Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Entity Registrant Name | ALPHA TEKNOVA, INC. | |
Entity Central Index Key | 0001850902 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TKNO | |
Security12b Title | Common Stock, par value $0.00001 per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40538 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3368109 | |
Entity Address, Address Line One | 2290 Bert Dr. | |
Entity Address, City or Town | Hollister | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95023 | |
City Area Code | 831 | |
Local Phone Number | 637-1100 | |
Entity Common Stock, Shares Outstanding | 28,011,917 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 98,013 | $ 3,315 |
Short-term investments - marketable securities | 0 | 1,811 |
Accounts receivable, net of allowance for doubtful accounts of $23 thousand and $23 thousand | 4,558 | 4,623 |
Inventories, net | 4,403 | 3,582 |
Income taxes receivable | 1,191 | 1,417 |
Prepaid expenses and other current assets | 2,914 | 1,666 |
Total current assets | 111,079 | 16,414 |
Property, plant and equipment, net | 22,451 | 10,008 |
Goodwill | 16,613 | 16,613 |
Intangible assets, net | 18,991 | 19,852 |
Other non-current assets | 29 | 24 |
Total assets | 169,163 | 62,911 |
Current liabilities: | ||
Accounts payable | 3,321 | 1,635 |
Accrued liabilities | 2,883 | 2,327 |
Total current liabilities | 6,204 | 3,962 |
Deferred tax liabilities | 4,350 | 5,990 |
Other accrued liabilities | 293 | 350 |
Long term debt | 11,826 | 0 |
Deferred rent | 264 | 204 |
Total liabilities | 22,937 | 10,506 |
Commitments and contingencies (See “Note 15—Commitments and Contingencies”) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value, 10,000,000 and zero shares authorized at September 30, 2021 and December 31, 2020, respectively, zero shares issued and outstanding at September 30, 2021 and December 31, 2020 | ||
Common stock, $0.00001 par value, 490,000,000 and 30,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively, 28,011,917 and 3,599,232 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 0 | 0 |
Additional paid-in capital | 150,117 | 14,495 |
(Accumulated deficit) retained earnings | (3,891) | 2,265 |
Accumulated other comprehensive income | 0 | 7 |
Total stockholders’ equity | 146,226 | 16,767 |
Total liabilities, convertible and redeemable preferred stock and stockholders’ equity | 169,163 | 62,911 |
Convertible Series A Preferred Stock [Member] | ||
Current liabilities: | ||
Series A convertible and redeemable preferred stock, $0.00001 par value, zero and 9,600,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero and 9,342,092 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $41,586 thousand as of September 30, 2021 and December 31, 2020, respectively. | $ 0 | $ 35,638 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts | $ 23 | $ 23 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 490,000,000 | 30,000,000 |
Common stock, shares issued | 28,011,917 | 3,599,232 |
Common stock, shares outstanding | 28,011,917 | 3,599,232 |
Convertible Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 0 | 9,600,000 |
Preferred stock, shares issued | 0 | 9,342,092 |
Preferred stock, shares outstanding | 0 | 9,342,092 |
Preferred stock, liquidation preference, value | $ 0 | $ 41,586 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,392 | $ 8,984 | $ 26,783 | $ 21,140 |
Cost of sales | 5,129 | 3,896 | 14,141 | 8,954 |
Gross profit | 4,263 | 5,088 | 12,642 | 12,186 |
Operating expenses: | ||||
Research and development | 1,372 | 358 | 2,922 | 1,025 |
Sales and marketing | 885 | 558 | 2,494 | 1,389 |
General and administrative | 5,607 | 1,733 | 13,606 | 5,043 |
Amortization of intangible assets | 287 | 287 | 861 | 861 |
Total operating expenses | 8,151 | 2,936 | 19,883 | 8,318 |
(Loss) income from operations | (3,888) | 2,152 | (7,241) | 3,868 |
Other income (expense), net | ||||
Interest income (expense), net | (255) | 19 | (553) | 74 |
Other expense, net | 0 | (2) | (2) | (27) |
Total other income (expenses), net | (255) | 17 | (555) | 47 |
(Loss) income before income taxes | (4,143) | 2,169 | (7,796) | 3,915 |
(Benefit from) provision for income taxes | (892) | 636 | (1,640) | 922 |
Net (loss) income | (3,251) | 1,533 | (6,156) | 2,993 |
Change in unrealized loss on available-for-sale securities, net of tax | 0 | (10) | (7) | (1) |
Comprehensive (loss) income | (3,251) | 1,523 | (6,163) | 2,992 |
Net (loss) income available to common stockholders | ||||
Net (loss) income | (3,251) | 1,533 | (6,156) | 2,993 |
Less: undistributed income attributable to preferred stockholders | 0 | (1,271) | 0 | (2,482) |
Net (loss) income attributable to common stockholders | $ (3,251) | $ 262 | $ (6,156) | $ 511 |
Net (loss) income per share attributable to common stockholders | ||||
Basic | $ (0.12) | $ 0.07 | $ (0.51) | $ 0.14 |
Diluted | $ (0.12) | $ 0.07 | $ (0.51) | $ 0.14 |
Weighted average shares used in computing net (loss) income per share attributable to common stockholders | ||||
Basic | 28,011,917 | 3,599,232 | 12,069,214 | 3,599,232 |
Diluted | 28,011,917 | 3,647,675 | 12,069,214 | 3,632,321 |
Condensed Statements of Convert
Condensed Statements of Convertible and Redeemable Preferred Stock and Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] | Convertible and Redeemable Preferred Stock [Member] |
Beginning Balance at Dec. 31, 2019 | $ 12,910 | $ 0 | $ 14,195 | $ 20 | $ (1,305) | $ 35,638 |
Beginning Balance (in shares) at Dec. 31, 2019 | 3,599,232 | 9,342,092 | ||||
Stock-based compensation | 31 | 31 | ||||
Unrealized gain (loss) on available-for-sale securities | (1) | (1) | ||||
Net (loss) income | 2,993 | 2,993 | ||||
Ending Balance at Sep. 30, 2020 | 15,933 | 14,226 | 19 | 1,688 | $ 35,638 | |
Ending Balance (in shares) at Sep. 30, 2020 | 3,599,232 | 9,342,092 | ||||
Beginning Balance at Jun. 30, 2020 | 14,379 | $ 0 | 14,195 | 29 | 155 | $ 35,638 |
Beginning Balance (in shares) at Jun. 30, 2020 | 3,599,232 | 9,342,092 | ||||
Stock-based compensation | 31 | 31 | ||||
Unrealized gain (loss) on available-for-sale securities | (10) | (10) | ||||
Net (loss) income | 1,533 | 1,533 | ||||
Ending Balance at Sep. 30, 2020 | 15,933 | 14,226 | 19 | 1,688 | $ 35,638 | |
Ending Balance (in shares) at Sep. 30, 2020 | 3,599,232 | 9,342,092 | ||||
Beginning Balance at Dec. 31, 2020 | $ 16,767 | $ 0 | 14,495 | 7 | 2,265 | $ 35,638 |
Beginning Balance (in shares) at Dec. 31, 2020 | 3,599,232 | 3,599,232 | 9,342,092 | |||
Stock-based compensation | $ 927 | 927 | ||||
Unrealized gain (loss) on available-for-sale securities | (7) | (7) | ||||
Accretion of convertible and redeemable preferred stock to redemption value | (300) | (300) | $ (300) | |||
Conversion of convertible and redeemable preferred stock | 35,938 | $ 0 | 35,938 | 0 | 0 | $ (35,938) |
Conversion of convertible and redeemable preferred stock (in shares) | 17,512,685 | (9,342,092) | ||||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts | 99,057 | $ 0 | 99,057 | 0 | 0 | $ 0 |
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 6,900,000 | 0 | ||||
Net (loss) income | (6,156) | (6,156) | ||||
Ending Balance at Sep. 30, 2021 | $ 146,226 | $ 0 | 150,117 | 0 | (3,891) | $ 0 |
Ending Balance (in shares) at Sep. 30, 2021 | 28,011,917 | 28,011,917 | 0 | |||
Beginning Balance at Jun. 30, 2021 | $ 149,035 | $ 0 | 149,675 | 0 | (640) | $ 0 |
Beginning Balance (in shares) at Jun. 30, 2021 | 28,011,917 | 0 | ||||
Stock-based compensation | 442 | 442 | ||||
Net (loss) income | (3,251) | (3,251) | ||||
Ending Balance at Sep. 30, 2021 | $ 146,226 | $ 0 | $ 150,117 | $ 0 | $ (3,891) | $ 0 |
Ending Balance (in shares) at Sep. 30, 2021 | 28,011,917 | 28,011,917 | 0 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net (loss) income | $ (6,156) | $ 2,993 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Bad debt expense | 235 | (5) |
Depreciation and amortization | 2,100 | 1,473 |
Stock-based compensation | 927 | 31 |
Inventory reserve | 676 | 10 |
Deferred taxes | (1,640) | 1,901 |
Amortization of Debt Issuance Costs | 89 | 0 |
Loss on disposal of property, plant and equipment | 4 | 11 |
Other | (10) | 34 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (170) | (2,471) |
Inventories | (1,497) | (360) |
Prepaid expenses and other assets | (1,569) | (1,923) |
Accounts payable, accrued liabilities, and other current and non-current liabilities | 964 | (1,650) |
Deferred rent | 60 | 27 |
Cash provided by (used in) operating activities | 5,987 | (71) |
Investing activities: | ||
Purchase of property, plant and equipment | (12,465) | (1,969) |
Proceeds from loan to related party | 529 | 20 |
Purchase of short-term marketable securities | 0 | (1,775) |
Proceeds on sales of short-term marketable securities | 1,132 | 1,747 |
Proceeds from maturities of short-term marketable securities | 695 | 2,900 |
Cash (used in) provided by investing activities | (10,109) | 923 |
Financing activities: | ||
Proceeds from long-term debt, net | 11,890 | 0 |
Debt issuance costs | (153) | 0 |
Repayment of long-term debt | 0 | (45) |
Indemnity holdback release | 0 | (1,554) |
Payment of issuance costs for initial public offering | (3,615) | 0 |
Proceeds from initial public offering, net of underwriters’ commissions and discounts | 102,672 | 0 |
Cash provided by (used in) financing activities | 110,794 | (1,599) |
Change in cash and cash equivalents | 94,698 | (605) |
Cash and cash equivalents at beginning of period | 3,315 | 4,144 |
Cash and cash equivalents at end of period | 98,013 | 3,539 |
Supplemental cash flow disclosures: | ||
Income taxes paid | 0 | 12 |
Interest paid | 474 | 28 |
Capitalized property, plant and equipment included in accounts payable | 1,608 | 146 |
Conversion of convertible and redeemable preferred stock into common stock | 35,938 | 0 |
Accretion of convertible and redeemable preferred stock to redemption value | $ 300 | $ 0 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Note 1. Nature of th e Business Nature of Business Alpha Teknova, Inc. was founded in 1996 and initially incorporated in California on May 30, 2000, under the name “eTeknova Inc.” On January 11, 2019, eTeknova Inc filed a certificate of merger and merged with and into Alpha Teknova, Inc., a Delaware corporation, which continued as the surviving entity bearing the corporate name of “Alpha Teknova, Inc.” (“Teknova” or the “Company”). Teknova provides critical reagents that enable the discovery, development, and production of biopharmaceutical products such as drug therapies, novel vaccines, and molecular diagnostics. Product offerings include pre-poured media plates for cell growth and cloning, liquid cell culture media and supplements for cellular expansion, and molecular biology reagents for sample manipulation, resuspension, and purification. Teknova supports customers spanning the life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organization, in vitro diagnostic franchises, and academic and government research institutions, with catalog and custom, made-to-order products. Teknova manufactures its products at its Hollister, California headquarters and stocks inventory of raw materials, components, and finished goods at that location. The Company ships products directly from its warehouses in Hollister, California and Mansfield, Massachusetts. Teknova manufactures its products under Research Use Only (“RUO”) or Good Manufacturing Processes (“GMP”) regulatory standards, the latter of which refers to a more stringent level of quality standards supported by additional levels of documentation, testing, and traceability. In 2017, Teknova achieved International Organization for Standardization ("ISO") 13485:2016 certification, enabling the Company to manufacture products for use in diagnostic and therapeutic applications. Stock Split On June 14, 2021 and June 16, 2021, the Company’s board of directors and stockholders, respectively, approved a 1.8746 for-one forward stock split of the Company’s issued and outstanding shares of common stock, including the shares of common stock underlying outstanding stock options. This stock split was effected on June 17, 2021. The par value of the Company’s common stock was not adjusted as a result of the stock split. All issued and outstanding share and per share amounts of the Company’s common stock and stock options included in the accompanying condensed financial statements have been retroactively adjusted to reflect this stock split for all periods presented. Initial Public Offering On June 29, 2021, the Company completed its initial public offering (“IPO”) in which the Company issued and sold 