that is 15 months after the Closing Date, an Earn-Out Consideration Event has occurred, then Seller shall be entitled to receive up to a maximum of 528,670 shares of Common Stock (the “Earn-Out Shares”), which number of shares is subject to reduction in accordance with the terms of the Asset Purchase Agreement based on the time period within which the Earn-Out Consideration Event occurs. The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 15,280 1,387,759 shares of common stock issued at the Closing 39,454 Estimated common share consideration for inventory 5,285 Estimated earnout liability 11,273 Total consideration $ 71,292 The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory 8,215 Working Capital 202 Trademarks (10 year useful life) 22,900 Goodwill 39,975 Net assets acquired 71,292 Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Healing Solutions’ products into the Company’s existing sales channels. Pro Forma Information The following unaudited pro forma information illustrates the impact of the Healing Solutions Assets acquisition on the Company’s net revenue for the three months ended March 31, 2021 and 2020. The acquisition of the Healing Solutions Assets is reflected in the following pro forma information as if the acquisition had occurred on January 1, 2020. Three Months Ended March 31 2020 2021 (in thousands) Net revenue as reported $ 25,628 $ 48,136 Healing Solution net revenue 14,423 4,600 Net revenue pro forma $ 40,051 $ 52,736 Operating loss as reported $ (13,896 ) $ (27,751 ) Healing Solution operating income 1,004 382 Operating loss pro forma $ (12,892 ) $ (27,369 ) Contingent earn-out liability considerations The Company reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. On December 1, 2020, the Company acquired the assets of leading e-commerce business brands Mueller, Pursteam, Pohl and Schmitt, and Spiralizer (the “Smash Assets”) for total consideration of (i) $25.0 million, (ii) 4,220,000 shares of common stock, the cost basis of which was $6.89 (closing stock price at closing of the transaction), of which 164,000 of such shares were issued to the sellers brokers and (iii) a seller note in the amount of $15.6 million, representing the value of certain inventory that the sellers had paid for but not yet sold as of the closing date. In addition, subject to achievement of certain contribution margin thresholds on certain products of the acquired business for the fiscal years ending December 31, 2021 and December 31, 2022, the sellers will be entitled to receive earn out payments. As part of the acquisition of the Smash Assets, the sellers of the Smash Assets are entitled to earn-out payments based on the achievement of certain contribution margin thresholds on certain products of the acquired business. Earn-out payments will be due to the sellers for year one, or calendar year 2021 in the first quarter of 2022, and year two, or calendar year 2022, will be due in the first quarter of 2023. During the year-ending December 31, 2021 (year one of the earn-out), the earn-out payment will be calculated based on the contribution margin generated on certain products for an amount equal to $1.67 for every $1.00 of such contribution margin that is greater than $15.5 million and less than or equal to $18.5 million. Such earn-out payment cannot exceed $5.0 million. In addition, during the year-ending December 31, 2022 (year two of the earnout), for each $0.5 million of contribution margin generated on certain products in excess of $15.5 million, subject to a cap of $27.5 million, the sellers shall be entitled to receive an amount in cash equal to the value of 0.1 million shares of the Company’s common stock multiplied by the average of the volume-weighted-average closing price per share of the Company’s common stock, for the 30 consecutive trading days ending on December 31, 2022. As of December 1, 2020, the acquisition date, the initial fair value amount of the earn-out payment was appropriately $9.8 million. As of December 31, 2020, the fair value amount of the earn-out payment with respect to the Smash Assets was approximately $22.5 million, representing a change of fair value impact of approximately $12.7 million. As of March 31, 2021, the fair value amount of the earn-out payment with respect to the Smash Assets was approximately $ 37.6 million, representing a change of fair value impact of approximately $ million for the three months ended March 31, 2021 . As part of the acquisition of the Healing Solutions Assets, the Healing Solutions is entitled to earn-out payments based on the achievement of certain contribution margin thresholds on certain products of the acquired business. If the earn-out consideration event occurs: (i) prior to the date that is nine months following the Closing Date, the Company will issue 528,670 shares of its common stock to Healing Solutions; (ii) on or after the date that is nine months following the Closing Date but before the date that is 12 months following the Closing Date, the Company will issue 396,502 shares of common stock to Healing Solutions; or (iii) on or after the date that is 12 months following the Closing Date but before the date that is 15 months following the Closing Date (the date that is 15 months following the Closing Date, the “Earn-Out Termination Date”), the Company will issue 264,335 shares of common stock to Healing Solutions; or after 15 months, the Company will not have any obligation to issue any shares of its common stock to Healing Solutions. As of February 2, 2021, the acquisition date, the initial fair value amount of the earn-out payment with respect to the Healing Solutions Assets was appropriately $16.5 million. As of March 31, 2021, the fair value amount of the earn-out payment with respect to the Healing Solutions Assets was approximately $17.2 million, representing a change of fair value impact of approximately $0.6 million. The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities (in thousands) as of March 31, 2021: March 31, 2021 Smash Assets Healing Solutions Total Beginning Balance at December 31, 2020 $ 22,531 $ — $ 22,531 Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares — 16,558 16,558 Change in fair value of contingent earn-out liabilities 15,020 625 15,645 Earn-out payments — — — Ending Balance $ 37,551 $ 17,183 $ 54,734

Goodwill and Intangibles

Goodwill and Intangibles	3 Months Ended
	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangibles	11. GOODWILL AND INTANGIBLES The following tables summarize the changes in the Company’s goodwill and intangible assets as of December 31, 2020 and March 31, 2021 (in thousands): December 31, 2019 Years-Ended December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 745 $ 46,573 $ — $ 47,318 $ — $ — $ 47,318 Trademarks 310 31,500 — 31,810 — (442 ) 31,368 Non-competition agreement 11 100 — 111 — (19 ) 92 Transition services agreement 12 11 — 23 — (23 ) — Total $ 1,078 $ 78,184 $ — $ 79,262 $ — $ (484 ) $ 78,778 December 31, 2020 Three Months Ended March 31, 2021 March 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 47,318 $ 39,975 $ — $ 87,293 $ — $ — $ 87,293 Trademarks 31,810 22,200 — 54,010 — (1,616 ) 52,394 Non-competition agreement 111 — — 111 — (25 ) 86 Transition services agreement 23 — — 23 — (23 ) — Option to purchase additional inventory — 700 — 700 — — 700 Total $ 79,262 $ 62,875 $ — $ 142,137 $ — $ (1,664 ) $ 140,473

