Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Entity Registrant Name | ALPHA TEKNOVA, INC. | |
Entity Central Index Key | 0001850902 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TKNO | |
Security12b Title | Common Stock, par value $0.00001 per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40538 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3368109 | |
Entity Address, Address Line One | 2451 Bert Dr. | |
Entity Address, City or Town | Hollister | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95023 | |
City Area Code | 831 | |
Local Phone Number | 637-1100 | |
Entity Common Stock, Shares Outstanding | 40,727,780 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 8,169 | $ 10,692 | $ 28,817 | $ 33,529 |
Cost of sales | 6,697 | 5,922 | 19,856 | 18,163 |
Gross profit | 1,472 | 4,770 | 8,961 | 15,366 |
Operating expenses: | ||||
Research and development | 1,397 | 1,925 | 4,256 | 5,867 |
Sales and marketing | 2,412 | 2,397 | 6,929 | 6,592 |
General and administrative | 6,138 | 6,502 | 19,426 | 20,856 |
Amortization of intangible assets | 287 | 287 | 860 | 861 |
Long-lived assets impairment | 0 | 0 | 2,195 | 0 |
Goodwill impairment | 0 | 16,613 | 0 | 16,613 |
Total operating expenses | 10,234 | 27,724 | 33,666 | 50,789 |
Loss from operations | (8,762) | (22,954) | (24,705) | (35,423) |
Other (expenses) income, net | ||||
Interest (expense) income, net | (791) | 70 | (1,006) | 85 |
Loss on extinguishment of debt | (824) | 0 | (824) | 0 |
Other income, net | 233 | 36 | 417 | 36 |
Total other (expenses) income, net | (1,382) | 106 | (1,413) | 121 |
Loss before income taxes | (10,144) | (22,848) | (26,118) | (35,302) |
Provision for (benefit from) income taxes | 9 | (374) | 6 | (1,128) |
Net loss | $ (10,153) | $ (22,474) | $ (26,124) | $ (34,174) |
Earnings Per Share - Basic | $ (0.34) | $ (0.8) | $ (0.91) | $ (1.22) |
Earnings Per Share - Diluted | $ (0.34) | $ (0.8) | $ (0.91) | $ (1.22) |
Weighted Average Number of Shares Outstanding - Basic | 29,956,930 | 28,090,267 | 28,810,068 | 28,059,897 |
Weighted Average Number of Shares Outstanding - Diluted | 29,956,930 | 28,090,267 | 28,810,068 | 28,059,897 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 32,079 | $ 42,236 |
Accounts receivable, net of allowance for doubtful accounts of $43 thousand and $22 thousand | 5,160 | 4,261 |
Inventories, net | 11,468 | 12,247 |
Income taxes receivable | 0 | 22 |
Prepaid expenses and other current assets | 2,371 | 2,374 |
Total current assets | 51,078 | 61,140 |
Property, plant and equipment, net | 51,579 | 51,577 |
Operating right-of-use lease assets | 17,080 | 19,736 |
Intangible assets, net | 16,696 | 17,556 |
Other non-current assets | 1,952 | 2,252 |
Total assets | 138,385 | 152,261 |
Current liabilities: | ||
Accounts payable | 1,422 | 2,449 |
Accrued liabilities | 5,147 | 6,203 |
Current portion of operating lease liabilities | 1,770 | 2,223 |
Total current liabilities | 8,339 | 10,875 |
Deferred tax liabilities | 1,228 | 1,223 |
Other accrued liabilities | 125 | 191 |
Long-term debt, net | 13,168 | 21,976 |
Long-term operating lease liabilities | 15,873 | 18,111 |
Total liabilities | 38,733 | 52,376 |
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2023 and December 31, 2022, respectively, zero shares issued and outstanding at September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.00001 par value, 490,000,000 shares authorized at September 30, 2023 and December 31, 2022, 40,727,780 and 28,179,423 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 180,782 | 154,891 |
Accumulated deficit | (81,130) | (55,006) |
Total stockholders’ equity | 99,652 | 99,885 |
Total liabilities and stockholders' equity | $ 138,385 | $ 152,261 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 43 | $ 22 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
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 | 490,000,000 |
Common stock, shares issued | 40,727,780 | 28,179,423 |
Common stock, shares outstanding | 40,727,780 | 28,179,423 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2021 | $ 143,203 | $ 150,741 | $ (7,538) | |
Beginning Balance (in shares) at Dec. 31, 2021 | 28,012,017 | |||
Stock-based compensation | 2,689 | 2,689 | ||
Issuance of common stock upon exercise of stock options | 134 | 134 | ||
Issuance of common stock upon exercise of stock options, shares | 105,232 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 144 | 144 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 13,235 | |||
Net loss | (34,174) | (34,174) | ||
Ending Balance at Sep. 30, 2022 | 111,996 | 153,708 | (41,712) | |
Ending Balance (in shares) at Sep. 30, 2022 | 28,130,484 | |||
Beginning Balance at Jun. 30, 2022 | 133,467 | 152,705 | (19,238) | |
Beginning Balance (in shares) at Jun. 30, 2022 | 28,080,484 | |||
Stock-based compensation | 968 | 968 | ||
Issuance of common stock upon exercise of stock options | 35 | 35 | ||
Issuance of common stock upon exercise of stock options, shares | 50,000 | |||
Net loss | (22,474) | (22,474) | ||
Ending Balance at Sep. 30, 2022 | 111,996 | 153,708 | (41,712) | |
Ending Balance (in shares) at Sep. 30, 2022 | 28,130,484 | |||
Beginning Balance at Dec. 31, 2022 | $ 99,885 | 154,891 | (55,006) | |
Beginning Balance (in shares) at Dec. 31, 2022 | 28,179,423 | 28,179,423 | ||
Stock-based compensation | $ 3,115 | 3,115 | ||
Equity financing, net of issuance costs | 22,562 | 22,562 | ||
Equity financing, net of issuance costs, Shares | 12,386,478 | |||
Issuance of common stock upon exercise of stock options | 76 | 76 | ||
Issuance of common stock upon exercise of stock options, shares | 51,774 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 138 | 138 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 82,034 | |||
Vesting of restricted stock units | 28,071 | |||
Net loss | (26,124) | (26,124) | ||
Ending Balance at Sep. 30, 2023 | $ 99,652 | 180,782 | (81,130) | |
Ending Balance (in shares) at Sep. 30, 2023 | 40,727,780 | 40,727,780 | ||
Beginning Balance at Jun. 30, 2023 | $ 86,208 | 157,185 | (70,977) | |
Beginning Balance (in shares) at Jun. 30, 2023 | 28,341,302 | |||
Stock-based compensation | 1,035 | 1,035 | ||
Equity financing, net of issuance costs | 22,562 | 22,562 | ||
Equity financing, net of issuance costs, Shares | 12,386,478 | |||
Net loss | (10,153) | (10,153) | ||
Ending Balance at Sep. 30, 2023 | $ 99,652 | $ 180,782 | $ (81,130) | |
Ending Balance (in shares) at Sep. 30, 2023 | 40,727,780 | 40,727,780 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net loss | $ (26,124) | $ (34,174) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 21 | 34 |
Inventory reserve | 130 | 178 |
Depreciation and amortization | 4,049 | 2,272 |
Stock-based compensation | 3,115 | 2,689 |
Deferred taxes | 5 | (1,125) |
Amortization of debt financing costs | 415 | 159 |
Non-cash lease expense | 86 | 256 |
Loss on disposal of property, plant and equipment | 5 | 210 |
Long-lived assets impairment | 2,195 | 0 |
Goodwill impairment | 0 | 16,613 |
Loss on extinguishment of debt | 824 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (721) | (949) |
Contract assets | 0 | (667) |
Inventories | 649 | (5,107) |
Income taxes receivable | 22 | 1,068 |
Prepaid expenses and other current assets | (694) | (1,083) |
Other non-current assets | 300 | (996) |
Accounts payable | (948) | 969 |
Accrued liabilities | 815 | 343 |
Other | (66) | (61) |
Cash used in operating activities | (15,922) | (19,371) |
Investing activities: | ||
Purchase of property, plant and equipment | (7,622) | (23,419) |
Cash used in investing activities | (7,622) | (23,419) |
Financing activities: | ||
Proceeds from equity financing | 22,915 | 0 |
Repayment of long-term debt | (10,000) | 0 |
Proceeds from financed insurance premiums | 1,004 | 0 |
Repayment of financed insurance premiums | (294) | 0 |
Proceeds from long-term debt | 0 | 5,135 |
Payment of debt issuance costs | (24) | (151) |
Payment of exit fee costs | 0 | (135) |
Payment of ATM Facility costs | (395) | 0 |
Proceeds from exercise of stock options | 76 | 134 |
Proceeds from issuance of common stock under employee stock purchase plan | 138 | 144 |
Cash provided by financing activities | 13,420 | 5,127 |
Change in cash and cash equivalents, and restricted cash | (10,124) | (37,663) |
Cash and cash equivalents and restricted cash at beginning of period | 42,236 | 87,518 |
Cash and cash equivalents and restricted cash at end of period | 32,112 | 49,855 |
Supplemental cash flow disclosures: | ||
Income taxes paid | 0 | 0 |
Interest paid, net of amounts capitalized | 1,934 | 0 |
Capitalized property, plant and equipment included in accounts payable and accrued liabilities | 205 | 3,108 |
Debt issuance costs included in accrued liabilities | 23 | 0 |
Offering Costs Included In Accounts Payable And Accrued Liabilities | 353 | 0 |
Recognition of operating right-of-use lease asset | (1,137) | 20,318 |
Recognition of operating lease liabilities | $ (1,193) | $ 20,587 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Note 1. Nature of th e Business Alpha Teknova, Inc. (referred to herein as the Company or Teknova), produces critical reagents for the discovery, development, and commercialization of novel therapies, 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 warehouse in Hollister, California. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Accounting, Presentation and Use of Estimates The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The unaudited condensed financial statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2022, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. The Company’s critical and significant accounting estimates are influenced by the Company’s assessment of the economic environment. Actual results may differ from those estimates. Certain prior period amounts have been reclassified to conform to the current year’s presentation. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the related notes thereto as of and for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2023 (the 2022 Annual Report on Form 10-K). Refer to “ Notes to Financial Statements—Note 2. Summary of Significant Accounting Policies,” within the 2022 Annual Report on Form 10-K for a full list of the Company’s significant accounting policies. The information in those notes has not changed except as a result of normal adjustments in the interim periods. Teknova has determined that it operates in one reporting unit, one operating segment, and one reportable segment, as the chief operating decision maker of the Company reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Going Concern Accounting Standards Codification (ASC) 205-40, Presentation of Financial Statements—Going Concern , requires management to evaluate an entity’s ability to continue as a going concern for the twelve-month period following the date on which the financial statements are available for issuance. Management performed an assessment to determine whether there were conditions or events that, considered individually and in the aggregate, raised substantial doubt about the Company’s ability to continue as a going concern for the twelve-month period following the date on which the accompanying unaudited financial statements are being issued. This assessment indicated certain negative conditions and events, described further below, that raise substantial doubt about the Company’s ability to continue as a going concern. As of September 30, 2023, the Company had limited capital resources to fund ongoing operations. During the three and nine months ended September 30, 2023, Teknova incurred net losses of $ 10.2 million and $ 26.1 million, respectively. In addition, as of September 30, 2023, the Company had an accumulated deficit of $ 81.1 million and a total principal amount of outstanding borrowings of $ 12.1 million. As of September 30, 2023, the Company had $ 42.7 million of working capital, which included $ 32.1 million in cash and cash equivalents. The Company’s available capital resources may not be sufficient for the Company to continue to meet its obligations as they become due over the next twelve months if the Company cannot improve its operating results or increase its operating cash inflows. If these capital resources are not sufficient, the Company may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding facilities, or sell assets. However, there can be no assurance that the Company will be able to accomplish any of the foregoing or do so on favorable terms. If the Company is unable to meet its obligations when they become due over the next twelve months through its available capital resources, or obtain new sources of capital when needed, the Company may have to delay expenditures, reduce the scope of its manufacturing operations, reduce or eliminate one or more of its development programs, make significant changes to its operating plan, or cease its operations. As disclosed in Note 10. Long-term Debt, Net, the Company is subject to certain financial covenants as set forth in the Amended Credit Agreement (defined in Note 10). These financial covenants include (i) a trailing twelve months minimum net revenue covenant that must be met each calendar month, and (ii) a requirement to maintain a minimum level of cash at all times through the term of the Amended Credit Agreement. The Company was in compliance with its financial covenants as of September 30, 2023; however, the Company continues to experience unfavorable market conditions, like other companies in the industry, which have led the Company to lower its revenue projections. As a result, the Company believes it may be unable to comply with the trailing twelve months revenue covenant for the twelve-month period following the date on which the financial statements are available for issuance. Failing to comply with the monthly revenue covenant would be an event of default under the Amended Credit Agreement and the lender would have the right, but not the obligation, to accelerate the Company's obligations to pay the outstanding balance due and payable under the Term Loan (defined in Note 10). If the Company violates one or more of its covenants under the Amended Credit Agreement and is not able to obtain a waiver from or agree to an accommodation with the lender with respect to any such violation, the Company could be required to pay all or a portion of the outstanding amount under the Term Loan. In that event, the Company may need to seek other sources of capital and there can be no assurances that the Company would be able to do so on acceptable terms. The accompanying unaudited financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and the satisfaction of liabilities in the normal course of business for one year following the issuance of these unaudited financial statements. As such, the accompanying unaudited financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern. Reduction in Workforce On February 1, 2023, the Company carried out a reduction in workforce of approximately 40 positions, aimed at reducing operating expenses. The Company incurred $ 0.7 million of costs in connection with the reduction in workforce related to severance pay and other termination benefits. The costs associated with the reduction in workforce were recorded in the quarter ended March 31, 2023, in general and administrative expenses. At-the-Market Facility On March 30, 2023, the Company entered into a sales agreement (the ATM Facility) with Cowen and Company, LLC (Cowen), under which the Company may offer and sell, from time to time, shares of its common stock having aggregate gross proceeds of up to $ 50.0 million. The issuance and sale of these shares pursuant to the ATM Facility are deemed “ at the market ” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the Securities Act), and are registered under the Securities Act. The Company will pay a commission of up to 3.0 % of gross sales proceeds of any common stock sold under the ATM Facility. The aggregate market value of shares eligible for sale under the ATM Facility will be subject to the limitations of General Instruction I.B.6 of Form S-3, to the extent required under such instruction. Following the capital raise through offerings described further below, costs capitalized related to the ATM Facility of $ 0.4 million were written off during the three months ended September 30, 2023, and reflected in general and administrative expenses. Concurrent Registered Direct Offering and Private Placements On September 15, 2023, the Company entered into a securities purchase agreement (the Registered Direct Purchase Agreement) in connection with a registered direct offering (the Registered Direct Offering) with certain accredited investors and qualified institutional buyers. On September 15, 2023, the Company also entered into a securities purchase agreement (the PIPE Purchase Agreement and, together with the Registered Direct Purchase Agreement, the Purchase Agreements) and a registration rights agreement (the Registration Rights Agreement) in connection with a concurrent private placement (the PIPE Private Placement) with certain accredited investors and qualified institutional buyers. Pursuant to the Registered Direct Purchase Agreement, the Company sold 1,086,485 shares of the Company’s common stock, $ 0.00001 par value per share (the Common Stock) at an offering price of $ 1.85 per share. Pursuant to the PIPE Purchase Agreement, the Company sold 11,299,993 shares of Common Stock (the PIPE Shares), at the same offering price of $ 1.85 per share. The Company’s controlling stockholder, Telegraph Hill Partners Management Company LLC, through its affiliates Telegraph Hill Partners IV, L.P. and THP IV Affiliates Fund, LLC, the Company's President and Chief Executive Officer and a member of its board of directors, Stephen Gunstream, the Company's Chief Financial Officer, Matthew Lowell, and the Company's General Counsel and Chief Compliance Officer, Damon Terrill, and the Mackowski Family Trust, which is affiliated with J. Matthew Mackowski, a member of the Company’s board of directors, participated in the PIPE Private Placement and purchased an aggregate of 9,054,052 shares of common stock on the same terms as the other investors. The Company received aggregate gross proceeds of $ 22.915 million from the Registered Direct Offering and PIPE Private Placement (collectively, the Offerings), before deducting offering expenses payable by the Company. As of September 30, 2023, $ 0.4 million of costs directly related to these Offerings were included as a reduction to additional paid-in capital on the balance sheet. The Offerings closed on September 19, 2023. Cash and Cash Equivalents The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the balance sheets (in thousands). Restricted cash represents amounts held in an escrow account related to payments made in consideration for the early termination of the lease as described below in Note 14. Related Parties. As of As of Cash and cash equivalents $ 32,079 $ 42,236 Restricted cash included in other current assets 33 — Total cash, cash equivalents, and restricted cash $ 32,112 $ 42,236 Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), which introduced a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses and applied to the Company’s accounts receivable. The adoption of this standard did not have a significant impact on the Company’s condensed financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3. Revenue Recognition Teknova recognizes revenue from the sale of manufactured products and services when the Company transfers control of promised goods or services 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 revenue, disaggregated by product category, was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Lab Essentials $ 7,274 $ 9,470 $ 22,112 $ 24,838 Clinical Solutions 597 919 5,859 7,673 Other 298 303 846 1,018 Total revenue $ 8,169 $ 10,692 $ 28,817 $ 33,529 Teknova’s revenue, disaggregated by geographic region, was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 7,827 $ 10,384 $ 27,628 $ 32,489 International 342 308 1,189 1,040 Total revenue $ 8,169 $ 10,692 $ 28,817 $ 33,529 |
Concentrations of Risk
Concentrations of Risk | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | |
Concentrations of Risk | Note 4. Concentrations of Risk Customers Customers who accounted for 10% or more of the Company’s revenues and outstanding balance of accounts receivable and contract assets are presented as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, As of As of 2023 2022 2023 2022 September 30, 2023 December 31, 2022 Distributor customer A * * * * * 15 % Distributor customer B 20 % 14 % 18 % 14 % 28 % 17 % Direct customer A * * * * 12 % * Direct customer B * 15 % * * * * Direct customer C * 13 % * * * * * Represents less than 10%. The Company’s customers that are distributors, as opposed to direct customers, represent highly diversified customer bases. Suppliers Suppliers who accounted for 10% or more of the Company’s inventory purchases and outstanding balance of accounts payable are presented as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, As of As of 2023 2022 2023 2022 September 30, 2023 December 31, 2022 Distributor supplier A 46 % 37 % 39 % 36 % 12 % 11 % Direct supplier A * * 10 % * * * Direct supplier B * 24 % * 18 % * * Direct supplier C 13 % * 10 % * * * * Represents less than 10%. The Company’ s suppliers that are distributors, as opposed to direct suppliers, represent highly diversified supplier bases. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5. Inventories, Net Inventories consist of the following (in thousands): As of As of Finished goods, net $ 8,155 $ 8,368 Work in process 58 186 Raw materials, net 3,255 3,693 Total inventories, net $ 11,468 $ 12,247 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6. Property, Plant, and Equipment, Net Property, plant, and equipment consist of the following (in thousands): As of As of Machinery and equipment $ 29,475 $ 19,433 Office furniture and equipment 899 628 Vehicles 292 229 Leasehold improvements 24,609 12,093 55,275 32,383 Less—Accumulated depreciation ( 6,711 ) ( 4,520 ) 48,564 27,863 Construction in progress 3,015 23,714 Total property, plant, and equipment, net $ 51,579 $ 51,577 For the three and nine months ended September 30, 2023, depreciation expense was $ 1.3 million and $ 3.2 million, respectively, and for the three and nine months ended September 30, 2022, depreciation expense was $ 0.4 million and $ 1.4 million, respectively. Teknova capitalizes interest on funds borrowed to finance certain of its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and depreciated over the asset’s useful life. For the three and nine months ended September 30, 2023, capitalized interest costs were not significant and $ 0.9 million, respectively, and for the three and nine months ended September 30, 2022, capitalized interest costs were $ 0.4 million and $ 1.1 million, respectively. In June 2023, the Company identified circumstances that indicated that certain of its long-lived assets may not be fully recoverable. Specifically, these circumstances included changes in the market price of the asset group, continued losses and a current expectation that, more likely than not, these long-lived assets in question will be sold or otherwise disposed of significantly before the end of their previously estimated useful life. The Company reviewed the recoverability of the carrying value of these assets and determined that their carrying value exceeded their fair value. The fair value of these assets was measured employing cost and market approaches, using Level 3 inputs under ASC 820, Fair Value Measurement . Unobservable inputs include salvage value estimates, replacement or reproduction cost estimates, as well as consideration of physical deterioration, and functional and economic obsolescence, where measurable. As a result of this fair value analysis, an impairment charge of $ 2.2 million was recorded related to these long-lived assets in the quarter ended June 30, 2023. Subsequently, management sold these assets which were no longer expected to be used in operations during the quarter ended September 30, 2023 at an amount that approximated carrying value after the impairment charges recorded. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Company leases office space, warehouse and manufacturing space, and equipment. The Company ’ s lease agreements have remaining lease terms of one year to 14 years , and some of these leases have renewal and termination options exercisable at the Company’s election. Terms and conditions to extend or terminate such leases are recognized as part of the right-of-use assets and lease liabilities where reasonably certain to be exercised. All of the Company ’ s leases are operating leases. Operating lease expense was $ 0.7 million and $ 2.2 million for the three and nine months ended September 30, 2023, respectively, and operating lease expense was $ 0.8 million and $ 2.5 million for the three and nine months ended September 30, 2022, respectively. Cash paid for amounts included in the measurement of the lease liabilities was $ 0.6 million and $ 2.1 million for the three and nine months ended September 30, 2023, respectively, and cash paid for amounts included in the measurement of the lease liabilities was $ 0.7 million and $ 2.1 million for the three and nine months ended September 30, 2022, respectively. The weighted-average discount rate was 5.0 % and the weighted-average remaining lease term was 9.0 years as of September 30, 2023. Maturities of operating lease liabilities at September 30, 2023 were as follows (in thousands): Amount Remainder of 2023 $ 647 2024 2,601 2025 2,354 2026 2,413 2027 2,416 Thereafter 11,917 Total lease payments 22,348 Less: imputed interest ( 4,705 ) Present value of lease liabilities $ 17,643 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 8. Intangible Assets, Net The following is a summary of intangible assets with definite and indefinite lives (in thousands): Balance at September 30, 2023 Balance at December 31, 2022 Gross Accumulated Net Gross Accumulated Net Definite Lived: Customer relationships $ 9,180 $ 5,403 $ 3,777 $ 9,180 $ 4,543 $ 4,637 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets $ 22,099 $ 5,403 $ 16,696 $ 22,099 $ 4,543 $ 17,556 For each of the three months ended September 30, 2023 and 2022, amortization expense was $ 0.3 million and for each of the nine months ended September 30, 2023 and 2022, amortization expense was $ 0.9 million. As of September 30, 2023, the remaining weighted-average useful life of definite lived intangible assets was 3.3 years. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Amount Remainder of 2023 $ 288 2024 1,148 2025 1,148 2026 1,148 2027 45 Estimated future amortization expense of definite-lived intangible assets $ 3,777 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Note 9. Accrued Liabilities Accrued liabilities were comprised of the following (in thousands): As of As of Payroll-related $ 3,068 $ 2,796 Property, plant, and equipment 110 1,966 Deferred revenue 24 198 Insurance premiums and accrued interest 709 — Other 1,236 1,243 Total current accrued liabilities $ 5,147 $ 6,203 On July 13, 2023, the Company entered into a financing agreement with First Insurance Funding for the financing of the Company's Directors and Officers (D&O) liability insurance and related policies. Under the terms of the financing agreement, the Company agreed to pay a total of $ 1.2 million in premiums, taxes and fees, plus interest at an annual percentage rate of 7.74 % in ten monthly installment payments commencing on July 25, 2023. During the three months ended September 30, 2023, the Company paid a down payment on the policy of $ 0.2 million to the insurer and three monthly installments for an aggregate of $ 0.3 million to First Insurance Funding. As of September 30, 2023, the Company owed $ 0.7 million for insurance premiums and accrued interest. |
Long-Term Debt, Net
Long-Term Debt, Net | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | Note 10. Long-term Debt, Net On May 10, 2022, the Company entered into the Amended and Restated Credit and Security Agreement (Term Loan) as borrower, with MidCap Financial Trust (MidCap), as agent and lender, and the additional lenders from time to time party thereto (the Term Loan Credit Agreement) and the Amended and Restated Credit and Security Agreement (Revolving Loan) as borrower, with MidCap as agent and lender, and the additional lenders from time to time party thereto (the Revolving Loan Credit Agreement, together with the Term Loan Credit Agreement, the Credit Agreement). The Credit Agreement provided for a $ 57.135 million credit facility (the Credit Facility) consisting of a $ 52.135 million senior secured term loan (the Term Loan) and a $ 5.0 million working capital facility (the Revolver). The Term Loan consisted of the $ 12.0 million balance made available in 2021 under the previous credit facility and an additional $ 40.135 million, staged such that $ 5.135 million was funded upon closing of the Credit Agreement, an additional $ 5.0 million was funded on October 31, 2022, $ 10.0 million was to be available in the first half of 2023, $ 10.0 million was to be available in the second half of 2023 and $ 10.0 million was to be available in the first half of 2024, with the borrowing in the second half of 2023 and in the first half of 2024 being contingent upon achieving trailing twelve months of Clinical Solutions revenue of $ 15.0 million and $ 19.0 million, respectively, and liquidity requirements (as defined in the Credit Agreement) of $ 10.0 million and $ 15.0 million, respectively. The maximum loan amount under the Revolver was $ 5.0 million, and the Company was permitted to request the lenders to increase such amount up to $ 15.0 million. Borrowings on the Revolver were limited in accordance with a borrowing base calculation. The interest on the Term Loan was based on the annual rate of one-month London Inter-Bank Offered Rate (LIBOR) plus 6.45 %, subject to a LIBOR floor of 1.00 %. If any advance under the Term Loan was prepaid at any time, the prepayment fee was based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment was made after the closing date of the Term Loan. Interest on the outstanding balance of the Revolver was payable monthly in arrears at an annual rate of one-month LIBOR plus 3.75 %, subject to a LIBOR floor of 1.00 %. The maturity date of the Credit Facility is May 1, 2027 . On the date of termination of the Term Loan or the date on which the obligations under the Term Loan become due and payable in full, the Company would pay an exit fee in an amount equal to 5.00 % of the total aggregate principal amount of term loans made pursuant to the Term Loan as of such date. The Credit Agreement contained a financial covenant based upon a trailing twelve months of net revenue, including a requirement of $ 42.5 million in the twelve months ending December 31, 2022. On November 8, 2022, the Company entered into Amendment No. 1 to the Credit Agreement (Amendment No. 1) which (i) replaced the LIBOR-based interest rate with a rate equal to the forward-looking one-month term Secured Overnight Financing Rate adjusted upward by 0.10 % (or Term SOFR, as defined in Amendment No. 1) plus an applicable margin ( 6.45 % for the Term Loan and 3.75 % for the Revolver), with a Term SOFR floor of 1.00 %, and with such interest rate calculation change taking effect on December 1, 2022, (ii) increased the applicable prepayment fee percentage amounts by one percentage point, (iii) gave the lenders discretion regarding the $ 10.0 million in borrowing that