6,900,000 shares of its common stock, including shares issued upon the exercise in full of the underwriters’ option to purchase 900,000 additional shares of its common stock, at a public offering price of $ 16.00 per share. The Company received $ 99.1 million in net proceeds, after deducting underwriting discounts and commissions of $ 7.7 million and offering expenses of $ 3.6 million. On June 28, 2021, all outstanding shares of convertible and redeemable preferred stock were converted into 17,512,685 shares of the Company’s common stock. Prior to the conversion of preferred stock to the Company’s common stock, total accretion of $ 0.3 million related to costs associated with the issuance of the convertible and redeemable preferred stock was recognized as an increase to the carrying value from $ 35.6 million to $ 35.9 million. Subsequent to the closing of the IPO, there were no shares of convertible and redeemable preferred stock outstanding. Prior to the IPO, deferred offering costs, which consist primarily of direct incremental legal, accounting, and consulting fees relating to the Company’s IPO, were capitalized within prepaid expenses and other current assets in the condensed balance sheets. Upon the closing of the IPO, these costs were reclassified into additional paid-in capital, as an offset against IPO proceeds. As of September 30, 2021, $ 3.6 million of these IPO-related costs are included as a reduction to additional paid-in capital on the condensed balance sheet. There were no material deferred offering costs recorded as of December 31, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Accounting and Presentation The accompanying condensed financial statements and related notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The condensed balance sheet at December 31, 2020, was derived from amounts included in the Company’s annual financial statements for the year ended December 31, 2020, included in the Company’s final prospectus dated June 24, 2021 (the “Final Prospectus”) filed with the Securities and Exchange Commission (“SEC”) on June 25, 2021 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the “Securities Act”) , but does not include all of the disclosures, including certain notes required by GAAP on an annual reporting basis. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Final Prospectus. Refer to Note 2, Summary of Significant Accounting Policies, within the annual financial statements included within the Final Prospectus for the full list of our significant accounting policies. The details in those notes have not changed except as a result of normal adjustments in the interim periods. On January 14, 2019, Teknova entered into a stock purchase agreement with Telegraph Hill Partners IV, L.P. and THP IV Affiliates Fund, LLC (collectively “THP”), pursuant to which THP acquired 9,342,092 shares of the Company’s Series A preferred stock, representing 80.6 % of the then-outstanding voting power of the Company (on a fully diluted basis), and Teknova received an aggregate of $ 35.9 million from the issuance of such shares to THP (the “THP Transaction”). In connection with the THP Transaction, we elected to apply “pushdown” accounting by applying the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Our assets and liabilities were recognized at fair value as of January 14, 2019. Additionally, the excess of the portion of the total purchase price of the THP Transaction attributable to the purchase of assets and liabilities over their estimated fair value as of the closing date of the THP Transaction was allocated to goodwill. The new basis of accounting primarily impacted the values of our long-lived and indefinite-lived intangible assets and resulted in increased depreciation and amortization expense due to the increased carrying value of our assets. Impact of COVID-19 In March 2020, the World Health Organization declared that the outbreak of COVID-19 was a global pandemic. Since Teknova’s business is categorized as part of the country’s critical infrastructure, the Company was able to continue operations during the COVID-19 pandemic. During the first half of 2020, orders for Lab Essentials products declined because many research customers were required to close temporarily. Later in the year, Teknova developed and commercialized, and earned revenue on, sample transport medium for use in COVID-19 sample collection and transport. During the first half of 2021, demand for COVID-19 testing declined significantly and market supply of sample transport medium increased resulting in excess supply in the market. In light of such fluctuations and uncertain future demand, the Company fully reserved $ 0.7 million for its Sample Transport medium inventory on its balance sheet. It is not possible to exactly predict the total impact of the global COVID-19 outbreak on the Company’s future revenue or profitability, which will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the effectiveness of public policy, the potential emergence and spread of new virus variants, and the degree to which vaccination efforts are successful, among other factors. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Teknova’s CODM is its Chief Executive Officer, Stephen Gunstream. Teknova has determined that it operates in one reporting unit, one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Unaudited Condensed Financial Statements The condensed balance sheet as of September 30, 2021, the condensed statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020, the condensed statements of cash flows for the nine months ended September 30, 2021 and 2020, and the condensed statements of convertible and redeemable preferred stock and stockholders’ equity for the three and nine months ended September 30, 2021, and 2020 are unaudited. The condensed financial statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2020, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2021, and the condensed results of its operations and comprehensive income (loss) and its cash flows for the three and nine months ended September 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2021 and 2020, are also unaudited. The condensed results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the full year ending December 31, 2021, or for any other period. Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets and liabilities, and disclosures of assets and liabilities, at the date of each financial statement, and the reported amount of revenues and expenses during the reporting period. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates, including those made in connection with the valuation of goodwill and intangible assets, stock-based compensation, and income taxes. Actual results can differ from those estimates. Debt Issuance Costs Debt issuance costs represent legal, consulting, and other financial costs associated with debt financing and are presented on the balance sheets as a direct reduction from the carrying amount of the related debt instrument. Debt issuance costs on the term debt are amortized to interest expense over the term of the applicable debt agreement using the effective interest rate method. Stock-Based Compensation Teknova follows the fair value recognition provisions of ASC 718, Compensation—Stock Compensation (Topic 718). The Company accounts for stock-based compensation expense based on the estimated grant date fair value, using the Black-Scholes option-pricing model, which requires the Company to make a number of assumptions, including expected volatility, the expected risk-free interest rate, the expected term and the expected dividend. Stock-based compensation expense is recognized over the requisite service period of the award, which generally represents the scheduled vesting period. Forfeitures are recognized as they occur. Concentration of Risk Financial Instruments Teknova’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality banking institutions. At times, the Company’s cash and cash equivalent balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Teknova has never experienced any losses related to its cash and cash equivalent balances. Teknova routinely communicates with its customers regarding payments and has a history of limited write-offs. Therefore, the Company believes that its accounts receivable credit risk exposure is limited. Customers For the three months ended September 30, 2021 and 2020, Teknova’s combined sales to its three largest customers accounted for approximately 40 % and 38 % of its total sales, respectively. Two of these customers, individually, represented 21 % and 11 % of total sales, respectively, for the three months ended September 30, 2021. For the nine months ended September 30, 2021 and 2020, Teknova’s combined sales to its three largest customers accounted for approximately 34 % and 37 % of its total sales, respectively. Two of these customers, individually, represented 19 % and 10 % of total sales, respectively, for the nine months ended September 30, 2021. The three customers also have combined accounts receivable balances as of September 30, 2021 and December 31, 2020, representing 55 % and 25 % of total receivables, respectively. Two of these customers are distributors representing a highly diversified customer base. Suppliers For the three months ended September 30, 2021 and 2020, purchases from two of Teknova’s suppliers together accounted for 50 % and 44 %, of all of the Company’s inventory purchases, respectively. For the nine months ended September 30, 2021 and 2020, purchases from two of Teknova’s suppliers together accounted for 49 % and 47 %, of all of the Company’s inventory purchases, respectively. The amounts due to Teknova’s largest supplier comprised approximately 11 % and 15 % of total accounts payable as of September 30, 2021 and December 31, 2020, respectively. One of these suppliers is a distributor representing a highly diversified supplier base. Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The new standard requires lessees to generally recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. The new standard is effective with respect to Teknova beginning January 1, 2022, on a modified retrospective basis, and early adoption is permitted. Teknova is currently evaluating the impact of the pending adoption of this standard on its condensed financial statements. Teknova expects that most of the operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets upon adoption of this standard, which will increase the Company’s total assets and total liabilities that are reported relative to such amounts prior to adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASC 740”). ASU No. 2019-12 removes certain exceptions to the general principles in ASC 740 and clarifies and amends certain guidance to promote consistent application. The new guidance is effective for the Company’s annual and interim periods beginning after December 15, 2021, and early adoption is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. Teknova is currently evaluating the impact that application of the standard may have on its condensed financial statements but does not now anticipate the impact will be significant. In June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments—Credit Losses . The standard introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses and will apply to accounts receivable. The new guidance will be effective for Teknova’s annual and interim periods beginning after December 15, 2022. Teknova is currently evaluating the impact that application of the standard may have on its condensed financial statements but does not anticipate it will have a significant impact. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3. Revenue Recognition Teknova recognizes its revenue from the sale of its products. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. All of Teknova’s contracts with customers contain a single performance obligation - delivery of consumable products (e.g., media plates, broths, buffers, reagents, etc.). Accordingly, the Company recognizes revenue at a point in time when control of the products has been transferred to the customers, which is at the time of shipment. Revenue is recognized in an amount that reflects the consideration Teknova expects to be entitled to receive in exchange for the products. Sales and other similar taxes collected from customers on behalf of third parties are excluded from the sale price of the products. Teknova records shipping and handling costs charged to customers as revenue. Shipping and handling charges are included in general and administrative expenses as revenue is recognized. Shipping and handling charges for the three months ended September 30, 2021 and 2020, were approximately $ 0.3 million and $ 0.2 million, respectively, and for the nine months ended September 30, 2021 and 2020 were approximately $ 0.8 million and $ 0.7 million, respectively. Costs incurred to obtain contracts with customers are expensed immediately because the amortization period for such costs is one year or less. Teknova offers a limited warranty on its products under the Company’s standard purchase terms and conditions. Product warranty claims are rare, and the impact of such claims is recorded when they occur. The difference between recording these as they occur and estimating the amount of consideration in exchange for the transfer of promised goods would not have a material impact on the condensed financial statements. Product warranty claims for the periods presented are immaterial. ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") requires an entity to estimate the amount of variable consideration to which the entity will be entitled, in exchange for transferring the promised goods to a customer of a contract. Occasionally, Teknova offers rebates, discounts, and returns on its products. However, returns and refunds are an extremely rare occurrence and are not explicitly or implicitly part of the purchase order. The Company records rebates, discounts, and returns at the time in which they occur. The difference between recording these as they occur and estimating the amount of consideration in exchange for the transfer of promised goods would not have a material impact on the condensed financial statements. Teknova’s sales are made directly to customers or through distributors, generally under agreements with payment terms typically shorter than 90 days and, in no case, exceeding one year. Therefore, Teknova’s contracts do not contain a significant financing component. Contract Balances Teknova’s accounts receivable, net, includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. Teknova maintains an allowance for doubtful accounts to provide for an estimated amount of receivables that will not be collected. Disaggregation of Revenue Teknova’s revenue, disaggregated by product category was as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Lab Essentials $ 7,195 $ 5,815 $ 20,440 $ 15,494 Clinical Solutions 1,690 1,354 4,354 3,141 Sample Transport 73 1,593 1,035 1,767 Other 434 222 954 738 Total revenue $ 9,392 $ 8,984 $ 26,783 $ 21,140 Teknova’s revenue, disaggregated by geographic region was as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 United States $ 9,114 $ 8,747 $ 25,890 $ 20,303 International 278 237 893 837 Total revenue $ 9,392 $ 8,984 $ 26,783 $ 21,140 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Note 4. Goodwill and Intangible Assets, Net Goodwill and intangible assets relate to the application of pushdown accounting associated with the THP Transaction. There were no changes in the carrying amount of goodwill during the three and nine months ended September 30, 2021 and 2020. The following is a summary of intangible assets with definite and indefinite lives (in thousands): Balance at September 30, 2021 Balance at December 31, 2020 Accumulated Gross Accumulated Net Definite Lived: Customer relationships 9,180 3,108 6,072 $ 9,180 $ 2,247 $ 6,933 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets 22,099 3,108 18,991 $ 22,099 $ 2,247 $ 19,852 For the three months ended September 30, 2021 and 2020, amortization expense was approximately $ 0.3 million and $ 0.3 million, respectively. For the nine months ended September 30, 2021 and 2020, amortization expense was approximately $ 0.9 million and $ 0.9 million, respectively. As of September 30, 2021, the remaining weighted-average useful life of definite lived intangible assets is 5.3 years. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Amount Remainder of 2021 $ 287 2022 1,148 2023 1,148 2024 1,148 2025 1,148 2026 and thereafter 1,195 Estimated future amortization expense of definite-lived intangible assets $ 6,072 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. FASB ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There were no financial instruments measured at fair value as of September 30, 2021. Financial assets carried at fair value and measured on a recurring basis as of December 31, 2020 are classified in the hierarchy as follows (in thousands): Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 286 $ 286 $ — $ — Total cash equivalents 286 286 — — Available-for-sale investments U.S. corporate debt securities 858 — 858 — Foreign corporate debt securities 953 — 953 — Total available-for-sale investments 1,811 — 1,811 — Total financial assets carried at fair value $ 2,097 $ 286 $ 1,811 $ — Teknova has not transferred any investment securities between the three levels of the fair value hierarchy. Money market funds are included in cash and cash equivalents in the condensed balance sheets. Available-for-sale investments are included in short-term investments – marketable securities in the condensed balance sheets. Teknova classifies investments in money market funds and U.S. treasury bills and government agency obligations within Level 1 as the prices are available from quoted prices in active markets. The Company’s investments in debt securities are classified as Level 2. Investments in U.S. corporate debt securities are valued based on observable inputs such as the U.S. Treasury yield curve, market indicated spreads, and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active. Investments in foreign corporate securities are valued based on observable inputs such as the applicable, country-specific market yield curve, market indicated spreads by security rating and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active. As of September 30, 2021 the Company did no t hold any short-term investments. As of December 31, 2020 short-term investments included $ 1.8 million of available-for-sale securities with contractual maturities less than one year. Unrealized gains and losses associated with the investments are reported in accumulated other comprehensive income (loss). The Company did not hold any short-term investments during the three months ended September 30, 2021. For the nine months ended September 30, 2021, and for the three and nine months ended September 30, 2020, the Company recorded an insignificant amount in net unrealized gains/(losses) associated with the short-term investments through other comprehensive income on the accompanying condensed financial statements. Realized gains and losses associated with investments, if any, are reported in other income (expense), net. The Company did not hold any short-term investments during the three months ended September 30, 2021. For the nine months ended September 30, 2021, and for the three and nine months ended September 30, 2020, the Company recorded an insignificant amount in realized gains/losses on its short-term investments. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 6. Inventories, Net Inventories consist of the following (in thousands): As of September 30, As of December 31, Finished goods, net $ 2,775 $ 2,093 Work in process 88 137 Raw materials, net 1,540 1,352 Total inventories, net $ 4,403 $ 3,582 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 7. Property, Plant and Equipment, Net Property, plant and equipment consist of the following (in thousands): As of September 30, As of December 31, Machinery and equipment $ 8,763 $ 6,084 Office furniture and equipment 516 315 Vehicles 70 128 Leasehold improvements 2,738 2,442 12,087 8,969 Less—Accumulated depreciation ( 2,174 ) ( 995 ) 9,913 7,974 Construction in progress 12,538 2,034 Total property, plant and equipment, net $ 22,451 $ 10,008 Depreciation expense related to property, plant and equipment recorded during the three months ended September 30, 2021 and 2020 was approximately $ 0.5 million and $ 0.3 million, respectively and during the nine months ended September 30, 2021 and 2020 was approximately $ 1.2 million and $ 0.6 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Note 8. Accrued Liabilities Accrued liabilities were comprised of the following (in thousands): As of September 30, As of December 31, 2020 Payroll-related $ 2,074 $ 1,482 Other 809 845 Total current accrued liabilities $ 2,883 $ 2,327 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt On March 26, 2021, the Company entered into a Credit Agreement (“Credit Agreement”) with MidCap Financial Funding (MidCap Financial Services, LLC, as servicer for MidCap Financial Trust), as an administrative agent, and such other banks and financial institutions as may be arranged by MidCap Financial Funding. The Credit Agreement provides for a $ 27.0 million credit facility (the “Facility”) consisting of a $ 22.0 million senior, secured term loan (the “Term Loan”), and a $ 5.0 million working capital facility (the “Revolver”). The Term Loan is staged such that $ 12.0 million is available immediately, an additional $ 5.0 million is available on September 30, 2021, and $ 5.0 million is available in 2022, but the final borrowing in 2022 is contingent upon achieving trailing twelve months of net revenue of $ 37.0 million if the proposed funding date is on or after January 1, 2022 and before July 1, 2022 or $ 38.5 million if the proposed funding date is on or after July 1, 2022 and on or before September 30, 2022 and earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets (as defined in the Credit Agreement). Borrowings on the Revolver are limited to a borrowing base calculation, with the initial borrowing subject to completion of an initial field exam with respect to such borrowing base assets. The initial field exam was completed during the second fiscal quarter of 2021; however, as of September 30, 2021, there was no drawdown on the Revolver. The interest on the Term Loan is based on the annual rate of one-month London Inter-Bank Offered Rate (LIBOR) plus 6.45 %, subject to a LIBOR floor of 1.50 %. If any advance under the Term Loan is prepaid at any time, the prepayment fee is based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment is made after the closing date of the Term Loan. The Credit Agreement contains a financial covenant based upon a trailing twelve months of net revenue, including a requirement of $ 32.0 million in the twelve months ending December 31, 2021. As of September 30, 2021, the Company has complied with these requirements. The outstanding balance on the Facility will be due in full on March 1, 2026. At the end of the Term Loan, the Company will pay an exit fee of $ 0.6 million, which represents 5 % of the $12.0 million in borrowings made available immediately on March 26, 2021. Such fee is being accreted to interest expense over the life of the Term Loan. The Company incurred $ 0.3 million of debt issuance costs which are recorded in long-term debt in the condensed balance sheets. On March 26, 2021, the Company drew the full $ 12.0 million of the Term Loan available. As of September 30, 2021, the gross outstanding long-term debt is $ 12.0 million ($ 11.8 million net of debt issuance costs) and is presented as long-term debt on the condensed balance sheets (in thousands). The components of the carrying value of long-term debt as of September 30, 2021 and December 31, 2020, are detailed below: As of September 30, As of December 31, Long-term debt $ 12,000 $ — Cumulative accretion of exit fee 60 — Unamortized debt discount and debt issuance costs ( 234 ) — Long-term debt, net $ 11,826 $ — At September 30, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands): Amount Remainder of 2021 $ — 2022 — 2023 — 2024 4,500 2025 6,000 2026 1,500 Total $ 12,000 As of September 30, 2021, the fair value of our long-term debt approximates its carrying value. The fair value of our long-term debt was based on observable market inputs (Level 2). |
Convertible and Redeemable Pref