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS The Letter Agreement On April 8, 2021, the Company entered into a Letter Agreement (the “April Letter Agreement”) with High Trail SA and High Trail ON, pursuant to which, among other things, (i) the Company and High Trail SA agreed to amend the terms of the Letter Agreement to provide that the Company will prepare and file by June 30, 2021 a registration statement (the “Resale Registration Statement”) with the Securities and Exchange Commission for the purposes of registering for resale the December Warrant Shares, the Penny Warrant Shares and the Restricted Shares (as defined below), (ii) the Company agreed to issue 130,000 shares of its common stock to High Trail SA (the “Restricted Shares”), and (iii) High Trail SA and High Trail ON agreed to waive any Default or Event of Default (as such terms are defined in the December 2020 Note or the February 2021 Note) caused by the Company’s failure to file the Resale Registration Statement by March 26, 2021. Pursuant to the April Letter Agreement, the Company issued the Restricted Shares to High Trail SA on April 8, 2021. Securities Purchase Agreement with High Trail On April 8, 2021, the Company entered into a securities purchase and exchange agreement (the “Securities Purchase Agreement”) with High Trail SA and High Trail ON, pursuant to which, among other things, the Company agreed to issue and sell to High Trail, in a private placement transaction (the “Private Placement”), (i) senior secured promissory notes in an aggregate principal amount of $110,000,000 (the “Notes”) that will accrue interest at a rate of 8% per annum and mature on April 8, 2024, and (ii) warrants (the “Warrants” and each, a “Warrant”) to purchase up to an aggregate of 2,259,166 shares of the Company’s common stock in exchange for: (a) a cash payment by High Trail to the Company of $57.7 million, (b) the December 2020 Note, and (c) the February 2021 Note. The Company used $14.8 million of the net proceeds from the Private Placement to repay all amounts owed under the Credit Facility on April 8, 2021. On April 8, 2021, the Company entered into (i) an amendment (the “SPA Amendment”) to that certain Securities Purchase Agreement, dated as of November 30, 2020, by and between the Company and High Trail SA (the “December 2020 SPA”), and to that certain Securities Purchase Agreement, dated as of February 2, 2021, by and between the Company and High Trail ON (the “February 2021 SPA”), (ii) an amendment to the February Warrant (the “February Warrant Amendment”), (iii) an amendment to the Penny Warrant (the “Penny Warrant Amendment”), and (iv) an amendment to the Additional Warrant (the “Additional Warrant Amendment” and, together with the February Warrant Amendment and the Penny Warrant Amendment, the “Warrant Amendments”).The SPA Amendment amends the December 2020 SPA and the February 2021 SPA to, among other things, allow for the issuance of the Notes and to waive certain rights of High Trail under the December SPA and the February SPA. The Warrant Amendments amend the February Warrant, the Penny Warrant and the Additional Warrant to amend the definition of “Black Scholes Value” in each warrant to provide that the expected volatility used in the Black Scholes Value shall equal 100% instead of the greater of 100% and the 100-day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365-day annualization factor) as of the trading day immediately following the public announcement of a Change of Control (as defined in each of the warrants), or, if the Change of Control is not publicly announced, the date the Change of Control is consummated. Termination of MidCap Credit Agreement On April 8, 2021, the Company paid off all obligations owing under, and terminated, the Credit Facility. Pursuant to the Credit Facility, upon the payment of the amounts outstanding under the Credit Facility, the Company paid a prepayment fee and a payoff letter preparation fee in an aggregate amount equal to 4.3% of the then outstanding principal balance of the Credit Facility. Settlement Agreement On May 2, 2021, the Company entered into a settlement agreement with one of Company’s suppliers to agree to pay the amount of $3.0 million to the Company in three installments of $1,000,000.00 each, with the first payment to be paid on or before May 31, 2021, the second payment to be paid on or before September 30, 2021, and the third payment to be paid on or before November 30, 2021 Acquisition of Squatty Potty Assets On May 6, 2021, the Company has acquired the business of e-commerce and retail company Squatty Potty, LLC (“Squatty Potty”), a leading online seller of health and wellness products in an asset purchase transaction. Currently, Squatty Potty products are sold in thousands of retail locations including Bed, Bath & Beyond, Walmart and Target. As consideration for Squatty Potty’s assets, the Company paid approximately $19.0 million in cash. The Company also paid approximately $1.1 million as consideration related to acquired inventory. In addition, and subject to the achievement of contribution margin metrics for the year ended December 31, 2021, the Company agreed to pay Squatty Potty a maximum earnout of approximately $ 4.0 million, payable in stock or cash at the seller’s discretion. Aterian also agreed to pay Squatty Potty $ 8.0 million for transition services, payable in stock or cash at the seller’s discretion. Closing of Photo Paper Direct Acquisition On May 6, 2021, the Company closed the acquisition of all outstanding stock of e-commerce company Photo Paper Direct Ltd. (“Photo Paper Direct''), a leading online seller of printing supplies. As consideration for Photo Paper Direct’s stock, the Company paid approximately $8.28 million in cash and issued approximately 704,500 shares of the Company’s common stock. The Company also agreed to pay approximately $5.4 million in cash as consideration related to Photo Paper Direct’s inventory and other working capital assets, including cash on hand of approximately $3.0 million. In addition, and subject to the achievement of certain Adjusted EBITDA metrics by December 31, 2021, the Company agreed to issue to Photo Paper Direct a maximum earnout of $6.0 million in cash and $2.0 million in the Company common stock. In connection with the transaction, the former shareholders of Photo Paper Direct signed a voting and standstill agreement.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the Company’s audited consolidated financial statements as of that date. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 16, 2021 (the “Annual Report”). In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of March 31, 2021, the results of operations for the three months ended March 31, 2020 and 2021, the statements of stockholders’ equity for the three months ended March 31, 2020 and 2021, and cash flows for the three months ended March 31, 2020 and 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	Use of Estimates — Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates .
Principles of Consolidation	Principles of Consolidation — The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation .
Restricted Cash	Restricted Cash — The Company has restricted cash with its primary banks for use as required minimum restricted capital for its Chinese subsidiary. As of December 31, 2020, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “current assets” on the condensed consolidated balance sheets and $3.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the condensed consolidated balance sheet. As of March 31, 2021, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary and $0.3 million related to a letter of credit within “other non-current assets” on the condensed consolidated balance sheets, and $9.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the condensed consolidated balance sheets.
Revenue Recognition	Revenue Recognition —The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers . The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels and through wholesale channels. Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 Three Months Ended March 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 46,142 $ 1,802 $ 182 $ 48,126 Other 10 — — 10 Total net revenue $ 46,152 $ 1,802 $ 182 $ 48,136 Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2020 2021 (in thousands) Heating, cooling and air quality $ 9,877 $ 6,138 Kitchen appliances 7,025 12,150 Health and beauty 4,430 3,642 Personal protective equipment — 1,154 Cookware, kitchen tools and gadgets 994 6,098 Home office 498 809 Housewares 1,412 7,182 Essential oils and related accessories — 7,353 Other 1,031 3,428 Total net product revenue 25,267 47,954 PaaS 361 182 Total net revenue $ 25,628 $ 48,136
Fair Value of Financial Instruments	Fair Value of Financial Instruments — The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At March 31, 2021, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The Company’s credit facility is carried at amortized cost at December 31, 2020 and March 31, 2021 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 3 inputs. The Company categorizes its warrants potentially settleable in cash as Level 3 fair value measurements. The warrants potentially settleable in cash are measured at fair value on a recurring basis and are being marked to fair value at each reporting date until they are completely settled or meet the requirements to be accounted for as component of stockholders’ equity. Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table summarizes the fair value of the Company’s financial assets that are measured at fair value as of December 31, 2020 and March 31, 2021 (in thousands): December 31, 2020 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 26,718 $ — $ — Restricted cash 3,379 — — Liabilities: Fair market value of warrant liability — — 31,821 Estimated fair value of contingent earn-out considerations — — 22,531 March 31, 2021 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 34,995 $ — $ — Restricted cash 9,773 — — Liabilities: Fair market value of warrant liability — — 75,634 Estimated fair value of contingent earn-out considerations — — 54,734
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, an estimate of lifetime expected credit losses is required. For available-for-sale debt securities, an allowance for credit losses will be required rather than a reduction to the carrying value of the asset. In July 2019, the FASB delayed the effective date for this ASU for private companies (including emerging growth companies) and will be effective for annual reporting periods beginning after December 15, 2022, with early adoption permitted. While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Net Revenue Disaggregated by Sales Channel and Geographic Region	Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 Three Months Ended March 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 46,142 $ 1,802 $ 182 $ 48,126 Other 10 — — 10 Total net revenue $ 46,152 $ 1,802 $ 182 $ 48,136
Net Revenue Disaggregated by Product Categories	Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2020 2021 (in thousands) Heating, cooling and air quality $ 9,877 $ 6,138 Kitchen appliances 7,025 12,150 Health and beauty 4,430 3,642 Personal protective equipment — 1,154 Cookware, kitchen tools and gadgets 994 6,098 Home office 498 809 Housewares 1,412 7,182 Essential oils and related accessories — 7,353 Other 1,031 3,428 Total net product revenue 25,267 47,954 PaaS 361 182 Total net revenue $ 25,628 $ 48,136
Summary of Financial Assets Measured at Fair Value	The following table summarizes the fair value of the Company’s financial assets that are measured at fair value as of December 31, 2020 and March 31, 2021 (in thousands): December 31, 2020 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 26,718 $ — $ — Restricted cash 3,379 — — Liabilities: Fair market value of warrant liability — — 31,821 Estimated fair value of contingent earn-out considerations — — 22,531 March 31, 2021 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 34,995 $ — $ — Restricted cash 9,773 — — Liabilities: Fair market value of warrant liability — — 75,634 Estimated fair value of contingent earn-out considerations — — 54,734

