Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | AUGMEDIX, INC. | |
Trading Symbol | AUGX | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 37,432,204 | |
Amendment Flag | false | |
Entity Central Index Key | 0001769804 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56036 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-3299164 | |
Entity Address, Address Line One | 111 Sutter Street | |
Entity Address, Address Line Two | Suite 1300 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94104 | |
City Area Code | (888) | |
Local Phone Number | 669-4885 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 26,251 | $ 41,255 |
Restricted cash | 125 | 125 |
Accounts receivable, net of allowance for doubtful accounts of $59 and $64 at September 30, 2022 and December 31, 2021, respectively | 5,053 | 7,178 |
Prepaid expenses and other current assets | 1,531 | 2,203 |
Total current assets | 32,960 | 50,761 |
Property and equipment, net | 1,303 | 982 |
Restricted cash, non-current | 621 | 207 |
Operating lease right of use asset | 1,738 | |
Deposits and other assets | 527 | 120 |
Total assets | 37,149 | 52,070 |
Current liabilities: | ||
Loan payable, current portion | 1,875 | 1,500 |
Accounts payable | 1,417 | 1,365 |
Accrued expenses and other current liabilities | 4,750 | 4,259 |
Deferred revenue | 6,388 | 6,238 |
Lease liability, current portion | 866 | |
Customer deposits | 595 | 632 |
Total current liabilities | 15,891 | 13,994 |
Lease liability, net of current portion | 1,168 | |
Loan payable, net of current portion | 13,158 | 13,337 |
Deferred rent, net of current portion | 273 | |
Other liabilities | 481 | 395 |
Total liabilities | 30,698 | 27,999 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.0001 par value; 500,000,000 shares authorized; 37,432,204 and 37,387,472 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 4 | 4 |
Additional paid-in capital | 126,966 | 125,479 |
Accumulated deficit | (120,192) | (101,342) |
Accumulated other comprehensive loss | (327) | (70) |
Total stockholders’ equity | 6,451 | 24,071 |
Total liabilities and stockholders’ equity | $ 37,149 | $ 52,070 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 59 | $ 64 |
Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 37,432,204 | 37,387,472 |
Common stock, shares outstanding | 37,432,204 | 37,387,472 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 7,864 | $ 5,625 | $ 22,182 | $ 15,588 |
Cost of revenues | 4,274 | 3,092 | 12,277 | 8,518 |
Gross profit | 3,590 | 2,533 | 9,905 | 7,070 |
Operating expenses: | ||||
General and administrative | 4,136 | 3,238 | 12,355 | 9,987 |
Sales and marketing | 2,304 | 2,035 | 6,944 | 5,245 |
Research and development | 2,608 | 1,810 | 7,537 | 4,735 |
Total operating expenses | 9,048 | 7,083 | 26,836 | 19,967 |
Loss from operations | (5,458) | (4,550) | (16,931) | (12,897) |
Other income (expenses): | ||||
Interest expense | (316) | (589) | (1,302) | (1,639) |
Interest income | 59 | 1 | 68 | 8 |
Loss on debt extinguishment | (1,097) | (246) | ||
Forgiveness of PPP loan | 2,180 | 2,180 | ||
Other income | 225 | 221 | 412 | 408 |
Total other income (expenses), net | (32) | 1,813 | (1,919) | 711 |
Net loss | (5,490) | (2,737) | (18,850) | (12,186) |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | (117) | 3 | (257) | 6 |
Total comprehensive loss | $ (5,607) | $ (2,734) | $ (19,107) | $ (12,180) |
Net loss per share of common stock, basic and diluted (in Dollars per share) | $ (0.15) | $ (0.1) | $ (0.5) | $ (0.45) |
Weighted average shares of common stock outstanding, basic and diluted (in Shares) | 37,426,751 | 27,123,885 | 37,412,238 | 27,002,774 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net loss per share of common stock, basic and diluted (in Dollars per share) | $ (0.15) | $ (0.10) | $ (0.50) | $ (0.45) |
Weighted average shares of common stock outstanding, basic and diluted (in Shares) | 37,426,751 | 27,123,885 | 37,412,238 | 27,002,774 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2020 | $ 3 | $ 87,051 | $ (83,878) | $ (52) | $ 3,124 |
Balance (in Shares) at Dec. 31, 2020 | 26,859,850 | ||||
Issuance of common stock warrants | 395 | 395 | |||
Issuance of common stock in connection with exercise of warrants | 4 | 4 | |||
Issuance of common stock in connection with exercise of warrants (in Shares) | 4,208 | ||||
Stock-based compensation expense | 384 | 384 | |||
Foreign currency translation adjustment | 4 | 4 | |||
Net loss | (4,918) | (4,918) | |||
Balance at Mar. 31, 2021 | $ 3 | 87,834 | (88,796) | (48) | (1,007) |
Balance (in Shares) at Mar. 31, 2021 | 26,864,058 | ||||
Balance at Dec. 31, 2020 | $ 3 | 87,051 | (83,878) | (52) | 3,124 |
Balance (in Shares) at Dec. 31, 2020 | 26,859,850 | ||||
Net loss | (12,186) | ||||
Balance at Sep. 30, 2021 | $ 3 | 89,157 | (96,248) | (46) | (7,134) |
Balance (in Shares) at Sep. 30, 2021 | 27,134,285 | ||||
Balance at Mar. 31, 2021 | $ 3 | 87,834 | (88,796) | (48) | (1,007) |
Balance (in Shares) at Mar. 31, 2021 | 26,864,058 | ||||
Issuance of common stock to service provider | 600 | 600 | |||
Issuance of common stock to service provider (in Shares) | 120,000 | ||||
Exercise of common stock options | 100 | 100 | |||
Exercise of common stock options (in Shares) | 126,876 | ||||
Stock-based compensation expense | 239 | 239 | |||
Foreign currency translation adjustment | (1) | (1) | |||
Net loss | (4,715) | (4,715) | |||
Balance at Jun. 30, 2021 | $ 3 | 88,773 | (93,511) | (49) | (4,784) |
Balance (in Shares) at Jun. 30, 2021 | 27,110,934 | ||||
Exercise of common stock options | 13 | 13 | |||
Exercise of common stock options (in Shares) | 23,351 | ||||
Stock-based compensation expense | 371 | 371 | |||
Foreign currency translation adjustment | 3 | 3 | |||
Net loss | (2,737) | (2,737) | |||
Balance at Sep. 30, 2021 | $ 3 | 89,157 | (96,248) | (46) | (7,134) |
Balance (in Shares) at Sep. 30, 2021 | 27,134,285 | ||||
Balance at Dec. 31, 2021 | $ 4 | 125,479 | (101,342) | (70) | 24,071 |
Balance (in Shares) at Dec. 31, 2021 | 37,387,472 | ||||
Exercise of common stock options | 13 | 13 | |||
Exercise of common stock options (in Shares) | 24,015 | ||||
Stock-based compensation expense | 424 | 424 | |||
Foreign currency translation adjustment | (9) | (9) | |||
Net loss | (6,025) | (6,025) | |||
Balance at Mar. 31, 2022 | $ 4 | 125,916 | (107,367) | (79) | 18,474 |
Balance (in Shares) at Mar. 31, 2022 | 37,411,487 | ||||
Balance at Dec. 31, 2021 | $ 4 | 125,479 | (101,342) | (70) | $ 24,071 |
Balance (in Shares) at Dec. 31, 2021 | 37,387,472 | ||||
Exercise of common stock options (in Shares) | 51,602 | ||||
Net loss | $ (18,850) | ||||
Balance at Sep. 30, 2022 | $ 4 | 126,966 | (120,192) | (327) | 6,451 |
Balance (in Shares) at Sep. 30, 2022 | 37,432,204 | ||||
Balance at Mar. 31, 2022 | $ 4 | 125,916 | (107,367) | (79) | 18,474 |
Balance (in Shares) at Mar. 31, 2022 | 37,411,487 | ||||
Issuance of common stock warrants | 72 | 72 | |||
Exercise of common stock options | 6 | 6 | |||
Exercise of common stock options (in Shares) | 12,846 | ||||
Stock-based compensation expense | 491 | 491 | |||
Foreign currency translation adjustment | (131) | (131) | |||
Net loss | (7,335) | (7,335) | |||
Balance at Jun. 30, 2022 | $ 4 | 126,485 | (114,702) | (210) | 11,577 |
Balance (in Shares) at Jun. 30, 2022 | 37,424,333 | ||||
Exercise of common stock options | 4 | 4 | |||
Exercise of common stock options (in Shares) | 7,871 | ||||
Stock-based compensation expense | 477 | 477 | |||
Foreign currency translation adjustment | (117) | (117) | |||
Net loss | (5,490) | (5,490) | |||
Balance at Sep. 30, 2022 | $ 4 | $ 126,966 | $ (120,192) | $ (327) | $ 6,451 |
Balance (in Shares) at Sep. 30, 2022 | 37,432,204 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (18,850) | $ (12,186) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 607 | 523 |
Stock-based compensation | 1,392 | 994 |
Non-cash interest expense | 382 | 346 |
Non-cash advertising expense | 200 | |
Non-cash portion of loss on debt extinguishment | 1,087 | 161 |
Forgiveness of PPP loan | (2,180) | |
Non-cash lease expense | 572 | |
Provision for bad debt | 15 | |
Deferred rent | 355 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,109 | (2,849) |
Prepaid expenses, deposits and other assets | 101 | 392 |
Accounts payable | (111) | 942 |
Accrued expenses and other liabilities | 632 | 229 |
Deferred revenue | 150 | 269 |
Lease liability | (636) | |
Customer deposits | (37) | (306) |
Net cash used in operating activities | (12,387) | (13,310) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (816) | (423) |
Net cash used in investing activities | (816) | (423) |
Cash flows from financing activities: | ||
Proceeds from loan payable | 15,000 | 15,000 |
Repayment of loan payable | (16,125) | (12,966) |
Payment to unaccredited investors of Augmedix Operating Corporation | (22) | |
Payment of financing costs | (142) | (232) |
Payment of offering costs in relation to equity issuance | (16) | |
Proceeds from exercise of common stock warrants | 4 | |
Proceeds from exercise of stock options | 23 | 113 |
Net cash (used in) provided by financing activities | (1,244) | 1,881 |
Effect of exchange rate changes on cash and restricted cash | (143) | (3) |
Net decrease in cash and restricted cash | (14,590) | (11,855) |
Cash, cash equivalents and restricted cash at beginning of period | 41,587 | 22,973 |
Cash, cash equivalents and restricted cash at end of period | 26,997 | 11,118 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 815 | 1,290 |
Cash paid during the period for income taxes | 13 | |
Supplemental schedule of non-cash investing and financing activities: | ||
Deferred offering costs in accounts payable and accrued expenses | 192 | |
Fair value of warrants issued in connection with loan | 72 | 395 |
Fair value of common stock issued to service provider | 600 | |
Property, and equipment in accounts payable | $ 184 | $ 83 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business Augmedix, Inc. (the “Company”, “we” or “our”) was incorporated in 2013 and launched its commercial real-time, remote documentation services in 2014. Augmedix delivers industry-leading, ambient medical documentation and data solutions to healthcare systems, physician practices, hospitals, and telemedicine practitioners. Augmedix is on a mission to help clinicians and patients form a human connection at the point of care without the intrusion of technology. Augmedix’s solutions extract data from natural physician-patient conversations and convert it to medical notes in real time, which are seamlessly transferred to the Electronic Health Record (‘EHR”) system. To achieve this, the Company’s Ambient Automation Platform uses Automated Speech Recognition and Natural Language Processing, supported by medical documentation specialists. Leveraging this platform, Augmedix’s solutions relieve clinicians of administrative burden, in turn, reducing burnout and increasing both clinician and patient satisfaction. Augmedix is headquartered in San Francisco, CA, with offices in four (4) countries around the world. Liquidity The Company has historically funded its operations primarily by debt and equity financings prior to the merger with Malo Holdings and subsequently funded its operations through cash proceeds obtained as part of the listing on the OTC market and the listing on Nasdaq. As of September 30, 2022, the Company’s existing sources of liquidity included cash, cash equivalents and restricted cash of $27.0 million. The Company has a limited history of operations and has incurred negative cash flows from operating activities and loss from operations in the past as reflected in the accumulated deficit of $120.2 million as of September 30, 2022. The Company expects to continue to incur operating losses due to the investments it intends to make in its business, including the development of products. The Company has adequate cash balances that will be sufficient to fund operating and capital expenditure requirements through at least 12 months from the date of issuance of these financial statements. Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key personnel, competition from similar products and larger companies, ongoing changes within the industry, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company, and general economic conditions, including ongoing economic impacts from the conflict in Ukraine. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic which continues to spread throughout the United States and the world. The Company continues to closely monitor the impact of the COVID-pandemic on its business. We cannot predict the full impact of the COVID-19, including its duration in the United States and worldwide, the effectiveness of governmental responses designed to mitigate strain to businesses and the economy and the magnitude of the economic impact of the COVID-19 pandemic. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused and are continuing to cause, business shutdowns, cancellations of events and travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both globally and in the United States. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. The Company’s business, results of operations and financial condition depend on future developments that are highly uncertain and cannot be accurately predicted. COVID-19 Update The Company has been carefully monitoring the COVID-19 pandemic and its impact on the business and has taken important steps to help ensure the safety of the Company’s employees and to reduce the spread of COVID-19 community-wide. The Company is ensuring that essential staffing levels at the Company’s operations remain in place, including maintaining key personnel in the Company’s facilities. The Company has implemented stringent safety measures designed to create a safe and clean environment for the Company’s employees as the Company continues to comply with applicable guidelines (foreign and U.S., as applicable) instituted in response to the COVID-19 pandemic |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation and summary of significant accounting policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by ASUs of the FASB. The accompanying unaudited interim condensed consolidated financial statements include the accounts of Augmedix, Inc. and its wholly-owned subsidiaries, Augmedix Operating Corporation, Augmedix Bangladesh Limited and Augmedix Solutions Private Limited. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s consolidated financial position as of September 30, 2022 and its results of operations for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. The unaudited interim condensed consolidated financial statements, presented herein, do not contain the required disclosures under GAAP for annual consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated balance sheet as of that date. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2022. Use of Estimates The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments involve the average period of benefit associated with costs capitalized to obtain a revenue contract, incremental borrowing rate and the valuation of the warrant liability and stock-based compensation, including the underlying fair value of the Company’s common stock for grants issued when the Company was a private company. Actual results could differ from those estimates. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. Foreign Currency Transactions, Translations and Foreign Operations The functional currency of the Bangladesh and India subsidiaries are the Bangladeshi Taka and Indian Rupee, respectively. All assets and liabilities denominated in each entity’s functional currency are translated into the U.S. Dollar using the exchange rate in effect as of the balance sheet dates. Expenses are translated using the weighted average exchange rate for the reporting period. The resulting translation gains and losses are recorded within the unaudited interim condensed consolidated statements of operations and comprehensive loss and as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recorded within other income (expenses) in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive loss. Transaction gains and losses were $0.1 million gain and $3,000 gain for the three months ended September 30, 2022 and 2021, respectively. Transaction gains and losses were $0.2 million gain and $2,000 loss for the nine months ended September 30, 2022 and 2021, respectively. Operations outside the United States are subject to risks inherent in operating under different legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange. Concentrations of Credit Risk and Major Customers Financial instruments at September 30, 2022 and 2021 that potentially subject the Company to concentration of credit risk consist primarily of cash, and cash equivalents, restricted cash, and accounts receivable. The Company’s cash is deposited with major financial institutions in the U.S., Bangladesh and India. At times, deposits in financial institutions located in the U.S. may be in excess of the amount of insurance provided on such deposits by the Federal Deposit Insurance Corporation (FDIC). Cash deposits at foreign financial institutions are not insured by government agencies of Bangladesh and India. To date, the Company has not experienced any losses on its cash deposits. The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. Major customers are defined as those generating revenue in excess of 10% of the Company’s annual revenue. The Company had three major customers during the three and nine months ended September 30, 2022. Revenues from these major customers accounted for 17%, 15% and 12% of revenue for the three months ended September 30, 2022 and 18%, 16% and 12% of revenue for the nine months ended September 30, 2022. Revenues from these major customers accounted for 22%, 19% and 12% of revenue for the three months ended September 30, 2021 and 24%, 21% and 11% of revenue for the nine months ended September 30, 2021. One customer individually accounts for 10% or more of the accounts receivable, with a balance of $0.8 million at September 30, 2022. Two customers accounted for 10% or more of accounts receivable, with a balance of $1.4 million and $0.8 million at September 30, 2021. Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit and money market accounts. Cash equivalents are all highly-liquid investments with original maturities of three months or less. Restricted Cash Restricted cash represents amounts held on deposit at a commercial bank used to secure the Company’s credit card facility balances, to collateralize a letter of credit in the name of the Company’s landlord pursuant to a certain operating lease and for a post-employment savings fund established for the benefit of eligible Bangladesh employees. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s condensed consolidated balance sheets to the total of the amount presented in the condensed consolidated statements of cash flows: September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 26,251 $ 10,786 Restricted cash 125 125 Restricted cash, non-current 621 207 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows $ 26,997 $ 11,118 Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets, less costs to sell. The Company did not record any expense related to asset impairment in 2022 or 2021. Revenue Recognition ASC Topic 606, Revenue from Contracts with Customers, The Company derives its revenue through a recurring subscription model. The Company enters into contracts or agreements with its customers with a general initial term of one year. Customers are invoiced in advance and must generally pay an upfront implementation fee. The upfront implementation fee is deferred and recognized over the period the customer benefits and customer prepayments are deferred and included in the accompanying unaudited interim condensed consolidated balance sheets in deferred revenue. Revenues are recognized over time as the professional services are provided to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The customer receives the benefit of our scribing services as we perform them. Our services include fixed and variable fee subscriptions and are a single performance obligation consisting of a series of distinct services. These fixed fees are recognized ratably over the contract terms as this method best depicts the pattern of the services we perform. Variable fees are recognized in the month in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service and because such amounts reflect the fees to which we expect to be entitled for providing the services for that period, consistent with the allocation objective. The Company’s revenues are earned from customers located only in the U.S. After the initial term, contracts are cancellable by the customer at their discretion with a 30 to 90-day notice. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, the Company satisfies a performance obligation. Except for two U.S. state sales tax jurisdictions, applicable taxes, including local, sales, value added tax, etc., are the responsibility of the customer to self-assess and remit to proper tax authorities. Revenue is recognized net of any sales taxes. Costs Capitalized to Obtain Revenue Contracts Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new revenue contracts are capitalized and then amortized on a systematic basis over a period of benefit that the Company determined to be two years. The period of benefit was determined by taking into consideration the Company’s customer contracts, technology, customer life, and other factors. The current portion of capitalized sales commissions are included in prepaid expenses and other current assets and the non-current portion is included in deposits and other assets on the condensed consolidated balance sheet. Amortization expense is included in Sales and marketing expenses on the consolidated statements of operations. Contract Balances and Accounts Receivable Changes in the contract liability deferred revenue account were as follows for the nine months ended September 30, 2022 and year ended December 31, 2021: (in thousands) Nine Months Year Ended Balance, beginning of period $ 6,238 $ 5,439 Deferral of revenue 22,332 22,964 Recognition of unearned revenue (22,182 ) (22,165 ) Balance, end of period $ 6,388 $ 6,238 Accounts receivable, net from customers was $5.1 million and $7.2 million as of September 30, 2022 and December 31, 2021, respectively. Deferred revenue consists of billings or payments received in advance of revenue recognized for the Company’s services, as described above, and is recognized as revenue as earned. As of September 30, 2022, the Company expects to recognize $6.4 million from remaining performance obligations over the next 12 months. Remaining performance obligations include related deferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes (i) contracts with an original expected term of one year or less, and (ii) cancellable contracts. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock options awarded to employees and nonemployees based on the estimated fair value of the award on the grant date. The fair value of each option award is estimated using either a Black-Scholes option-pricing model or a Monte Carlo simulation, to the extent market conditions exist. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The Company accounts for forfeitures of stock options as they occur. Estimating the fair market value of options requires the input of subjective assumptions, including the estimated fair value of the Company’s common stock for grants issued while the Company was a private company, the expected life of the options, stock price volatility, the risk-free interest rate, expected dividends, and the probability of satisfying the market condition for market-condition based awards. The assumptions used in the valuation models represent management’s best estimates and involve a number of variables, uncertainties and assumptions and the application of management’s judgment, as they are inherently subjective. Advertising Costs All advertising costs are expensed as incurred and included in sales and marketing expenses. In April 2021, the Company issued 120,000 shares of common stock with a fair value of $0.6 million to a service provider as payment for advertising services to be performed over a one-year period. As of September 30, 2022, the $0.6 million has been fully amortized and no remaining unamortized advertising costs are included in prepaid expenses and other current assets. As of September 30, 2021, the remaining unamortized advertising costs of $0.4 million are included in prepaid expenses and other current assets. Advertising expenses incurred by the Company were $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $0.7 million for each of the nine months ended September 30, 2022 and 2021. Net Loss Per Share Basic net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per common stock includes the effect, if any, from the potential exercise or conversion of securities, such as options and warrants which would result in the issuance of incremental common stock. In computing basic and diluted net loss per share, the weighted average number of shares is the same for both calculations due to the fact that a net loss existed for the nine months ended September 30, 2022 and 2021. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive: September 30, September 30, Common stock warrants 2,801,703 3,333,791 Stock options 8,118,888 6,574,323 10,920,591 9,908,114 Correction of Immaterial Error Related to Prior Periods In the third quarter of 2022, the Company identified an error related to its accounting for sales commissions whereby the Company should have amortized sales commissions for new revenue contracts over the period of benefit of two years. As a result of the error, costs capitalized to obtain revenue contracts was understated by $0.3 million and noncurrent costs capitalized to obtain revenue contracts was understated by $0.1 million at December 31, 2021. For the three and nine months ended September 30, 2021, sales and marketing expense was overstated by $0.1 million and $0.2 million, respectively. For the three months ended June 30, 2022 and the three months ended March 31, 2022, sales and marketing expense was overstated by $0.1 million and understated by $0.1 million, respectively. For the six months ended June 30, 2022, sales and marketing expenses was overstated by a nominal amount. For the three months ended June 30, 2021, sales and marketing expense was overstated by $0.1 million. The overstatement to sales and marketing expenses was nominal for the three months ended March 31, 2021. For the six months ended June 30, 2021, sales and marketing expense was overstated by $0.1 million. The Company reviewed the impact of this error on the prior periods in accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Topic 1M, “Materiality,” and determined that the error was not material to prior periods. However, the Company has corrected the consolidated balance sheet, as of December 31, 2021, by increasing costs capitalized to obtain revenue contracts by $0.3 million, which is included in prepaid expenses and other current assets and increasing noncurrent costs capitalized to obtain revenue contracts by $0.1 million, which is included in deposits and other assets. The Company has corrected the unaudited interim consolidated statement of operations for the three and nine months ended September 30, 2021 by decreasing sales and marketing expense by $0.1 million and $0.2 million, respectively. Recent Accounting Pronouncements In February 2016, the FASB issued ASC Topic 842, Leases In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In May 2021, the FASB issued ASU 2021-04 , Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Although early adoption is permitted, the Company does not intend to early adopt this standard, and the Company is currently evaluating the impact of this standard but does not expect it to have a material impact on its consolidated financial statements upon adoption. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic ASC 832): Disclosures by Business Entities about Government Assistance |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses, accounts payable, and customer deposits approximate fair value due to their short-term nature. Cash equivalents are currently held in money market funds which are classified as Level 1 because they are valued using quoted market prices in active markets for identical assets. As of September 30, 2022, the fair value of the Company’s loan payable was $15.5 million, and the carrying value of the Company loan payable was $15.0 million. The estimated fair value for the Company’s loan payable was based on discounted expected future cash flows using prevailing interest rates which are Level 2 inputs under the fair value hierarchy. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment, consists of the following: (in thousands) September 30, December 31, Computer hardware, software and equipment $ 7,032 $ 6,212 Leasehold improvements 452 514 Furniture and fixtures 70 75 Construction in progress 7 — 7,561 6,801 Less: accumulated depreciation (6,258 ) (5,819 ) Property and equipment, net $ 1,303 $ 982 The Company recorded depreciation expense of $0.2 million during each of the three months ended September 30, 2022 and 2021 and $0.6 million and $0.5 million for the nine months ended September 30, 2022 and 2021, respectively. As disclosed in Note 2 under Foreign Currency Transactions, Translations and Foreign Operations, the functional currency of our foreign operations in Bangladesh and India is the local currency, therefore the balance of property and equipment and accumulated depreciation are translated at the month end rate, which impacted the balance individually, with a decrease of $0.2 million of the property and equipment and accumulated depreciation, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued expenses and other current liabilities | 5. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: (in thousands) September 30, December 31, Accrued compensation $ 2,755 $ 2,730 Accrued other 511 407 Accrued vendor partner liabilities 776 733 Deferred rent — 86 Accrued professional fees 539 219 Accrued VAT and other taxes 169 84 $ 4,750 $ 4,259 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Subordinated Note Payable In May 2017, the Company entered into a loan and security agreement, as amended, (“Sub Agreement”) with a lending institution for borrowings of up to $10.0 million. Outstanding borrowings under the Sub Agreement bore interest at the rate of 12% per year. Pursuant to the Sub Agreement, a final payment of $0.7 million was payable at the maturity date in April 2023. The Company recorded the final payment as both a discount and an increase to the principal amount of the debt. The Company also capitalized certain lender and legal costs associated with the Sub Agreement totaling $0.3 million, which were recorded as a discount to the Sub Agreement. The aggregate discount of $1.2 million was being amortized to interest expense over the repayment term of the Sub Agreement. The Company amortized $34,000 for the nine months ended September 30, 2021. Borrowings under the Sub Agreement were repaid in full in March 2021 with the proceeds from the Loan Agreement (as defined below). As a result, the Company recorded a loss on debt extinguishment within interest expense totaling $0.2 million, which includes writing off the remaining unamortized debt discount of $0.2 million plus lender fees paid to extinguish the debt. Paycheck Protection Program On April 11, 2020, the Company entered into an original loan agreement with East West Bank as the lender for a loan in an aggregate principal amount of $2.2 million pursuant to the Paycheck Protection Program (“PPP Loan”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and implemented by the U.S. Small Business Administration. The PPP Loan was to mature in two years from the issuance date and bore interest at a rate of 1% per year, with all payments deferred through the nine-month anniversary of the date of the PPP Loan. Principal plus accrued unpaid interest was to be paid in one payment two years after the date of this note and may have been prepaid by the Company at any time prior to maturity without penalty. The Company applied for forgiveness of amounts due under the PPP Loan, with the amount of potential loan forgiveness calculated in accordance with the requirements of the CARES Act based on payroll costs, any mortgage interest payments, any covered rent payments and any covered utilities payments during the 8-24 week period after the origination date of the Loan. The Company used proceeds of the PPP Loan for payroll and other qualifying expenses. On November 19, 2020, the Company applied for forgiveness of the full principal amount. On August 9, 2021, the Company received notification that the full amount of the PPP Loan and accrued interest was forgiven. As a result, the Company recorded a gain from the forgiveness of the PPP Loan in the condensed consolidated statements of operations and comprehensive loss during the year ended December 31, 2021. Loan and Security Agreement On March 25, 2021, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastward Fund Management, LLC, as the lender (“Lender”) to establish a loan facility which provided for borrowings in the aggregate principal amount of up to $17.0 million, which were available to be drawn in two tranches. The first tranche of $15.0 million was funded on March 31, 2021. On May 5, 2022, the Company paid off the remaining balance of the loan. The Company recognized this transaction as a debt extinguishment and recognized a $1.1 million loss on debt extinguishment. In connection with the Loan Agreement, the Company issued the Lender warrants with a fair value of $0.4 million, which was recorded as a discount to the loan, to purchase up to 346,500 shares (increasing to 392,700 shares upon funding of the second tranche) of common stock that were immediately vested upon funding with an exercise price of $3.00 per share and a term of the earlier of i) March 24, 2031 or ii) the third anniversary of the Company’s listing on Nasdaq. The warrants also provide that any shares issued pursuant to the warrants are entitled to the registration rights afforded to holders of the Company’s stock, all as set forth in those certain outstanding Registration Rights Agreement dated as of October 5, 2020. The Company and Lender also entered into a Co-Investment Agreement, which grants to the Lender and its affiliates a right to purchase in the Company’s future private equity financings up to a total $3.0 million (if the Company only draws the first tranche) or $3.4 million (if the Company draws the second tranche) at the same per share purchase price and terms as other investors in such private equity financings. The Lender chose not to exercise its co-investment rights during the October 2021 capital raise. The Company recorded the final payment of $1.1 million as both a discount and an increase to the principal amount of the debt. The Company also capitalized certain lender and legal costs associated with the Loan Agreement totaling $0.2 million, which were recorded as a discount to the loan. The aggregate