Convertible and Redeemable Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Convertible and Redeemable Preferred Stock | Note 10. Convertible and Redeemable Preferred Stock As of December 31, 2020, Series A preferred stock consisted of the following (in thousands, except share data): Shares Authorized Shares Issued and Aggregate Liquidation Proceeds, net of Series A preferred stock 9,600,000 9,342,092 $ 41,586 $ 35,638 On June 14, 2021 and June 16, 2021, the Company’s board of directors and stockholders, respectively approved a 1.8746 for-one forward stock split, which was effected on June 17, 2021. On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company ’ s common stock on a one-to-one basis and their carrying value of $ 35.9 million was reclassified into stockholders’ equity. As of September 30, 2021, there were no shares of convertible and redeemable preferred stock issued and outstanding. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Common Stock | Note 11. Equity Preferred stock On June 28, 2021, in connection with the IPO, the Company’s amended and restated certificate of incorporation became effective. The amended and restated certificate of incorporation authorizes the issuance of 10,000,000 shares of preferred stock, par value $ 0.00001 per share, with rights and preferences, including voting rights, designated from time to time by the Company’s board of directors. As of September 30, 2021 and December 31, 2020, the Company had 10,000,000 and zero authorized shares of the Company’s preferred stock, par value $ 0.00001 per share, respectively. As of September 30, 2021 and December 31, 2020, there were zero shares of the Company ’s preferred stock issued and outstanding. Common stock As of September 30, 2021 and December 31, 2020, the Company had 490,000,000 and 30,000,000 authorized shares of the Company’s common stock, par value $ 0.00001 per share, respectively. As of September 30, 2021 and December 31, 2020, there were 28,011,917 and 3,599,232 shares of the Company’s common stock issued and outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation 2016 Stock Plan On December 21, 2016, the Company’s predecessor entity’s board of directors adopted, and the Company’s predecessor entity’s shareholders approved, the 2016 Stock Plan, as amended (the "2016 Plan") and the Company assumed the 2016 Plan in connection with its reincorporation as a Delaware corporation in January 2019. Certain employees, directors and consultants to the Company have been granted options to purchase common shares under the 2016 Plan and related agreements. The 2016 Plan authorizes options to be granted in the form of Incentive Stock Options or Nonstatutory Stock Options. As of September 30, 2021 and December 31, 2020, there were no shares available for issuance under the 2016 Plan. Under the 2016 Plan, Teknova granted time-based and performance-based options, each with a term of ten years . Time-based options vest over a four-year period with a one-year cliff. The Company recognizes compensation expense for stock options over the vesting period. Forfeitures are recognized as incurred. Prior to the execution of the THP Transaction, 3,951,334 time-based options were fully vested. The remaining 1,485,006 unvested time-based options accelerated and became fully vested immediately upon the execution of the THP Transaction. The Company repurchased 3,542,994 of the Company’s common stock options pursuant to the THP Transaction for $ 2.0521 per share. The Company granted 284,682 performance-based options that vest upon a change of control, which excludes the THP Transaction. When the 2020 Plan became effective, no additional stock awards were granted under the 2016 Plan, although all outstanding stock awards granted under the 2016 Plan will continue to be subject to the terms and conditions as set forth in the agreements evidencing such stock awards and the terms of the 2016 Plan. 2020 Equity Incentive Plan The Company’s board of directors and the Company’s stockholders adopted the 2020 Equity Incentive Plan, as amended (the “2020 Plan”), on August 31, 2020. Pursuant to the 2020 Plan, the Company had reserved 3,143,848 shares of its common stock for issuance thereunder. As described below, after the 2021 Equity Incentive Plan (the “2021 Plan”) became effective, no additional awards will be made pursuant to the 2020 Plan; however, the 2020 Plan will continue to govern outstanding awards granted thereunder. As of September 30, 2021 and December 31, 2020, zero and 1,924,370 shares, respectively, were available for issuance under the 2020 Plan. Under the 2020 Plan, the Company granted time-based and performance-based options, each for a term of ten years . The time-based options vest over a four-year period. Options to purchase the Company ’s common stock were granted with an exercise price equal to the fair market value of the Company’s common stock on the date of grant. The Company recognizes compensation expense for stock options over the vesting period. Forfeitures are recognized as incurred. Performance-based options vest upon the meeting of certain expectations based on pre-established goals for growth in revenue and EBITDA. On June 14, 2021 the Company’s board of directors approved an amendment to the outstanding performance based option to acquire 231,719 shares of the Company’s common stock previously granted under 2020 Plan on August 31, 2020, to eliminate the performance based vesting and provide that such option will vest in 48 equal monthly installments commencing on June 24 , 2021, the date upon which the Company’s Registration Statement on Form S-1 (File No. 333-256795) (the “IPO Registration Statement”) was declared effective by the SEC. The stock option modification was measured as the excess of the fair value of the modified option over the fair value of the original option immediately before the modification in accordance with FASB ASC Topic 718. The incremental stock-based compensation expense for such stock option modification is approximately $ 3.5 million, which is being amortized over the 48-month vesting period. During the three and nine months ended September 30, 2021, $ 0.2 million and $ 0.3 million in incremental stock-based compensation expense was recognized in general and administrative expense on the condensed statements of operations and comprehensive income (loss), respectively. 2021 Equity Incentive Plan On June 14, 2021 and June 17, 2021, the Company’s board of directors and the Company’s stockholders, respectively, approved the 2021 Plan, which became effective on June 23, 2021 in connection with the IPO. From and after the date on which the 2021 Plan became effective, no further grants will be made under the 2020 Plan. 2,908,283 shares of the Company’s common stock are reserved for issuance under the 2021 Plan. As of September 30, 2021, 2,750,625 shares of the Company's common stock were available for future grants under the 2021 Plan. The types of equity-based awards that may be granted under the 2021 Plan include: options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other stock-based awards. The maximum number of shares of the Company’ s common stock that may be issued under the 2021 Plan is 5,020,114 shares of the Company ’ s common stock, which is the sum of (i) 2,908,283 new shares, plus (ii) an additional number of shares not to exceed 2,111,830 shares, consisting of any shares of the Company ’ s common stock subject to outstanding stock options or other stock awards granted under the 2020 Plan that, on or after the 2021 Plan became effective, terminate or expire prior to exercise or settlement. The equity-based awards will vest over a four-year period for all employees and will vest over a three-year period for the Company ’s board of directors. Generally, the number of shares of the Company’ s common stock that will be reserved for issuance under the 2021 Plan will automatically increase on January 1 of each year for a period of ten years , beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to 4 % of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding year; provided, however, that the Company’s board of directors may act prior to January 1st of a given year to provide that the increase for such year will be a lesser number of shares of common stock. The following table summarizes the stock option activity under the 2016, 2020, and 2021 Plans for the indicated periods (unaudited) (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Balance at December 31, 2020 2,246,544 $ 0.95 9.41 $ 10,081 Granted 466,967 $ 14.26 — — Exercised — $ — — — Cancelled or forfeited ( 121,849 ) $ 1.85 — — Balance at September 30, 2021 2,591,662 $ 3.31 8.84 $ 56,216 Exercisable at September 30, 2021 569,589 $ 0.80 8.68 $ 13,723 Unrecognized compensation expense related to stock options was $ 7.4 million at September 30, 2021, which is expected to be recognized as expense over the weighted-average period of 3.4 years. Additionally, i n January 2019, the Company granted 284,682 performance-based options that vest upon a change of control. As of September 30, 2021, these options were not considered probable of vesting. The Company had unrecognized compensation expense of approximately $ 0.5 million at September 30, 2021 relating to these options. Stock-based compensation expense included in the accompanying condensed financial statements was as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2021 2020 2021 2020 Cost of Sales 1 — 1 — Research and Development 30 — 107 — Sales and Marketing ( 30 ) — 23 — General and administrative 441 31 796 31 Total stock-based compensation expense $ 442 $ 31 $ 927 $ 31 Teknova uses the Black-Scholes option-pricing model to determine the fair value of stock options. The valuation model for stock compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term, expected volatility and fair value of the Company’s common stock, and an assumed risk-free interest rate. The assumptions used in the Black-Scholes option-pricing model were as follows: Volatility . Since the Company has limited historical data on volatility of its stock, expected volatility is based on the volatility of the stock of similar publicly traded entities. In evaluating similarity, the Company considered factors such as industry, stage of life cycle, size, and financial leverage. Fair value of underlying common stock . Prior to the closing of the IPO, the Company had to estimate the fair value of its common stock. Management considered numerous objective and subjective factors to determine the fair value of the Company’s common stock. The factors considered include, but are not limited to: (i) the results of contemporaneous independent third- party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results;(v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s shares. Since the closing of the IPO, the fair value of the Company’s common stock is determined by the closing price of its common stock as reported on The Nasdaq Stock Market, LLC on the date of grant. Risk-free interest rate . The risk-free rate that the Company uses is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Expected life . As the Company does not have sufficient historical exercise activity to estimate expected life, the expected life of options granted was determined using the “simplified” method, as illustrated in the Securities and Exchange Commission’s Staff Accounting Bulletin (SAB) No. 107, as amended by SAB No. 110. Under this approach, the expected term is presumed to be the average of the weighted average vesting term and the contractual term of the option. Dividend yield . Teknova has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future. Therefore, the Company used an expected dividend yield of zero . In addition, the terms of the Credit Agreement prohibit us from paying dividends, other than dividends payable on the Company’s common stock, without the prior consent of the lender. The weighted average assumptions used in the Black-Scholes option-pricing model are as follows: For the Three For the Three For the Nine For the Nine Estimated dividend yield 0 % 0 % 0 % 0 % Weighted-average expected stock price volatility 33.16 % 36.08 % 33.65 % 36.08 % Weighted-average risk-free interest rate 0.99 % 0.42 % 0.93 % 0.42 % Expected average term of options (in years) 6.25 6.25 6.11 6.25 Weighted-average fair value of common stock $ 27.49 $ 3.46 $ 15.25 $ 3.46 Weighted-average fair value per option $ 9.42 $ 2.13 $ 5.62 $ 2.13 Employee Stock Purchase Plan On June 14, 2021 and June 17, 2021, the Company’s board of directors and the Company’s stockholders, respectively, approved the Company’s 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on June 23, 2021 in connection with the IPO. A total of 290,828 shares of the Company’s common stock are reserved for issuance under the ESPP. The number of shares of the Company’s common stock that will be reserved for issuance will automatically increase on January 1 of each year for a period of ten years , beginning on January 1, 2022 and continuing through January 1, 2031, by the lesser of (i) 1 % of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year; and (ii) 319,911 shares (subject to adjustments for stock splits, dividends, combinations of shares, exchanges of shares and other “Capitalization Adjustments”, as defined in the ESPP), except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). Generally, all regular employees, including executive officers, employed by the Company will be eligible to participate in the ESPP and to contribute, normally through payroll deductions, up to 15 % of their earnings (as defined in the ESPP) for the purchase of the Company’s common stock under the ESPP. Unless otherwise determined by the Company’s board of directors, shares of the Company’s common stock will be purchased for the accounts of employees participating in the Company’s ESPP at a price per share equal to the lesser of (i) 85 % of the fair market value of a share of the Company’s common stock on the first day of an offering; or (ii) 85 % of the fair market value of a share of the Company’s common stock on the date of purchase. Amounts contributed and accumulated by the participant will be used to purchase the Company’s common stock at the end of each offering period. No employee will be permitted to purchase shares under the ESPP at a rate in excess of $ 25,000 worth of the Company’s common stock (based on the fair market value per share of the Company’s common stock on the date a purchase right under the ESPP is granted) for each calendar year such a purchase right is outstanding. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of the Company’s common stock. Participation ends automatically upon termination of employment with the Company. As of September 30, 2021, the Company had 290,828 shares of the Company's common stock reserved for future grants under the ESPP. As of September 30, 2021, there had been no grants of purchase rights and no offering periods have commenced under the ESPP. |