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Inventory on-hand $ 22,753 $ 39,235 Inventory in-transit 8,829 15,791 Inventory $ 31,582 $ 55,026

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Prepaid Expense And Other Assets Current [Abstract]
Summary of Prepaids and Other Current Assets	Prepaids and other current assets consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Prepaid inventory $ 4,361 $ 10,055 Restricted cash 3,250 9,344 Prepaid insurance 1,504 765 Other 1,996 4,413 Prepaid and other current assets $ 11,111 $ 24,577

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities And Other Liabilities [Abstract]
Schedule of Components of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) Accrued compensation costs $ 293 $ 112 Accrued professional fees and consultants 483 1,861 Accrued logistics costs 1,068 2,978 Product related accruals 3,221 2,951 Sales tax payable 457 564 Sales return reserve 547 448 Accrued recall liability 22 22 Insurance financing 476 — Withholding tax — 3,168 All other accruals 1,773 2,077 Accrued and other current liabilities $ 8,340 $ 14,181

Credit Facility and Term Loans

Credit Facility and Term Loans (Tables)	3 Months Ended
	Mar. 31, 2021
Schedule of Interest Expense, Net	Interest expense, net consisted of the following for the three months ended March 31, 2020 and 2021: Three Months Ended March 31, 2020 March 31, 2021 (in thousands) Interest expense $ 1,133 $ 4,753 Interest income (24 ) (333 ) Total Interest expense, net $ 1,109 $ 4,420
High Trail Loan December 2020 Note
Schedule of Credit Facility and Term Loans	The December 2020 Note consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) December 2020 Note $ 43,000 $ 37,600 Less: deferred debt issuance costs (2,207 ) (1,717 ) Less: discount associated with issuance of warrants (9,839 ) (7,842 ) Less: discount associated with original issuance of loan (4,692 ) (3,740 ) High Trail warrant 31,821 67,609 Total December 2020 Note 58,083 91,910 Less-current portion (21,600 ) (21,600 ) Term loan-non current portion $ 36,483 $ 70,310
High Trail February 2021 Note
Schedule of Credit Facility and Term Loans	February 2021 Note consisted of the following as of March 31, 2021: March 31, 2021 (in thousands) February 2021 Note $ 16,500 Less: deferred debt issuance costs (1,331 ) Less: discount associated with issuance of warrants (7,407 ) Less: discount associated with original issuance of loan (2,368 ) High Trail warrant 8,026 Total February 2021 Note 13,420 Less-current portion — Term loan-non current portion $ 13,420
MidCap Credit Facility
Schedule of Credit Facility and Term Loans	The Company’s credit facility consisted of the following as of December 31, 2020 and March 31, 2021: December 31, 2020 March 31, 2021 (in thousands) MidCap Credit Facility $ 12,905 $ 15,085 Less: deferred debt issuance costs (702 ) (757 ) Less: discount associated with issuance of warrants (13 ) (9 ) Total MidCap Credit Facility $ 12,190 $ 14,319

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Options Activity	The following is a summary of stock option activity during the three months ended March 31, 2021: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2021 1,570,728 $ 9.09 7.71 $ 12,756 Options granted — $ — — $ — Options exercised (978,495 ) $ 9.01 — $ — Options cancelled — $ — — $ — Balance—March 31, 2021 592,233 $ 9.22 7.56 $ 12,013 Exercisable as of March 31, 2021 370,183 $ 9.09 7.48 $ 7,556 Vested and expected to vest as of March 31, 2021 592,233 $ 9.22 7.56 $ 12,013
Summary of Restricted Stock Award Activity	A summary of restricted stock award activity within the Company’s equity plans and changes for the three months ended March 31, 2021 is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2021 3,259,389 $ 13.51 Granted — $ — Vested (542,834 ) $ 15.77 Forfeited — $ — Nonvested at March 31, 2021 2,716,555 $ 11.81
Summary of Total Stock-based Compensation Expense by Function	The following table summarizes the total stock-based compensation expense by function, including expense related to consultants, for the three months ended March 31, 2020 and 2021: Three Months Ended March 31, 2020 2021 (in thousands) Sales and distribution expenses $ 1,592 $ 955 Research and development expenses 1,273 883 General and administrative expenses 4,574 5,061 Total stock-based compensation expense $ 7,439 $ 6,899

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2020 2021 (in thousands) Net loss $ (15,030 ) $ (82,553 ) Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted 15,193,647 26,225,383 Net loss per share, basic and diluted $ (0.99 ) $ (3.15 )

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Mar. 31, 2021
Business Acquisition [Line Items]
Pro Forma Information	The acquisition of the Healing Solutions Assets is reflected in the following pro forma information as if the acquisition had occurred on January 1, 2020. Three Months Ended March 31 2020 2021 (in thousands) Net revenue as reported $ 25,628 $ 48,136 Healing Solution net revenue 14,423 4,600 Net revenue pro forma $ 40,051 $ 52,736 Operating loss as reported $ (13,896 ) $ (27,751 ) Healing Solution operating income 1,004 382 Operating loss pro forma $ (12,892 ) $ (27,369 )
Summary of Changes in Carrying Value of Estimated Contingent Earn-Out Liabilities	The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities (in thousands) as of March 31, 2021: March 31, 2021 Smash Assets Healing Solutions Total Beginning Balance at December 31, 2020 $ 22,531 $ — $ 22,531 Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares — 16,558 16,558 Change in fair value of contingent earn-out liabilities 15,020 625 15,645 Earn-out payments — — — Ending Balance $ 37,551 $ 17,183 $ 54,734
Healing Solutions LLC
Business Acquisition [Line Items]
Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date	The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 15,280 1,387,759 shares of common stock issued at the Closing 39,454 Estimated common share consideration for inventory 5,285 Estimated earnout liability 11,273 Total consideration $ 71,292
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications	The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory 8,215 Working Capital 202 Trademarks (10 year useful life) 22,900 Goodwill 39,975 Net assets acquired 71,292

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill and Intangible Assets	The following tables summarize the changes in the Company’s goodwill and intangible assets as of December 31, 2020 and March 31, 2021 (in thousands): December 31, 2019 Years-Ended December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 745 $ 46,573 $ — $ 47,318 $ — $ — $ 47,318 Trademarks 310 31,500 — 31,810 — (442 ) 31,368 Non-competition agreement 11 100 — 111 — (19 ) 92 Transition services agreement 12 11 — 23 — (23 ) — Total $ 1,078 $ 78,184 $ — $ 79,262 $ — $ (484 ) $ 78,778 December 31, 2020 Three Months Ended March 31, 2021 March 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 47,318 $ 39,975 $ — $ 87,293 $ — $ — $ 87,293 Trademarks 31,810 22,200 — 54,010 — (1,616 ) 52,394 Non-competition agreement 111 — — 111 — (25 ) 86 Transition services agreement 23 — — 23 — (23 ) — Option to purchase additional inventory — 700 — 700 — — 700 Total $ 79,262 $ 62,875 $ — $ 142,137 $ — $ (1,664 ) $ 140,473

Organization and Description _2

Organization and Description of Business - Additional Information (Details)	2 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021
Organization And Description Of Business [Line Items]
Percentage of growth in net revenue from direct sales		87.80%
Sales Revenue | Sale of Products Online in U.S
Organization And Description Of Business [Line Items]
Percentage of revenue		90.00%
Key Manufacturing Partner | China
Organization And Description Of Business [Line Items]
Percentage of manufacturing capacity reached	90.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Other Noncurrent Assets
Significant Accounting Policies [Line Items]
Restricted cash deposit associated with credit facility	$ 0.1
Other Noncurrent Assets | Letter of Credit
Significant Accounting Policies [Line Items]
Restricted cash deposit associated with credit facility	0.3
Prepaid Expenses and Other Current Assets
Significant Accounting Policies [Line Items]
Returned deposit for inventory to pay into an escrow account	$ 9.3	$ 3.3
Current Assets
Significant Accounting Policies [Line Items]
Restricted cash deposit associated with credit facility		$ 0.1