discount of $1.8 million was being amortized to interest expense over the repayment term of the Loan and Security Agreement. The Company amortized $0.1 million and $0.2 million of the discount to interest expense during the three months and nine months ended September 30, 2022, respectively. The Company amortized $0.1 million and $0.3 million of the discount to interest expense during the three months and nine months ended September 30, 2021, respectively. SVB Loan Agreement On May 4, 2022 (the “Effective Date”), the Company and its subsidiary (individually and collectively, “Borrower”) entered into a loan and security agreement (the “SVB Loan Agreement”) with Silicon Valley Bank, a California corporation, as lender (“SVB”). The SVB Loan Agreement provides for a revolving credit facility in an aggregate principal amount of the lesser of (i) $5.0 million or (ii) 80% of eligible accounts (the “Revolving Credit Facility”) and two tranches of term loan advances, comprised of a term loan advance under Tranche A in an aggregate principal amount of up to $15.0 million and additional term loan advances under Tranche B in an aggregate principal amount of up to $5.0 million (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Facilities”). Borrower’s obligations under the SVB Loan Agreement are secured by first-priority liens on substantially all assets of Borrower. The proceeds of the initial draw under the Term Loan Facility, together with a portion of Borrower’s balance sheet cash, have been used to repay all of Borrower’s outstanding obligations under Borrower’s existing credit facility (“Existing Credit Facility”) provided by Eastward Fund Management, LLC. The Revolving Credit Facility’s stated maturity date is May 4, 2024. Interest on the borrowings under the Revolving Credit Facility is payable in arrears monthly at a floating rate per annum equal to the greater of (a) 3.75% and (b) the Prime Rate plus 0.50%. The Term Loan Facility’s stated maturity date is September 1, 2025, provided that, if Borrower achieves certain performance milestones as set forth in the SVB Loan Agreement, the Term Loan Facility maturity date will automatically be extended to December 1, 2025. Interest on the borrowings under the Term Loan Facility is payable in arrears monthly at a floating rate per annum equal to the greater of (a) 3.25% and (b) the Prime Rate plus 0.00%. The Term Loan Facility is interest only until July 1, 2023 provided that if Borrower achieves certain performance milestones, the amortization date automatically extends to January 1, 2024. The SVB Loan Agreement contains customary restrictions and covenants applicable to Borrower and its subsidiaries. In particular, the SVB Loan Agreement contains a financial covenant which provides that if Borrower fails to maintain minimum cash and cash equivalents in an amount of (a) no less than $25.0 million (prior to any Tranche B advance) and (b) $30.0 million (following any Tranche B advance), Borrower is then required to maintain certain minimum revenue requirements as set forth in the SVB Loan Agreement, which will be measured on a trailing 3-month basis and tested quarterly. If Borrower has failed to maintain the minimum cash and cash equivalents set forth in the preceding sentence, in lieu of being subject to the minimum revenue requirements, Borrower has the ability to cure such failure to maintain minimum cash and cash equivalents by delivering evidence satisfactory to SVB that Borrower has raised at least $10.0 million in net cash proceeds from the sale of Borrower’s equity interests. In connection with the SVB Loan Agreement, the Company issued to SVB a warrant to purchase stock, dated as of the Effective Date (the “Warrant”), to purchase up to 48,295 shares of the Company’s common stock, $0.0001 par value per share, exercisable at any time for a period of approximately seven years from the Effective Date, at an exercise price of $2.38 per share, payable in cash or on a cashless basis according to the formula set forth in the Warrant. At September 30, 2022, the future minimum payments required under the SVB Loan Agreement, including the final payment, are as follows: (in thousands) 2022 (three months remaining) $ — 2023 3,750 2024 7,500 2025 3,750 15,000 End of term charge 750 15,750 Less unamortized debt discount (717 ) SVB Loan Agreement borrowing net of discount 15,033 Less current portion 1,875 SVB Loan Agreement borrowings, non-current portion $ 13,158 The Company recorded the final payment of $0.8 million as both a discount and an increase to the principal amount of the debt. The aggregate discount of $1.6 million is being amortized to interest expense over the repayment term of the SVB Loan Agreement. The Company amortized $0.1 million and $0.2 million of the discount to interest expense during the three months and nine months ended September 30, 2022, respectively. At September 30, 2022, the remaining unamortized discount was $0.7 million. |
Common Stock and Preferred Stoc
Common Stock and Preferred Stock | 9 Months Ended |
Sep. 30, 2022 | |
Common Stock, and Preferred Stock [Abstract] | |
Common Stock and Preferred Stock | 7. Common Stock and Preferred Stock Common Stock The Company is authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Subject to preferences that may apply to any outstanding preferred stock, holders of common stock are entitled to receive ratably any dividends that the Company’s Board of Directors may declare out of funds legally available for that purpose on a non-cumulative basis. No dividends had been declared through September 30, 2022. Common Stock Warrants At September 30, 2022, the Company had the following warrants outstanding to acquire shares of its common stock: Expiration Date Shares of Exercise October 25, 2024 346,500 $ 3.00 June 11, 2025 234 $ 96.24 November 13, 2025 218,078 $ 3.00 July 28, 2027 91 $ 106.17 August 28, 2028 1,052 $ 39.76 May 4, 2029 48,295 $ 2.38 September 2, 2029 2,187,453 $ 2.88 2,801,703 Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share. The Company’s Board of Directors are authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series. As of September 30, 2022 there were no shares of preferred stock issued or outstanding. |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plan | 8. Equity Incentive Plan At the effective date of the Malo Holdings and Augmedix merger (the “Merger”) Pursuant to the Merger, the Company adopted the 2020 Equity Incentive Plan (“2020 Plan”) which serves as successor to the 2013 Plan. The 2020 Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units, performance awards, cash awards, and stock bonus awards. Certain awards provide for accelerated vesting in the event of a change in control. Options issued may have a contractual life of up to 10 years and may be exercisable in cash or as otherwise determined by the Board of Directors. Vesting generally occurs over a period of not greater than four years. The number of shares of common stock reserved for issuance under the 2020 Plan did increase on January 1, 2021, and will increase each anniversary thereafter through 2030 by the number of shares of common stock equal to the lesser of 5% of the total number of outstanding shares of common stock as of the immediately preceding January 1, or a number as may be determined by the Company’s Board of Directors. As of September 30, 2022, 656,579 shares of common stock remained available for grant under the 2020 Plan. The Company recorded share-based compensation expense in the following expense categories in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 General and administrative $ 320 $ 258 $ 974 $ 649 Sales and marketing 50 31 120 88 Research and development 85 68 231 181 Cost of revenues 22 14 67 76 $ 477 $ 371 $ 1,392 $ 994 No income tax benefits have been recognized in the condensed consolidated statements of operations for stock-based compensation arrangements and no stock-based compensation costs have been capitalized as property and equipment through September 30, 2022. The fair value of options is estimated using the Black-Scholes option pricing model which takes into account inputs such as the exercise price, the value of the underlying ordinary shares at the grant date, expected term, expected volatility, risk free interest rate and dividend yield. The fair value of each grant of options during the nine months ended September 30, 2022 was determined using the methods and assumptions discussed below. ● The expected term of employee options is determined using the “simplified” method, as prescribed in SEC’s Staff Accounting Bulletin (SAB) No. 107, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to the Company’s lack of sufficient historical data. ● The expected volatility is based on historical volatility of the publicly traded common stock of a peer group of companies. ● The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term. ● The expected dividend yield is none because the Company has not historically paid and does not expect for the foreseeable future to pay a dividend on its ordinary shares. For the nine months ended September 30, 2022 and 2021, the fair value of options granted was estimated using a Black-Scholes option pricing model with the following weighted average assumptions: Nine Months Ended 2022 2021 Expected term (in years) 5.9 5.8 Expected Volatility 54.6 % 54.4 % Risk-free rate 2.0 % 0.8 % Dividend rate — — The weighted average grant date fair value of stock option awards granted was $1.23 and $1.61 during the nine months ended September 30, 2022 and 2021, respectively. The following table summarizes stock option activity under the 2020 Plan for the nine months ended September 30, 2022: Number of Weighted- Weighted- Outstanding at December 31, 2021 6,583,381 $ 1.78 8.0 Granted 1,743,474 $ 2.36 Exercised (51,602 ) $ 0.75 Forfeited and expired (156,365 ) $ 2.83 Outstanding at September 30, 2022 8,118,888 $ 1.89 7.7 Exercisable at September 30, 2022 4,816,549 $ 1.38 7.3 Vested and expected to vest at September 30, 2022 8,118,888 $ 1.89 7.7 There were 51,602 options exercised during the nine months ended September 30, 2022. The options exercised during the nine months ended September 30, 2022 had an intrinsic value of $0.1 million. The aggregate intrinsic value of options outstanding and options exercisable as of September 30, 2022 were $2.6 million and $2.4 million, respectively. At September 30, 2022, future stock-based compensation for options granted and outstanding of $3.1 million will be recognized over a remaining weighted-average requisite service period of 2.6 years. Performance and Market-Based Options In March 2021, the Company granted 727,922 stock options to the Chief Executive Officer (“CEO”) under the 2020 Plan with an exercise price of $3.00 per share. The options vest based on the CEO’s continued service in addition to the following terms: ● 317,688 options vest in full when the closing price of the Company’s common stock reaches or exceeds $9.00 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. These options expire on March 3, 2031. ● 46,273 options vest in full when the closing price of the Company’s common stock reaches or exceeds $9.00 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. Since the listing on Nasdaq, these options expire on March 22, 2031, instead of 2026. ● 363,961 options vest in full when the closing price of the Company’s common stock reaches or exceeds $13.50 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. Since the listing on Nasdaq, these options expire on March 22, 2031, instead of 2026. The grant date fair value of the options was determined using a Monte Carlo simulation model. The Company’s assumptions for expected volatility, closing price and risk-free rate were 50.0%, $3.00 and 0.77%, respectively. The aggregate estimated fair value of the options was $0.4 million. The Company recognized $30,000 and $0.1 million in share-based expense for the three and nine months ended September 30, 2022, respectively. The Company recognized $22,000 and $38,000 in share-based expense for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, there was $0.2 million of unrecognized compensation costs which the Company plans to recognize over a weighted average period of 1.6 years. If the market conditions are achieved, any remaining unrecognized compensation cost associated with those options will be immediately recognized. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Operating Leases Leases Effective January 1, 2022, the Company adopted ASC Topic (ASC 842) using the modified retrospective approach by applying the new standard to all leases existing on the adoption date. The results for reporting periods beginning after January 1, 2022 are presented in accordance with ASC 842, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to January 1, 2022. The Company leases its office facility in San Francisco, California under a non-cancelable operating lease agreement that expires in February 2025. In addition, the Company’s subsidiary has several operating lease agreements for office space in Bangladesh, which expire at various dates through December 2028. The Bangladesh lease agreements allow for early cancellation without penalty upon providing the landlord advance notice of at least nine months. The Company elected the practical expedient to recognize leases less than one year under short term lease exemption under ASC 842. Supplemental balance sheet information related to leases as of September 30, 2022 is as follows (in thousands): Operating leases: Operating lease right-of-use assets $ 1,738 Operating lease liability, current portion $ 866 Operating lease liability, net of current portion 1,168 Total operating lease liabilities $ 2,034 Supplemental lease expense related to leases was as follows: Lease Cost (in thousands) Statements of Operations Classification Three Nine Operating lease cost: Cost of revenues $ 8 $ 20 General and administrative 51 196 Sales and marketing 62 189 Research and development 68 166 Total operating lease cost $ 189 $ 571 Other information related to the operating lease where the Company is the lessee is as follows: Nine Months Ended Weighted-average remaining lease term 2.5 Weighted-average discount rate 4.0 % Supplemental cash flow information related to the operating lease is as follows (in thousands): Nine Months Ended Cash paid for operating lease liabilities $ 635 As of September 30, 2022, the maturities of the Company’s operating lease liability (excluding short-term leases) is as follows (in thousands): 2022 (remaining three months) $ — 2023 868 2024 894 2025 377 Total $ 2,139 Less: imputed interest (105 ) Operating lease liability 2,034 Less: operating lease liability, current portion (866 ) Operating lease liability, net of current portion $ 1,168 Cloud Computing Services In June 2021, the Company entered into a noncancellable three-year contract to obtain cloud computing services. The minimum contractual spend over the three-year term is $1.8 million. As of September 30, 2022, the Company has spent approximately $0.2 million against this contract. Legal In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding various litigation matters. In the opinion of management, any potential liabilities resulting from such claims would not have a material adverse effect on the Company’s condensed consolidated interim financial position or results of operations. As a result, no liability related to such claims has been recorded at September 30, 2022 or December 31, 2021, respectively. Indemnification Agreements From time to time, in the normal course of business, the Company may indemnify other parties when it enters into contractual relationships, including members of the Board of Directors, employees, customers, lessors and parties to other transactions with the Company. The Company may agree to hold other parties harmless against specific losses, such as those that could arise from a breach of representation, covenant or third-party infringement claims. It may not be possible to determine the maximum potential amount of liability under such indemnification agreements due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision. Management believes any liability arising from these agreements will not be material to the unaudited interim condensed consolidated financial statements. As a result, no liability for these agreements has been recorded at September 30, 2022 or 2021. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions Operating Leases In 2015, the Bangladesh subsidiary entered into agreements to rent office facilities under 10-year operating lease agreements (Note 9), with a company owned by relatives of the Company’s Director and Chief Strategy Officer. The Company paid $0.1 million to the related party during each of the three months ended September 30, 2022 and 2021, and $0.2 million and $0.3 million to the related party during the nine months ended September 30, 2022 and 2021, respectively, which is included as rent expense. At September 30, 2022 and 2021, the amounts owed to the related party were $5,000 and $4,000, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2022 | |
Employee Benefit Plan [Abstract] | |
Employee Benefit Plan | 11. Employee Benefit Plan The Company has a 401(k) plan to provide defined contribution retirement benefits for all eligible employees. Participants may contribute a portion of their compensation to the 401(k) plan, subject to the limitations under the Internal Revenue Code. The Company’s contributions to the 401(k) plan are at the discretion of the Board of Directors. During the three months ended September 30, 2022 and 2021 the Company made contributions of $33,000 and $25,000, respectively, and $0.1 million and $80,000 for the nine months ended September 30, 2022 and 2021, respectively, to the 401(k) plan. Effective October 2021, the Company established a savings fund for permanent employees of the Bangladesh subsidiary named Augmedix BD Limited Employees’ Gratuity Fund (“Gratuity Fund”), in accordance with local requirements. Employees will be entitled to cash benefit after completion of minimum five years of service with the Company. The payment amount will be calculated on the basic pay and is payable at the rate of one month’s basic pay for every completed year of service. The Company has accrued Gratuity Fund expenses totaling of $0.4 million as of December 31, 2021. During the three months and nine months ended September 30, 2022, the Company accrued $50,000 and $0.2 million respectively, which are included in accrued expenses and other current liabilities and other liabilities in the accompany consolidated balance sheet. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events Management has evaluated subsequent events occurring after September 30, 2022 through November 18, 2022, the date the unaudited condensed consolidated interim financial statements were available to be issued. Dignity Health Assignment Amendment On October 31, 2022, the Company entered into an Assignment Amendment (the “Agreement”) with Dignity Health, a California non-profit, public benefit corporation, (“Dignity”) and CommonSpirit Health (f/k/a Catholic Health Initiative), a Colorado non-profit corporation (“CommonSpirit”), effective as of October 20, 2022, pursuant to which the rights, responsibilities, and obligations of Dignity under that certain Services Agreement between the Company and Dignity, dated September 1, 2015, are assigned to CommonSpirit. The Agreement permits the Company to contract with any affiliate of CommonSpirit and memorializes the parties’ understanding that the Company and CommonSpirit intend to negotiate a new or amended and restated enterprise agreement. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by ASUs of the FASB. The accompanying unaudited interim condensed consolidated financial statements include the accounts of Augmedix, Inc. and its wholly-owned subsidiaries, Augmedix Operating Corporation, Augmedix Bangladesh Limited and Augmedix Solutions Private Limited. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s consolidated financial position as of September 30, 2022 and its results of operations for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. The unaudited interim condensed consolidated financial statements, presented herein, do not contain the required disclosures under GAAP for annual consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated balance sheet as of that date. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2022. |
Use of Estimates | Use of Estimates The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments involve the average period of benefit associated with costs capitalized to obtain a revenue contract, incremental borrowing rate and the valuation of the warrant liability and stock-based compensation, including the underlying fair value of the Company’s common stock for grants issued when the Company was a private company. Actual results could differ from those estimates. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. |
Foreign Currency Transactions, Translations and Foreign Operations | Foreign Currency Transactions, Translations and Foreign Operations The functional currency of the Bangladesh and India subsidiaries are the Bangladeshi Taka and Indian Rupee, respectively. All assets and liabilities denominated in each entity’s functional currency are translated into the U.S. Dollar using the exchange rate in effect as of the balance sheet dates. Expenses are translated using the weighted average exchange rate for the reporting period. The resulting translation gains and losses are recorded within the unaudited interim condensed consolidated statements of operations and comprehensive loss and as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recorded within other income (expenses) in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive loss. Transaction gains and losses were $0.1 million gain and $3,000 gain for the three months ended September 30, 2022 and 2021, respectively. Transaction gains and losses were $0.2 million gain and $2,000 loss for the nine months ended September 30, 2022 and 2021, respectively. Operations outside the United States are subject to risks inherent in operating under different legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Financial instruments at September 30, 2022 and 2021 that potentially subject the Company to concentration of credit risk consist primarily of cash, and cash equivalents, restricted cash, and accounts receivable. The Company’s cash is deposited with major financial institutions in the U.S., Bangladesh and India. At times, deposits in financial institutions located in the U.S. may be in excess of the amount of insurance provided on such deposits by the Federal Deposit Insurance Corporation (FDIC). Cash deposits at foreign financial institutions are not insured by government agencies of Bangladesh and India. To date, the Company has not experienced any losses on its cash deposits. The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. Major customers are defined as those generating revenue in excess of 10% of the Company’s annual revenue. The Company had three major customers during the three and nine months ended September 30, 2022. Revenues from these major customers accounted for 17%, 15% and 12% of revenue for the three months ended September 30, 2022 and 18%, 16% and 12% of revenue for the nine months ended September 30, 2022. Revenues from these major customers accounted for 22%, 19% and 12% of revenue for the three months ended September 30, 2021 and 24%, 21% and 11% of revenue for the nine months ended September 30, 2021. One customer individually accounts for 10% or more of the accounts receivable, with a balance of $0.8 million at September 30, 2022. Two customers accounted for 10% or more of accounts receivable, with a balance of $1.4 million and $0.8 million at September 30, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit and money market accounts. Cash equivalents are all highly-liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash Restricted cash represents amounts held on deposit at a commercial bank used to secure the Company’s credit card facility balances, to collateralize a letter of credit in the name of the Company’s landlord pursuant to a certain operating lease and for a post-employment savings fund established for the benefit of eligible Bangladesh employees. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s condensed consolidated balance sheets to the total of the amount presented in the condensed consolidated statements of cash flows: September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 26,251 $ 10,786 Restricted cash 125 125 Restricted cash, non-current 621 207 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows $ 26,997 $ 11,118 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets, less costs to sell. The Company did not record any expense related to asset impairment in 2022 or 2021. |
