Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TKNO | ||
Title of 12(b) Security | Common Stock, par value $0.00001 per share | ||
Security Exchange Name | NASDAQ | ||
Document Annual 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 | 2451 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 Public Float | $ 163,737,000 | ||
Entity Common Stock, Shares Outstanding | 28,042,479 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | San Jose, CA | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement relating to the 2022 Annual Meeting of Stockholders, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement, or an amendment to this Annual Report on Form 10-K, will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021. |
Statements of Operations and Co
Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 36,893 | $ 31,297 |
Cost of sales | 19,272 | 13,542 |
Gross profit | 17,621 | 17,755 |
Operating expenses: | ||
Research and development | 4,312 | 1,507 |
Sales and marketing | 3,777 | 2,229 |
General and administrative | 20,392 | 8,208 |
Amortization of intangible assets | 1,148 | 1,148 |
Total operating expenses | 29,629 | 13,092 |
Income (loss) from operations | (12,008) | 4,663 |
Other income (expenses), net | ||
Interest income (expense), net | (589) | 87 |
Other expense, net | (40) | (24) |
Total other income (expenses), net | (629) | 63 |
Income (loss) before income taxes | (12,637) | 4,726 |
Provision for (benefit from) income taxes | (2,834) | 1,156 |
Net income (loss) | (9,803) | 3,570 |
Change in unrealized loss on available-for-sale securities, net of tax | (7) | (13) |
Comprehensive income (loss) | (9,810) | 3,557 |
Net income (loss) available to common stockholders | ||
Net income (loss) | (9,803) | 3,570 |
Less: undistributed income attributable to preferred stockholders | 0 | (2,962) |
Net income (loss) attributable to common stockholders | $ (9,803) | $ 608 |
Net income (loss) per share attributable to common stockholders | ||
Basic | $ (0.61) | $ 0.17 |
Diluted | $ (0.61) | $ 0.16 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders | ||
Basic | 16,087,653 | 3,599,232 |
Diluted | 16,087,653 | 3,800,636 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 87,518 | $ 3,315 |
Short-term investments - marketable securities | 0 | 1,811 |
Accounts receivable, net of allowance for doubtful accounts of $23 thousand and $23 thousand | 4,666 | 4,623 |
Inventories, net | 5,394 | 3,582 |
Income Tax Receivable | 1,188 | 1,417 |
Prepaid expenses and other current assets | 2,438 | 1,666 |
Total current assets | 101,204 | 16,414 |
Property, plant and equipment, net | 29,810 | 10,008 |
Goodwill | 16,613 | 16,613 |
Intangible assets, net | 18,704 | 19,852 |
Other non-current assets | 180 | 24 |
Total assets | 166,511 | 62,911 |
Current liabilities: | ||
Accounts payable | 2,248 | 1,635 |
Accrued liabilities | 5,495 | 2,327 |
Total current liabilities | 7,743 | 3,962 |
Deferred tax liabilities | 3,153 | 5,990 |
Other accrued liabilities | 273 | 350 |
Long-term debt | 11,870 | 0 |
Deferred rent | 269 | 204 |
Total liabilities | 23,308 | 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 December 31, 2021 and December 31, 2020, respectively, zero shares issued and outstanding at December 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.00001 par value, 490,000,000 and 30,000,000 shares authorized at December 31, 2021 and December 31, 2020, respectively, 28,011,917 and 3,599,232 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 0 | 0 |
Additional paid-in capital | 150,741 | 14,495 |
Retained earnings (accumulated deficit) | (7,538) | 2,265 |
Accumulated other comprehensive income | 0 | 7 |
Total stockholders’ equity | 143,203 | 16,767 |
Total liabilities, convertible and redeemable preferred stock and stockholders’ equity | 166,511 | 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 December 31, 2021 and December 31, 2020, respectively; zero and 9,342,092 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $41,586 thousand as of December 31, 2021 and December 31, 2020, respectively. | $ 0 | $ 35,638 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 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 | 28,012,017 | 3,599,232 |
Common stock, shares outstanding | 28,012,017 | 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 |
Statements of Convertible and R
Statements of Convertible and Redeemable Preferred Stock and Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Beginning Balance at Dec. 31, 2019 | $ 12,910 | $ 35,638 | $ 0 | $ 14,195 | $ 20 | $ (1,305) |
Beginning Balance (in shares) at Dec. 31, 2019 | 9,342,092 | 3,599,232 | ||||
Stock-based compensation | 300 | 300 | ||||
Unrealized loss on available-for-sale securities | (13) | (13) | ||||
Net income (loss) | 3,570 | 3,570 | ||||
Ending Balance at Dec. 31, 2020 | $ 16,767 | $ 35,638 | $ 0 | 14,495 | 7 | 2,265 |
Ending Balance (in shares) at Dec. 31, 2020 | 3,599,232 | 9,342,092 | 3,599,232 | |||
Stock-based compensation | $ 1,551 | 1,551 | ||||
Unrealized 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 | $ (35,938) | $ 0 | 35,938 | 0 | 0 |
Conversion of convertible and redeemable preferred stock (in shares) | (9,342,092) | 17,512,685 | ||||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts | 99,057 | $ 0 | $ 0 | 99,057 | 0 | 0 |
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 0 | 6,900,000 | ||||
Issuance of stock under employee stock plans, net, Shares | 100 | |||||
Net income (loss) | (9,803) | (9,803) | ||||
Ending Balance at Dec. 31, 2021 | $ 143,203 | $ 0 | $ 150,741 | $ 0 | $ (7,538) | |
Ending Balance (in shares) at Dec. 31, 2021 | 28,012,017 | 0 | 28,012,017 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ (9,803) | $ 3,570 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Bad debt expense | 235 | (12) |
Depreciation and amortization | 2,883 | 2,044 |
Stock-based compensation | 1,551 | 300 |
Inventory reserve | 441 | (29) |
Deferred taxes | (2,837) | 2,090 |
Amortization of debt issuance costs | 134 | 0 |
Loss on disposal of property, plant and equipment | 41 | 11 |
Other | (10) | 37 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (278) | (2,352) |
Inventories | (2,253) | (987) |
Income taxes receivable | 229 | (1,241) |
Prepaid expenses and other current assets | (1,301) | (949) |
Accounts payable | 270 | 867 |
Accrued liabilities | 1,810 | (886) |
Other | (181) | 42 |
Cash provided by (used in) operating activities | (9,069) | 2,505 |
Investing activities: | ||
Purchase of property, plant and equipment | (19,877) | (5,466) |
Proceeds from loan to related party | 529 | 27 |
Purchase of short-term marketable securities | 0 | (1,763) |
Proceeds on sales of short-term marketable securities | 1,132 | 1,747 |
Proceeds from maturities of short-term marketable securities | 695 | 3,720 |
Cash provided by (used in) investing activities | (17,521) | (1,735) |
Financing activities: | ||
Repayment of long-term debt | 0 | (45) |
Indemnity holdback release | 0 | (1,554) |
Proceeds from Long-term Debt, Net | 11,889 | 0 |
Debt issuance costs | (153) | 0 |
Payments for Repurchase of 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 | 110,793 | (1,599) |
Change in cash and cash equivalents | 84,203 | (829) |
Cash and cash equivalents at beginning of period | 3,315 | 4,144 |
Cash and cash equivalents at end of period | 87,518 | 3,315 |
Supplemental cash flow disclosures: | ||
Income taxes paid | 8 | 323 |
Interest paid, net of amounts capitalized | 414 | 36 |
Capitalized Property, Plant And Equipment Included In Accounts Payable And Accrued Liabilities | 2,088 | 387 |
Conversion of convertible and redeemable preferred stock into common stock | 35,638 | 0 |
Accretion of convertible and redeemable preferred stock to redemption value | $ 300 | $ 0 |
Nature of the Business
Nature of the Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Note 1. Nature of the Business Alpha Teknova, Inc. (referred to herein as the Company or 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 organizations, 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 or Good Manufacturing Processes 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 ISO 13485:2016 certification, enabling the Company to manufacture products for use in diagnostic and therapeutic applications. Stock Split In June 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 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 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 December 31, 2021, $ 3.6 million of these IPO-related costs were included as a reduction to additional paid-in capital on the balance sheet. There were no material deferred offering costs recorded as of December 31, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Accounting, Presentation and Use of Estimates The accompanying financial statements and related notes are prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preparation of 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. Significant items that are subject to such estimates and assumptions include, but are not limited to, the valuation of share-based payment awards, goodwill and intangible assets, and income taxes. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, a ctual results could differ significantly from the estimates under different assumptions or conditions. Certain prior period amounts have been reclassified to conform to presentation for the current year. Impact of COVID-19 The COVID-19 pandemic continues to impact worldwide economic activity. Teknova continues to closely monitor the impact of the COVID-19 pandemic on all aspects of the Company's business, including how the pandemic will impact customers, employees, suppliers, vendors, business partners and distribution channels. It is not possible to predict the total impact of the COVID-19 pandemic on the Company’s future revenue or profitability, which will depend on future developments that remain uncertain and cannot be predicted with confidence at this time. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is 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, currently 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. Concentrations 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 so, as a consequence, the Company believes that its accounts receivable credit risk exposure is limited. Customers For the year ended December 31, 2021, the Company's largest customer was a distributor that accounted for 18 % of total revenue. No other customer accounted for more than 10 % of total revenue for the year ended December 31, 2021. As of December 31, 2021, the Company's two largest customers, both distributors, made up 16 % and 10 % of total gross accounts receivable and one direct customer made up 12 % of total gross accounts receivable. No other customer accounted for more than 10 % of total gross accounts receivable at December, 31, 2021. For the year ended December 31, 2020, the Company's largest customer was a distributor that accounted for 15 % of total revenue and the second largest customer accounted for 10 % of total revenue. No other customer accounted for more than 10 % of total revenue for the year ended December 31, 2020. As of December 31, 2020, two direct customers made up 18 % and 16 % of total gross accounts receivable and the Company's largest distributors each made up 10 % of total gross accounts receivable. No other customer accounted for more than 10 % of total gross accounts receivable at December 31, 2020. Suppliers For the year ended December 31, 2021, the Company had three suppliers that accounted for greater than 10 % of total inventory purchases, the highest of which accounted for 40 % of total inventory purchases followed by suppliers which accounted for 11 % and 10 % of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 20 % of total accounts payable as of December 31, 2021. No other supplier accounted for more than 10 % of total accounts payable at December 31, 2021. For the year ended December 31, 2020, the Company had four suppliers that accounted for greater than 10 % of total inventory purchases, the highest of which accounted for 29 % of total inventory purchases followed by suppliers which accounted for 25 %, 21 % and 11 % of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 14 % of total accounts payable as of December 31, 2020. No other supplier accounted for more than 10 % of total accounts payable at December 31, 2020. Cash and Cash Equivalents Teknova’s cash and cash equivalents include cash on hand, cash held in banks, and highly-liquid investments with maturities of three months or less at the date of acquisition. Teknova maintains its cash in bank deposit accounts in financial institutions that are insured by the FDIC up to a balance of $ 250.0 thousand. Cash equivalents are stated at carrying value, which approximates fair value. Marketable Investments Teknova’s short-term marketable investments consist of corporate debt securities, U.S. treasury bills, and government agency obligations. Teknova believes its short-term debt securities are available for use in its current operations and that the Company has the ability, if necessary, to liquidate any of its short-term debt securities to meet its liquidity needs in the next twelve months. Accordingly, those investments with contractual maturities greater than one-year from the date of purchase are classified as short-term investments on the accompanying balance sheets. Teknova classifies its short-term debt investments as available-for-sale at the time of purchase and evaluates such classification as of each balance sheet date. All short-term debt investments are recorded at estimated fair value. Unrealized gains and losses are reported as a component of other comprehensive income, net of any related tax effect. Unrealized losses are charged against income when a decline in the fair value of an individual security is determined to be other-than-temporary. Realized gains and losses and other-than-temporary impairments on investments are included in interest income (expense), net in the statements of operations and comprehensive income (loss). Fair Value of Financial Instruments The carrying amounts of certain of Teknova’s financial instruments, including cash equivalents, accounts receivable, inventories, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Accounts Receivable Accounts receivable are stated at invoice value, less estimated allowances for doubtful accounts. Teknova uses the allowance method to account for uncollectible accounts receivable, calculated by management using the historical average of uncollectible accounts. The Company continually monitors its customer payments and maintains an allowance for estimated losses resulting from its customers’ inability to make required payments. Accounts receivable are considered past due once customer payment terms have been exceeded. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Inventories Inventory, consisting of raw materials, work in process and finished goods, is stated at the lower of cost or net realizable value, on a first-in, first-out basis. Teknova writes down its inventory for estimated obsolescence or inventory in excess of reasonably expected near-term sales or unmarketable inventory, in an amount equal to the difference between the cost of inventory and the estimated net realizable value, based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by Teknova, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory, and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. Notes Receivable from Related Parties In 2016, Teknova’s founder and former Chief Executive Officer, a current director and stockholder of the Company, executed a promissory note in favor of the Company which was recorded as a note receivable. Teknova recognizes interest income on notes receivable on the accrual method. Teknova evaluates the collectability of both interest and principal on its notes receivable to determine whether the notes receivable are impaired. A note is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, according to the existing contractual terms. When a note is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the fair value of the underlying collateral, less costs to sell. During the years ended December 31, 2021 and 2020, there was no significant uncertainty of collection; therefore, interest income was recognized. As of December 31, 2020, the Company determined that no allowance for collectability was necessary. The note receivable was repaid during the year ended December 31, 2021 and prior to the closing of the IPO. See “Note 14—Related Parties” for further information regarding the Company’s note receivable with its founder and former Chief Executive Officer, a current director and stockholder of the Company. Capitalized Software Implementation Costs Teknova capitalizes certain implementation costs incurred under a cloud computing hosting arrangement. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the expected term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. As of December 31, 2021, Teknova had capitalized software implementation costs of $ 0.1 million. Teknova did not have any capitalized implementation software costs as of December 31, 2020. No amortization expense related to capitalized implementation costs has been recorded as the underlying implementation activities were not complete. Property, Plant and Equipment Teknova records property, plant and equipment at fair value when it is acquired in a business combination or at cost for all other purchases of property, plant and equipment. Property, plant and equipment is depreciated over the estimated useful lives of the assets, using the straight-line method. Any leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the estimated remaining life of the lease. Costs for repairs and maintenance that do not significantly increase the value or estimated lives of property, plant and equipment are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheets, and the resulting gain or loss is reflected in the statements of operations and comprehensive income (loss). The estimated useful lives of the major classes of property and equipment are as follows: Estimated Useful Lives Machinery and equipment 7 years Office furniture and equipment 3 – 7 years Vehicles 5 years Leasehold improvements 4 – 7 years Impairment of Long-Lived Assets Teknova evaluates its long-lived assets for impairment when events or changes in circumstances indicate a possible inability to recover carrying amounts. Recoverability is assessed by comparing the carrying value of the assets to estimated undiscounted future cash flows expected to be generated by the assets. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated during the life of those assets are less than the assets’ carrying amounts. If an asset is impaired, the loss is measured as the amount by which the asset’s carrying value exceeds its fair value. There were no indicators of impairment during the years ended December 31, 2021 and 2020. Goodwill Goodwill is the excess of the Company’s fair value over the Company’s fair value accounting basis of the Company’s net assets and liabilities. Goodwill is not amortized, but is tested for impairment annually as of October 1, or more frequently if events or circumstances indicate that the carrying value may no longer be recoverable and that an impairment may have occurred. Teknova first considers qualitative factors that indicate whether impairment may have occurred. Such indicators may include, macro-economic conditions, such as adverse industry or market conditions and entity-specific events, such as increasing costs, declining financial performance, or loss of key personnel. If the Company’s assessment of such qualitative factors indicates that a reduction in the carrying value is more likely than not to have occurred, Teknova performs a quantitative assessment, comparing the fair value of the Company (in this capacity, the Reporting Unit) to the carrying value, including goodwill, of the Reporting Unit. If the carrying value of the Reporting Unit exceeds its fair value, an impairment has occurred, and an impairment charge is recognized for the difference up to the carrying value of the Reporting Unit’s goodwill. The fair value of the Reporting Unit is a Level 3 measure and is determined using a market and income approach. There was no impairment of goodwill during the years ended December 31, 2021 and 2020. Intangible Assets Teknova’s intangible assets consist of the Teknova trade name and customer relationships. Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually as of October 1, or more frequently if events or circumstances indicate that it is more likely than not that an asset is impaired. If the fair value of the asset is less than its carrying amount, an impairment charge would be recognized in an amount equal to the difference between the carrying amount and the fair value. Finite-lived intangible assets are amortized over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. Teknova reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or an asset group may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related assets’ or asset group’s carrying value. There was no impairment of intangible assets during the years ended December 31, 2021 and 2020. Leases The Company’s leases are reviewed and classified as either capital or operating leases at their inception. Teknova may receive renewals or expansion options, rent holidays, and other incentives in certain of its lease agreements. For operating leases, Teknova recognizes lease costs, once control of the leased space is achieved, on a straight-line basis, without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives received are treated as reductions of costs over the term of the lease agreements. 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. Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606). Teknova recognizes revenue for sales of goods through the following steps: ▪ Identification of the contract, or contracts, with a customer, typically a purchase order ▪ Identification of the performance obligations in the contract ▪ Determination of the transaction price ▪ Allocation of the transaction price to the performance obligations in the contract ▪ Recognition of revenue when, or as, the company satisfies a performance obligation Teknova recognizes revenue from the sale of manufactured products and services when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. 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. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. The Company records amounts billed to customers for shipping and handling in a sales transaction as revenue. Shipping and handling costs are included in general and administrative expenses as revenue is recognized. Shipping and handling charges for the years ended December 31, 2021 and 2020 were $ 1.1 million and $ 0.8 million, respectively. 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 financial statements. Costs incurred to obtain contracts with customers are expensed immediately, because the amortization period for such costs is one year or less. Teknova does not offer warranties on products. Cost of Sales Cost of sales includes salaries, wages and benefits, raw materials consumption (including direct and indirect material), depreciation, utilities, rent, manufacturing supplies and other production overhead. Research and Development Expenses The Company’s research and development expenses primarily consist of employee-related expenses, including salaries, benefits and stock-based compensation expense for personnel in process engineering and product development functions; expenses related to occupancy costs, laboratory supplies, consulting fees and depreciation associated with various assets used in the research and development of the Company’s products. Sales and Marketing Costs The Company’s sales and marketing expenses primarily consist of employee-related expenses, including salaries and benefits, commissions, advertising, occupancy costs and stock-based compensation expense for sales and marketing employees. The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the years ended December 31, 2021 and 2020 was $ 0.4 million and $ 0.3 million, respectively, and is included in s ales and marketing expenses. General and Administrative Expenses The Company’s general and administrative expenses primarily consist of costs associated with executive and administrative staff, and other expenses such as shipping charges, professional service fees, occupancy costs, IT systems, insurance, depreciation and stock-based compensation expense for executive and administrative staff. Stock-Based Compensation Teknova follows the fair value recognition provisions of ASC 718, Compensation—Stock Compensation . 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. Employee Benefit Plans Teknova has a salary deferral 401(k) plan (the 401(k) Plan) covering substantially all employees. Contrib utions by the Company to the 401(k) Plan for the years ended December 31, 2021 and 2020 were $ 0.6 million and $ 0.4 million, respectively. Contributions payable as of December 31, 2021 and 2020, of $ 0.3 million and $ 0.2 million, respectively, are included within accrued liabilities in the accompanying financial statemen ts. Income Taxes Teknova uses the asset and liability method in accounting for its deferred income taxes. Under this method, deferred income taxes are provided for differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes, using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. Teknova accounts for unrecognized tax benefits based upon its assessment of whether tax benefits are more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits taken, or expected to be taken, in a tax return and recognizes associated interest and penalties, if any, in income tax expense. As of December 31, 2021 and 2020, the Company had no liabilities recorded for unrecognized tax benefits. Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share is computed using the two-class method. Diluted net income (loss) per share is computed using the more dilutive of (i) the treasury stock method or if-converted method, or (ii) the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The treasury stock method uses the number of new shares that may be created by unexercised in-the-money warrants and options, where the exercise price is less than the current share price. The if-converted method calculates the value of convertible securities as if they were converted into new shares. Per share amounts are computed by dividing net income (loss) attributable to common stockholders by the weighted average shares outstanding during each period. The diluted net income (loss) per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and convertible and redeemable preferred stock are considered common stock equivalents. Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases and its related interpretations, codified as ASC 842 (ASC 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 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 of approximately $ 20 million upon adopti on of ASC 842, which will increase the Company’s total assets and total liabilities. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and clarifies and amends certain guidance to promote consistent application. ASU 2019-02 is effective for the Company’s annual and interim periods beginning after December 15, 2021, with early adoption permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. Teknova is currently evaluating the impact of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). 