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Net Revenue Disaggregated by Sales Channel and Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 48,136	$ 25,628
Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	46,152	25,208
Wholesale
Disaggregation Of Revenue [Line Items]
Total net revenue	1,802	59
Managed PaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	182	361
North America
Disaggregation Of Revenue [Line Items]
Total net revenue	48,126	25,593
North America | Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	46,142	25,173
North America | Wholesale
Disaggregation Of Revenue [Line Items]
Total net revenue	1,802	59
North America | Managed PaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	182	361
Other
Disaggregation Of Revenue [Line Items]
Total net revenue	10	35
Other | Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 10	$ 35

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Net Revenue Disaggregated by Product Categories (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 48,136	$ 25,628
Product Revenue
Disaggregation Of Revenue [Line Items]
Total net revenue	47,954	25,267
Product Revenue | Heating, Cooling and Air Quality
Disaggregation Of Revenue [Line Items]
Total net revenue	6,138	9,877
Product Revenue | Kitchen Appliances
Disaggregation Of Revenue [Line Items]
Total net revenue	12,150	7,025
Product Revenue | Health and Beauty
Disaggregation Of Revenue [Line Items]
Total net revenue	3,642	4,430
Product Revenue | Personal Protective Equipment
Disaggregation Of Revenue [Line Items]
Total net revenue	1,154
Product Revenue | Cookware, Kitchen Tools and Gadgets
Disaggregation Of Revenue [Line Items]
Total net revenue	6,098	994
Product Revenue | Home Office
Disaggregation Of Revenue [Line Items]
Total net revenue	809	498
Product Revenue | Housewares
Disaggregation Of Revenue [Line Items]
Total net revenue	7,182	1,412
Product Revenue | Essential Oils and Related Accessories
Disaggregation Of Revenue [Line Items]
Total net revenue	7,353
Product Revenue | Other
Disaggregation Of Revenue [Line Items]
Total net revenue	3,428	1,031
PaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 182	$ 361

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Level 1 | Cash and Cash Equivalents
Assets:
Assets	$ 34,995	$ 26,718
Level 1 | Restricted Cash
Assets:
Assets	9,773	3,379
Fair Market Value of Warrant Liability | Level 3
Liabilities:
Liabilities	75,634	31,821
Estimated Fair Value of Contingent Earn-out Considerations | Level 3
Liabilities:
Liabilities	$ 54,734	$ 22,531

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory on-hand	$ 39,235	$ 22,753
Inventory in-transit	15,791	8,829
Inventory	$ 55,026	$ 31,582

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory on-hand held by Amazon	$ 10.5	$ 5.3

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Summary of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Prepaid Expense And Other Assets Current [Abstract]
Prepaid inventory	$ 10,055	$ 4,361
Restricted cash	9,344	3,250
Prepaid insurance	765	1,504
Other	4,413	1,996
Prepaid and other current assets	$ 24,577	$ 11,111

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities - Schedule of Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Accrued compensation costs	$ 112	$ 293
Accrued professional fees and consultants	1,861	483
Accrued logistics costs	2,978	1,068
Product related accruals	2,951	3,221
Sales tax payable	564	457
Sales return reserve	448	547
Accrued recall liability	22	22
Insurance financing		476
Withholding tax	3,168
All other accruals	2,077	1,773
Accrued and other current liabilities	$ 14,181	$ 8,340

Credit Facility and Term Loan_2

Credit Facility and Term Loans - Schedule of Credit Facility and Term Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Total MidCap Credit Facility	$ 14,319	$ 12,190
Less: deferred debt issuance costs	(100)		$ (200)
Less-current portion	(21,600)	(21,600)
Term loan-non current portion	83,689	36,483
MidCap Credit Facility
Debt Instrument [Line Items]
MidCap Credit Facility	15,085	12,905
Less: deferred debt issuance costs	(757)	(702)
Less: discount associated with issuance of warrants	(9)	(13)
Total MidCap Credit Facility	14,319	12,190
High Trail Loan December 2020 Note
Debt Instrument [Line Items]
High Trail Note	37,600	43,000
Less: deferred debt issuance costs	(1,717)	(2,207)
Less: discount associated with issuance of warrants	(7,842)	(9,839)
Less: discount associated with original issuance of loan	(3,740)	(4,692)
High Trail warrant	67,609	31,821
Total High Trail Note	91,910	58,083
Less-current portion	(21,600)	(21,600)
Term loan-non current portion	70,310	$ 36,483
High Trail February 2021 Note
Debt Instrument [Line Items]
High Trail Note	16,500
Less: deferred debt issuance costs	(1,331)
Less: discount associated with issuance of warrants	(7,407)
Less: discount associated with original issuance of loan	(2,368)
High Trail warrant	8,026
Total High Trail Note	13,420
Term loan-non current portion	$ 13,420