was previously guaranteed to be available under the Term Loan in the first half of 2023, and (iv) reduced the requirements for trailing twelve months of net revenue for all future periods. Concurrent with Amendment No. 1, the exit fee due on the date of termination of the Term Loan, or the date on which the obligations under the Term Loan become due and payable in full, increased from 5.00 % to 7.00 % of the total aggregate principal amount of term loans made pursuant to the Term Loan as of such date. On March 28, 2023, the Company entered into Amendment No. 2 to the Credit Agreement (Amendment No. 2) which (i) increased the applicable margin from 6.45 % to 7.00 % for the Term Loan and from 3.75 % to 4.00 % for the Revolver, and increased the Term SOFR floor from 1.00 % to 4.50 % on both the Term Loan and Revolver, (ii) gave the lenders discretion regarding the $ 10.0 million in borrowings in the second half of 2023 and the $ 10.0 million in borrowings in the first half of 2024 by removing the trailing twelve-month Clinical Solutions revenue requirement that was previously required under the Term Loan, (iii) removed the increase in the minimum cash covenant from $ 10.0 million to $ 15.0 million on the $ 10.0 million in borrowings in the first half of 2024, and added the $ 10.0 million minimum cash covenant requirement throughout the remaining term of the Amended Credit Agreement , and (iv) reduced the requirements for trailing twelve months of net revenue for all future periods—for example, for the twelve months ending December 31, 2023, the minimum net revenue requirement was reduced from $ 45.0 million to $ 42.0 million. Concurrent with Amendment No. 2, the exit fee due on the date of termination of the Term Loan, or the date on which the obligations under the Term Loan become due and payable in full, increased from 7.00 % percent to 8.50 % of the total aggregate principal amount of term loans made pursuant to the Term Loan as of such date. On July 13, 2023, the Company entered into Amendment No. 3 to the Credit Agreement (Amendment No. 3), which amended the definition of Permitted Debt in the Amended Credit Agreement from $ 250,000 to $ 1,100,000 to allow for the financing of the Company's D&O liability insurance and related policies as described further above. On September 19, 2023, the Company entered into Amendment No. 4 to the Credit Agreement (Amendment No. 4 , or as amended, the Amended Credit Agreement) . As previously disclosed in our Form 10-Q for the period ended June 30, 2023, the Company determined that it was not in compliance with the trailing twelve months minimum net revenue covenant contained in the Credit Agreement as of July 31, 2023. Amendment No. 4 includes a waiver from MidCap of the revenue covenant violation for the period ending July 31, 2023. As a condition to the effectiveness of Amendment No. 4, the Company prepaid the principal amount of the Term Loan in an amount equal to $ 10.0 million (the Term Loan Prepayment). The Company recognized a loss on the extinguishment of debt in the amount of $ 0.8 million related to the Term Loan Prepayment in the Statements of Operations for the three and nine months ended September 30, 2023. Amendment No. 4 reduced the minimum net revenue requirements for future periods up to and including for the twelve months ending December 31, 2025—for example, the Company’s minimum net revenue requirement was reduced (i) for the twelve months ending December 31, 2023, from $ 42.0 million to $ 36.5 million, (ii) for the twelve months ending December 31, 2024, from $ 49.0 million to $ 42.0 million, and (iii) for the twelve months ending December 31, 2025, from $ 58.8 million to $ 50.0 million. Amendment No. 4 also removed those requirements for the periods ending January 31, 2026 through March 31, 2027, instead requiring that for each applicable twelve-month period ending after December 31, 2025, the Company’s minimum net revenue requirement will be determined by MidCap in its reasonable discretion in consultation with the Company’s senior management and based on financial statements and projections delivered to MidCap in accordance with the financial reporting requirements in the Amended Credit Agreement, so long as the minimum net revenue requirements for those periods shall not be less than the greater of (x) the applicable minimum net revenue requirement for the twelve-month period ending on the last day of the immediately preceding month and (y) $50.0 million. In addition, the minimum cash covenant requirement was reduced from $ 10.0 million to $ 9.0 million. Concurrent with Amendment No. 4, the exit fee due on the date of termination of the Term Loan, or the date on which the obligations under the Term Loan become due and payable in full, increased from 8.5 % to 9.0 % of the total aggregate principal amount of term loans made pursuant to the Term Loan (including amendments thereto) as of such date. The Company did not pay a prepayment fee in connection with the Term Loan Prepayment. Finally, Amendment No. 4 conditions the next borrowing under the Revolving Loan on the Company achieving net revenue for the preceding twelve-month period of at least $ 45.0 million. Except as described above, the Amended Credit Agreement is unmodified in all other material respects. Debt, net consisted of the following (in thousands): As of As of Debt $ 12,135 $ 22,135 Cumulative accretion of exit fee 1,192 161 Unamortized debt discount and debt issuance costs ( 159 ) ( 320 ) Debt, net $ 13,168 $ 21,976 At September 30, 2023, the scheduled maturities of the Company's debt obligations were as follows (in thousands): Amount Remainder of 2023 $ — 2024 — 2025 3,539 2026 6,068 2027 2,528 Total $ 12,135 As of September 30, 2023, the fair value of the Company ’ s debt approximated its carrying value. The fair value of the Company ’ s debt was based on observable market inputs (Level 2). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 11. Stock-Based Compensation Equity Incentive Plans The Company maintains a stock incentive plan, that permits the granting of incentive stock options or nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other stock-based awards. The equity-based awards for employees will vest over a four-year period, pursuant to two different vesting schedules. For initial equity-based awards granted to employees, the first vest is generally a one-year cliff vest, followed by monthly vesting for the final three years. Thereafter, annual equity-based awards granted to employees typically vest monthly over the four-year vest term. The initial equity-based awards granted to the Company’s non-employee, independent directors upon appointment to the board of directors will vest over a three-year period, with the first vest being a one-year cliff, followed by monthly vesting over the remaining two years. Thereafter, annual equity-based awards granted to the Company’s non-employee, independent directors will cliff vest after one year from the date of grant. Stock Options The following table summarizes the stock option activity for the nine months ended September 30, 2023 (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2023 3,846,532 $ 7.02 8.31 $ 9,083 Granted 604,835 $ 5.05 Exercised ( 51,774 ) $ 1.47 Forfeited ( 263,348 ) $ 10.24 Expired ( 42,807 ) $ 15.33 Outstanding at September 30, 2023 4,093,438 $ 6.51 7.71 $ 3,477 Exercisable at September 30, 2023 2,008,038 $ 5.66 7.27 $ 2,309 Vested and expected to vest at September 30, 2023 3,808,756 $ 6.96 7.89 $ 2,811 The weighted average assumptions used in the Black-Scholes pricing model for stock options granted during the three and nine months ended September 30, 2023, were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Estimated dividend yield - % - % - % - % Weighted-average expected stock price volatility 35.43 % 34.27 % 35.08 % 33.22 % Weighted-average risk-free interest rate 4.54 % 3.49 % 4.15 % 2.19 % Expected average term of options (in years) 3.00 6.25 5.95 6.25 Weighted-average fair value of common stock $ 1.95 $ 4.84 $ 5.05 $ 14.27 Weighted-average fair value per option $ 0.57 $ 1.95 $ 2.12 $ 5.23 Restricted Stock The following table summarizes the restricted stock unit activity for the nine months ended September 30, 2023 (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2023 28,071 $ 7.43 0.42 $ 158 Granted 174,595 $ 4.93 Vested ( 28,071 ) $ 7.43 Forfeited ( 18,815 ) $ 3.93 Outstanding at September 30, 2023 155,780 $ 5.05 1.61 $ 435 Vested and expected to vest at September 30, 2023 155,780 $ 5.05 1.61 $ 435 Employee Stock Purchase Plan The Company also maintains an employee stock purchase plan (ESPP) that authorizes the issuance of shares of common stock pursuant to purchase rights granted to eligible employees. 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. Offering periods are generally six months long; beginning on May 15, 2023, offering periods begin on June 1 and December 1 of each year. The Company issued zero and 82,034 shares of common stock under the ESPP during the three and nine months ended September 30, 2023, respectively. The Company issued zero and 13,235 shares of common stock under the ESPP during the three and nine months ended September 30, 2022. Stock-Based Compensation Expense Stock-based compensation expense included in the accompanying condensed financial statements was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 36 $ 45 $ 112 $ 108 Research and development 43 40 120 153 Sales and marketing 168 126 492 351 General and administrative 788 757 2,391 2,077 Total stock-based compensation expense $ 1,035 $ 968 $ 3,115 $ 2,689 Stock-based compensation expense related to stock options was $ 0.9 million and $ 2.8 million for the three and nine months ended September 30, 2023, respectively, and $ 0.9 million and $ 2.5 million for the three and nine months ended September 30, 2022, respectively . Unrecognized compensation expense related to stock options was $ 7.4 million at September 30, 2023, which is expected to be recognized as expense over the weighted-average period of 2.91 years. Stock-based compensation expense related to restricted stock units was $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2023, respectively, and was not significant for each of the three and nine months ended September 30, 2022, respectively. Unrecognized compensation expense related to restricted stock units was $ 0.6 million at September 30, 2023, which is expected to be recognized as expense over the weighted-average period of 2.75 years. Stock- based compensation expense related to the ESPP was not significant and $ 0.1 million for the three and nine months ended September 30, 2023, respectively, and was not significant for either the three or nine months ended September 30, 2022 . Total compensation cost related to the ESPP not yet recognized was not significant at September 30, 2023. As of September 30, 2023, $ 0.1 million has been withheld on behalf of employees for future purchases under the ESPP. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes For the three months ended September 30, 2023, the Company's provision for income taxes was not significant, compared to the three months ended September 30, 2022, when the Company recorded a $ 0.4 million income tax benefit. The effective tax rates for the three months ended September 30, 2023 and 2022 were ( 0.1 %) and 1.6 %, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce a benefit . For the nine months ended September 30, 2023, the Company's provision for income taxes was not significant, compared to the nine months ended September 30, 2022, when the Company recorded a $ 1.1 million income tax benefit. The effective tax rates for the nine months ended September 30, 2023 and 2022 were 0.0 % and 3.2 %, respectively. The effective tax rates differ from the federal statutory rate primarily due to operating losses not expected to produce a benefit . |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 13. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, stock options, restricted stock units, and employee stock purchase rights are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for all periods presented. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Net loss $ ( 10,153 ) $ ( 22,474 ) $ ( 26,124 ) $ ( 34,174 ) Weighted average shares used in computing net loss per share—basic and diluted 29,956,930 28,090,267 28,810,068 28,059,897 Net loss per share—basic and diluted $ ( 0.34 ) $ ( 0.80 ) $ ( 0.91 ) $ ( 1.22 ) Th e 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 Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Employee share-based awards to purchase common stock 4,019,909 3,311,656 4,000,857 3,133,232 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 14. Related Parties The Company has identified Meeches LLC (Meeches) as a related party through common control. Meeches is controlled by Ted Davis and Irene Davis, founders and current directors, and greater than five percent stockholders of the Company. Prior to May 16, 2023, the Company leased certain real property in Mansfield, Massachusetts, from Meeches. As of September 30, 2023 and December 31, 2022 the Company did not have any outstanding balances owed to Meeches. For the three and nine months ended September 30, 2023, the Company paid Meeches lease payments of zero and $ 0.1 million, respectively, and for the three and nine months ended September 30, 2022, the Company paid Meeches lease payments of $ 0.1 million and $ 0.2 million, respectively. On April 11, 2023, the Company and Meeches entered into an agreement to terminate the Mansfield lease, which termination occurred on May 16, 2023. Shortly thereafter, Meeches sold the property to a third party. As part of the consideration for the early termination of the Mansfield lease, the Company entered into an escrow agreement with the new owner on May 17, 2023, and placed in escrow an amount equal to five months of base rent plus related expenses assumed by Teknova under the Mansfield lease. Escrow funds have been released to the new owner on a pro-rata monthly basis. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Presentation and Use of Estimates | Basis of Accounting, Presentation and Use of Estimates The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The unaudited condensed financial statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2022, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. The Company’s critical and significant accounting estimates are influenced by the Company’s assessment of the economic environment. Actual results may differ from those estimates. Certain prior period amounts have been reclassified to conform to the current year’s presentation. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the related notes thereto as of and for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2023 (the 2022 Annual Report on Form 10-K). Refer to “ Notes to Financial Statements—Note 2. Summary of Significant Accounting Policies,” within the 2022 Annual Report on Form 10-K for a full list of the Company’s significant accounting policies. The information in those notes has not changed except as a result of normal adjustments in the interim periods. Teknova has determined that it operates in one reporting unit, one operating segment, and one reportable segment, as the chief operating decision maker of the Company reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. |
Going Concern | Going Concern Accounting Standards Codification (ASC) 205-40, Presentation of Financial Statements—Going Concern , requires management to evaluate an entity’s ability to continue as a going concern for the twelve-month period following the date on which the financial statements are available for issuance. Management performed an assessment to determine whether there were conditions or events that, considered individually and in the aggregate, raised substantial doubt about the Company’s ability to continue as a going concern for the twelve-month period following the date on which the accompanying unaudited financial statements are being issued. This assessment indicated certain negative conditions and events, described further below, that raise substantial doubt about the Company’s ability to continue as a going concern. As of September 30, 2023, the Company had limited capital resources to fund ongoing operations. During the three and nine months ended September 30, 2023, Teknova incurred net losses of $ 10.2 million and $ 26.1 million, respectively. In addition, as of September 30, 2023, the Company had an accumulated deficit of $ 81.1 million and a total principal amount of outstanding borrowings of $ 12.1 million. As of September 30, 2023, the Company had $ 42.7 million of working capital, which included $ 32.1 million in cash and cash equivalents. The Company’s available capital resources may not be sufficient for the Company to continue to meet its obligations as they become due over the next twelve months if the Company cannot improve its operating results or increase its operating cash inflows. If these capital resources are not sufficient, the Company may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding facilities, or sell assets. However, there can be no assurance that the Company will be able to accomplish any of the foregoing or do so on favorable terms. If the Company is unable to meet its obligations when they become due over the next twelve months through its available capital resources, or obtain new sources of capital when needed, the Company may have to delay expenditures, reduce the scope of its manufacturing operations, reduce or eliminate one or more of its development programs, make significant changes to its operating plan, or cease its operations. As disclosed in Note 10. Long-term Debt, Net, the Company is subject to certain financial covenants as set forth in the Amended Credit Agreement (defined in Note 10). These financial covenants include (i) a trailing twelve months minimum net revenue covenant that must be met each calendar month, and (ii) a requirement to maintain a minimum level of cash at all times through the term of the Amended Credit Agreement. The Company was in compliance with its financial covenants as of September 30, 2023; however, the Company continues to experience unfavorable market conditions, like other companies in the industry, which have led the Company to lower its revenue projections. As a result, the Company believes it may be unable to comply with the trailing twelve months revenue covenant for the twelve-month period following the date on which the financial statements are available for issuance. Failing to comply with the monthly revenue covenant would be an event of default under the Amended Credit Agreement and the lender would have the right, but not the obligation, to accelerate the Company's obligations to pay the outstanding balance due and payable under the Term Loan (defined in Note 10). If the Company violates one or more of its covenants under the Amended Credit Agreement and is not able to obtain a waiver from or agree to an accommodation with the lender with respect to any such violation, the Company could be required to pay all or a portion of the outstanding amount under the Term Loan. In that event, the Company may need to seek other sources of capital and there can be no assurances that the Company would be able to do so on acceptable terms. The accompanying unaudited financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and the satisfaction of liabilities in the normal course of business for one year following the issuance of these unaudited financial statements. As such, the accompanying unaudited financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern. |
Reduction in Workforce | Reduction in Workforce On February 1, 2023, the Company carried out a reduction in workforce of approximately 40 positions, aimed at reducing operating expenses. The Company incurred $ 0.7 million of costs in connection with the reduction in workforce related to severance pay and other termination benefits. The costs associated with the reduction in workforce were recorded in the quarter ended March 31, 2023, in general and administrative expenses. |
At-the-Market Facility | At-the-Market Facility On March 30, 2023, the Company entered into a sales agreement (the ATM Facility) with Cowen and Company, LLC (Cowen), under which the Company may offer and sell, from time to time, shares of its common stock having aggregate gross proceeds of up to $ 50.0 million. The issuance and sale of these shares pursuant to the ATM Facility are deemed “ at the market ” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the Securities Act), and are registered under the Securities Act. The Company will pay a commission of up to 3.0 % of gross sales proceeds of any common stock sold under the ATM Facility. The aggregate market value of shares eligible for sale under the ATM Facility will be subject to the limitations of General Instruction I.B.6 of Form S-3, to the extent required under such instruction. Following the capital raise through offerings described further below, costs capitalized related to the ATM Facility of $ 0.4 million were written off during the three months ended September 30, 2023, and reflected in general and administrative expenses. |