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 of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue Teknova has two primary business lines: Lab Essentials and Clinical Solutions. Previously, the Company had a third business line, Sample Transport, which it ceased producing in 2021. Teknova's products cross all stages of development, from early research through commercialization. Lab Essentials Teknova is a leader in providing highly complex chemical formulations for use in biological research and drug discovery. The Company's core research products consist of commonly used made-to-stock solutions and customer-specified formulations. During discovery, the Company's products are used regularly in small, bench-scale experiments. As customers optimize their processes and begin to scale up in volume, they tend to order more custom products. The Lab Essentials portion of Teknova's business includes: 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's research products include essential formulations for common research applications and highly customized formulations for customer-specific applications in genomics and bioproduction. Clinical Solutions In 2017, Teknova achieved ISO 13485:2016 certification, enabling the Company to meet the quality system regulation (QSR) of products for use in diagnostic and therapeutic applications. Teknova believes that its Clinical Solutions products are used in the production of mRNA vaccines, protein therapies, gene therapies and diagnostic kits. Since offering GMP-grade products, Teknova has achieved substantial growth in the number of customers seeking these products annually. Sample Transport In 2020, Teknova developed and commercialized a suite of sample collection and transport reagents to aid in sample processing for COVID-19 testing. Subsequently, demand for COVID-19 testing declined significantly while the supply of sample transport medium grew. As a result, in 2021, the Company decided to cease production of transport medium and no longer markets those reagents. Teknova’s revenue, disaggregated by product category, for the years ended December 31, 2021 and 2020 were as follows (in thousands): For the Year Ended December 31, 2021 2020 Lab Essentials $ 27,184 $ 21,240 Clinical Solutions 6,793 4,807 Sample Transport 1,530 4,297 Other 1,386 953 Total revenue $ 36,893 $ 31,297 Teknova’s revenue, disaggregated by geographic region, for the years ended December 31, 2021 and 2020 were as follows (in thousands): For the Year Ended December 31, 2021 2020 United States $ 35,808 $ 30,138 International 1,085 1,159 Total revenue $ 36,893 $ 31,297 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Note 4. Goodwill and Intangible Assets, Net There were no changes in the carrying amount of goodwill during the years ended December 31, 2021 and 2020. The following is a summary of intangible assets with definite and indefinite lives (in thousands): Balance at December 31, 2021 Balance at December 31, 2020 Gross Accumulated Net Gross Accumulated Net Definite Lived: Customer relationships $ 9,180 $ 3,395 $ 5,785 $ 9,180 $ 2,247 $ 6,933 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets $ 22,099 $ 3,395 $ 18,704 $ 22,099 $ 2,247 $ 19,852 For the years ended December 31, 2021 and 2020 amortization expense was approximately $ 1.1 million and $ 1.1 million, respectively. The remaining weighted-average useful life of definite lived intangible assets is five years . The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Amount 2022 $ 1,148 2023 1,148 2024 1,148 2025 1,148 2026 1,148 Thereafter 45 Estimated future amortization expense of definite-lived intangible assets $ 5,785 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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. ASC 820 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 assets measured at fair value as of December 31, 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 balance sheets. Available-for-sale investments are included in short-term investments—marketable securities in the 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 December 31, 2021 and 2020, short-term investments included zero and $ 1.8 million of available-for-sale securities with contractual maturities less than one year, respectively. Unrealized gains and losses associated with the investments are reported in accumulated other comprehensive income. The Company had no unrealized gains and losses for the year ended December 31, 2021. For the year ended December 31, 2020, the Company recorded an insignificant amount in net unrealized gains associated with the short-term investments though other comprehensive income on the accompanying financial statements. Realized gains and losses associated with investments, if any, are reported in other expense, net. The Company did no t recognize any realized gains or losses during the year ended December 31, 2021. Teknova recognized an insignificant amount in realized losses for the year ended December 31, 2020. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 6. Inventories, Net Inventories consist of the following (in thousands): As of December 31, 2021 2020 Finished goods, net $ 3,172 $ 2,093 Work in process 105 137 Raw materials, net 2,117 1,352 Total inventories, net $ 5,394 $ 3,582 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 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 December 31, 2021 2020 Machinery and equipment $ 9,942 $ 6,084 Office furniture and equipment 649 315 Vehicles 70 128 Leasehold improvements 2,805 2,442 13,466 8,969 Less—Accumulated depreciation ( 2,473 ) ( 995 ) 10,993 7,974 Construction in progress 18,817 2,034 Total property, plant and equipment, net $ 29,810 $ 10,008 Depreciation expense related to property, plant and equipment recorded during the years ended December 31, 2021 and 2020 was $ 1.7 million and $ 0.9 million, respectively. Teknova capitalizes a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and depreciated over the asset’s useful life. Capitalized interest costs were $ 0.3 million and zero for the years ended December 31, 2021 and 2020, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 8. Accrued Liabilities Accrued liabilities were comprised of the following (in thousands): As of December 31, 2021 2020 Payroll-related $ 2,818 $ 1,482 Property, plant and equipment 1,446 88 Other 1,231 757 Total current accrued liabilities $ 5,495 $ 2,327 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt On March 26, 2021, the Company entered into the following agreements (together, the Credit Agreement): (i) that certain credit and security agreement (Term Loan), dated as of March 26, 2021, by and among the Company and MidCap Financial Trust, as agent and lender, and the additional lenders from time to time party thereto, and (ii) that certain credit and security agreement (Revolving Loan), dated as of March 26, 2021, by and among the Company and MidCap Financial Trust, as agent and lender, and the additional lenders from time to time party thereto. 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 was available immediately, an additional $ 5.0 million was 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). The Company opted not to draw down the $5.0 million Term Loan tranche available on September 30, 2021. Borrowings on the Revolver are limited to a borrowing base calculation; however, as of December 31, 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 ended December 31, 2021. As of December 31, 2021, the Company was in compliance with this requirement. 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 was recorded in long-term debt in the balance sheet. On March 26, 2021, the Company drew the full $ 12.0 million of the Term Loan available. As of December 31, 2021, the gross outstanding long-term debt is $ 12.0 million ($ 11.9 million net of debt issuance costs) and is presented as long-term debt on the balance sheets (in thousands). The components of the carrying value of long-term debt as of December 31, 2021 and December 31, 2020, are detailed below: As of December 31, 2021 2020 Long-term debt $ 12,000 $ — Cumulative accretion of exit fee 90 — Unamortized debt discount and debt issuance costs ( 220 ) — Long-term debt, net $ 11,870 $ — At December 31, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands): Amount 2022 $ — 2023 — 2024 4,500 2025 6,000 2026 1,500 Total $ 12,000 As of December 31, 2021, the fair value of Teknova's long-term debt approximates its carrying value. The fair value of Teknova's long-term debt was based on observable market inputs (Level 2). |
Convertible and Redeemable Pref
Convertible and Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Convertible and Redeemable Preferred Stock | Note 10. Convertible and Redeemable Preferred Stock In June 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 December 31, 2021, there were no shares of convertible and redeemable preferred stock issued and outstanding. As of December 31, 2020, Series A preferred stock consisted of the following (in thousands, except share data): Shares Shares Aggregate Proceeds, net Series A preferred stock 9,600,000 9,342,092 $ 41,586 $ 35,638 As of December 31, 2020, the Series A preferred stock had the followings rights and privileges: Voting Each holder of shares of Series A preferred stock was entitled to the number of votes equal to the number of shares of common stock into which the shares of Series A preferred stock held by such holder were convertible. The holders of shares of Series A preferred stock were entitled to vote on all matters on which the common stockholders were entitled to vote. The holders of shares of Series A preferred stock were also entitled to elect three directors to the board. Additionally, there were certain matters that required approval of a majority of the holders of shares of Series A preferred stock. Redemption and Liquidation Rights In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Teknova’s shares of Series A preferred stock then outstanding were entitled to be paid out of the assets of the Company available for distribution to its stockholders, and in the event of a Deemed Liquidation Event (as defined below), the holders of shares of Series A preferred stock then-outstanding were entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds (as defined below), as applicable, before any payment were to be made to the holders of shares of common stock, an amount per share equal to the greater of (i) the applicable original issue price per share, plus any declared but unpaid dividends, or (ii) an amount per share as would have been payable had all the shares of Series A preferred stock been converted into common stock immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event (the Series A Liquidation Amount). In the event the Company had insufficient assets to pay the holders of shares of Series A preferred stock the full liquidation preference, the holders of shares of Series A preferred stock were to be paid ratably in proportion to the full amounts to which they would otherwise be entitled. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, after the payment in full of all Series A Liquidation Amounts required to be paid to the holders of shares of Series A preferred stock, the remaining assets of the Company available for distribution to its stockholders or, in the case of a Deemed Liquidation Event, the consideration not payable to the holders of shares of Series A preferred stock or the remaining Available Proceeds, as the case may be, would be distributed among the holders of shares of common stock, pro rata based on the number of shares held by each such holder. Each of the following events would be considered a “Deemed Liquidation Event” unless the holders of shares of at least a majority of the outstanding shares of Series A preferred stock voting as a single class on an as-converted basis (the Requisite Holders) elect otherwise: (i) a merger or consolidation in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation did not continue to represent immediately following such merger or consolidation at least a majority, by voting power, of the outstanding capital stock of the surviving or resulting corporation or the parent corporation that wholly owned the surviving or resulting corporation, or (ii) a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company and its subsidiaries (other than to a wholly-owned subsidiary of the Company). “Available Proceeds” refers to consideration received by the Company for a Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, as determined in good faith by the board of directors), together with any other assets of the Company available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders. Dividend The holders of shares of Series A preferred stock were entitled to receive cumulative dividends (the Series A Accruing Dividends) at a rate of 8 % per annum based on the Series A preferred stock issuance price of $ 3.8469196 per share of Series A preferred stock issued and outstanding, subject to appropriate adjustments for any stock dividends, stock splits, combinations, recapitalizations, or the like. Dividends were due and payable only upon a Deemed Liquidation Event. In the event of a dividend declared on undistributed earnings, the preferred stockholders would participate in the dividend equally along with common stockholders. The preferred shares participated equally with common stockholders on earnings, but did not participate in losses. After payment of dividends under a deemed liquidation event to the holders of shares of the Series A preferred stock, any additional dividends would be distributed among all holders of shares of the Company’s common stock and Series A preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of Series A preferred stock were converted to common stock. In the event any shares of Series A preferred stock were converted into common stock prior to a Deemed Liquidation Transaction, then such shares will not be entitled to receive any Series A Accruing Dividends. Optional Conversion Each share of Series A preferred stock was convertible at any time at the option of the holder into such number of fully paid and non-assessable shares of common