Credit Facility and Term Loan_3

Credit Facility and Term Loans - Additional Information (Details)	Feb. 08, 2021USD ($)shares	Feb. 02, 2021USD ($)	Dec. 01, 2020USD ($)InstallmentTradingDay$ / sharesshares	Nov. 23, 2018USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Interest expense from credit facility					$ 300,000	$ 500,000
Deferred debt issuance costs					100,000	200,000
Interest expense					4,753,000	1,133,000
Change in fair value impact of warrant liability					30,202,000
High Trail Letter Agreement | December Warrant
Debt Instrument [Line Items]
Exercise of common stock subject to warrant shares | shares	980,000
Payment for exercise of warrant shares	$ 8,800,000
Percent of average daily trading volume	10.00%
High Trail Letter Agreement | December Warrant | Common Stock
Debt Instrument [Line Items]
Warrants to purchase shares | shares	750,000
High Trail Letter Agreement | Penny Warrant
Debt Instrument [Line Items]
Payment for unexercised portion of warrant	$ 17,000,000
High Trail Letter Agreement | Penny Warrant | Common Stock
Debt Instrument [Line Items]
Warrants to purchase shares | shares	1,884,133
Horizon Term Loan
Debt Instrument [Line Items]
Credit facility maximum borrowing amount								$ 15,000,000
Debt instrument maturity month and year								2023-01
Repaying of term loan			$ 15,000,000
Interest expense					0	500,000
Amortization of debt issuance costs					0	$ 100,000
High Trail Loan December 2020 Note
Debt Instrument [Line Items]
Deferred debt issuance costs					1,717,000		$ 2,207,000
Interest expense							1,100,000
Amortization of debt issuance costs							200,000
Gross proceeds received			38,000,000
Aggregate principal amount			$ 43,000,000
Number of repayment installments | Installment			24
Line of credit facility, frequency of payments			monthly
Cash payments			$ 1,800,000
Line of credit facility covenant minimum liquidity requirement in unrestricted cash on hand					10,000,000
High Trail Loan December 2020 Note | December Warrant
Debt Instrument [Line Items]
Warrants to purchase shares | shares			2,864,133
Warrants to purchase shares, exercise price | $ / shares			$ 9.01
Warrants term			5 years
Warrant exercisable to common stock percentage			200.00%
Warrants consecutive trading days | TradingDay			20
Warrants exercisable date			Jun. 1, 2021
Fair value on issuance			$ 10,500,000
Change in fair value impact of warrant liability							21,300,000
High Trail Loan December 2020 Note | December Warrant | Fair Market Value of Warrant Liability
Debt Instrument [Line Items]
Liabilities							31,800,000
High Trail February 2021 Note
Debt Instrument [Line Items]
Deferred debt issuance costs					1,331,000
High Trail February 2021 Note | 0% Coupon Senior Secured Promissory Note | Investor | Securities Purchase Agreement
Debt Instrument [Line Items]
Aggregate principal amount		$ 16,500,000
Interest rate		0.00%
Maturity date		Feb. 1, 2023
High Trail December 2020 and February 2021 Note
Debt Instrument [Line Items]
Interest expense					3,900,000
Amortization of debt issuance costs					500,000
Fair value on issuance					75,600,000
Change in fair value impact of warrant liability					50,300,000
High Trail Amendments
Debt Instrument [Line Items]
Exercise of warrants for common stock shares issued | shares	134,348
High Trail Amendments | Minimum
Debt Instrument [Line Items]
Beneficial ownership limit, percentage	4.99%
High Trail Amendments | Maximum
Debt Instrument [Line Items]
Beneficial ownership limit, percentage	9.99%
London Interbank Offered Rate (LIBOR) | Horizon Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate								9.90%
Description of variable rate basis								one-month LIBOR
MidCap Credit Facility
Debt Instrument [Line Items]
Credit facility maximum borrowing amount			30,000,000	$ 25,000,000
Additional increase in borrowing amount			50,000,000	$ 50,000,000
Line of credit facility, unused capacity, commitment fee percentage				0.50%
Debt offset against and expense over the term				3 years
Line of credit facility, minimum liquidity financial covenant requirement in cash on hand			6,500,000
Line of credit, outstanding					$ 15,100,000		12,900,000
Available balance of credit facility							$ 1,400,000
MidCap Credit Facility | Senior Secured Note
Debt Instrument [Line Items]
Aggregate principal amount			$ 43,000,000
MidCap Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				5.75%

Credit Facility and Term Loan_4

Credit Facility and Term Loans - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt Disclosure [Abstract]
Interest expense	$ 4,753	$ 1,133
Interest income	(333)	(24)
Total Interest expense, net	$ 4,420	$ 1,109

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	Mar. 12, 2020	Mar. 31, 2021	Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options exercisable period		10 years
Total unrecognized compensation expense related to unvested options		$ 2.9
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period		6 months 18 days
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period		8 months 8 days	1 year
Shares forfeited	371,320
Total unrecognized compensation expense related to unvested shares of restricted common stock		$ 8.6	$ 14.7
Share-based Compensation Award, Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period		4 years
Share-based Compensation Award, Tranche One | Vesting on First Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting percentage		25.00%
Share-based Compensation Award, Tranche One | Vesting Over Succeeding 36 Months
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period		36 months
Options vesting percentage		75.00%
Share-based Compensation Award, Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period		3 years
Share-based Compensation Award, Tranche Two | Vesting on First Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting percentage		33.33%
Share-based Compensation Award, Tranche Two | Vesting Over Succeeding 24 Months
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period		24 months
Options vesting percentage		66.66%
Aterian 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance		56,458
2018 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance		93,615
2019 Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance		0
2019 Equity Plan | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of restricted shares issued and outstanding		70.00%
2019 Equity Plan | Share-based Compensation Award, Tranche One | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date		Mar. 13, 2020
2019 Equity Plan | Share-based Compensation Award, Tranche Two | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date		Dec. 15, 2020
2019 Equity Plan | Share-based Compensation Award, Tranche Three | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date		Jan. 18, 2021
2019 Equity Plan | Share-based Compensation Award, Tranche Four | Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date		Jul. 1, 2021

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options Outstanding, Number of Options, Shares, Beginning Balance	1,570,728
Options Outstanding, Number of Options, Exercised, Shares	(978,495)
Options Outstanding, Number of Options, Shares, Ending Balance	592,233	1,570,728
Options Outstanding, Number of Options Exercisable, Shares, as of March 31, 2021	370,183
Options Outstanding, Number of Options, Vested and expected to vest, Shares as of March 31, 2021	592,233
Options Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 9.09
Options Outstanding, Weighted Average Exercise Price, Exercised	9.01
Options Outstanding, Weighted Average Exercise Price, Ending Balance	9.22	$ 9.09
Options Outstanding, Weighted Average Exercise Price, Exercisable as of March 31, 2021	9.09
Options Outstanding, Weighted Average Exercise Price, Vested and expected to vest as of March 31, 2021	$ 9.22
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	7 years 6 months 21 days	7 years 8 months 15 days
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Exercisable as of March 31, 2021	7 years 5 months 23 days
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of March 31, 2021	7 years 6 months 21 days
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance	$ 12,756
Options Outstanding, Aggregate Intrinsic Value, Ending Balance	12,013	$ 12,756
Options Outstanding, Aggregate Intrinsic Value, Exercisable as of March 31, 2021	7,556
Options Outstanding, Aggregate Intrinsic Value, Vested and expected to vest as of March 31, 2021	$ 12,013