Revenue Recognition | Revenue Recognition ASC Topic 606, Revenue from Contracts with Customers, The Company derives its revenue through a recurring subscription model. The Company enters into contracts or agreements with its customers with a general initial term of one year. Customers are invoiced in advance and must generally pay an upfront implementation fee. The upfront implementation fee is deferred and recognized over the period the customer benefits and customer prepayments are deferred and included in the accompanying unaudited interim condensed consolidated balance sheets in deferred revenue. Revenues are recognized over time as the professional services are provided to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The customer receives the benefit of our scribing services as we perform them. Our services include fixed and variable fee subscriptions and are a single performance obligation consisting of a series of distinct services. These fixed fees are recognized ratably over the contract terms as this method best depicts the pattern of the services we perform. Variable fees are recognized in the month in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service and because such amounts reflect the fees to which we expect to be entitled for providing the services for that period, consistent with the allocation objective. The Company’s revenues are earned from customers located only in the U.S. After the initial term, contracts are cancellable by the customer at their discretion with a 30 to 90-day notice. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, the Company satisfies a performance obligation. Except for two U.S. state sales tax jurisdictions, applicable taxes, including local, sales, value added tax, etc., are the responsibility of the customer to self-assess and remit to proper tax authorities. Revenue is recognized net of any sales taxes. |
Costs Capitalized to Obtain Revenue Contracts | Costs Capitalized to Obtain Revenue Contracts Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new revenue contracts are capitalized and then amortized on a systematic basis over a period of benefit that the Company determined to be two years. The period of benefit was determined by taking into consideration the Company’s customer contracts, technology, customer life, and other factors. The current portion of capitalized sales commissions are included in prepaid expenses and other current assets and the non-current portion is included in deposits and other assets on the condensed consolidated balance sheet. Amortization expense is included in Sales and marketing expenses on the consolidated statements of operations. |
Contract Balances and Accounts Receivable | Contract Balances and Accounts Receivable Changes in the contract liability deferred revenue account were as follows for the nine months ended September 30, 2022 and year ended December 31, 2021: (in thousands) Nine Months Year Ended Balance, beginning of period $ 6,238 $ 5,439 Deferral of revenue 22,332 22,964 Recognition of unearned revenue (22,182 ) (22,165 ) Balance, end of period $ 6,388 $ 6,238 Accounts receivable, net from customers was $5.1 million and $7.2 million as of September 30, 2022 and December 31, 2021, respectively. Deferred revenue consists of billings or payments received in advance of revenue recognized for the Company’s services, as described above, and is recognized as revenue as earned. As of September 30, 2022, the Company expects to recognize $6.4 million from remaining performance obligations over the next 12 months. Remaining performance obligations include related deferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes (i) contracts with an original expected term of one year or less, and (ii) cancellable contracts. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all stock options awarded to employees and nonemployees based on the estimated fair value of the award on the grant date. The fair value of each option award is estimated using either a Black-Scholes option-pricing model or a Monte Carlo simulation, to the extent market conditions exist. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The Company accounts for forfeitures of stock options as they occur. Estimating the fair market value of options requires the input of subjective assumptions, including the estimated fair value of the Company’s common stock for grants issued while the Company was a private company, the expected life of the options, stock price volatility, the risk-free interest rate, expected dividends, and the probability of satisfying the market condition for market-condition based awards. The assumptions used in the valuation models represent management’s best estimates and involve a number of variables, uncertainties and assumptions and the application of management’s judgment, as they are inherently subjective. |
Advertising Costs | Advertising Costs All advertising costs are expensed as incurred and included in sales and marketing expenses. In April 2021, the Company issued 120,000 shares of common stock with a fair value of $0.6 million to a service provider as payment for advertising services to be performed over a one-year period. As of September 30, 2022, the $0.6 million has been fully amortized and no remaining unamortized advertising costs are included in prepaid expenses and other current assets. As of September 30, 2021, the remaining unamortized advertising costs of $0.4 million are included in prepaid expenses and other current assets. Advertising expenses incurred by the Company were $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $0.7 million for each of the nine months ended September 30, 2022 and 2021. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per common stock includes the effect, if any, from the potential exercise or conversion of securities, such as options and warrants which would result in the issuance of incremental common stock. In computing basic and diluted net loss per share, the weighted average number of shares is the same for both calculations due to the fact that a net loss existed for the nine months ended September 30, 2022 and 2021. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive: September 30, September 30, Common stock warrants 2,801,703 3,333,791 Stock options 8,118,888 6,574,323 10,920,591 9,908,114 |
Correction of Immaterial Error Related to Prior Periods | Correction of Immaterial Error Related to Prior Periods In the third quarter of 2022, the Company identified an error related to its accounting for sales commissions whereby the Company should have amortized sales commissions for new revenue contracts over the period of benefit of two years. As a result of the error, costs capitalized to obtain revenue contracts was understated by $0.3 million and noncurrent costs capitalized to obtain revenue contracts was understated by $0.1 million at December 31, 2021. For the three and nine months ended September 30, 2021, sales and marketing expense was overstated by $0.1 million and $0.2 million, respectively. For the three months ended June 30, 2022 and the three months ended March 31, 2022, sales and marketing expense was overstated by $0.1 million and understated by $0.1 million, respectively. For the six months ended June 30, 2022, sales and marketing expenses was overstated by a nominal amount. For the three months ended June 30, 2021, sales and marketing expense was overstated by $0.1 million. The overstatement to sales and marketing expenses was nominal for the three months ended March 31, 2021. For the six months ended June 30, 2021, sales and marketing expense was overstated by $0.1 million. The Company reviewed the impact of this error on the prior periods in accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Topic 1M, “Materiality,” and determined that the error was not material to prior periods. However, the Company has corrected the consolidated balance sheet, as of December 31, 2021, by increasing costs capitalized to obtain revenue contracts by $0.3 million, which is included in prepaid expenses and other current assets and increasing noncurrent costs capitalized to obtain revenue contracts by $0.1 million, which is included in deposits and other assets. The Company has corrected the unaudited interim consolidated statement of operations for the three and nine months ended September 30, 2021 by decreasing sales and marketing expense by $0.1 million and $0.2 million, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASC Topic 842, Leases In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In May 2021, the FASB issued ASU 2021-04 , Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Although early adoption is permitted, the Company does not intend to early adopt this standard, and the Company is currently evaluating the impact of this standard but does not expect it to have a material impact on its consolidated financial statements upon adoption. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic ASC 832): Disclosures by Business Entities about Government Assistance |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies (Tables) LineItems | |
Schedule of reconciliation of the components of cash and restricted cash | September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 26,251 $ 10,786 Restricted cash 125 125 Restricted cash, non-current 621 207 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows $ 26,997 $ 11,118 |
Schedule of liability deferred revenue | (in thousands) Nine Months Year Ended Balance, beginning of period $ 6,238 $ 5,439 Deferral of revenue 22,332 22,964 Recognition of unearned revenue (22,182 ) (22,165 ) Balance, end of period $ 6,388 $ 6,238 |
Schedule of diluted weighted-average shares of common stock outstanding | September 30, September 30, Common stock warrants 2,801,703 3,333,791 Stock options 8,118,888 6,574,323 10,920,591 9,908,114 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | (in thousands) September 30, December 31, Computer hardware, software and equipment $ 7,032 $ 6,212 Leasehold improvements 452 514 Furniture and fixtures 70 75 Construction in progress 7 — 7,561 6,801 Less: accumulated depreciation (6,258 ) (5,819 ) Property and equipment, net $ 1,303 $ 982 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure of Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | (in thousands) September 30, December 31, Accrued compensation $ 2,755 $ 2,730 Accrued other 511 407 Accrued vendor partner liabilities 776 733 Deferred rent — 86 Accrued professional fees 539 219 Accrued VAT and other taxes 169 84 $ 4,750 $ 4,259 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of future minimum payments under the loan agreement | (in thousands) 2022 (three months remaining) $ — 2023 3,750 2024 7,500 2025 3,750 15,000 End of term charge 750 15,750 Less unamortized debt discount (717 ) SVB Loan Agreement borrowing net of discount 15,033 Less current portion 1,875 SVB Loan Agreement borrowings, non-current portion $ 13,158 |