stock as determined by dividing the original issue price for Series A preferred stock by the conversion price in effect at the time of conversion. The Series A conversion price was initially set at $ 3.8469196 . Mandatory Conversion All outstanding shares of Series A preferred stock would automatically be converted into shares of common stock, at the then-effective conversion rate upon either (i) the closing of the sale of shares of common stock to the public at a price of at least $ 11.5407588 per share (as adjusted for any stock dividends, stock splits, combinations, recapitalizations, or the like), in a firm-commitment underwritten public offering pursuant to an effective registration statement resulting in proceeds to the Company of at least $ 50.0 million, net of the underwriting discount and commissions, and in connection with such offering the common stock was listed for trading on a stock exchange or marketplace approved the board of directors, including the approval of at least one Series A Director, as defined in the Series A Stock Purchase Agreement, dated January 14, 2019, or (ii) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of shares of at least a majority of the outstanding shares of Series A preferred stock voting as a single class on an as-converted basis. Conversion Price Adjustments The conversion price per share of Series A preferred stock would be reduced if the Company issues any additional shares of common stock without consideration or for consideration per share less than the Series A preferred stock conversion price in effect. Classification As a Deemed Liquidation Event could result in repurchase of the Series A preferred stock, and the board of directors of Teknova was controlled by the Series A holders, the Series A preferred stock was redeemable contingent upon the occurrence of an event that was not probable. Accordingly, the Company presented the Series A preferred stock outside of permanent equity as mezzanine equity. The Series A preferred stock was recorded at its issuance date fair value of the net proceeds raised through the issuance of Series A preferred stock. The Series A preferred stock did not require subsequent measurement until the Series A preferred stock was probable to become redeemable. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ 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 December 31, 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 December 31, 2021 and December 31, 2020, there were zero shares of the Company’s preferred stock issued and outstanding. Common stock As of December 31, 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 December 31, 2021 and December 31, 2020, there were 28,012,017 and 3,599,232 shares of the Company’s common stock issued and outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation Employee Stock Incentive Plans Teknova maintains stock incentive plans for the benefit of certain of Teknova's officers, directors, consultants and employees. The Company granted time-based and performance-based options to purchase common shares under both its 2016 Stock Plan, as amended (2016 Plan) and 2020 Equity Incentive Plan, as amended (2020 Plan). At the time the 2020 Plan became effective, no additional stock awards were granted or are able to be granted in the future under the 2016 Plan. In June 2021, the Company’s board of directors and the Company’s stockholders approved the 2021 Equity Incentive Plan (2021 Plan), which became effective in connection with the IPO. From and after the date on which the 2021 Plan became effective, no further grants were made or will be made under the 2020 Plan . At December 31, 2021, 2,578,075 shares remain 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 5,020,113 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. Effective January 1, 2022 an additional 1,120,480 new shares became available for issuance under the 2021 Plan. The following table summarizes the stock option activity under the stock incentive plans (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at December 31, 2020 2,246,544 $ 0.95 9.41 $ 10,081 Granted 644,817 $ 17.10 — — Exercised ( 100 ) $ 0.84 — — Cancelled or forfeited ( 127,149 ) $ 2.91 — — Outstanding at December 31, 2021 2,764,112 $ 4.63 8.69 $ 45,280 Exercisable at December 31, 2021 731,354 $ 0.90 8.51 $ 14,322 Vested and expected to vest at December 31, 2021 2,479,430 $ 5.11 8.88 $ 39,579 The total intrinsic value of options exercised during the year ended December 31, 2021 was no t significant. There were no options exercised during the year ended December 31, 2020. The total grant date fair value of shares vested during 2021 and 2020, was $ 0.4 million and $ 0.1 million, respectively. Employee Stock Purchase Plan In June 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 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). Effective January 1, 2022 an additional 280,120 new shares became available for issuance under the ESPP. 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. As of December 31, 2021, the Company had 290,828 shares of the Company's common stock reserved for future grants under the ESPP. Offering periods are generally six months long and begin on May 15 and November 15 of each year. Valuation of Employee Share-Based Awards 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 considers 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, t he fair value of the Company’s common stock is determined by the closing price of its common stock as reported on the NASDAQ Global Market 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 term . As the Company does not have sufficient historical exercise activity to estimate expected life, the expected life of options granted is determined using the simplified method. The simplified method is based on the vesting period and the contractual term for each grant or for each vesting tranche for awards with graded vesting. The midpoint of the vesting date and the maximum contractual expiration date is used as the expected term under this method. Dividend yield . The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future. Therefore, the Company uses 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 Year Ended December 31, Employee Stock Option Plans Employee Stock Purchase Plan 2021 2020 2021 2020 Estimated dividend yield - % - % - % N/A Weighted-average expected stock price volatility 33.51 % 36.13 % 25.47 % N/A Weighted-average risk-free interest rate 1.06 % 0.45 % 0.06 % N/A Expected average term of options (in years) 6.17 6.25 0.50 N/A Weighted-average fair value of common stock $ 19.89 $ 4.84 $ 24.63 N/A Weighted-average fair value per option $ 6.45 $ 3.15 $ 5.46 N/A N/A - Not applicable during the period Summary of Stock-Based Compensation Expense Stock-based compensation expense included in the accompanying financial statements was as follows (in thousands): For the Year Ended December 31, 2021 2020 Cost of sales $ 7 $ — Research and development 157 — Sales and marketing 66 — General and administrative 1,321 300 Total stock-based compensation expense $ 1,551 $ 300 Total stock-based compensation expense related to employee stock option plans was $ 1.6 million and $ 0.3 million for the years ended December 31, 2021 and 2020, respectively. Unrecognized compensation expense related to employee stock option plans was $ 8.3 million at December 31, 2021, which is expected to be recognized as expense over the weighted-average period of 3.25 years. During the year ended December 31, 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, to eliminate the performance-based vesting and provide that such option will vest in 48 equal monthly installments. 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. The incremental stock-based compensation expense for such stock option modification is approximately $ 3.5 million, of which $ 0.5 million incremental stock-based compensation expense was recognized during the year ended December 31, 2021 in general and administrative expense in the statements of operations and comprehensive income (loss). Additionally, in January 2019, the Company granted 284,682 performance-based options that vest upon a change of control. As of December 31, 2021, these options were not considered probable of vesting. The Company had unrecognized compensation expense of approximately $ 0.5 million at December 31, 2021 relating to these options. Total stock-based compensation expense related to the ESPP was not significant since the adoption of the plan in June 2021. Total compensation cost related to the ESPP not yet recognized is also not significant. As of December 31, 2021, an insignificant amount has been withheld on behalf of employees for a future purchase under the ESPP. There were no purchases for the year ended December 31, 2021, related to the ESPP. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Note 13. Net Income (Loss) Per Share Attributable to Common Stockholders Basic and diluted net income (loss) per share is computed using the two-class method when it has issued shares that meet the definition of participating securities. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net income (loss) 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 common stock issuable upon exercise of stock options and convertible preferred stock. 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 income (loss) per share attributable to common stockholders for the years ended December 31, 2021 and 2020 (in thousands, except share and per share data): For the Year Ended December 31, 2021 2020 Net income (loss) available to common stockholders $ ( 9,803 ) $ 3,570 Less: undistributed income attributable to preferred stockholders — ( 2,962 ) Net income (loss) attributable to common stockholders $ ( 9,803 ) $ 608 Basic weighted-average common stock outstanding 16,087,653 3,599,232 Weighted-average effect of potentially dilutive securities: Stock options — 201,404 Dilutive weighted-average common stock 16,087,653 3,800,636 Net income (loss) per share attributable to common stockholders Basic $ ( 0.61 ) $ 0.17 Diluted $ ( 0.61 ) $ 0.16 The following is a summary of the 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 Year Ended December 31, 2021 2020 Employee share-based awards to purchase common stock (1) 2,206,993 — Convertible Series A preferred stock (2) 4,607,059 9,342,092 Total 6,814,052 9,342,092 (1) Excludes performance-based options that were not considered probable of vesting. See "Note 12 —Stock-Based Compensation" for additional information. (2) 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 | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 14. Related Parties The Company has identified the following as related parties through common control: Meeches LLC and Thomas E. Davis, LLC. Meeches LLC is controlled by Ted Davis and Irene Davis, founders and current directors and greater than five percent stockholders of the Company. Thomas E. Davis, LLC is also controlled by Ted Davis. The Company leased certain real property and had a related party note receivable totaling $ 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 beared 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 years ended December 31, 2021 and 2020, the Company paid Meeches LLC $ 0.3 million and $ 0.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 primarily for buildings in Hollister, California and 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 renewed 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 years ended December 31, 2021 and 2020 was $ 1.7 million and $ 1.2 million, respectively. Future minimum lease payments with unrelated and related parties as of December 31, 2021 are as follows (in thousands): Unrelated Related Total 2022 $ 2,551 $ 267 $ 2,818 2023 2,668 279 2,947 2024 2,686 191 2,877 2025 2,239 — 2,239 2026 1,209 — 1,209 Thereafter 6,538 — 6,538 Total future minimum lease payments $ 17,891 $ 737 $ 18,628 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. Any current litigation is considered immaterial and counter claims have been assessed as remote. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes Teknova’s provision for (benefit from) income taxes consist of the following for the year ended December 31, 2021 and 2020 (in thousands): For the Year Ended December 31, 2021 2020 Current: Federal $ — $ ( 1,196 ) State 3 262 Total current 3 ( 934 ) Deferred: Federal ( 2,604 ) 1,954 State ( 233 ) 136 Total deferred ( 2,837 ) 2,090 Income tax expense (benefit) $ ( 2,834 ) $ 1,156 A reconciliation of the statutory tax rate to the Company’s effective tax rate is as follows: For the Year Ended December 31, 2021 2020 Statutory federal income tax rate % 21.0 % 21.0 % State income tax rate 2.1 7.0 Permanent items — ( 0.2 ) Stock compensation ( 1.5 ) 1.7 CARES Act — ( 4.7 ) Research and development credit 0.6 — Other 0.2 ( 0.3 ) Effective tax rate % 22.4 % 24.5 % Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due, plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either deductible or taxable when the assets and liabilities are recovered or settled. The Company’s component of net deferred tax liability and assets consist of the following as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 2020 Deferred tax asset Net operating loss carryforwards $ 3,672 $ 692 Accrued compensation 401 214 Stock compensation 262 — Tax credit carryforwards 150 53 Accruals and other 241 88 Total deferred tax asset 4,726 1,047 Deferred tax liability Fixed assets ( 2,429 ) ( 1,746 ) Intangibles ( 4,973 ) ( 5,291 ) Total deferred tax liability ( 7,402 ) ( 7,037 ) Valuation allowance ( 477 ) — Net deferred tax liability $ ( 3,153 ) $ ( 5,990 ) As of the end of December 31, 2021, Teknova has federal and state net operating loss (NOL) carryforwards of $ 13.7 million and $ 11.7 million, respectively. The federal NOL carryforwards will carryforward indefinitely but are subject to an 80 % taxable income limitation. The state NOL carryforwards begin to expire in 2036 . As of December 31, 2021, the Company has federal research and development tax credit carryforwards of $ 0.1 million, which will begin to expire in 2035 and state research and development tax credit carryforward that are insignificant and carry forward indefinitely. NOLs and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders, as defined under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, as well as similar state tax provisions. This could limit the amount of NOLs and tax credits that the Company can utilize annually to offset future taxable income or tax liabilities. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. The CARES Act, among other things, includes changes to the tax provisions that benefits business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act, including, permitting NOLs, carryovers and carrybacks to offset 100 % of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. As a result, the Company's 2020 effective tax rate includes an income tax benefit related to the anticipated refunds from tax losses generated in prior years that are permitted to be carried back to certain years when the U.S. federal income tax rate was 34 %. On June 29, 2020, the California legislature enacted California Assembly Bill 85 (AB 85), which suspends the use of California NOLs and limits the use of California research tax credits for tax years beginning in 2020 and before 2023. The Company’s 2020 state income tax has increased as a result of restrictions on the utilization of tax attributes. There is no significant impact on the Company's 2021 financial statements due to the loss generated. Subsequently on February 9, 2022, California Senate Bill (SB 113) was enacted and restores the use of net operating losses and business tax credits that were suspended or limited under AB 85 one year earlier, allowing tax attributes to be used in fiscal year 2022. The tax impact of the new legislation, if any, will be recorded in the first quarter of fiscal year 2022 in the period of enactment. The Company had no unrecognized tax benefits at December 31, 2021 and 2020. In connection with FASB’s Accounting for Uncertainty in Income Taxes, the Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not expect to recognize any unrecognized tax benefits over the next twelve months. Consequently, the Company has no t accrued interest or penalties related to uncertain tax positions as of the end of December 31, 2021 or 2020. Teknova files income tax returns in the U.S. federal jurisdiction and various states. The Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2018. The Company is no longer subject to state income tax examinations for tax years prior to 2017. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities. |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Income Statement [Abstract] | |
Other Financial Information | Note 17. Other Financial Information The change in the allowance for doubtful accounts is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ 23 $ 11 Provisions (benefits) 235 12 Recoveries (write-offs), net ( 235 ) — Ending balance $ 23 $ 23 The change in the inventory reserve is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ 29 $ 16 Provisions (benefits) 555 112 Write-offs and other ( 114 ) ( 99 ) Ending balance $ 470 $ 29 The change in the income tax valuation allowance is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ — $ — Additions charged to expense 477 — Reductions charged to other accounts — — Ending balance $ 477 $ — |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Presentation and Use of Estimates | Basis of Accounting, Presentation and Use of Estimates The accompanying financial statements and related notes are prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preparation of 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. Significant items that are subject to such estimates and assumptions include, but are not limited to, the valuation of share-based payment awards, goodwill and intangible assets, and income taxes. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, a ctual results could differ significantly from the estimates under different assumptions or conditions. Certain prior period amounts have been reclassified to conform to presentation for the current year. |
Impact of COVID-19 | Impact of COVID-19 The COVID-19 pandemic continues to impact worldwide economic activity. Teknova continues to closely monitor the impact of the COVID-19 pandemic on all aspects of the Company's business, including how the pandemic will impact customers, employees, suppliers, vendors, business partners and distribution channels. It is not possible to predict the total impact of the COVID-19 pandemic on the Company’s future revenue or profitability, which will depend on future developments that remain uncertain and cannot be predicted with confidence at this time. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is 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, currently 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. |
Concentration of Risk | Concentrations 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 so, as a consequence, the Company believes that its accounts receivable credit risk exposure is limited. Customers For the year ended December 31, 2021, the Company's largest customer was a distributor that accounted for 18 % of total revenue. No other customer accounted for more than 10 % of total revenue for the year ended December 31, 2021. As of December 31, 2021, the Company's two largest customers, both distributors, made up 16 % and 10 % of total gross accounts receivable and one direct customer made up 12 % of total gross accounts receivable. No other customer accounted for more than 10 % of total gross accounts receivable at December, 31, 2021. For the year ended December 31, 2020, the Company's largest customer was a distributor that accounted for 15 % of total revenue and the second largest customer accounted for 10 % of total revenue. No other customer accounted for more than 10 % of total revenue for the year ended December 31, 2020. As of December 31, 2020, two direct customers made up 18 % and 16 % of total gross accounts receivable and the Company's largest distributors each made up 10 % of total gross accounts receivable. No other customer accounted for more than 10 % of total gross accounts receivable at December 31, 2020. Suppliers For the year ended December 31, 2021, the Company had three suppliers that accounted for greater than 10 % of total inventory purchases, the highest of which accounted for 40 % of total inventory purchases followed by suppliers which accounted for 11 % and 10 % of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 20 % of total accounts payable as of December 31, 2021. No other supplier accounted for more than 10 % of total accounts payable at December 31, 2021. For the year ended December 31, 2020, the Company had four suppliers that accounted for greater than 10 % of total inventory purchases, the highest of which accounted for 29 % of total inventory purchases followed by suppliers which accounted for 25 %, 21 % and 11 % of total inventory purchases, respectively. The amounts due to the Company's largest supplier comprised approximately 14 % of total accounts payable as of December 31, 2020. No other supplier accounted for more than 10 % of total accounts payable at December 31, 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents Teknova’s cash and cash equivalents include cash on hand, cash held in banks, and highly-liquid investments with maturities of three months or less at the date of acquisition. Teknova maintains its cash in bank deposit accounts in financial institutions that are insured by the FDIC up to a balance of $ 250.0 thousand. Cash equivalents are stated at carrying value, which approximates fair value. |
Marketable Investments | Marketable Investments Teknova’s short-term marketable investments consist of corporate debt securities, U.S. treasury bills, and government agency obligations. Teknova believes its short-term debt securities are available for use in its current operations and that the Company has the ability, if necessary, to liquidate any of its short-term debt securities to meet its liquidity needs in the next twelve months. Accordingly, those investments with contractual maturities greater than one-year from the date of purchase are classified as short-term investments on the accompanying balance sheets. Teknova classifies its short-term debt investments as available-for-sale at the time of purchase and evaluates such classification as of each balance sheet date. All short-term debt investments are recorded at estimated fair value. Unrealized gains and losses are reported as a component of other comprehensive income, net of any related tax effect. Unrealized losses are charged against income when a decline in the fair value of an individual security is determined to be other-than-temporary. Realized gains and losses and other-than-temporary impairments on investments are included in interest income (expense), net in the statements of operations and comprehensive income (loss). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of Teknova’s financial instruments, including cash equivalents, accounts receivable, inventories, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at invoice value, less estimated allowances for doubtful accounts. Teknova uses the allowance method to account for uncollectible accounts receivable, calculated by management using the historical average of uncollectible accounts. The Company continually monitors its customer payments and maintains an allowance for estimated losses resulting from its customers’ inability to make required payments. Accounts receivable are considered past due once customer payment terms have been exceeded. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. |
Inventories | Inventories Inventory, consisting of raw materials, work in process and finished goods, is stated at the lower of cost or net realizable value, on a first-in, first-out basis. Teknova writes down its inventory for estimated obsolescence or inventory in excess of reasonably expected near-term sales or unmarketable inventory, in an amount equal to the difference between the cost of inventory and the estimated net realizable value, based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by Teknova, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory, and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. |
Notes Receivable from Related Parties | Notes Receivable from Related Parties In 2016, Teknova’s founder and former Chief Executive Officer, a current director and stockholder of the Company, executed a promissory note in favor of the Company which was recorded as a note receivable. Teknova recognizes interest income on notes receivable on the accrual method. Teknova evaluates the collectability of both interest and principal on its notes receivable to determine whether the notes receivable are impaired. A note is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, according to the existing contractual terms. When a note is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the fair value of the underlying collateral, less costs to sell. During the years ended December 31, 2021 and 2020, there was no significant uncertainty of collection; therefore, interest income was recognized. As of December 31, 2020, the Company determined that no allowance for collectability was necessary. The note receivable was repaid during the year ended December 31, 2021 and prior to the closing of the IPO. See “Note 14—Related Parties” for further information regarding the Company’s note receivable with its founder and former Chief Executive Officer, a current director and stockholder of the Company. |
Capitalized Software Implementation Costs | Capitalized Software Implementation Costs Teknova capitalizes certain implementation costs incurred under a cloud computing hosting arrangement. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the expected term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. As of December 31, 2021, Teknova had capitalized software implementation costs of $ 0.1 million. Teknova did not have any capitalized implementation software costs as of December 31, 2020. No amortization expense related to capitalized implementation costs has been recorded as the underlying implementation activities were not complete. |
Property, Plant and Equipment | Property, Plant and Equipment Teknova records property, plant and equipment at fair value when it is acquired in a business combination or at cost for all other purchases of property, plant and equipment. Property, plant and equipment is depreciated over the estimated useful lives of the assets, using the straight-line method. Any leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the estimated remaining life of the lease. Costs for repairs and maintenance that do not significantly increase the value or estimated lives of property, plant and equipment are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheets, and the resulting gain or loss is reflected in the statements of operations and comprehensive income (loss). The estimated useful lives of the major classes of property and equipment are as follows: Estimated Useful Lives Machinery and equipment 7 years Office furniture and equipment 3 – 7 years Vehicles 5 years Leasehold improvements 4 – 7 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Teknova evaluates its long-lived assets for impairment when events or changes in circumstances indicate a possible inability to recover carrying amounts. Recoverability is assessed by comparing the carrying value of the assets to estimated undiscounted future cash flows expected to be generated by the assets. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated during the life of those assets are less than the assets’ carrying amounts. If an asset is impaired, the loss is measured as the amount by which the asset’s carrying value exceeds its fair value. There were no indicators of impairment during the years ended December 31, 2021 and 2020. |