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock - $ / shares	Mar. 12, 2020	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Nonvested at January 1, 2021		3,259,389
Shares, Vested		(542,834)
Shares, Forfeited	(371,320)
Shares, Nonvested at March 31, 2021		2,716,555
Weighted Average Grant-Date Fair Value, Nonvested at January 1, 2021		$ 13.51
Weighted Average Grant-Date Fair Value, Vested		15.77
Weighted Average Grant-Date Fair Value, Nonvested at March 31, 2021		$ 11.81

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Total Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 6,899	$ 7,439
Sales and Distribution Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	955	1,592
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	883	1,273
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 5,061	$ 4,574

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net loss	$ (82,553)	$ (15,030)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted	26,225,383	15,193,647
Net loss per share, basic and diluted	$ (3.15)	$ (0.99)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Sales tax payable current	$ 564	$ 457

Acquisition - Additional Inform

Acquisition - Additional Information (Details) $ / shares in Units, $ in Thousands	Feb. 02, 2021USD ($)shares	Dec. 01, 2020USD ($)$ / sharesshares	Mar. 31, 2021USD ($)shares	Dec. 31, 2021USD ($)$ / shares	Dec. 31, 2020USD ($)	Dec. 31, 2022USD ($)
Business Acquisition [Line Items]
Acquisition date, initial fair value anoint of earn-out payment		$ 9,800
Change in fair value of contingent earn-out liabilities			$ 15,645
Healing Solutions LLC
Business Acquisition [Line Items]
Payment in cash	$ 15,300
Business acquisition shares issued/issuable | shares	1,387,759
Withheld of cash purchase price to serve collateral for sellers payment	$ 2,000
Withheld of cash purchase price payment period	within 60 days of closing
Business combination, acquired receivables, description	The shares will be issued to Healing Solutions following the final determination of inventory values pursuant to the terms of the Asset Purchase Agreement, which determination is expected to occur approximately nine to ten months following the Closing Date and such shares will be subject to vesting restrictions which will lapse on the date that is the one-year anniversary after the Closing Date.
Acquisition date, initial fair value anoint of earn-out payment	$ 16,500
Business combination contingent consideration earnout fair value			17,200
Change in fair value of contingent earn-out liabilities			625
Smash Assets
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares		4,220,000
Total consideration		$ 25,000
Shares issued, price per share | $ / shares		$ 6.89
Value of certain inventory		$ 15,600
Change in fair value of contingent earn-out liabilities			$ 15,020
Smash Assets | Sellers Brokers
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares		164,000
Common Stock | Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares	1,387,759
Entitled to receive number of shares of common stock | shares	170,042
Common Stock | Healing Solutions LLC | Maximum
Business Acquisition [Line Items]
Entitled to receive number of shares of common stock | shares	280,000
After 15 Months Following Closing Date | Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares			0
After 15 Months Following Closing Date | Common Stock | Healing Solutions LLC | Maximum
Business Acquisition [Line Items]
Entitled to receive number of shares of common stock | shares	528,670
Year One Earn-Out | Smash Assets
Business Acquisition [Line Items]
Business combination contingent consideration earnout fair value			$ 37,600		$ 22,500
Change in fair value of contingent earn-out liabilities			$ 15,000		$ 12,700
Year One Earn-Out | Smash Assets | Forecast
Business Acquisition [Line Items]
Business combination contingent consideration contribution margin ratio				1.67
Business combination contingent consideration earn out margin | $ / shares				$ 1
Business combination, contingent consideration earn out amount, minimum				$ 15,500
Business combination, contingent consideration earn out amount, maximum				18,500
Business combination contingent consideration arrangements earn out maximum				$ 5,000
Year Two Earn-Out | Smash Assets | Forecast
Business Acquisition [Line Items]
Business combination, contingent consideration earn out amount, maximum						$ 15,500
Business combination contingent consideration earn out generated amount						500
Business combination contingent consideration subject to cap						27,500
Business combination contingent consideration entitled to receive amount in cash equal to shares						$ 100
Nine Months Following Closing Date | Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares			528,670
After Nine Months But Before 12 Months Following Closing Date | Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares			396,502
After12 Months But Before 15 Months Following Closing Date | Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued/issuable | shares			264,335

Acquisition - Preliminary Alloc

Acquisition - Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date (Details) - Healing Solutions LLC $ in Thousands	Feb. 02, 2021USD ($)
Business Acquisition [Line Items]
Cash purchase price	$ 15,280
1,387,759 shares of common stock issued at the Closing	39,454
Estimated common share consideration for inventory	5,285
Estimated earnout liability	11,273
Total consideration	$ 71,292

Acquisition - Preliminary All_2

Acquisition - Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date (Parenthetical) (Details)	Feb. 02, 2021shares
Healing Solutions LLC
Business Acquisition [Line Items]
Business acquisition shares issued	1,387,759

Acquisition - Amounts Assigned

Acquisition - Amounts Assigned to Goodwill and Major Intangibles Asset Classifications (Details) - Healing Solutions LLC $ in Thousands	Feb. 02, 2021USD ($)
Business Acquisition [Line Items]
Goodwill	$ 39,975
Net assets acquired	71,292
Inventory
Business Acquisition [Line Items]
Intangible assets	8,215
Working Capital
Business Acquisition [Line Items]
Intangible assets	202
Trademarks
Business Acquisition [Line Items]
Intangible assets	$ 22,900