Concurrent Registered Direct Offering and Private Placements | Concurrent Registered Direct Offering and Private Placements On September 15, 2023, the Company entered into a securities purchase agreement (the Registered Direct Purchase Agreement) in connection with a registered direct offering (the Registered Direct Offering) with certain accredited investors and qualified institutional buyers. On September 15, 2023, the Company also entered into a securities purchase agreement (the PIPE Purchase Agreement and, together with the Registered Direct Purchase Agreement, the Purchase Agreements) and a registration rights agreement (the Registration Rights Agreement) in connection with a concurrent private placement (the PIPE Private Placement) with certain accredited investors and qualified institutional buyers. Pursuant to the Registered Direct Purchase Agreement, the Company sold 1,086,485 shares of the Company’s common stock, $ 0.00001 par value per share (the Common Stock) at an offering price of $ 1.85 per share. Pursuant to the PIPE Purchase Agreement, the Company sold 11,299,993 shares of Common Stock (the PIPE Shares), at the same offering price of $ 1.85 per share. The Company’s controlling stockholder, Telegraph Hill Partners Management Company LLC, through its affiliates Telegraph Hill Partners IV, L.P. and THP IV Affiliates Fund, LLC, the Company's President and Chief Executive Officer and a member of its board of directors, Stephen Gunstream, the Company's Chief Financial Officer, Matthew Lowell, and the Company's General Counsel and Chief Compliance Officer, Damon Terrill, and the Mackowski Family Trust, which is affiliated with J. Matthew Mackowski, a member of the Company’s board of directors, participated in the PIPE Private Placement and purchased an aggregate of 9,054,052 shares of common stock on the same terms as the other investors. The Company received aggregate gross proceeds of $ 22.915 million from the Registered Direct Offering and PIPE Private Placement (collectively, the Offerings), before deducting offering expenses payable by the Company. As of September 30, 2023, $ 0.4 million of costs directly related to these Offerings were included as a reduction to additional paid-in capital on the balance sheet. The Offerings closed on September 19, 2023. |
Cash and Cash Equivalents | Cash and Cash Equivalents The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the balance sheets (in thousands). Restricted cash represents amounts held in an escrow account related to payments made in consideration for the early termination of the lease as described below in Note 14. Related Parties. As of As of Cash and cash equivalents $ 32,079 $ 42,236 Restricted cash included in other current assets 33 — Total cash, cash equivalents, and restricted cash $ 32,112 $ 42,236 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), which introduced a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses and applied to the Company’s accounts receivable. The adoption of this standard did not have a significant impact on the Company’s condensed financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of cash, cash equivalents and restricted cash | The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the balance sheets (in thousands). Restricted cash represents amounts held in an escrow account related to payments made in consideration for the early termination of the lease as described below in Note 14. Related Parties. As of As of Cash and cash equivalents $ 32,079 $ 42,236 Restricted cash included in other current assets 33 — Total cash, cash equivalents, and restricted cash $ 32,112 $ 42,236 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Teknova’s revenue, disaggregated by product category, was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Lab Essentials $ 7,274 $ 9,470 $ 22,112 $ 24,838 Clinical Solutions 597 919 5,859 7,673 Other 298 303 846 1,018 Total revenue $ 8,169 $ 10,692 $ 28,817 $ 33,529 Teknova’s revenue, disaggregated by geographic region, was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 7,827 $ 10,384 $ 27,628 $ 32,489 International 342 308 1,189 1,040 Total revenue $ 8,169 $ 10,692 $ 28,817 $ 33,529 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | |
Summary Of Company Revenues And Outstanding Balance Of Accounts Receivable | Customers who accounted for 10% or more of the Company’s revenues and outstanding balance of accounts receivable and contract assets are presented as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, As of As of 2023 2022 2023 2022 September 30, 2023 December 31, 2022 Distributor customer A * * * * * 15 % Distributor customer B 20 % 14 % 18 % 14 % 28 % 17 % Direct customer A * * * * 12 % * Direct customer B * 15 % * * * * Direct customer C * 13 % * * * * * Represents less than 10%. |
Summary Of Company Inventory Purchases And Outstanding Balance Of Accounts Payable | Suppliers who accounted for 10% or more of the Company’s inventory purchases and outstanding balance of accounts payable are presented as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, As of As of 2023 2022 2023 2022 September 30, 2023 December 31, 2022 Distributor supplier A 46 % 37 % 39 % 36 % 12 % 11 % Direct supplier A * * 10 % * * * Direct supplier B * 24 % * 18 % * * Direct supplier C 13 % * 10 % * * * * Represents less than 10%. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventories consist of the following (in thousands): As of As of Finished goods, net $ 8,155 $ 8,368 Work in process 58 186 Raw materials, net 3,255 3,693 Total inventories, net $ 11,468 $ 12,247 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property, Plant and Equipment, Net | Property, plant, and equipment consist of the following (in thousands): As of As of Machinery and equipment $ 29,475 $ 19,433 Office furniture and equipment 899 628 Vehicles 292 229 Leasehold improvements 24,609 12,093 55,275 32,383 Less—Accumulated depreciation ( 6,711 ) ( 4,520 ) 48,564 27,863 Construction in progress 3,015 23,714 Total property, plant, and equipment, net $ 51,579 $ 51,577 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule Of Maturities Of Operating Lease Liabilities | Maturities of operating lease liabilities at September 30, 2023 were as follows (in thousands): Amount Remainder of 2023 $ 647 2024 2,601 2025 2,354 2026 2,413 2027 2,416 Thereafter 11,917 Total lease payments 22,348 Less: imputed interest ( 4,705 ) Present value of lease liabilities $ 17,643 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets with Definite and Indefinite Lives | The following is a summary of intangible assets with definite and indefinite lives (in thousands): Balance at September 30, 2023 Balance at December 31, 2022 Gross Accumulated Net Gross Accumulated Net Definite Lived: Customer relationships $ 9,180 $ 5,403 $ 3,777 $ 9,180 $ 4,543 $ 4,637 Indefinite Lived: Tradename 12,919 — 12,919 12,919 — 12,919 Total intangible assets $ 22,099 $ 5,403 $ 16,696 $ 22,099 $ 4,543 $ 17,556 |
Schedule of Future Amortization Expense | As of September 30, 2023, the remaining weighted-average useful life of definite lived intangible assets was 3.3 years. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Amount Remainder of 2023 $ 288 2024 1,148 2025 1,148 2026 1,148 2027 45 Estimated future amortization expense of definite-lived intangible assets $ 3,777 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities were comprised of the following (in thousands): As of As of Payroll-related $ 3,068 $ 2,796 Property, plant, and equipment 110 1,966 Deferred revenue 24 198 Insurance premiums and accrued interest 709 — Other 1,236 1,243 Total current accrued liabilities $ 5,147 $ 6,203 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Components of Carrying Value of Long-Term Debt | Debt, net consisted of the following (in thousands): As of As of Debt $ 12,135 $ 22,135 Cumulative accretion of exit fee 1,192 161 Unamortized debt discount and debt issuance costs ( 159 ) ( 320 ) Debt, net $ 13,168 $ 21,976 |
Schedule of Maturities of Term Loan | At September 30, 2023, the scheduled maturities of the Company's debt obligations were as follows (in thousands): Amount Remainder of 2023 $ — 2024 — 2025 3,539 2026 6,068 2027 2,528 Total $ 12,135 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Options Activity | The following table summarizes the stock option activity for the nine months ended September 30, 2023 (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2023 3,846,532 $ 7.02 8.31 $ 9,083 Granted 604,835 $ 5.05 Exercised ( 51,774 ) $ 1.47 Forfeited ( 263,348 ) $ 10.24 Expired ( 42,807 ) $ 15.33 Outstanding at September 30, 2023 4,093,438 $ 6.51 7.71 $ 3,477 Exercisable at September 30, 2023 2,008,038 $ 5.66 7.27 $ 2,309 Vested and expected to vest at September 30, 2023 3,808,756 $ 6.96 7.89 $ 2,811 |
Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model | The weighted average assumptions used in the Black-Scholes pricing model for stock options granted during the three and nine months ended September 30, 2023, were as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Estimated dividend yield - % - % - % - % Weighted-average expected stock price volatility 35.43 % 34.27 % 35.08 % 33.22 % Weighted-average risk-free interest rate 4.54 % 3.49 % 4.15 % 2.19 % Expected average term of options (in years) 3.00 6.25 5.95 6.25 Weighted-average fair value of common stock $ 1.95 $ 4.84 $ 5.05 $ 14.27 Weighted-average fair value per option $ 0.57 $ 1.95 $ 2.12 $ 5.23 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the nine months ended September 30, 2023 (in thousands, except share and per share data): Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2023 28,071 $ 7.43 0.42 $ 158 Granted 174,595 $ 4.93 Vested ( 28,071 ) $ 7.43 Forfeited ( 18,815 ) $ 3.93 Outstanding at September 30, 2023 155,780 $ 5.05 1.61 $ 435 Vested and expected to vest at September 30, 2023 155,780 $ 5.05 1.61 $ 435 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense included in the accompanying condensed financial statements was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 36 $ 45 $ 112 $ 108 Research and development 43 40 120 153 Sales and marketing 168 126 492 351 General and administrative 788 757 2,391 2,077 Total stock-based compensation expense $ 1,035 $ 968 $ 3,115 $ 2,689 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic And Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Net loss $ ( 10,153 ) $ ( 22,474 ) $ ( 26,124 ) $ ( 34,174 ) Weighted average shares used in computing net loss per share—basic and diluted 29,956,930 28,090,267 28,810,068 28,059,897 Net loss per share—basic and diluted $ ( 0.34 ) $ ( 0.80 ) $ ( 0.91 ) $ ( 1.22 ) |
Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share | Th e 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 Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Employee share-based awards to purchase common stock 4,019,909 3,311,656 4,000,857 3,133,232 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 15, 2023 USD ($) $ / shares shares | Mar. 30, 2023 USD ($) | Feb. 01, 2023 USD ($) Positions | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||
Net loss | $ (10,153) | $ (22,474) | $ (26,124) | $ (34,174) | ||||
Accumulated deficit | (81,130) | (81,130) | $ (55,006) | |||||
Principal amount of outstanding borrowings | 12,100 | 12,100 | ||||||
Working capital | 42,700 | 42,700 | ||||||
Cash and cash equivalents | $ 32,079 | $ 32,079 | $ 42,236 | |||||
Reduction in Workforce Of Positions | Positions | 40 | |||||||
Severance And Other Related Termination Benefits | $ 700 | |||||||
Common Stock, Shares, Issued | shares | 40,727,780 | 40,727,780 | 28,179,423 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Total proceeds from registered direct offering and PIPE private placement offering | $ 22,915 | $ 22,915 | $ 0 | |||||
Offering Expenses | 400 | |||||||
Registered Direct Purchase Agreement [Member] | ||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||
Common stock, new shares issued | shares | 1,086,485 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 1.85 | |||||||
PIPE Purchase Agreement [Member] | ||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||
Common stock, new shares issued | shares | 11,299,993 | |||||||
Shares issued to related parties | shares | 9,054,052 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 1.85 | |||||||
At-the-Market Facility [Member] | ||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||
Maximum Value Of Stock To Be Issued Under ATM Facility | $ 50,000 | |||||||
Percentage Of Commission To Be Paid On Gross Sales Proceeds Of ATM Facility | 3% | |||||||
Costs Capitalized Related to the ATM Facility | $ 400 | $ 400 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 32,079 | $ 42,236 | ||
Restricted cash included in other current assets | 33 | 0 | ||
Total cash, cash equivalents, and restricted cash | $ 32,112 | $ 42,236 | $ 49,855 | $ 87,518 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 8,169 | $ 10,692 | $ 28,817 | $ 33,529 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 7,827 | 10,384 | 27,628 | 32,489 |
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 342 | 308 | 1,189 | 1,040 |
Lab Essentials [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 7,274 | 9,470 | 22,112 | 24,838 |
Clinical Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 597 | 919 | 5,859 | 7,673 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 298 | $ 303 | $ 846 | $ 1,018 |
Concentrations of Risk - Summar
Concentrations of Risk - Summary of revenues and outstanding balance of accounts receivable (Details) - Customers Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts Receivable [Member] | Distributor supplier A | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage | 15% | ||||
Accounts Receivable [Member] | Distributor customer B | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage | 28% | 28% | 17% | ||
Accounts Receivable [Member] | Direct customer A | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage | 12% | 12% | |||
Revenue Benchmark [Member] | Distributor customer B | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage1 | 20% | 14% | 18% | 14% | |
Revenue Benchmark [Member] | Direct customer B [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage1 | 15% | ||||
Revenue Benchmark [Member] | Direct customer C [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage1 | 13% |
Concentrations of Risk - Summ_2
Concentrations of Risk - Summary of inventory purchases and outstanding balance of accounts payable (Details) - Customers Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Distributor supplier A | Total Accounts Payable [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk Percentage | 12% | 12% | 11% | ||
Distributor supplier A | Inventory Purchases [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | 46% | 37% | 39% | 36% | |
Direct supplier A | Inventory Purchases [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | 10% | ||||
Direct supplier B | Inventory Purchases [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | 24% | 18% | |||
Direct supplier C | Inventory Purchases [Member] | |||||
Product Information [Line Items] | |||||
Concentration Risk, Percentage | 13% | 10% |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods, net | $ 8,155 | $ 8,368 |
Work in process | 58 | 186 |
Raw materials, net | 3,255 | 3,693 |
Total inventories, net | $ 11,468 | $ 12,247 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 55,275 | $ 32,383 |
Less—Accumulated depreciation | (6,711) | (4,520) |
Property, plant and equipment, after depreciation | 48,564 | 27,863 |
Construction in progress | 3,015 | 23,714 |
Total property, plant and equipment, net | 51,579 | 51,577 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 29,475 | 19,433 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 899 | 628 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 292 | 229 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 24,609 | $ 12,093 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 1,300 | $ 400 | $ 3,200 | $ 1,400 | |
Capitalized interest costs | 900 | 400 | 900 | 1,100 | |
Long-lived assets impairment | $ 0 | $ 2,200 | $ 0 | $ 2,195 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease expense | $ 0.7 | $ 0.8 | $ 2.2 | $ 2.5 |
Lease liabilities cash paid | $ 0.6 | $ 0.7 | $ 2.1 | $ 2.1 |
Weighted-average discount rate | 5% | 5% | ||
Weighted-average remaining lease term | 9 years | 9 years | ||
Maximum [Member] | ||||
Remaining lease terms | 14 years | 14 years | ||
Minimum [Member] | ||||
Remaining lease terms | 1 year | 1 year |
Leases - Schedule of maturities
Leases - Schedule of maturities of operating lease liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee Disclosure [Abstract] | |
Remainder of 2023 | $ 647 |
2024 | 2,601 |
2025 | 2,354 |
2026 | 2,413 |
2027 | 2,416 |
Thereafter | 11,917 |
Total lease payments | 22,348 |
Less: imputed interest | (4,705) |
Present value of lease liabilities | $ 17,643 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 287 | $ 287 | $ 860 | $ 861 |
Acquired finite-lived intangible assets, weighted average useful life | 3 years 3 months 18 days |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets with Definite and Indefinite Lives (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 22,099 | $ 22,099 |
Intangible Assets, Accumulated Amortization | 5,403 | 4,543 |
Intangible Assets, Net, Total | 16,696 | 17,556 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 12,919 | 12,919 |
Intangible Assets, Accumulated Amortization | 0 | 0 |
Intangible Assets, Net, Total | 12,919 | 12,919 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 9,180 | 9,180 |
Intangible Assets, Accumulated Amortization | 5,403 | 4,543 |
Intangible Assets, Net, Total | $ 3,777 | $ 4,637 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2023 | $ 288 |
2024 | 1,148 |
2025 | 1,148 |
2026 | 1,148 |
2027 | 45 |
Estimated future amortization expense of definite-lived intangible assets | $ 3,777 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Payroll-related | $ 3,068 | $ 2,796 |
Property, plant and equipment | 110 | 1,966 |
Deferred revenue | 24 | 198 |
Insurance Premiums And Accrued Interest | 709 | 0 |
Other | 1,236 | 1,243 |
Total current accrued liabilities | $ 5,147 | $ 6,203 |
Accrued Liabilities (Additional
Accrued Liabilities (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 25, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |||
Insurance Premiums Paid | $ 1,200 | ||
Annual Interest Rate | 7.74% | ||
Down Payment on Policy | $ 200 | ||
Monthly Installments | 300 | ||
Insurance Premiums and Accrued Interest | $ 709 | $ 0 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 18, 2023 | Mar. 28, 2023 | Nov. 08, 2022 | May 10, 2022 | Nov. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jul. 13, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | Mar. 26, 2021 | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 5,000,000 | |||||||||||||||||||
Line of credit working capital | $ 5,000,000 | |||||||||||||||||||
Maximum amount borrowed at the end of month | 5,135,000 | |||||||||||||||||||
Unused Borrowing Capacity Amount | $ 40,135,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 5,000,000 | |||||||||||||||
Cash Received Under the Term Loan | $ 12,000,000 | |||||||||||||||||||
Line of Credit Facility, Description | If any advance under the Term Loan was prepaid at any time, the prepayment fee was based on the amount being prepaid and an applicable percentage amount, such as 3%, 2%, or 1%, based on the date the prepayment was made after the closing date of the Term Loan. | |||||||||||||||||||
Net revenue requirement for the financial covenant | $ 42,500,000 | |||||||||||||||||||
Loss on extinguishment of debt | $ (824,000) | $ 0 | (824,000) | $ 0 | ||||||||||||||||
Debt Covenant Description | No. 4 also removed those requirements for the periods ending January 31, 2026 through March 31, 2027, instead requiring that for each applicable twelve-month period ending after December 31, 2025, the Company’s minimum net revenue requirement will be determined by MidCap in its reasonable discretion in consultation with the Company’s senior management and based on financial statements and projections delivered to MidCap in accordance with the financial reporting requirements in the Amended Credit Agreement, so long as the minimum net revenue requirements for those periods shall not be less than the greater of (x) the applicable minimum net revenue requirement for the twelve-month period ending on the last day of the immediately preceding month and (y) $50.0 | |||||||||||||||||||
Term Loan Exit Fee Rate | 5% | |||||||||||||||||||
Debt issuance cost | 24,000 | $ 151,000 | ||||||||||||||||||
Long-term Debt, Gross | 12,135,000 | 12,135,000 | $ 22,135,000 | |||||||||||||||||
Long-term debt, net | 13,168,000 | 13,168,000 | $ 21,976,000 | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Term Loan Exit Fee Rate | 9% | 7% | ||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Term Loan Exit Fee Rate | 5% | |||||||||||||||||||