Goodwill | Goodwill Goodwill is the excess of the Company’s fair value over the Company’s fair value accounting basis of the Company’s net assets and liabilities. Goodwill is not amortized, but is tested for impairment annually as of October 1, or more frequently if events or circumstances indicate that the carrying value may no longer be recoverable and that an impairment may have occurred. Teknova first considers qualitative factors that indicate whether impairment may have occurred. Such indicators may include, macro-economic conditions, such as adverse industry or market conditions and entity-specific events, such as increasing costs, declining financial performance, or loss of key personnel. If the Company’s assessment of such qualitative factors indicates that a reduction in the carrying value is more likely than not to have occurred, Teknova performs a quantitative assessment, comparing the fair value of the Company (in this capacity, the Reporting Unit) to the carrying value, including goodwill, of the Reporting Unit. If the carrying value of the Reporting Unit exceeds its fair value, an impairment has occurred, and an impairment charge is recognized for the difference up to the carrying value of the Reporting Unit’s goodwill. The fair value of the Reporting Unit is a Level 3 measure and is determined using a market and income approach. There was no impairment of goodwill during the years ended December 31, 2021 and 2020. |
Intangible Assets | Intangible Assets Teknova’s intangible assets consist of the Teknova trade name and customer relationships. Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually as of October 1, or more frequently if events or circumstances indicate that it is more likely than not that an asset is impaired. If the fair value of the asset is less than its carrying amount, an impairment charge would be recognized in an amount equal to the difference between the carrying amount and the fair value. Finite-lived intangible assets are amortized over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. Teknova reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or an asset group may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related assets’ or asset group’s carrying value. There was no impairment of intangible assets during the years ended December 31, 2021 and 2020. |
Leases | Leases The Company’s leases are reviewed and classified as either capital or operating leases at their inception. Teknova may receive renewals or expansion options, rent holidays, and other incentives in certain of its lease agreements. For operating leases, Teknova recognizes lease costs, once control of the leased space is achieved, on a straight-line basis, without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives received are treated as reductions of costs over the term of the lease agreements. |
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. |
Revenue Recognition | Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606). Teknova recognizes revenue for sales of goods through the following steps: ▪ Identification of the contract, or contracts, with a customer, typically a purchase order ▪ Identification of the performance obligations in the contract ▪ Determination of the transaction price ▪ Allocation of the transaction price to the performance obligations in the contract ▪ Recognition of revenue when, or as, the company satisfies a performance obligation Teknova recognizes revenue from the sale of manufactured products and services when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. 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. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. The Company records amounts billed to customers for shipping and handling in a sales transaction as revenue. Shipping and handling costs are included in general and administrative expenses as revenue is recognized. Shipping and handling charges for the years ended December 31, 2021 and 2020 were $ 1.1 million and $ 0.8 million, respectively. 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 financial statements. Costs incurred to obtain contracts with customers are expensed immediately, because the amortization period for such costs is one year or less. Teknova does not offer warranties on products. |
Cost of Sales | Cost of Sales Cost of sales includes salaries, wages and benefits, raw materials consumption (including direct and indirect material), depreciation, utilities, rent, manufacturing supplies and other production overhead. |
Research and Development Expenses | Research and Development Expenses The Company’s research and development expenses primarily consist of employee-related expenses, including salaries, benefits and stock-based compensation expense for personnel in process engineering and product development functions; expenses related to occupancy costs, laboratory supplies, consulting fees and depreciation associated with various assets used in the research and development of the Company’s products. |
Sales and Marketing Costs | Sales and Marketing Costs The Company’s sales and marketing expenses primarily consist of employee-related expenses, including salaries and benefits, commissions, advertising, occupancy costs and stock-based compensation expense for sales and marketing employees. The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense for the years ended December 31, 2021 and 2020 was $ 0.4 million and $ 0.3 million, respectively, and is included in s ales and marketing expenses. |
General and Administrative Expenses | General and Administrative Expenses The Company’s general and administrative expenses primarily consist of costs associated with executive and administrative staff, and other expenses such as shipping charges, professional service fees, occupancy costs, IT systems, insurance, depreciation and stock-based compensation expense for executive and administrative staff. |
Stock-Based Compensation | Stock-Based Compensation Teknova follows the fair value recognition provisions of ASC 718, Compensation—Stock Compensation . 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. |
Employee Benefit Plans | Employee Benefit Plans Teknova has a salary deferral 401(k) plan (the 401(k) Plan) covering substantially all employees. Contrib utions by the Company to the 401(k) Plan for the years ended December 31, 2021 and 2020 were $ 0.6 million and $ 0.4 million, respectively. Contributions payable as of December 31, 2021 and 2020, of $ 0.3 million and $ 0.2 million, respectively, are included within accrued liabilities in the accompanying financial statemen ts. |
Income Taxes | Income Taxes Teknova uses the asset and liability method in accounting for its deferred income taxes. Under this method, deferred income taxes are provided for differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes, using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. Teknova accounts for unrecognized tax benefits based upon its assessment of whether tax benefits are more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits taken, or expected to be taken, in a tax return and recognizes associated interest and penalties, if any, in income tax expense. As of December 31, 2021 and 2020, the Company had no liabilities recorded for unrecognized tax benefits. |
Net Income (Loss) Per Share of Common Stock | Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share is computed using the two-class method. Diluted net income (loss) per share is computed using the more dilutive of (i) the treasury stock method or if-converted method, or (ii) the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The treasury stock method uses the number of new shares that may be created by unexercised in-the-money warrants and options, where the exercise price is less than the current share price. The if-converted method calculates the value of convertible securities as if they were converted into new shares. Per share amounts are computed by dividing net income (loss) attributable to common stockholders by the weighted average shares outstanding during each period. The diluted net income (loss) per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and convertible and redeemable preferred stock are considered common stock equivalents. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases and its related interpretations, codified as ASC 842 (ASC 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 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 of approximately $ 20 million upon adopti on of ASC 842, which will increase the Company’s total assets and total liabilities. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and clarifies and amends certain guidance to promote consistent application. ASU 2019-02 is effective for the Company’s annual and interim periods beginning after December 15, 2021, with early adoption permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. Teknova is currently evaluating the impact of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). 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 of the adoption of the standard on the financial statements and does not anticipate the standard to have a significant impact. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Major Classes of Property and Equipment | The estimated useful lives of the major classes of property and equipment are as follows: Estimated Useful Lives Machinery and equipment 7 years Office furniture and equipment 3 – 7 years Vehicles 5 years Leasehold improvements 4 – 7 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | Teknova’s revenue, disaggregated by product category, for the years ended December 31, 2021 and 2020 were as follows (in thousands): For the Year Ended December 31, 2021 2020 Lab Essentials $ 27,184 $ 21,240 Clinical Solutions 6,793 4,807 Sample Transport 1,530 4,297 Other 1,386 953 Total revenue $ 36,893 $ 31,297 Teknova’s revenue, disaggregated by geographic region, for the years ended December 31, 2021 and 2020 were as follows (in thousands): For the Year Ended December 31, 2021 2020 United States $ 35,808 $ 30,138 International 1,085 1,159 Total revenue $ 36,893 $ 31,297 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 Balance at December 31, 2020 Gross Accumulated Net Gross Accumulated Net Definite Lived: Customer relationships $ 9,180 $ 3,395 $ 5,785 $ 9,180 $ 2,247 $ 6,933 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets $ 22,099 $ 3,395 $ 18,704 $ 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 2022 $ 1,148 2023 1,148 2024 1,148 2025 1,148 2026 1,148 Thereafter 45 Estimated future amortization expense of definite-lived intangible assets $ 5,785 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): As of December 31, 2021 2020 Finished goods, net $ 3,172 $ 2,093 Work in process 105 137 Raw materials, net 2,117 1,352 Total inventories, net $ 5,394 $ 3,582 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following (in thousands): As of December 31, 2021 2020 Machinery and equipment $ 9,942 $ 6,084 Office furniture and equipment 649 315 Vehicles 70 128 Leasehold improvements 2,805 2,442 13,466 8,969 Less—Accumulated depreciation ( 2,473 ) ( 995 ) 10,993 7,974 Construction in progress 18,817 2,034 Total property, plant and equipment, net $ 29,810 $ 10,008 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities were comprised of the following (in thousands): As of December 31, 2021 2020 Payroll-related $ 2,818 $ 1,482 Property, plant and equipment 1,446 88 Other 1,231 757 Total current accrued liabilities $ 5,495 $ 2,327 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and December 31, 2020, are detailed below: As of December 31, 2021 2020 Long-term debt $ 12,000 $ — Cumulative accretion of exit fee 90 — Unamortized debt discount and debt issuance costs ( 220 ) — Long-term debt, net $ 11,870 $ — |
Schedule of Maturities of Term Loan | At December 31, 2021, the scheduled maturities, of the Term Loan were as follows (in thousands): Amount 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) | 12 Months Ended |
Dec. 31, 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 Shares Aggregate Proceeds, net Series A preferred stock 9,600,000 9,342,092 $ 41,586 $ 35,638 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Stock Options Activity | The following table summarizes the stock option activity under the stock incentive plans (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at December 31, 2020 2,246,544 $ 0.95 9.41 $ 10,081 Granted 644,817 $ 17.10 — — Exercised ( 100 ) $ 0.84 — — Cancelled or forfeited ( 127,149 ) $ 2.91 — — Outstanding at December 31, 2021 2,764,112 $ 4.63 8.69 $ 45,280 Exercisable at December 31, 2021 731,354 $ 0.90 8.51 $ 14,322 Vested and expected to vest at December 31, 2021 2,479,430 $ 5.11 8.88 $ 39,579 |
Schedule of Stock-Based Compensation Expense | Summary of Stock-Based Compensation Expense Stock-based compensation expense included in the accompanying financial statements was as follows (in thousands): For the Year Ended December 31, 2021 2020 Cost of sales $ 7 $ — Research and development 157 — Sales and marketing 66 — General and administrative 1,321 300 Total stock-based compensation expense $ 1,551 $ 300 |