Net (Loss) Income Per Share Att
Net (Loss) Income Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share Attributable to Common Stockholders | Note 13. Net (Loss) Income Per Share Attributable to Common Stockholders Basic net (loss) income per share is computed by dividing net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net (loss) income per share attributable to common stockholders is computed by dividing net income by the weighted-average number of common shares outstanding during the period and potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Potential common stock equivalents consist of the Company ’ s common stock issuable upon exercise of stock options. For periods of net loss, basic and diluted earnings per share are the same as the effect of the assumed exercise of stock options, and convertible preferred stock is anti-dilutive. The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except share and per share data): For the Three Months For the Nine Months 2021 2020 2021 2020 Net income (loss) attributable to stockholders $ ( 3,251 ) $ 1,533 $ ( 6,156 ) $ 2,993 Undistributed income attributable to preferred stockholders — ( 1,271 ) — ( 2,482 ) Net income (loss) attributable to common stockholders $ ( 3,251 ) $ 262 $ ( 6,156 ) $ 511 Basic weighted-average common stock outstanding 28,011,917 3,599,232 12,069,214 3,599,232 Weighted-average effect of potentially dilutive securities: Stock options — 48,443 — 33,089 Dilutive weighted-average common stock 28,011,917 3,647,675 12,069,214 3,632,321 Earnings per share attributable to common stockholders: Basic $ ( 0.12 ) $ 0.07 $ ( 0.51 ) $ 0.14 Diluted $ ( 0.12 ) $ 0.07 $ ( 0.51 ) $ 0.14 The following is a summary of the Company’s common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share, as their effect would be anti-dilutive: For the Three Months For the Nine Months 2021 2020 2021 2020 Stock options to purchase common stock 2,577,649 — 2,426,120 — Convertible Series A preferred stock (1) — 9,342,092 6,159,621 9,342,092 Total 2,577,649 9,342,092 8,585,741 9,342,092 (1) On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See Note 10, Convertible and Redeemable Preferred Stock for additional information. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Note 14. Related Parties The Company has identified the following as related parties through common control: Meeches, LLC and Thomas E. Davis, LLC, as such entities are controlled by Ted Davis, Teknova’s founder and a current director and five percent stockholder of the Company. The Company leased certain real property and had a related party note receivable totaling approximately $ 0.5 million as of December 31, 2020 from Thomas E. Davis, LLC. The related party note receivable was secured by a first priority Deed of Trust on the leased property and bore interest at 6 % per annum, and interest payments were received monthly. The principal balance was payable in one payment and had an original maturity date of July 1, 2019, which was extended by the Company to July 1, 2020. On June 16, 2020, the Company executed an additional amendment to the note receivable to extend the maturity date to July 1, 2021. On March 31, 2021, the $ 0.5 million note receivable was paid in full. The Company leases certain real property from Meeches, LLC and does not have any outstanding balances owed to Meeches LLC. For the three months ended September 30, 2021 and 2020, the Company paid Meeches LLC $ 0.1 million and $ 0.1 million, respectively, and for the nine months ended September 30, 2021 and 2020, the Company paid Meeches LLC $ 0.2 million and $ 0.3 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies Obligations under Operating Leases The Company has various non-cancelable operating leases for buildings for office, warehouse and manufacturing space in Hollister, California and in Mansfield, Massachusetts. The leases have a lease term with varying expiration dates, which represent the non-cancelable periods of the leases and include extension options. The lease agreement with Thomas E Davis, LLC, a related party (see “Note 14. Related Parties”) commenced in March 2017, with a payment of $ 5.0 thousand a month and a one-year term. The Company had the option to extend the term of the lease for two additional separate, successive terms of one year each, following the expiration of the initial term of the lease. The Company entered into a lease extension in June 2020 and extended the lease term until June 2021. The lease agreement was not extended beyond June 2021. The lease agreement with Meeches, LLC, a related party (see “Note 14. Related Parties”) commenced in September 2019, with a payment of $ 20.0 thousand a month and a five-year term. Rent expense for the three months ended September 30, 2021 and 2020 was $ 0.4 million and $ 0.3 million, respectively and for the nine months ended September 30, 2021 and 2020, was $ 1.3 million and $ 0.9 million, respectively. Future minimum lease payments with unrelated and related parties as of September 30, 2021, are as follows (in thousands): Unrelated Related Total Remainder of 2021 $ 367 $ 66 $ 433 2022 1,488 267 1,755 2023 1,498 279 1,777 2024 1,537 191 1,728 2025 1,060 — 1,060 2026 and thereafter — — — Total future minimum lease payments $ 5,951 $ 802 $ 6,753 Litigation Teknova’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property and product liability. As a result, the Company may be subject to various legal proceedings from time to time. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. The Company was not during the three and nine months ended on September 30, 2021, and was not as of the date hereof, a party to any material litigation. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes For the three and nine months ended September 30, 2021, the Company recorded an income tax benefit of $ 0.9 million and $ 1.6 million, respectively. The effective tax rates for the three and nine months ended September 30, 2021 were 21.5 % and 21.0 %, respectively, and differ from the federal statutory rate primarily due to state losses not expected to be benefitted. For the three and nine months ended September 30, 2020, the Company recorded an income tax expense of $ 0.6 million and $ 0.9 million, respectively. The effective tax rates for the three and nine months ended September 30, 2020 , were 29.3 % and 23.6 %, respectively. The effective tax rate for the three months ended September 30, 2020, was higher than the statutory tax rate primarily due to state taxes. The effective tax rate for the nine months ended September 30, 2020, was higher than the statutory rate primarily due to state taxes, offset by the NOL carryback refund claims. In March 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses. The CARES Act amends the NOL provisions of the Tax Cuts and the Jumpstart Our Business Startups Act of 2012, allowing for the carryback of losses arising in tax years 2018, 2019, and 2020, to each of the five taxable years to generate a refund of previously paid income taxes. As of September 30, 2021, the Company had an income tax receivable of $ 1.2 million related to anticipated refund claims. The Company had no unrecognized tax benefits as at September 30, 2021 and December 31, 2020. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect the balance of unrecognized tax benefits will change significantly over the next twelve months. The Company has not accrued interest or penalties related to uncertain tax positions as of September 30, 2021. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events On October 8, 2021, the Company entered into a new lease agreement for additional warehouse and distribution space located in Hollister, California. The lease is anticipated to commence at the beginning of December 2021. The total minimum future lease payments over the five-year term of the new lease agreement are approximately $ 3.1 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Presentation | Basis of Accounting and Presentation The accompanying condensed financial statements and related notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The condensed balance sheet at December 31, 2020, was derived from amounts included in the Company’s annual financial statements for the year ended December 31, 2020, included in the Company’s final prospectus dated June 24, 2021 (the “Final Prospectus”) filed with the Securities and Exchange Commission (“SEC”) on June 25, 2021 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the “Securities Act”) , but does not include all of the disclosures, including certain notes required by GAAP on an annual reporting basis. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Final Prospectus. Refer to Note 2, Summary of Significant Accounting Policies, within the annual financial statements included within the Final Prospectus for the full list of our significant accounting policies. The details in those notes have not changed except as a result of normal adjustments in the interim periods. On January 14, 2019, Teknova entered into a stock purchase agreement with Telegraph Hill Partners IV, L.P. and THP IV Affiliates Fund, LLC (collectively “THP”), pursuant to which THP acquired 9,342,092 shares of the Company’s Series A preferred stock, representing 80.6 % of the then-outstanding voting power of the Company (on a fully diluted basis), and Teknova received an aggregate of $ 35.9 million from the issuance of such shares to THP (the “THP Transaction”). In connection with the THP Transaction, we elected to apply “pushdown” accounting by applying the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Our assets and liabilities were recognized at fair value as of January 14, 2019. Additionally, the excess of the portion of the total purchase price of the THP Transaction attributable to the purchase of assets and liabilities over their estimated fair value as of the closing date of the THP Transaction was allocated to goodwill. The new basis of accounting primarily impacted the values of our long-lived and indefinite-lived intangible assets and resulted in increased depreciation and amortization expense due to the increased carrying value of our assets. |