Common Stock and Preferred St_2
Common Stock and Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Common Stock, and Preferred Stock [Abstract] | |
Schedule of warrants outstanding to acquire shares of its common stock | Expiration Date Shares of Exercise October 25, 2024 346,500 $ 3.00 June 11, 2025 234 $ 96.24 November 13, 2025 218,078 $ 3.00 July 28, 2027 91 $ 106.17 August 28, 2028 1,052 $ 39.76 May 4, 2029 48,295 $ 2.38 September 2, 2029 2,187,453 $ 2.88 2,801,703 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 General and administrative $ 320 $ 258 $ 974 $ 649 Sales and marketing 50 31 120 88 Research and development 85 68 231 181 Cost of revenues 22 14 67 76 $ 477 $ 371 $ 1,392 $ 994 |
Schedule of fair value of option grants weighted average assumptions | Nine Months Ended 2022 2021 Expected term (in years) 5.9 5.8 Expected Volatility 54.6 % 54.4 % Risk-free rate 2.0 % 0.8 % Dividend rate — — |
Schedule of stock option activity | Number of Weighted- Weighted- Outstanding at December 31, 2021 6,583,381 $ 1.78 8.0 Granted 1,743,474 $ 2.36 Exercised (51,602 ) $ 0.75 Forfeited and expired (156,365 ) $ 2.83 Outstanding at September 30, 2022 8,118,888 $ 1.89 7.7 Exercisable at September 30, 2022 4,816,549 $ 1.38 7.3 Vested and expected to vest at September 30, 2022 8,118,888 $ 1.89 7.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of balance sheet information related to leases | Operating leases: Operating lease right-of-use assets $ 1,738 Operating lease liability, current portion $ 866 Operating lease liability, net of current portion 1,168 Total operating lease liabilities $ 2,034 |
Schedule of lease expense | Lease Cost (in thousands) Statements of Operations Classification Three Nine Operating lease cost: Cost of revenues $ 8 $ 20 General and administrative 51 196 Sales and marketing 62 189 Research and development 68 166 Total operating lease cost $ 189 $ 571 |
Schedule of other information related to the operating lease | Nine Months Ended Weighted-average remaining lease term 2.5 Weighted-average discount rate 4.0 % |
Schedule of cash flow information related to the operating lease | Nine Months Ended Cash paid for operating lease liabilities $ 635 |
Schedule of short-term operating lease liabilities | 2022 (remaining three months) $ — 2023 868 2024 894 2025 377 Total $ 2,139 Less: imputed interest (105 ) Operating lease liability 2,034 Less: operating lease liability, current portion (866 ) Operating lease liability, net of current portion $ 1,168 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Nature of Operations [Abstract] | |
Cash equivalents and restricted cash | $ 27 |
Accumulated deficit | $ 120.2 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Transaction gains and losses | $ 100,000 | $ 3,000 | $ 200,000 | $ 2,000 | ||||||
Accounts receivable, net | 5,100,000 | $ 7,200,000 | ||||||||
Company expects to recognize amount | 6,400,000 | |||||||||
Common stock (in Shares) | 120,000 | |||||||||
Fair value | $ 600,000 | |||||||||
Amortized cost | 600,000 | 600,000 | ||||||||
Prepaid expenses and other current assets | 400,000 | 400,000 | ||||||||
Advertising expenses | 200,000 | 300,000 | $ 700,000 | |||||||
Sales and marketing expenses | 100,000 | 200,000 | ||||||||
Sales and marketing expense | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | ||||||
Revenue contracts, prepaid expenses and other current assets | 300,000 | |||||||||
Revenue contracts, deposits and other assets. | $ 100,000 | |||||||||
Decreasing sales and marketing expenses | 100,000 | $ 200,000 | ||||||||
Customer Two [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Accounts receivable percentage | 10% | |||||||||
Accounts receivable | $ 1,400,000 | $ 1,400,000 | ||||||||
Customer One [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Accounts receivable percentage | 10% | |||||||||
Accounts receivable | $ 800,000 | $ 800,000 | ||||||||
Sales Revenue [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk, percentage | 10% | |||||||||
Sales Revenue [Member] | Customer Two [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk, percentage | 17% | 19% | 16% | 21% | ||||||
Sales Revenue [Member] | Customer One [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk, percentage | 15% | 22% | 18% | 24% | ||||||
Sales Revenue [Member] | Customer Three [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration risk, percentage | 12% | 12% | 12% | 11% | ||||||
Accounts Receivable [Member] | Customer Two [Member] | ||||||||||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Accounts receivable | $ 800,000 | $ 800,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of the components of cash and restricted cash - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule Of Reconciliation Of The Components Of Cash And Restricted Cash Abstract | ||
Cash and cash equivalents | $ 26,251 | $ 10,786 |
Restricted cash | 125 | 125 |
Restricted cash, non-current | 621 | 207 |
Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows | $ 26,997 | $ 11,118 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of liability deferred revenue - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Liability Deferred Revenue Abstract | ||
Balance, beginning of period | $ 6,238 | $ 5,439 |
Deferral of revenue | 22,332 | 22,964 |
Recognition of unearned revenue | (22,182) | (22,165) |
Balance, end of period | $ 6,388 | $ 6,238 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of diluted weighted-average shares of common stock outstanding - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of diluted weighted-average shares of common stock outstanding [Line Items] | ||
Weighted-average shares of common stock outstanding | 10,920,591 | 9,908,114 |
Stock options [Member] | ||
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of diluted weighted-average shares of common stock outstanding [Line Items] | ||
Weighted-average shares of common stock outstanding | 8,118,888 | 6,574,323 |
Common stock warrants [Member] | ||
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of diluted weighted-average shares of common stock outstanding [Line Items] | ||
Weighted-average shares of common stock outstanding | 2,801,703 | 3,333,791 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Loans payable | $ 15.5 |
Carrying value of loans payable | $ 15 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 0.2 | $ 0.6 | $ 0.5 |
Property and equipment and accumulated depreciation | $ 0.2 | $ 0.2 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,561 | $ 6,801 |
Less: accumulated depreciation | (6,258) | (5,819) |
Property and equipment, net | 1,303 | 982 |
Computer hardware, software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,032 | 6,212 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 452 | 514 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 70 | 75 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accrued Expenses And Other Current Liabilities Abstract | ||
Accrued compensation | $ 2,755 | $ 2,730 |
Accrued other | 511 | 407 |
Accrued vendor partner liabilities | 776 | 733 |
Deferred rent | 86 | |
Accrued professional fees | 539 | 219 |
Accrued VAT and other taxes | 169 | 84 |
Accrued expenses and other current liabilities | $ 4,750 | $ 4,259 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
May 04, 2022 | Mar. 25, 2021 | May 31, 2017 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Apr. 30, 2021 | Apr. 11, 2020 | |
Debt (Details) [Line Items] | ||||||||||
Borrowings amount | $ 10,000,000 | |||||||||
Interest rate | 0% | 0% | ||||||||
Maturity date description | Pursuant to the Sub Agreement, a final payment of $0.7 million was payable at the maturity date in April 2023. | |||||||||
Amortized discount of interest expense | $ 34,000 | |||||||||
Interest expense | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | ||||||
Remaining unamortized debt discount | $ 200,000 | $ 200,000 | ||||||||
Investment agreement, description | The Company and Lender also entered into a Co-Investment Agreement, which grants to the Lender and its affiliates a right to purchase in the Company’s future private equity financings up to a total $3.0 million (if the Company only draws the first tranche) or $3.4 million (if the Company draws the second tranche) at the same per share purchase price and terms as other investors in such private equity financings. | |||||||||
Common stock shares (in Shares) | 120,000 | |||||||||
Common stock, par value per share (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Sub Agreement [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Borrowings amount | $ 10,000,000 | |||||||||
Interest rate | 12% | |||||||||
Final payment | $ 700,000 | |||||||||
Legal cost | 300,000 | |||||||||
Amortized discount of interest expense | $ 1,200,000 | |||||||||
Interest expense | $ 200,000 | |||||||||
Loan and Security Agreement [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Description of debt | the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastward Fund Management, LLC, as the lender (“Lender”) to establish a loan facility which provided for borrowings in the aggregate principal amount of up to $17.0 million, which were available to be drawn in two tranches. The first tranche of $15.0 million was funded on March 31, 2021. On May 5, 2022, the Company paid off the remaining balance of the loan. The Company recognized this transaction as a debt extinguishment and recognized a $1.1 million loss on debt extinguishment. | In connection with the Loan Agreement, the Company issued the Lender warrants with a fair value of $0.4 million, which was recorded as a discount to the loan, to purchase up to 346,500 shares (increasing to 392,700 shares upon funding of the second tranche) of common stock that were immediately vested upon funding with an exercise price of $3.00 per share and a term of the earlier of i) March 24, 2031 or ii) the third anniversary of the Company’s listing on Nasdaq. The warrants also provide that any shares issued pursuant to the warrants are entitled to the registration rights afforded to holders of the Company’s stock, all as set forth in those certain outstanding Registration Rights Agreement dated as of October 5, 2020. | ||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Interest rate | 0.50% | 0.50% | ||||||||
PPP Loan [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Interest rate | 1% | |||||||||
Principal amount | $ 2,200,000 | |||||||||
SVB Loan Agreement [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Borrowings amount | $ 30,000,000 | |||||||||
Interest rate | 3.25% | 3.25% | ||||||||
Interest expense | $ 1,600,000 | |||||||||
Principal amount | $ 800,000 | 800,000 | ||||||||
Description of debt | the Company and its subsidiary (individually and collectively, “Borrower”) entered into a loan and security agreement (the “SVB Loan Agreement”) with Silicon Valley Bank, a California corporation, as lender (“SVB”). The SVB Loan Agreement provides for a revolving credit facility in an aggregate principal amount of the lesser of (i) $5.0 million or (ii) 80% of eligible accounts (the “Revolving Credit Facility”) and two tranches of term loan advances, comprised of a term loan advance under Tranche A in an aggregate principal amount of up to $15.0 million and additional term loan advances under Tranche B in an aggregate principal amount of up to $5.0 million (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Facilities”). | |||||||||