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 Year Ended December 31, Employee Stock Option Plans Employee Stock Purchase Plan 2021 2020 2021 2020 Estimated dividend yield - % - % - % N/A Weighted-average expected stock price volatility 33.51 % 36.13 % 25.47 % N/A Weighted-average risk-free interest rate 1.06 % 0.45 % 0.06 % N/A Expected average term of options (in years) 6.17 6.25 0.50 N/A Weighted-average fair value of common stock $ 19.89 $ 4.84 $ 24.63 N/A Weighted-average fair value per option $ 6.45 $ 3.15 $ 5.46 N/A N/A - Not applicable during the period |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 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 income (loss) per share attributable to common stockholders for the years ended December 31, 2021 and 2020 (in thousands, except share and per share data): For the Year Ended December 31, 2021 2020 Net income (loss) available to common stockholders $ ( 9,803 ) $ 3,570 Less: undistributed income attributable to preferred stockholders — ( 2,962 ) Net income (loss) attributable to common stockholders $ ( 9,803 ) $ 608 Basic weighted-average common stock outstanding 16,087,653 3,599,232 Weighted-average effect of potentially dilutive securities: Stock options — 201,404 Dilutive weighted-average common stock 16,087,653 3,800,636 Net income (loss) per share attributable to common stockholders Basic $ ( 0.61 ) $ 0.17 Diluted $ ( 0.61 ) $ 0.16 |
Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders | The following is a summary of the 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 Year Ended December 31, 2021 2020 Employee share-based awards to purchase common stock (1) 2,206,993 — Convertible Series A preferred stock (2) 4,607,059 9,342,092 Total 6,814,052 9,342,092 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 are as follows (in thousands): Unrelated Related Total 2022 $ 2,551 $ 267 $ 2,818 2023 2,668 279 2,947 2024 2,686 191 2,877 2025 2,239 — 2,239 2026 1,209 — 1,209 Thereafter 6,538 — 6,538 Total future minimum lease payments $ 17,891 $ 737 $ 18,628 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Tax Expense (Benefit) | Teknova’s provision for (benefit from) income taxes consist of the following for the year ended December 31, 2021 and 2020 (in thousands): For the Year Ended December 31, 2021 2020 Current: Federal $ — $ ( 1,196 ) State 3 262 Total current 3 ( 934 ) Deferred: Federal ( 2,604 ) 1,954 State ( 233 ) 136 Total deferred ( 2,837 ) 2,090 Income tax expense (benefit) $ ( 2,834 ) $ 1,156 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory tax rate to the Company’s effective tax rate is as follows: For the Year Ended December 31, 2021 2020 Statutory federal income tax rate % 21.0 % 21.0 % State income tax rate 2.1 7.0 Permanent items — ( 0.2 ) Stock compensation ( 1.5 ) 1.7 CARES Act — ( 4.7 ) Research and development credit 0.6 — Other 0.2 ( 0.3 ) Effective tax rate % 22.4 % 24.5 % |
Schedule of Net Deferred Tax Liability and Assets | The Company’s component of net deferred tax liability and assets consist of the following as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 2020 Deferred tax asset Net operating loss carryforwards $ 3,672 $ 692 Accrued compensation 401 214 Stock compensation 262 — Tax credit carryforwards 150 53 Accruals and other 241 88 Total deferred tax asset 4,726 1,047 Deferred tax liability Fixed assets ( 2,429 ) ( 1,746 ) Intangibles ( 4,973 ) ( 5,291 ) Total deferred tax liability ( 7,402 ) ( 7,037 ) Valuation allowance ( 477 ) — Net deferred tax liability $ ( 3,153 ) $ ( 5,990 ) |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Statement [Abstract] | |
Schedule of change in the allowance for doubtful accounts | The change in the allowance for doubtful accounts is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ 23 $ 11 Provisions (benefits) 235 12 Recoveries (write-offs), net ( 235 ) — Ending balance $ 23 $ 23 |
Schedule of change in the inventory reserve | The change in the inventory reserve is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ 29 $ 16 Provisions (benefits) 555 112 Write-offs and other ( 114 ) ( 99 ) Ending balance $ 470 $ 29 |
Schedule of change in the income tax valuation allowance | The change in the income tax valuation allowance is as follows: For the Year Ended December 31, 2021 2020 Beginning balance $ — $ — Additions charged to expense 477 — Reductions charged to other accounts — — Ending balance $ 477 $ — |
Nature of the Business - Additi
Nature of the Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 28, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsidiary Sale Of Stock [Line Items] | ||||
Common stock, shares issued | 28,012,017 | 3,599,232 | ||
Payment of issuance costs for initial public offering | $ 99,100 | $ 102,672 | $ 0 | |
Underwriting discounts and commissions | 7,700 | |||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 17,512,685 | |||
Preferred stock, shares outstanding | 0 | 0 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 3,600 | $ 3,600 | ||
Deferred Offering Costs | $ 0 | |||
Convertible and Redeemable Preferred Stock [Member] | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Preferred stock, shares outstanding | 0 | |||
Convertible and Redeemable Preferred Stock [Member] | Minimum [Member] | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Convertible preferred stock carrying value | $ 35,600 | |||
Convertible and Redeemable Preferred Stock [Member] | Maximum [Member] | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Convertible preferred stock carrying value | $ 35,900 | |||
IPO [Member] | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Option to Purchase Additional Shares of Common Stock | 900,000 | |||
Shares Issued, Price Per Share | $ 16 | |||
Issuance of common stock upon initial public offering, net of issuance costs and underwriting discounts (in shares) | 6,900,000 | |||
Accretion Expense | $ 300 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)SegmentCustomerSupplier | Dec. 31, 2020USD ($)SupplierCustomer | Jan. 01, 2022USD ($) | |
Product Information [Line Items] | |||
Operating segment | Segment | 1 | ||
Reportable segment | Segment | 1 | ||
Cash, FDIC insured amount | $ 250,000 | ||
Impairment of goodwill | 0 | $ 0 | |
Capitalized Software Implementation Costs | 100,000 | ||
Amortization expense related to capitalized implementation costs | 0 | ||
Impairment | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | |
Unrecognized Tax Benefits | 0 | 0 | |
Subsequent Event [Member] | |||
Product Information [Line Items] | |||
Operating lease right-of-use assets | $ 20,000,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Assets Current | ||
Selling And Marketing Expense [Member] | |||
Product Information [Line Items] | |||
Marketing and Advertising Expense | 400,000 | 300,000 | |
General And Administrative Expense [Member] | |||
Product Information [Line Items] | |||
Shipping and handling charges | 1,100,000 | 800,000 | |
Accrued Liabilities [Member] | |||
Product Information [Line Items] | |||
Contributions payable | 300,000 | 200,000 | |
The 401(k) Plan [Member] | |||
Product Information [Line Items] | |||
Defined contribution plan, employer discretionary contribution amount | $ 600,000 | $ 400,000 | |
Customers Concentration Risk [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Number of Customers | Customer | 2 | ||
Customers Concentration Risk [Member] | Largest Customer [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 18.00% | 15.00% | |
Customers Concentration Risk [Member] | Second Largest Customer [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | ||
Customers Concentration Risk [Member] | No Customer [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Number of Customers | Customer | 0 | 0 | |
Customers Concentration Risk [Member] | No Customer [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Number of Customers | Customer | 0 | 0 | |
Customers Concentration Risk [Member] | Customer 1 [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 16.00% | 18.00% | |
Customers Concentration Risk [Member] | Customer 2 [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 16.00% | ||
Customers Concentration Risk [Member] | Direct Customer [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Number of Customers | Customer | 1 | 2 | |
Supplier Concentration Risk [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Number of suppliers | Supplier | 3 | 4 | |
Supplier Concentration Risk [Member] | Revenue [Member] | Supplier 1 [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 40.00% | 29.00% | |
Supplier Concentration Risk [Member] | Revenue [Member] | Supplier 2 [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 11.00% | 25.00% | |
Supplier Concentration Risk [Member] | Revenue [Member] | Supplier 3 [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | 21.00% | |
Supplier Concentration Risk [Member] | Revenue [Member] | Supplier 4 [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 11.00% | ||
Supplier Concentration Risk [Member] | Accounts Payable [Member] | No Supplier [Member] | |||
Product Information [Line Items] | |||
Concentration Risk Number of Suppliers | Supplier | 0 | 0 | |
Minimum [Member] | Customers Concentration Risk [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 12.00% | 10.00% | |
Minimum [Member] | Customers Concentration Risk [Member] | No Customer [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | 10.00% | |
Minimum [Member] | Customers Concentration Risk [Member] | No Customer [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | 10.00% | |
Minimum [Member] | Customers Concentration Risk [Member] | Customer 2 [Member] | Accounts Receivable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | ||
Minimum [Member] | Supplier Concentration Risk [Member] | Revenue [Member] | Supplier 4 [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | ||
Minimum [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 20.00% | 14.00% | |
Minimum [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | No Supplier [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% | 10.00% | |
Minimum [Member] | Supplier Concentration Risk [Member] | Three Largest Customers [Member] | Revenue [Member] | |||
Product Information [Line Items] | |||
Percentage of Total Revenue | 10.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Major Classes of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Machinery and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Vehicles [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 4 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021BusinessLines | |
Revenue From Contract With Customer [Abstract] | |
Number of business lines | 2 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 36,893 | $ 31,297 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 35,808 | 30,138 |
Non Us [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 1,085 | 1,159 |
Lab Essentials [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 27,184 | 21,240 |
Clinical Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 6,793 | 4,807 |
Sample Transport [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 1,530 | 4,297 |
Other Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 1,386 | $ 953 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Carrying amount of goodwill | $ 0 | $ 0 |
Amortization of intangible assets | $ 1,148 | $ 1,148 |
Acquired finite-lived intangible assets, weighted average useful life | 5 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets with Definite and Indefinite Lives (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 22,099 | $ 22,099 |
Intangible Assets, Accumulated Amortization | 3,395 | 2,247 |
Intangible Assets, Net (Including Goodwill), Total | 18,704 | 19,852 |
Customer Relationships [Member] | ||
Schedule Of Goodwill And Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 9,180 | 9,180 |
Intangible Assets, Accumulated Amortization | 3,395 | 2,247 |
Intangible Assets, Net (Including Goodwill), Total | 5,785 | 6,933 |
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 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2022 | $ 1,148 |
2023 | 1,148 |
2024 | 1,148 |
2025 | 1,148 |
2026 | 1,148 |
Thereafter | 45 |
Estimated future amortization expense of definite-lived intangible assets | $ 5,785 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 |
Unrealized gains and losses on investment | 0 | |
Realized gains or losses on investment | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Carried at Fair Value and Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 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 | |
Total financial assets carried at fair value | $ 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 | |
Total financial assets carried at fair value | 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 | |
Total financial assets carried at fair value | 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 | |
Total financial assets carried at fair value | 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods, net | $ 3,172 | $ 2,093 |
Work in process | 105 | 137 |
Raw materials, net | 2,117 | 1,352 |
Total inventories, net | $ 5,394 | $ 3,582 |
Property, Plant and Equipment N
Property, Plant and Equipment Net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 13,466 | $ 8,969 |
Less—Accumulated depreciation | (2,473) | (995) |
Property, plant and equipment, after depreciation | 10,993 | 7,974 |
Construction in progress | 18,817 | 2,034 |
Total property, plant and equipment, net | 29,810 | 10,008 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,942 | 6,084 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 649 | 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 | $ 2,805 | $ 2,442 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation | $ 1.7 | $ 0.9 |
Accumulated Capitalized Interest Costs | $ 0.3 | $ 0 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Payroll-related | $ 2,818 | $ 1,482 |
Property, plant and equipment | 1,446 | 88 |
Other | 1,231 | 757 |
Total current accrued liabilities | $ 5,495 | $ 2,327 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Mar. 26, 2021 | Jul. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | |||||||
Maximum amount borrowed | $ 27,000,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 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. | ||||||
Term Loan | $ 12,000,000 | ||||||
Debt issuance cost | $ 153,000 | $ 0 | |||||
Long term debt | 12,000,000 | 0 | |||||
Long-term debt, net | 11,870,000 | $ 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 | ||||||