Impact of COVID-19 | Impact of COVID-19 In March 2020, the World Health Organization declared that the outbreak of COVID-19 was a global pandemic. Since Teknova’s business is categorized as part of the country’s critical infrastructure, the Company was able to continue operations during the COVID-19 pandemic. During the first half of 2020, orders for Lab Essentials products declined because many research customers were required to close temporarily. Later in the year, Teknova developed and commercialized, and earned revenue on, sample transport medium for use in COVID-19 sample collection and transport. During the first half of 2021, demand for COVID-19 testing declined significantly and market supply of sample transport medium increased resulting in excess supply in the market. In light of such fluctuations and uncertain future demand, the Company fully reserved $ 0.7 million for its Sample Transport medium inventory on its balance sheet. It is not possible to exactly predict the total impact of the global COVID-19 outbreak on the Company’s future revenue or profitability, which will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the effectiveness of public policy, the potential emergence and spread of new virus variants, and the degree to which vaccination efforts are successful, among other factors. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Teknova’s CODM is its Chief Executive Officer, Stephen Gunstream. Teknova has determined that it operates in one reporting unit, one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. |
Unaudited Condensed Financial Statements | Unaudited Condensed Financial Statements The condensed balance sheet as of September 30, 2021, the condensed statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020, the condensed statements of cash flows for the nine months ended September 30, 2021 and 2020, and the condensed statements of convertible and redeemable preferred stock and stockholders’ equity for the three and nine months ended September 30, 2021, and 2020 are unaudited. The condensed financial statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2020, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2021, and the condensed results of its operations and comprehensive income (loss) and its cash flows for the three and nine months ended September 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2021 and 2020, are also unaudited. The condensed results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the full year ending December 31, 2021, or for any other period. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets and liabilities, and disclosures of assets and liabilities, at the date of each financial statement, and the reported amount of revenues and expenses during the reporting period. The inputs into the Company’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates, including those made in connection with the valuation of goodwill and intangible assets, stock-based compensation, and income taxes. Actual results can differ from those estimates. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs represent legal, consulting, and other financial costs associated with debt financing and are presented on the balance sheets as a direct reduction from the carrying amount of the related debt instrument. Debt issuance costs on the term debt are amortized to interest expense over the term of the applicable debt agreement using the effective interest rate method. |
Stock-Based Compensation | Stock-Based Compensation Teknova follows the fair value recognition provisions of ASC 718, Compensation—Stock Compensation (Topic 718). The Company accounts for stock-based compensation expense based on the estimated grant date fair value, using the Black-Scholes option-pricing model, which requires the Company to make a number of assumptions, including expected volatility, the expected risk-free interest rate, the expected term and the expected dividend. Stock-based compensation expense is recognized over the requisite service period of the award, which generally represents the scheduled vesting period. Forfeitures are recognized as they occur. |
Concentration of Risk | Concentration of Risk Financial Instruments Teknova’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality banking institutions. At times, the Company’s cash and cash equivalent balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Teknova has never experienced any losses related to its cash and cash equivalent balances. Teknova routinely communicates with its customers regarding payments and has a history of limited write-offs. Therefore, the Company believes that its accounts receivable credit risk exposure is limited. Customers For the three months ended September 30, 2021 and 2020, Teknova’s combined sales to its three largest customers accounted for approximately 40 % and 38 % of its total sales, respectively. Two of these customers, individually, represented 21 % and 11 % of total sales, respectively, for the three months ended September 30, 2021. For the nine months ended September 30, 2021 and 2020, Teknova’s combined sales to its three largest customers accounted for approximately 34 % and 37 % of its total sales, respectively. Two of these customers, individually, represented 19 % and 10 % of total sales, respectively, for the nine months ended September 30, 2021. The three customers also have combined accounts receivable balances as of September 30, 2021 and December 31, 2020, representing 55 % and 25 % of total receivables, respectively. Two of these customers are distributors representing a highly diversified customer base. Suppliers For the three months ended September 30, 2021 and 2020, purchases from two of Teknova’s suppliers together accounted for 50 % and 44 %, of all of the Company’s inventory purchases, respectively. For the nine months ended September 30, 2021 and 2020, purchases from two of Teknova’s suppliers together accounted for 49 % and 47 %, of all of the Company’s inventory purchases, respectively. The amounts due to Teknova’s largest supplier comprised approximately 11 % and 15 % of total accounts payable as of September 30, 2021 and December 31, 2020, respectively. One of these suppliers is a distributor representing a highly diversified supplier base. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The new standard requires lessees to generally recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. The new standard is effective with respect to Teknova beginning January 1, 2022, on a modified retrospective basis, and early adoption is permitted. Teknova is currently evaluating the impact of the pending adoption of this standard on its condensed financial statements. Teknova expects that most of the operating lease commitments will be subject to the new standard and will be recognized as operating lease liabilities and right-of-use assets upon adoption of this standard, which will increase the Company’s total assets and total liabilities that are reported relative to such amounts prior to adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASC 740”). ASU No. 2019-12 removes certain exceptions to the general principles in ASC 740 and clarifies and amends certain guidance to promote consistent application. The new guidance is effective for the Company’s annual and interim periods beginning after December 15, 2021, and early adoption is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. Teknova is currently evaluating the impact that application of the standard may have on its condensed financial statements but does not now anticipate the impact will be significant. In June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments—Credit Losses . The standard introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses and will apply to accounts receivable. The new guidance will be effective for Teknova’s annual and interim periods beginning after December 15, 2022. Teknova is currently evaluating the impact that application of the standard may have on its condensed financial statements but does not anticipate it will have a significant impact. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Teknova’s revenue, disaggregated by product category was as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Lab Essentials $ 7,195 $ 5,815 $ 20,440 $ 15,494 Clinical Solutions 1,690 1,354 4,354 3,141 Sample Transport 73 1,593 1,035 1,767 Other 434 222 954 738 Total revenue $ 9,392 $ 8,984 $ 26,783 $ 21,140 Teknova’s revenue, disaggregated by geographic region was as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 United States $ 9,114 $ 8,747 $ 25,890 $ 20,303 International 278 237 893 837 Total revenue $ 9,392 $ 8,984 $ 26,783 $ 21,140 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets with Definite and Indefinite Lives | The following is a summary of intangible assets with definite and indefinite lives (in thousands): Balance at September 30, 2021 Balance at December 31, 2020 Accumulated Gross Accumulated Net Definite Lived: Customer relationships 9,180 3,108 6,072 $ 9,180 $ 2,247 $ 6,933 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets 22,099 3,108 18,991 $ 22,099 $ 2,247 $ 19,852 |
Schedule of Future Amortization Expense | The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Amount Remainder of 2021 $ 287 2022 1,148 2023 1,148 2024 1,148 2025 1,148 2026 and thereafter 1,195 Estimated future amortization expense of definite-lived intangible assets $ 6,072 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Carried at Fair Value and Measured on Recurring Basis | Financial assets carried at fair value and measured on a recurring basis as of December 31, 2020 are classified in the hierarchy as follows (in thousands): Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 286 $ 286 $ — $ — Total cash equivalents 286 286 — — Available-for-sale investments U.S. corporate debt securities 858 — 858 — Foreign corporate debt securities 953 — 953 — Total available-for-sale investments 1,811 — 1,811 — Total financial assets carried at fair value $ 2,097 $ 286 $ 1,811 $ — |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventories consist of the following (in thousands): As of September 30, As of December 31, Finished goods, net $ 2,775 $ 2,093 Work in process 88 137 Raw materials, net 1,540 1,352 Total inventories, net $ 4,403 $ 3,582 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property, Plant and Equipment, Net | Property, plant and equipment consist of the following (in thousands): As of September 30, As of December 31, Machinery and equipment $ 8,763 $ 6,084 Office furniture and equipment 516 315 Vehicles 70 128 Leasehold improvements 2,738 2,442 12,087 8,969 Less—Accumulated depreciation ( 2,174 ) ( 995 ) 9,913 7,974 Construction in progress 12,538 2,034 Total property, plant and equipment, net $ 22,451 $ 10,008 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities were comprised of the following (in thousands): As of September 30, As of December 31, 2020 Payroll-related $ 2,074 $ 1,482 Other 809 845 Total current accrued liabilities $ 2,883 $ 2,327 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Components of Carrying Value of Long-Term Debt | The components of the carrying value of long-term debt as of September 30, 2021 and December 31, 2020, are detailed below: As of September 30, As of December 31, Long-term debt $ 12,000 $ — Cumulative accretion of exit fee 60 — Unamortized debt discount and debt issuance costs ( 234 ) — Long-term debt, net $ 11,826 $ — |
Schedule of Maturities of Term Loan | At September 30, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands): Amount Remainder of 2021 $ — 2022 — 2023 — 2024 4,500 2025 6,000 2026 1,500 Total $ 12,000 |
Convertible and Redeemable Pr_2
Convertible and Redeemable Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Series A Preferred Stock | As of December 31, 2020, Series A preferred stock consisted of the following (in thousands, except share data): Shares Authorized Shares Issued and Aggregate Liquidation Proceeds, net of Series A preferred stock 9,600,000 9,342,092 $ 41,586 $ 35,638 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense included in the accompanying condensed financial statements was as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2021 2020 2021 2020 Cost of Sales 1 — 1 — Research and Development 30 — 107 — Sales and Marketing ( 30 ) — 23 — General and administrative 441 31 796 31 Total stock-based compensation expense $ 442 $ 31 $ 927 $ 31 |
Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model | The weighted average assumptions used in the Black-Scholes option-pricing model are as follows: For the Three For the Three For the Nine For the Nine Estimated dividend yield 0 % 0 % 0 % 0 % Weighted-average expected stock price volatility 33.16 % 36.08 % 33.65 % 36.08 % Weighted-average risk-free interest rate 0.99 % 0.42 % 0.93 % 0.42 % Expected average term of options (in years) 6.25 6.25 6.11 6.25 Weighted-average fair value of common stock $ 27.49 $ 3.46 $ 15.25 $ 3.46 Weighted-average fair value per option $ 9.42 $ 2.13 $ 5.62 $ 2.13 |