Cash and cash equivalents | $ 25,000,000 | $ 25,000,000 | ||||||||
Common stock shares (in Shares) | 48,295 | 48,295 | ||||||||
Common stock, par value per share (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||
Exercise price (in Dollars per share) | $ 2.38 | $ 2.38 | ||||||||
Unamortized discount | $ 700,000 | $ 700,000 | ||||||||
SVB Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Interest rate | 3.75% | 3.75% |
Debt (Details) - Schedule of fu
Debt (Details) - Schedule of future minimum payments under the loan agreement $ in Thousands | Sep. 30, 2022 USD ($) |
Schedule Of Future Minimum Payments Under The Loan Agreement Abstract | |
2022 (three months remaining) | |
2023 | 3,750 |
2024 | 7,500 |
2025 | 3,750 |
Total | 15,000 |
End of term charge | 750 |
Subordinated note payable | 15,750 |
Less unamortized debt discount | (717) |
SVB Loan Agreement borrowing net of discount | 15,033 |
Less current portion | 1,875 |
SVB Loan Agreement borrowings, non-current portion | $ 13,158 |
Common Stock and Preferred St_3
Common Stock and Preferred Stock (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Common Stock, and Preferred Stock [Abstract] | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock and Preferred St_4
Common Stock and Preferred Stock (Details) - Schedule of warrants outstanding to acquire shares of its common stock | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Shares of common stock issuance upon exercise of warrants | 2,801,703 |
October 25, 2024 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Oct. 25, 2024 |
Shares of common stock issuance upon exercise of warrants | 346,500 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 3 |
June 11, 2025 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Jun. 11, 2025 |
Shares of common stock issuance upon exercise of warrants | 234 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 96.24 |
November 13, 2025 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Nov. 13, 2025 |
Shares of common stock issuance upon exercise of warrants | 218,078 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 3 |
July 28, 2027 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Jul. 28, 2027 |
Shares of common stock issuance upon exercise of warrants | 91 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 106.17 |
August 28, 2028 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Aug. 28, 2028 |
Shares of common stock issuance upon exercise of warrants | 1,052 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 39.76 |
May 4, 2029 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | May 04, 2029 |
Shares of common stock issuance upon exercise of warrants | 48,295 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 2.38 |
September 2, 2029 [Member] | |
Class of Warrant or Right [Line Items] | |
Expiration Date | Sep. 02, 2029 |
Shares of common stock issuance upon exercise of warrants | 2,187,453 |
Exercise Price Per Warrant (in Dollars per share) | $ / shares | $ 2.88 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 01, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity Incentive Plan (Details) [Line Items] | |||||||||
Fair value of stock option (in Dollars per share) | $ 1.23 | $ 1.61 | |||||||
Stock options exercised (in Shares) | 51,602 | ||||||||
Intrinsic value options exercised | $ 0.1 | ||||||||
Intrinsic value options outstanding | $ 2.6 | 2.6 | |||||||
Intrinsic value options exercisable | $ 2.4 | 2.4 | |||||||
Share-based compensation | $ 3.1 | ||||||||
Weighted average requisite service period | 2 years 7 months 6 days | ||||||||
Stock based compensation for stock options, description | the Company granted 727,922 stock options to the Chief Executive Officer (“CEO”) under the 2020 Plan with an exercise price of $3.00 per share. The options vest based on the CEO’s continued service in addition to the following terms: ● 317,688 options vest in full when the closing price of the Company’s common stock reaches or exceeds $9.00 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. These options expire on March 3, 2031. ● 46,273 options vest in full when the closing price of the Company’s common stock reaches or exceeds $9.00 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. Since the listing on Nasdaq, these options expire on March 22, 2031, instead of 2026. ● 363,961 options vest in full when the closing price of the Company’s common stock reaches or exceeds $13.50 per share for 20 out of 30 trading days after the Company becomes listed on the New York Stock Exchange or Nasdaq. Since the listing on Nasdaq, these options expire on March 22, 2031, instead of 2026. | ||||||||
Share based compensation fair value, description | The Company’s assumptions for expected volatility, closing price and risk-free rate were 50.0%, $3.00 and 0.77%, respectively. The aggregate estimated fair value of the options was $0.4 million. The Company recognized $30,000 and $0.1 million in share-based expense for the three and nine months ended September 30, 2022, respectively. The Company recognized $22,000 and $38,000 in share-based expense for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, there was $0.2 million of unrecognized compensation costs which the Company plans to recognize over a weighted average period of 1.6 years. | ||||||||
Common Stock [Member] | |||||||||
Equity Incentive Plan (Details) [Line Items] | |||||||||
Shares issued (in Shares) | 656,579 | 656,579 | |||||||
Stock options exercised (in Shares) | 7,871 | 12,846 | 24,015 | 23,351 | 126,876 | ||||
2020 Equity incentive Plan [Member] | |||||||||
Equity Incentive Plan (Details) [Line Items] | |||||||||
Options contractual life | 10 years | ||||||||
Number of shares equal percentage | 5% |
Equity Incentive Plan (Detail_2
Equity Incentive Plan (Details) - Schedule of share-based compensation expense - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 477 | $ 371 | $ 1,392 | $ 994 |
General and administrative [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | 320 | 258 | 974 | 649 |
Sales and marketing [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | 50 | 31 | 120 | 88 |
Research and development [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | 85 | 68 | 231 | 181 |
Cost of revenues [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 22 | $ 14 | $ 67 | $ 76 |
Equity Incentive Plan (Detail_3
Equity Incentive Plan (Details) - Schedule of fair value of option grants weighted average assumptions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Fair Value Of Option Grants Weighted Average Assumptions Abstract | ||
Expected term (in years) | 5 years 10 months 24 days | 5 years 9 months 18 days |
Expected Volatility | 54.60% | 54.40% |
Risk-free rate | 2% | 0.80% |
Dividend rate |
Equity Incentive Plan (Detail_4
Equity Incentive Plan (Details) - Schedule of stock option activity | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Schedule Of Stock Option Activity Abstract | |
Number of Shares under Option Plan, Outstanding Beginning balance | shares | 6,583,381 |
Weighted-Average Exercise Price per Option, Outstanding Beginning balance | $ / shares | $ 1.78 |
Weighted- Average Remaining Contractual Life (in years), Outstanding Beginning balance | 8 years |
Number of Shares under Option Plan, Granted | shares | 1,743,474 |
Weighted-Average Exercise Price per Option, Granted | $ / shares | $ 2.36 |
Number of Shares under Option Plan, Exercised | shares | (51,602) |
Weighted-Average Exercise Price per Option , Exercised | $ / shares | $ 0.75 |
Number of Shares under Option Plan, Forfeited and expired | shares | (156,365) |
Weighted-Average Exercise Price per Option, Forfeited and expired | $ / shares | $ 2.83 |
Number of Shares under Option Plan, Outstanding Ending balance | shares | 8,118,888 |
Weighted-Average Exercise Price per Option, Outstanding Ending balance | $ / shares | $ 1.89 |
Weighted- Average Remaining Contractual Life (in years), Outstanding Ending balance | 7 years 8 months 12 days |
Number of Shares under Option Plan, Exercisable | shares | 4,816,549 |
Weighted-Average Exercise Price per Option, Exercisable | $ / shares | $ 1.38 |
Weighted- Average Remaining Contractual Life (in years), Exercisable | 7 years 3 months 18 days |
Number of Shares under Option Plan, Vested and expected to vest | shares | 8,118,888 |
Weighted-Average Exercise Price per Option, Vested and expected to vest | $ / shares | $ 1.89 |
Weighted- Average Remaining Contractual Life (in years), Vested and expected to vest | 7 years 8 months 12 days |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum contractual spend | $ 1.8 | |
Expenses | $ 0.2 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of balance sheet information related to leases $ in Thousands | Sep. 30, 2022 USD ($) |
Schedule Of Balance Sheet Information Related To Leases Abstract | |
Operating lease right-of-use assets | $ 1,738 |
Operating lease liability, current portion | 866 |
Operating lease liability, net of current portion | 1,168 |
Total operating lease liabilities | $ 2,034 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of lease expense - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Commitments and Contingencies (Details) - Schedule of lease expense [Line Items] | ||
Total operating lease cost | $ 189 | $ 571 |
Cost of revenues [Member] | ||
Commitments and Contingencies (Details) - Schedule of lease expense [Line Items] | ||
Total operating lease cost | 8 | 20 |
General and administrative [Member] | ||
Commitments and Contingencies (Details) - Schedule of lease expense [Line Items] | ||
Total operating lease cost | 51 | 196 |
Sales and marketing [Member] | ||
Commitments and Contingencies (Details) - Schedule of lease expense [Line Items] | ||
Total operating lease cost | 62 | 189 |
Research and development [Member] | ||
Commitments and Contingencies (Details) - Schedule of lease expense [Line Items] | ||
Total operating lease cost | $ 68 | $ 166 |
Commitments and Contingencies_5
Commitments and Contingencies (Details) - Schedule of other information related to the operating lease | Sep. 30, 2022 |
Schedule Of Other Information Related To The Operating Lease Abstract | |
Weighted-average remaining lease term | 2 years 6 months |
Weighted-average discount rate | 4% |
Commitments and Contingencies_6
Commitments and Contingencies (Details) - Schedule of cash flow information related to the operating lease $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Schedule Of Cash Flow Information Related To The Operating Lease Abstract | |
Cash paid for operating lease liabilities | $ 635 |
Commitments and Contingencies_7
Commitments and Contingencies (Details) - Schedule of short-term operating lease liabilities $ in Thousands | Sep. 30, 2022 USD ($) |
Schedule Of Short Term Operating Lease Liabilities Abstract | |
2022 (remaining three months) | |
2023 | 868 |
2024 | 894 |
2025 | 377 |
Total | 2,139 |
Less: imputed interest | (105) |
Operating lease liability | 2,034 |
Less: operating lease liability, current portion | (866) |
Operating lease liability, net of current portion | $ 1,168 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |||||
Operating lease term | 10 years | ||||
Rent expenses | $ 100,000 | $ 100,000 | |||
Related party | $ 200,000 | $ 300,000 | |||
Owed to the related party | $ 5,000 | $ 4,000 | $ 5,000 | $ 4,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Employee Benefit Plan [Abstract] | |||||
Contributions | $ 33,000 | $ 25,000 | $ 100,000 | $ 80,000 | |
Employee Cash benefit minimum term | 5 years | ||||
Accrued gratuity fund expenses | $ 400,000 | ||||
Accrued expenses | $ 50,000 | $ 200,000 |