Net revenue requirement for the financial covenant | $ 32,000,000 | ||||||
Term loan exit fee | $ 600,000 | ||||||
Exit Fees Percentage of Term Loan | 5.00% | ||||||
Term Loan | $ 12,000,000 | ||||||
Debt issuance cost | $ 300,000 |
Long-Term Debt - Summary of Com
Long-Term Debt - Summary of Components of Carrying Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Long term debt | $ 12,000 | $ 0 |
Cumulative accretion of exit fee | 90 | 0 |
Unamortized debt discount and debt issuance costs | (220) | 0 |
Long-term debt, net | $ 11,870 | $ 0 |
Long-Term Debt - Summary of Sch
Long-Term Debt - Summary of Scheduled Maturities of Term Loan (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Long Term Debt [Abstract] | |
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 - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 28, 2021USD ($)shares | Jun. 17, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) |
Temporary Equity [Line Items] | ||||
Stockholders' equity note, stock split, conversion ratio | 1.8746 | |||
Convertible Series A Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock shares issued upon conversion | shares | 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 | shares | 0 | |||
Temporary equity, shares outstanding | shares | 0 | |||
Preferred stock dividend percentage | 8.00% | |||
Preferred stock dividend per share | $ / shares | $ 3.8469196 | |||
Preferred stock conversion price | $ / shares | 3.8469196 | |||
Convertible Series A Preferred Stock [Member] | Minimum [Member] | ||||
Temporary Equity [Line Items] | ||||
Sale of stock price | $ / shares | $ 11.5407588 | |||
Proceeds from issuance of common stock | $ | $ 50,000 |
Convertible and Redeemable Pr_4
Convertible and Redeemable Preferred Stock - Summary of Series A Preferred Stock (Details) - Convertible Series A Preferred Stock [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Temporary Equity [Line Items] | |
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 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Dec. 31, 2021 | Jun. 28, 2021 | Dec. 31, 2020 |
Equity [Abstract] | |||
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, par value | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 490,000,000 | 30,000,000 | |
Common stock, shares issued | 28,012,017 | 3,599,232 | |
Common stock, shares outstanding | 28,012,017 | 3,599,232 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | Jun. 14, 2021 | Jan. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | Jan. 01, 2022 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average recognition period | 3 years 3 months | |||||
General And Administrative Expense | $ 20,392 | $ 8,208 | ||||
Intrinsic value of options | 0 | |||||
Grant date fair value of shares vested | 400 | $ 100 | ||||
Number of Options, Exercised | 0 | |||||
Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | 500 | |||||
Performance Based Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of Options, Granted | 284,682 | |||||
Employees [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | 3,500 | |||||
General And Administrative Expense | $ 500 | |||||
2021 Equity Incentive Plans [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share available For Future grants | 2,578,075 | |||||
Shares to be issued under share-based payment arrangement | 5,020,113 | |||||
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 | 1,120,480 | ||||
Increase in common stock reserved for future issuance, term period | 10 years | |||||
2021 Equity Incentive Plans [Member] | Employees [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2021 Equity Incentive Plans [Member] | Board Of Director [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
2016, 2020, 2021 Equity Incentive Plans [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | $ 8,300 | |||||
Number of Options, Exercised | 100 | |||||
Number of Options, Granted | 644,817 | |||||
2016, 2020, 2021 Equity Incentive Plans [Member] | Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense related to employee stock option | $ 1,600 | $ 300 | ||||
2021 Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share available For Future grants | 319,911 | |||||
Increase in common stock reserved for future issuance, term period | 10 years | |||||
Percentage of additional shares added on outstanding shares | 1.00% | |||||
Common stock reserved for future issuance | 290,828 | 290,828 | 280,120 | |||
Maximum employee subscription rate | 15.00% | |||||
Discount from market price, offering date | 85.00% | |||||
Discount from market price, purchase date | 85.00% | |||||
Shares outstanding, Acquired from Performance plan Issuance | 231,719 | |||||
Employee Stock Purchase Plan, Offering Period | Offering periods are generally six months long and begin on May 15 and November 15 of each year. |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Exercised | 0 | |
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 | 644,817 | |
Number of Options, Exercised | (100) | |
Number of Options, Cancelled or forfeited | (127,149) | |
Number of Options, Outstanding, Ending balance | 2,764,112 | 2,246,544 |
Number of Options, Exercisable, Ending balance | 731,354 | |
Number of Options, Vested and expected to vest | 2,479,430 | |
Weighted Average Exercise Price per Share, Options outstanding, Beginning balance | $ 0.95 | |
Weighted Average Exercise Price per Share, Granted | 17.10 | |
Weighted Average Exercise Price per Share, Exercised | 0.84 | |
Weighted Average Exercise Price per Share, Cancelled or forfeited | 2.91 | |
Weighted Average Exercise Price per Share, Options outstanding, Ending balance | 4.63 | $ 0.95 |
Weighted Average Exercise Price per Share, Exercisable, Ending balance | 0.90 | |
Weighted Average Exercise Price per Share, Vested and expected to vest | $ 5.11 | |
Weighted Average Remaining Contractual Term (in years), Options outstanding | 8 years 8 months 8 days | 9 years 4 months 28 days |
Weighted Average Remaining Contractual Term (in years), Exercisable | 8 years 6 months 3 days | |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest | 8 years 10 months 17 days | |
Aggregate Intrinsic Value, Options outstanding | $ 45,280 | $ 10,081 |
Aggregate Intrinsic Value, Exercisable | 14,322 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 39,579 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,551 | $ 300 |
Cost of Sales [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 7 | 0 |
Research and Development Expense [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 157 | 0 |
Selling and Marketing Expense [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 66 | 0 |
General and Administrative Expense [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,321 | $ 300 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Stock Purchase Plan [Member] | ||
Subsidiary Sale Of Stock [Line Items] | ||
Estimated dividend yield | 0.00% | |
Weighted-average expected stock price volatility | 25.47% | |
Weighted-average risk-free interest rate | 0.06% | |
Expected average term of options (in years) | 6 months | |
Weighted-average fair value of common stock | $ 24.63 | |
Weighted-average fair value per option | $ 5.46 | |
Employee Stock Option Plans [Member] | ||
Subsidiary Sale Of Stock [Line Items] | ||
Estimated dividend yield | 0.00% | 0.00% |
Weighted-average expected stock price volatility | 33.51% | 36.13% |
Weighted-average risk-free interest rate | 1.06% | 0.45% |
Expected average term of options (in years) | 6 years 2 months 1 day | 6 years 3 months |
Weighted-average fair value of common stock | $ 19.89 | $ 4.84 |
Weighted-average fair value per option | $ 6.45 | $ 3.15 |
Net (Loss) Income Per Share Att
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to stockholders | $ (9,803) | $ 3,570 |
Less: undistributed income attributable to preferred stockholders | 0 | (2,962) |
Net income (loss) attributable to common stockholders | $ (9,803) | $ 608 |
Basic weighted-average common stock outstanding | 16,087,653 | 3,599,232 |
Weighted-average effect of potentially dilutive securities: | ||
Stock options | 0 | 201,404 |
Dilutive weighted-average common stock | 16,087,653 | 3,800,636 |
Earnings per share attributable to common stockholders: | ||
Basic | $ (0.61) | $ 0.17 |
Diluted | $ (0.61) | $ 0.16 |
Net (Loss) Income Per Share A_2
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options to purchase common stock | 6,814,052 | 9,342,092 | |
Stock Options to Purchase Common Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options to purchase common stock | [1] | 2,206,993 | 0 |
Convertible Series A Preferred Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options to purchase common stock | [2] | 4,607,059 | 9,342,092 |
[1] | Excludes performance-based options that were not considered probable of vesting. See "Note 12 —Stock-Based Compensation" for additional information. | ||
[2] | 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_3
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] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||
Payment for Rent Expense | $ 1,700,000 | $ 1,200,000 | |||
Thomas E Davis L L C | |||||
Related Party Transaction [Line Items] | |||||
Related party notes receivable | 500,000 | ||||
Related Party Transaction, Rate | 6.00% | ||||
Note receivable paid by related party | $ 500,000 | ||||
Payment for Rent Expense | $ 5,000 | ||||
Meeches LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment for Rent Expense | $ 20,000 | $ 300,000 | $ 400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Mar. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||||
Payment for Rent Expense | $ 1,700,000 | $ 1,200,000 | ||
Thomas E Davis L L C | ||||
Loss Contingencies [Line Items] | ||||
Payment for Rent Expense | $ 5,000 | |||
Lessee, Operating Lease, Term of Contract | 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] | ||||
Loss Contingencies [Line Items] | ||||
Payment for Rent Expense | $ 20,000 | $ 300,000 | $ 400,000 | |
Lessee, Operating Lease, Term of Contract | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital Leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
2022 | $ 2,818 |
2023 | 2,947 |
2024 | 2,877 |
2025 | 2,239 |
2026 | 1,209 |
Thereafter | 6,538 |
Total future minimum lease payments | 18,628 |
Unrelated Party [Member] | |
Loss Contingencies [Line Items] | |
2022 | 2,551 |
2023 | 2,668 |
2024 | 2,686 |
2025 | 2,239 |
2026 | 1,209 |
Thereafter | 6,538 |
Total future minimum lease payments | 17,891 |
Related Party [Member] | |
Loss Contingencies [Line Items] | |
2022 | 267 |
2023 | 279 |
2024 | 191 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total future minimum lease payments | $ 737 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 0 | $ (1,196) |
State | 3 | 262 |
Total current | 3 | (934) |
Deferred: | ||
Federal | (2,604) | 1,954 |
State | (233) | 136 |
Total deferred | (2,837) | 2,090 |
Income tax expense (benefit) | $ (2,834) | $ 1,156 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Statutory Tax Rate to the Company's Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate% | 21.00% | 21.00% |
State income tax rate | 2.10% | 7.00% |
Permanent items | 0.00% | (0.20%) |
Stock compensation | (1.50%) | 1.70% |
CARES Act | 0.00% | (4.70%) |
Research and development credit | 0.60% | 0.00% |
Other | 0.20% | (0.30%) |
Effective tax rate % | 22.40% | 24.50% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Liability and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset | ||
Net operating loss carryforwards | $ 3,672 | $ 692 |
Accrued compensation | 401 | 214 |
Stock compensation | 262 | 0 |
Tax credit carryforwards | 150 | 53 |
Accruals and other | 241 | 88 |
Total deferred tax asset | 4,726 | 1,047 |
Deferred tax liability | ||
Fixed assets | (2,429) | (1,746) |
Intangibles | (4,973) | (5,291) |
Total deferred tax liability | (7,402) | (7,037) |
Valuation allowance | (477) | 0 |
Net deferred tax liability | $ (3,153) | $ (5,990) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Mar. 27, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards expiration year | 2036 | ||
Research and development tax credit carryforwards | $ 100,000 | ||
Research and development tax credit carryforwards expiration year | 2035 | ||
Income tax rate, percent | 22.40% | 24.50% | |
Offset taxable income, percentage | 100.00% | ||
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Accrued interest or penalties | 0 | $ 0 | |
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 13,700,000 | ||
Taxable income limitation, percent | 80.00% | ||
Income tax rate, percent | 34.00% | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 11,700,000 |
Other Financial Information - C
Other Financial Information - Change in the allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | ||
Beginning balance | $ 23 | $ 11 |
Provisions (benefits) | 235 | 12 |
Recoveries (write-offs), net | (235) | 0 |
Ending balance | $ 23 | $ 23 |
Other Financial Information -_2
Other Financial Information - Change in the inventory reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Accounting Estimate [Line Items] | ||
Beginning balance | $ 23 | $ 11 |
Provisions (benefits) | 235 | 12 |
Recoveries (write-offs), net | (235) | 0 |
Ending balance | 23 | 23 |
Inventory reserve [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Beginning balance | 29 | 16 |
Provisions (benefits) | 555 | 112 |
Recoveries (write-offs), net | (114) | (99) |
Ending balance | $ 470 | $ 29 |
Other Financial Information -_3
Other Financial Information - Change in the income tax valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory Assets [Line Items] | ||
Beginning balance | $ 23 | $ 11 |
Additions charged to expense | 235 | 12 |
Reductions charged to other accounts | (235) | 0 |
Ending balance | 23 | 23 |
Income tax valuation allowance [Member] | ||
Regulatory Assets [Line Items] | ||
Beginning balance | 0 | 0 |
Additions charged to expense | 477 | 0 |
Reductions charged to other accounts | 0 | 0 |
Ending balance | $ 477 | $ 0 |