2016, 2020, 2021 Equity Incentive Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Options Activity | The following table summarizes the stock option activity under the 2016, 2020, and 2021 Plans for the indicated periods (unaudited) (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Balance at December 31, 2020 2,246,544 $ 0.95 9.41 $ 10,081 Granted 466,967 $ 14.26 — — Exercised — $ — — — Cancelled or forfeited ( 121,849 ) $ 1.85 — — Balance at September 30, 2021 2,591,662 $ 3.31 8.84 $ 56,216 Exercisable at September 30, 2021 569,589 $ 0.80 8.68 $ 13,723 |
Net (Loss) Income Per Share A_2
Net (Loss) Income Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic And Diluted Net (Loss) Income Per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except share and per share data): For the Three Months For the Nine Months 2021 2020 2021 2020 Net income (loss) attributable to stockholders $ ( 3,251 ) $ 1,533 $ ( 6,156 ) $ 2,993 Undistributed income attributable to preferred stockholders — ( 1,271 ) — ( 2,482 ) Net income (loss) attributable to common stockholders $ ( 3,251 ) $ 262 $ ( 6,156 ) $ 511 Basic weighted-average common stock outstanding 28,011,917 3,599,232 12,069,214 3,599,232 Weighted-average effect of potentially dilutive securities: Stock options — 48,443 — 33,089 Dilutive weighted-average common stock 28,011,917 3,647,675 12,069,214 3,632,321 Earnings per share attributable to common stockholders: Basic $ ( 0.12 ) $ 0.07 $ ( 0.51 ) $ 0.14 Diluted $ ( 0.12 ) $ 0.07 $ ( 0.51 ) $ 0.14 |
Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders | The following is a summary of the Company’s common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share, as their effect would be anti-dilutive: For the Three Months For the Nine Months 2021 2020 2021 2020 Stock options to purchase common stock 2,577,649 — 2,426,120 — Convertible Series A preferred stock (1) — 9,342,092 6,159,621 9,342,092 Total 2,577,649 9,342,092 8,585,741 9,342,092 (1) On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See Note 10, Convertible and Redeemable Preferred Stock for additional information. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments with unrelated and related parties as of September 30, 2021, are as follows (in thousands): Unrelated Related Total Remainder of 2021 $ 367 $ 66 $ 433 2022 1,488 267 1,755 2023 1,498 279 1,777 2024 1,537 191 1,728 2025 1,060 — 1,060 2026 and thereafter — — — Total future minimum lease payments $ 5,951 $ 802 $ 6,753 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 28, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Subsidiary Sale Of Stock [Line Items] | |||||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 17,512,685 | ||||
Proceeds from initial public offering, net of underwriters’ commissions and discounts | $ 99,100 | $ 102,672 | $ 0 | ||
Underwriting discounts and commissions | 7,700 | ||||
Offering Expenses | $ 3,600 | ||||
Preferred stock, shares outstanding | 0 | 0 | |||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 3,600 | ||||
Deferred Offering Costs | $ 0 | ||||
Convertible and Redeemable Preferred Stock [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 0 | ||||
Preferred stock, shares outstanding | 0 | ||||
Minimum [Member] | Convertible and Redeemable Preferred Stock [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Convertible preferred stock carrying value | $ 35,600 | ||||
Maximum [Member] | Convertible and Redeemable Preferred Stock [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Convertible preferred stock carrying value | $ 35,900 | ||||
IPO [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 6,900,000 | ||||
Option to Purchase Additional Shares of Common Stock | 900,000 | ||||
Shares Issued, Price Per Share | $ 16 | ||||
Accretion Expense | $ 300 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Jan. 14, 2019USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020 | Sep. 30, 2021USD ($)Segmentshares | Sep. 30, 2020 | Dec. 31, 2020shares |
Product Information [Line Items] | ||||||
Preferred stock, shares issued | shares | 0 | 0 | 0 | |||
Aggregate proceeds from issuance | $ | $ 99,057 | |||||
Operating segment | Segment | 1 | |||||
Reportable segment | Segment | 1 | |||||
COVID-19 | ||||||
Product Information [Line Items] | ||||||
Inventory reserved | $ | $ 700 | $ 700 | ||||
Customers Concentration Risk [Member] | Three Largest Customers [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 40.00% | 38.00% | 34.00% | 37.00% | ||
Customers Concentration Risk [Member] | Customer 1 [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 21.00% | 19.00% | ||||
Customers Concentration Risk [Member] | Customer 2 [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 11.00% | 10.00% | ||||
Customers Concentration Risk [Member] | Customer 3 [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 55.00% | 25.00% | ||||
Suppliers Concentration Risk [Member] | Two Largest Suppliers [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 50.00% | 44.00% | 49.00% | 47.00% | ||
Suppliers Concentration Risk [Member] | Largest Supplier [Member] | Combined Sales [Member] | ||||||
Product Information [Line Items] | ||||||
Percentage of Total Sales | 11.00% | 15.00% | ||||
Series A Preferred Stock [Member] | ||||||
Product Information [Line Items] | ||||||
Preferred stock, shares issued | shares | 0 | 0 | 9,342,092 | |||
THP [Member] | Series A Preferred Stock [Member] | ||||||
Product Information [Line Items] | ||||||
Preferred stock, shares issued | shares | 9,342,092 | |||||
Percentage of preferred stock voting rights | 80.60% | |||||
Aggregate proceeds from issuance | $ | $ 35,900 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Shipping and handling charges | $ 0.3 | $ 0.2 | $ 0.8 | $ 0.7 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 9,392 | $ 8,984 | $ 26,783 | $ 21,140 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 9,114 | 8,747 | 25,890 | 20,303 |
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 278 | 237 | 893 | 837 |
Lab Essentials [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 7,195 | 5,815 | 20,440 | 15,494 |
Clinical Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 1,690 | 1,354 | 4,354 | 3,141 |
Sample Transport [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 73 | 1,593 | 1,035 | 1,767 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 434 | $ 222 | $ 954 | $ 738 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||||
Carrying amount of goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of intangible assets | $ 287 | $ 287 | $ 861 | $ 861 |
Acquired finite-lived intangible assets, weighted average useful life | 5 years 3 months 18 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets with Definite and Indefinite Lives (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 22,099 | $ 22,099 |
Intangible Assets, Accumulated Amortization | 3,108 | 2,247 |
Intangible Assets, Net (Including Goodwill), Total | 18,991 | 19,852 |
Trade Names [Member] | ||
Schedule Of Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 12,919 | 12,919 |
Intangible Assets, Accumulated Amortization | 0 | 0 |
Intangible Assets, Net (Including Goodwill), Total | 12,919 | 12,919 |
Customer Relationships [Member] | ||
Schedule Of Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 9,180 | 9,180 |
Intangible Assets, Accumulated Amortization | 3,108 | 2,247 |
Intangible Assets, Net (Including Goodwill), Total | $ 6,072 | $ 6,933 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 287 |
2022 | 1,148 |
2023 | 1,148 |
2024 | 1,148 |
2025 | 1,148 |
2026 and thereafter | 1,195 |
Finite Lived Intangible Assets, Net | $ 6,072 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Financial instruments measured at fair value | $ 0 | $ 2,097 |
Short-term investments - marketable securities | $ 0 | $ 1,811 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Carried at Fair Value and Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 286 | |
Total available-for-sale investments | 1,811 | |
Assets, Fair Value Disclosure, Total | $ 0 | 2,097 |
U.S. Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 858 | |
Foreign Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 953 | |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 286 | |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 286 | |
Total available-for-sale investments | 0 | |
Assets, Fair Value Disclosure, Total | 286 | |
Level 1 [Member] | U.S. Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 0 | |
Level 1 [Member] | Foreign Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 0 | |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 286 | |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Total available-for-sale investments | 1,811 | |
Assets, Fair Value Disclosure, Total | 1,811 | |
Level 2 [Member] | U.S. Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 858 | |
Level 2 [Member] | Foreign Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 953 | |
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Total available-for-sale investments | 0 | |
Assets, Fair Value Disclosure, Total | 0 | |
Level 3 [Member] | U.S. Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 0 | |
Level 3 [Member] | Foreign Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale investments | 0 | |
Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 0 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods, net | $ 2,775 | $ 2,093 |
Work in process | 88 | 137 |
Raw materials, net | 1,540 | 1,352 |
Total inventories, net | $ 4,403 | $ 3,582 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 12,087 | $ 8,969 |
Less—Accumulated depreciation | (2,174) | (995) |
Property, plant and equipment, after depreciation | 9,913 | 7,974 |
Construction in progress | 12,538 | 2,034 |
Total property, plant and equipment, net | 22,451 | 10,008 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,763 | 6,084 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 516 | 315 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 70 | 128 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,738 | $ 2,442 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 0.5 | $ 0.3 | $ 1.2 | $ 0.6 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Payroll-related | $ 2,074 | $ 1,482 |
Other | 809 | 845 |
Total current accrued liabilities | $ 2,883 | $ 2,327 |
Long-Term Debt - Additional inf
Long-Term Debt - Additional information (Details) - USD ($) | Mar. 26, 2021 | Jul. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||||
Maximum amount borrowed | $ 27,000,000 | |||||||
Line of credit working capital | 5,000,000 | |||||||
Maximum amount borrowed at the end of month | $ 12,000,000 | |||||||
Unused Borrowing Capacity Amount | $ 5,000,000 | |||||||
Line of Credit Facility, Description | If any advance under the Term Loan is prepaid at any time, the prepayment fee is based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment is made after the closing date of the Term Loan. | |||||||
Debt issuance cost | 153,000 | $ 0 | ||||||
Long-term Debt, Gross | 12,000,000 | $ 0 | ||||||
Long term debt, net | $ 11,826,000 | $ 0 | ||||||
Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused Borrowing Capacity Amount | $ 5,000,000 | |||||||
Contingent Revenue | $ 38,500,000 | $ 37,000,000 | ||||||
LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 6.45% | |||||||
LIBOR Floor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||
Senior Secured Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount borrowed | $ 22,000,000 | |||||||
Term loan exit fee | $ 600,000 | |||||||
Exit Fees Percentage of Term Loan | 5.00% | |||||||
Debt issuance cost | $ 300,000 | |||||||
Term Loan | $ 12,000,000 | |||||||
Senior Secured Term Loan [Member] | Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net revenue requirement for the financial covenant | $ 32,000,000 |
Long-Term Debt - Summary of Com
Long-Term Debt - Summary of Components of Carrying Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Long term debt | $ 12,000 | $ 0 |
Cumulative accretion of exit fee | 60 | 0 |
Unamortized debt discount and debt issuance costs | (234) | 0 |
Long-term debt, net | $ 11,826 | $ 0 |
Long-Term Debt - Summary of Sch
Long-Term Debt - Summary of Scheduled Maturities of Term Loan (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Long-term Debt, Unclassified [Abstract] | |
Remainder of 2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 4,500 |
2025 | 6,000 |
2026 | 1,500 |
Total | $ 12,000 |
Convertible and Redeemable Pr_3
Convertible and Redeemable Preferred Stock - Summary of Series A Preferred Stock (Details) - Series A Preferred Stock [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Shares Authorized | shares | 9,600,000 |