Acquisition - Amounts Assigne_2

Acquisition - Amounts Assigned to Goodwill and Major Intangibles Asset Classifications (Parenthetical) (Details)	Feb. 02, 2021
Trademarks | Healing Solutions LLC
Business Acquisition [Line Items]
Useful life (in years)	10 years

Acquisition - Pro Forma Informa

Acquisition - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Business Acquisition [Line Items]
NET REVENUE	$ 48,136	$ 25,628
Operating income/ (loss) as reported	(27,751)	(13,896)
Operating loss pro forma	(27,369)	(12,892)
Healing Solutions LLC
Business Acquisition [Line Items]
Net revenue pro forma	4,600	14,423
Operating income/ (loss) as reported	382	1,004
Truweo
Business Acquisition [Line Items]
Net revenue pro forma	$ 52,736	$ 40,051

Acquisition - Summary of Change

Acquisition - Summary of Changes in Carrying Value of Estimated Contingent Earn-Out Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Business Acquisition [Line Items]
Beginning	$ 22,531
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares	16,558
Change in fair value of contingent earn-out liabilities	15,645
Ending Balance	54,734
Smash Assets
Business Acquisition [Line Items]
Beginning	22,531
Change in fair value of contingent earn-out liabilities	15,020
Ending Balance	37,551
Healing Solutions LLC
Business Acquisition [Line Items]
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares	16,558
Change in fair value of contingent earn-out liabilities	625
Ending Balance	$ 17,183

Goodwill and Intangibles - Summ

Goodwill and Intangibles - Summary of Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Disclosure Of Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	$ 79,262	$ 1,078
Additions	62,875	78,184
Gross Carrying Amount	142,137	79,262
Accumulated Amortization	(1,664)	(484)
Net Book Value	140,473	78,778
Goodwill
Disclosure Of Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	47,318	745
Additions	39,975	46,573
Gross Carrying Amount	87,293	47,318
Net Book Value	87,293	47,318
Trademarks
Disclosure Of Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	31,810	310
Additions	22,200	31,500
Gross Carrying Amount	54,010	31,810
Accumulated Amortization	(1,616)	(442)
Net Book Value	52,394	31,368
Non-Competition Agreement
Disclosure Of Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	111	11
Additions		100
Gross Carrying Amount	111	111
Accumulated Amortization	(25)	(19)
Net Book Value	86	92
Transition Services Agreement
Disclosure Of Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	23	12
Additions		11
Gross Carrying Amount	23	23
Accumulated Amortization	(23)	$ (23)
Option to Purchase Additional Inventory
Disclosure Of Goodwill And Intangible Assets [Line Items]
Additions	700
Gross Carrying Amount	700
Net Book Value	$ 700

Subsequent Events - Additional

Subsequent Events - Additional Information (Details)	May 06, 2021USD ($)shares	May 02, 2021USD ($)Installment	Apr. 08, 2021USD ($)shares	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)	Nov. 30, 2021USD ($)	Sep. 30, 2021USD ($)	May 31, 2021USD ($)	Dec. 31, 2020USD ($)
Subsequent Event [Line Items]
Common stock issued				$ 3,000					$ 3,000
Squatty Potty, LLC | Scenario Forecast
Subsequent Event [Line Items]
Earn-out payments					$ 4,000,000
Business acquisition, payment for transition services					8,000,000
Photo Paper Direct Ltd. | Scenario Forecast
Subsequent Event [Line Items]
Earn-out payments					6,000,000
Common stock issued					$ 2,000,000
Subsequent Event | Squatty Potty, LLC
Subsequent Event [Line Items]
Payment in cash	$ 19,000,000
Business acquisition, inventory acquired	1,100,000
Subsequent Event | Photo Paper Direct Ltd.
Subsequent Event [Line Items]
Payment in cash	8,280,000
Business acquisition, assets acquired	5,400,000
Business acquisition, cash on hand payment	$ 3,000,000
Subsequent Event | Common Stock | Photo Paper Direct Ltd.
Subsequent Event [Line Items]
Business acquisition shares issued | shares	704,500
Subsequent Event | Private Placement
Subsequent Event [Line Items]
Gross proceeds received			$ 14,800,000
April Letter Agreement | Subsequent Event
Subsequent Event [Line Items]
Common stock shares issued | shares			130,000
Securities Purchase Agreement | Subsequent Event
Subsequent Event [Line Items]
Cash payments			$ 57,700,000
Securities Purchase Agreement | Subsequent Event | Common Stock
Subsequent Event [Line Items]
Warrants to purchase shares | shares			2,259,166
Securities Purchase Agreement | Subsequent Event | Senior Secured Promissory Notes | Private Placement | High Trail Loans
Subsequent Event [Line Items]
Aggregate principal amount			$ 110,000,000
Interest rate			8.00%
Maturity date			Apr. 8, 2024
SPA Amendment
Subsequent Event [Line Items]
Warrant amendment description				The Warrant Amendments amend the February Warrant, the Penny Warrant and the Additional Warrant to amend the definition of “Black Scholes Value” in each warrant to provide that the expected volatility used in the Black Scholes Value shall equal 100% instead of the greater of 100% and the 100-day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365-day annualization factor) as of the trading day immediately following the public announcement of a Change of Control (as defined in each of the warrants), or, if the Change of Control is not publicly announced, the date the Change of Control is consummated.
Terminated Credit Agreement | Subsequent Event | Revolving Credit Facility
Subsequent Event [Line Items]
Prepayment fee, percentage			4.30%
Settlement Agreement | Subsequent Event
Subsequent Event [Line Items]
Number of installments | Installment		3
Payment to suppliers		$ 3,000,000
Settlement Agreement | Subsequent Event | First Payment
Subsequent Event [Line Items]
Payment to suppliers								$ 1,000,000
Settlement Agreement | Subsequent Event | Second Payment
Subsequent Event [Line Items]
Payment to suppliers							$ 1,000,000
Settlement Agreement | Subsequent Event | Third Payment
Subsequent Event [Line Items]
Payment to suppliers						$ 1,000,000