Shares Issued and Outstanding | shares | 9,342,092 |
Aggregate Liquidation Preference | $ | $ 41,586 |
Proceeds, net of Issuance Cost | $ | $ 35,638 |
Convertible and Redeemable Pr_4
Convertible and Redeemable Preferred Stock - Additional Information (Details) $ in Thousands | Jun. 28, 2021USD ($)shares | Jun. 17, 2021 | Sep. 30, 2021USD ($)shares | Dec. 31, 2020USD ($) |
Temporary Equity [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.8746 | |||
Series A Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Convertible Preferred Stock Shares Issued Upon Conversion | 17,512,685 | |||
Convertible preferred stock, terms of conversion | one-to-one | |||
Temporary equity, carrying amount, attributable to parent | $ | $ 35,900 | $ 0 | $ 35,638 | |
Temporary equity, shares issued | 0 | |||
Temporary equity, shares outstanding | 0 |
Equity - Additional Information
Equity - Additional Information (Details) - $ / shares | Sep. 30, 2021 | Jun. 28, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | |||
Preferred stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 490,000,000 | 30,000,000 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common stock, shares issued | 28,011,917 | 3,599,232 | |
Common stock, shares outstanding | 28,011,917 | 3,599,232 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Jun. 14, 2021 | Jan. 14, 2019 | Jan. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jan. 13, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Incremental stock-based compensation expense | $ 442,000 | $ 31,000 | $ 927,000 | $ 31,000 | |||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount of Shares Per Employee | $ 25,000 | ||||||||
Employee Stock Purchase Plan, Offering Period | no | ||||||||
Performance Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, granted | 284,682 | ||||||||
2016 Stock Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of Share, Available For Issuance | 0 | 0 | |||||||
Stock options, repurchased | 3,542,994 | ||||||||
Price per share | $ 2.0521 | ||||||||
Additional stock options granted | 0 | ||||||||
2016 Stock Plan [Member] | Time-Based and Performance-Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Term period | 10 years | ||||||||
2016 Stock Plan [Member] | Time-Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Stock options, vested shares | 3,951,334 | ||||||||
Stock options, nonvested shares | 1,485,006 | ||||||||
2016 Stock Plan [Member] | Performance Shares [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, granted | 284,682 | ||||||||
2020 Equity Incentive Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of Share, Available For Issuance | 0 | 1,924,370 | |||||||
Additional stock options granted | 0 | ||||||||
Common stock reserved for future issuance | 3,143,848 | 3,143,848 | |||||||
Incremental stock-based compensation expense | $ 200,000 | $ 300,000 | |||||||
2020 Equity Incentive Plan [Member] | Time-Based and Performance-Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Term period | 10 years | ||||||||
2020 Equity Incentive Plan [Member] | Time-Based Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
2020 Equity Incentive Plan [Member] | Performance Shares [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 48 months | ||||||||
Shares acquired | 231,719 | ||||||||
2020 Equity Incentive Plan [Member] | Stock Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 48 months | ||||||||
Incremental stock-based compensation expense | $ 3,500,000 | ||||||||
2016, 2020, 2021 Equity Incentive Plans [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, granted | 466,967 | ||||||||
Weighted-average recognition period | 3 years 4 months 24 days | ||||||||
2016, 2020, 2021 Equity Incentive Plans [Member] | Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | 500,000 | $ 500,000 | |||||||
2016, 2020, 2021 Equity Incentive Plans [Member] | Stock Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | $ 7,400,000 | $ 7,400,000 | |||||||
2016, 2020, 2021 Equity Incentive Plans [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Common stock reserved for future issuance | 2,908,283 | ||||||||
Share available For Future grants | 2,750,625 | ||||||||
Increase in common stock reserved for future issuance, term period | 10 years | ||||||||
Shares to be issued under share-based payment arrangement | 5,020,114 | ||||||||
New shares to be issued under share-based payment arrangement | 2,908,283 | ||||||||
Additional shares to be issued under share-based payment arrangement | 2,111,830 | ||||||||
2021 Employee Stock Purchase Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, granted | 0 | ||||||||
Common stock reserved for future issuance | 290,828 | 290,828 | 290,828 | ||||||
Percentage of additional shares added on outstanding shares | 1.00% | ||||||||
Share available For Future grants | 319,911 | ||||||||
Increase in common stock reserved for future issuance, term period | 10 years | ||||||||
Maximum employee subscription rate | 15.00% | ||||||||
Discount from market price, offering date | 85.00% | ||||||||
Discount from market price, purchase date | 85.00% | ||||||||
Maximum number of shares per employee | 0 | ||||||||
Board Of Director [Member] | 2016, 2020, 2021 Equity Incentive Plans [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Employees [Member] | 2016, 2020, 2021 Equity Incentive Plans [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting period | 4 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted Average Remaining Contractual Term (in years), Options outstanding | 6 years 3 months | 6 years 3 months | 6 years 1 month 9 days | 6 years 3 months | |
2016, 2020, 2021 Equity Incentive Plans [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Options, Outstanding, Beginning balance | 2,246,544 | ||||
Number of Options, Granted | 466,967 | ||||
Number of Options, Exercised | 0 | ||||
Number of Options, Cancelled or forfeited | (121,849) | ||||
Number of Options, Outstanding, Ending balance | 2,591,662 | 2,591,662 | 2,246,544 | ||
Number of Options, Exercisable, Ending balance | 569,589 | 569,589 | |||
Weighted Average Exercise Price per Share, Options outstanding, Beginning balance | $ 0.95 | ||||
Weighted Average Exercise Price per Share, Granted | 14.26 | ||||
Weighted Average Exercise Price per Share, Exercised | 0 | ||||
Weighted Average Exercise Price per Share, Cancelled or forfeited | 1.85 | ||||
Weighted Average Exercise Price per Share, Options outstanding, Ending balance | $ 3.31 | 3.31 | $ 0.95 | ||
Weighted Average Exercise Price per Share, Exercisable, Ending balance | $ 0.80 | $ 0.80 | |||
Weighted Average Remaining Contractual Term (in years), Options outstanding | 8 years 10 months 2 days | 9 years 4 months 28 days | |||
Weighted Average Remaining Contractual Term (in years), Exercisable | 8 years 8 months 4 days | ||||
Aggregate Intrinsic Value, Options outstanding | $ 56,216 | $ 56,216 | $ 10,081 | ||
Aggregate Intrinsic Value, Exercisable | $ 13,723 | $ 13,723 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 442 | $ 31 | $ 927 | $ 31 |
Cost of Sales [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1 | 1 | ||
Research and Development Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 30 | 107 | ||
Selling and Marketing Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | (30) | 23 | ||
General and Administrative Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 441 | $ 31 | $ 796 | $ 31 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Estimated dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average expected stock price volatility | 33.16% | 36.08% | 33.65% | 36.08% |
Weighted-average risk-free interest rate | 0.99% | 0.42% | 0.93% | 0.42% |
Expected average term of options (in years) | 6 years 3 months | 6 years 3 months | 6 years 1 month 9 days | 6 years 3 months |
Weighted-average fair value of common stock | $ 27.49 | $ 3.46 | $ 15.25 | $ 3.46 |
Weighted-average fair value per option | $ 9.42 | $ 2.13 | $ 5.62 | $ 2.13 |
Net (Loss) Income Per Share A_3
Net (Loss) Income Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (3,251) | $ 1,533 | $ (6,156) | $ 2,993 |
Undistributed income attributable to preferred stockholders | 0 | (1,271) | 0 | (2,482) |
Net (loss) income attributable to common stockholders | $ (3,251) | $ 262 | $ (6,156) | $ 511 |
Basic weighted-average common stock outstanding | 28,011,917 | 3,599,232 | 12,069,214 | 3,599,232 |
Weighted-average effect of potentially dilutive securities: | ||||
Stock options | 0 | 48,443 | 0 | 33,089 |
Dilutive weighted-average common stock | 28,011,917 | 3,647,675 | 12,069,214 | 3,632,321 |
Net (loss) income per share attributable to common stockholders | ||||
Basic | $ (0.12) | $ 0.07 | $ (0.51) | $ 0.14 |
Diluted | $ (0.12) | $ 0.07 | $ (0.51) | $ 0.14 |
Net (Loss) Income Per Share A_4
Net (Loss) Income Per Share Attributable to Common Stockholders - Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Stock options to purchase common stock | 2,577,649 | 9,342,092 | 8,585,741 | 9,342,092 | |
Stock Options to Purchase Common Stock [Member] | |||||
Stock options to purchase common stock | 2,577,649 | 0 | 2,426,120 | 0 | |
Convertible Series A Preferred Stock [Member] | |||||
Stock options to purchase common stock | [1] | 0 | 9,342,092 | 6,159,621 | 9,342,092 |
[1] | On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See Note 10, Convertible and Redeemable Preferred Stock for additional information. |
Net (Loss) Income Per Share A_5
Net (Loss) Income Per Share Attributable to Common Stockholders - Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders (Parenthetical) (Details) | Jun. 28, 2021shares |
Series A Preferred Stock [Member] | |
Convertible Preferred Stock Shares Issued Upon Conversion | 17,512,685 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2019 | Mar. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||||||||
Payment for Rent Expense | $ 400,000 | $ 300,000 | $ 1,300,000 | $ 900,000 | ||||
Thomas E. Davis, LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party notes receivable | $ 500,000 | |||||||
Related Party Transaction, Rate | 6.00% | 6.00% | ||||||
Note receivable paid by related party | $ 500,000 | |||||||
Payment for Rent Expense | $ 5,000 | |||||||
Meeches L L C [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payment for Rent Expense | $ 20,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 300,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee Lease Description [Line Items] | ||||||
Payment for Rent Expense | $ 400,000 | $ 300,000 | $ 1,300,000 | $ 900,000 | ||
Thomas E. Davis, LLC [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Payment for Rent Expense | $ 5,000 | |||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||||
Lessee, Operating Lease, Option to Extend | The Company had the option to extend the term of the lease for two additional separate, successive terms of one year each, following the expiration of the initial term of the lease. | |||||
Meeches LLC [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Payment for Rent Expense | $ 20,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 300,000 | |
Lessee, Operating Lease, Term of Contract | 5 years | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessee Lease Description [Line Items] | |
Remainder of 2021 | $ 433 |
2022 | 1,755 |
2023 | 1,777 |
2024 | 1,728 |
2025 | 1,060 |
2026 and thereafter | 0 |
Total future minimum lease payments | 6,753 |
Unrelated Party [Member] | |
Lessee Lease Description [Line Items] | |
Remainder of 2021 | 367 |
2022 | 1,488 |
2023 | 1,498 |
2024 | 1,537 |
2025 | 1,060 |
2026 and thereafter | 0 |
Total future minimum lease payments | 5,951 |
Related Party [Member] | |
Lessee Lease Description [Line Items] | |
Remainder of 2021 | 66 |
2022 | 267 |
2023 | 279 |
2024 | 191 |
2025 | 0 |
2026 and thereafter | 0 |
Total future minimum lease payments | $ 802 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
(Benefit from) provision for income taxes | $ (892) | $ 636 | $ (1,640) | $ 922 | |
Effective Tax Rate | 21.50% | 29.30% | 21.00% | 23.60% | |
Income Tax Receivable Related to Anticipated Refund Claims | $ 1,200 | $ 1,200 | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] $ in Millions | Oct. 08, 2021USD ($) |
Subsequent Event [Line Items] | |
Total minimum future lease payments | $ 3.1 |
Operating lease term | 5 years |
Lease description | On October 8, 2021, the Company entered into a new lease agreement for additional warehouse and distribution space located in Hollister, California. The lease is anticipated to commence at the beginning of December 2021. |