Forecast [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Unused Borrowing Capacity Amount | $ 10,000,000 | |||||||||||||||||||
Contingent Revenue | 19,000,000 | 15,000,000 | ||||||||||||||||||
Liquidity, line of credit | $ 15,000,000 | $ 10,000,000 | ||||||||||||||||||
Amended Credit Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 10,000,000 | |||||||||||||||||||
Line of Credit Facility, Description | removed the increase in the minimum cash covenant from $10.0 million to $15.0 million on the $10.0 million in borrowings in the first half of 2024, and added the $10.0 million minimum cash covenant requirement throughout the remaining term of the Amended Credit Agreement | |||||||||||||||||||
Increase Borrowing Capacity | $ 15,000,000 | |||||||||||||||||||
Net revenue requirement for the financial covenant | $ 45,000,000 | |||||||||||||||||||
Term Loan Prepayment | $ 10,000,000 | |||||||||||||||||||
Loss on extinguishment of debt | $ 800,000 | $ 800,000 | ||||||||||||||||||
Line of credit | $ 10,000,000 | |||||||||||||||||||
Maturity date | May 01, 2027 | |||||||||||||||||||
Term loan exit fee percent | 8.50% | 7% | ||||||||||||||||||
Amended Credit Agreement [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 1,100,000 | |||||||||||||||||||
Cash Covenant Amount | $ 9,000,000 | |||||||||||||||||||
Amended Credit Agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 250,000 | |||||||||||||||||||
Revenue | 45,000,000 | |||||||||||||||||||
Cash Covenant Amount | $ 10,000,000 | |||||||||||||||||||
Amended Credit Agreement [Member] | Forecast [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 10,000,000 | |||||||||||||||||||
Net revenue requirement for the financial covenant | $ 42,000,000 | |||||||||||||||||||
Term loan exit fee percent | 8.50% | |||||||||||||||||||
Amended Credit Agreement [Member] | Forecast [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revenue | $ 50,000,000 | $ 42,000,000 | $ 36,500,000 | |||||||||||||||||
Amended Credit Agreement [Member] | Forecast [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revenue | $ 58,800,000 | $ 49,000,000 | $ 42,000,000 | |||||||||||||||||
Amended Credit Agreement [Member] | London Interbank Offered Rate [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.75% | |||||||||||||||||||
Amended Credit Agreement [Member] | LIBOR Floor [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||||||||||||
Amended Credit Agreement [Member] | SOFR [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Adjusted upward rate | 0.10% | |||||||||||||||||||
Term SOFR floor | 1% | |||||||||||||||||||
The Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 57,135,000 | |||||||||||||||||||
Revolver [Member] | Amended Credit Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Term SOFR floor | 4.50% | |||||||||||||||||||
Revolver [Member] | Amended Credit Agreement [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Exit Fees Percentage of Term Loan | 4% | |||||||||||||||||||
Revolver [Member] | Amended Credit Agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Exit Fees Percentage of Term Loan | 3.75% | |||||||||||||||||||
Revolver [Member] | Amended Credit Agreement [Member] | SOFR [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Applicable margin | 3.75% | |||||||||||||||||||
Clinical Solution [Member] | Amended Credit Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | 10,000,000 | |||||||||||||||||||
Cash Covenant Amount | $ 10,000,000 | |||||||||||||||||||
Clinical Solution [Member] | Amended Credit Agreement [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Cash Covenant Amount | $ 15,000,000 | |||||||||||||||||||
Clinical Solution [Member] | Amended Credit Agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Cash Covenant Amount | $ 10,000,000 | |||||||||||||||||||
Senior Secured Term Loan [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum amount borrowed | $ 52,135,000 | |||||||||||||||||||
Term Loan [Member] | London Interbank Offered Rate [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 6.45% | |||||||||||||||||||
Term Loan [Member] | LIBOR Floor [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||||||||||||
Term Loan [Member] | Amended Credit Agreement [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Term SOFR floor | 1% | |||||||||||||||||||
Term Loan [Member] | Amended Credit Agreement [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Applicable margin | 7% | |||||||||||||||||||
Term Loan [Member] | Amended Credit Agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Applicable margin | 6.45% | |||||||||||||||||||
Term Loan [Member] | Amended Credit Agreement [Member] | SOFR [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Applicable margin | 6.45% |
Long-Term Debt, Net - Summary o
Long-Term Debt, Net - Summary of Components of Carrying Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Debt | $ 12,135 | $ 22,135 |
Cumulative accretion of exit fee | 1,192 | 161 |
Unamortized debt discount and debt issuance costs | (159) | (320) |
Debt, net | $ 13,168 | $ 21,976 |
Long-Term Debt, Net - Summary_2
Long-Term Debt, Net - Summary of Scheduled Maturities of Term Loan (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Long-Term Debt, Unclassified [Abstract] | |
Remainder of 2023 | $ 0 |
2024 | 0 |
2025 | 3,539 |
2026 | 6,068 |
2027 | 2,528 |
Total | $ 12,135 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense related to employee stock option | $ 0.9 | $ 0.9 | $ 2.8 | $ 2.5 |
Unrecognized stock-based compensation expense | 7.4 | $ 7.4 | ||
Weighted-average recognition period | 2 years 10 months 28 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense related to employee stock option | 0.1 | $ 0.2 | ||
Unrecognized stock-based compensation expense | $ 0.6 | $ 0.6 | ||
Weighted-average recognition period | 2 years 9 months | |||
2021 Employee Stock Purchase Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Discount from market price, offering date | 85% | |||
Discount from market price, purchase date | 85% | |||
Common stock, new shares issued | 0 | 0 | 82,034 | 13,235 |
Stock-based compensation expense related to employee stock option | $ 0.1 | $ 0.1 | ||
Amount withheld for employees | $ 0.1 | $ 0.1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Outstanding, Beginning balance | 3,846,532 | |
Number of Options, Granted | 604,835 | |
Number of Options, Exercised | (51,774) | |
Number of Options, Forfeited | (263,348) | |
Number of Options expired | (42,807) | |
Number of Options Outstanding, Ending Balance | 4,093,438 | 3,846,532 |
Number of Options, Exercisable, Ending balance | 2,008,038 | |
Number of Options, Vested and expected to vest | 3,808,756 | |
Weighted Average Exercise Price per Share, Options outstanding, Beginning balance | $ 7.02 | |
Weighted Average Exercise Price per Share, Granted | 5.05 | |
Weighted Average Exercise Price per Share, Exercised | 1.47 | |
Weighted Average Exercise Price per Share, forfeited | 10.24 | |
Weighted Average Exercise Price Per Share, Expired | 15.33 | |
Weighted Average Exercise Price per Share, Options outstanding, Ending balance | 6.51 | $ 7.02 |
Weighted Average Exercise Price per Share, Exercisable, Ending balance | 5.66 | |
Weighted Average Exercise Price per Share, Vested and expected to vest | $ 6.96 | |
Weighted Average Remaining Contractual Term (in years), Options outstanding at January 1, 2023 | 7 years 8 months 15 days | 8 years 3 months 21 days |
Weighted Average Remaining Contractual Term (in years), Exercisable | 7 years 3 months 7 days | |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest | 7 years 10 months 20 days | |
Aggregate Intrinsic Value, Options outstanding | $ 3,477 | $ 9,083 |
Aggregate Intrinsic Value, Exercisable | 2,309 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 2,811 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted-Average Assumptions used in Black-Scholes Option-Pricing Model (Details) - Stock Options [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Estimated dividend yield | 0% | 0% | 0% | 0% |
Weighted-average expected stock price volatility | 35.43% | 34.27% | 35.08% | 33.22% |
Weighted-average risk-free interest rate | 4.54% | 3.49% | 4.15% | 2.19% |
Expected average term of options (in years) | 3 years | 6 years 3 months | 5 years 11 months 12 days | 6 years 3 months |
Weighted-average fair value of common stock | $ 1.95 | $ 4.84 | $ 5.05 | $ 14.27 |
Weighted-average fair value per option | $ 0.57 | $ 1.95 | $ 2.12 | $ 5.23 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding at January 1, 2023, Beginning balance | 28,071 | |
RSU, Granted | 174,595 | |
RSU, Vested | (28,071) | |
RSU, Forfeited | (18,815) | |
Outstanding at September 30,2023, Ending balance | 155,780 | 28,071 |
Vested and expected to vest at September 30, 2023 | 155,780 | |
Weighted Average Grant Fair Value, Beginning Balance | $ 7.43 | |
Weighted Average Grant Fair Value, Granted | 4.93 | |
Weighted Average Grant Fair Value, Vested | 7.43 | |
Weighted Average Grant Fair Value, Forfeited | 3.93 | |
Weighted Average Grant Fair Value, Ending Balance | 5.05 | $ 7.43 |
Weighted Average Exercise Price, Vested and expected to vest, end of period | $ 5.05 | |
Weighted Average Remaining Contractual Term (in years), Options outstanding | 1 year 7 months 9 days | 5 months 1 day |
Weighted Average Remaining Contractual Term, Vested and expected to vest at September 30, 2023 | 1 year 7 months 9 days | |
Aggregate Intrinsic Value, Outstanding | $ 435 | $ 158 |
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2023 | $ 435 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,035 | $ 968 | $ 3,115 | $ 2,689 |
Cost of Sales [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 36 | 45 | 112 | 108 |
Research and Development Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 43 | 40 | 120 | 153 |
Selling and Marketing Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 168 | 126 | 492 | 351 |
General and Administrative Expense [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 788 | $ 757 | $ 2,391 | $ 2,077 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 9 | $ (374) | $ 6 | $ (1,128) |
Effective Tax Rate | (0.10%) | (1.60%) | 0% | 3.20% |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (10,153) | $ (22,474) | $ (26,124) | $ (34,174) |
Weighted Average Number of Shares Outstanding - Basic | 29,956,930 | 28,090,267 | 28,810,068 | 28,059,897 |
Weighted Average Number of Shares Outstanding - Diluted | 29,956,930 | 28,090,267 | 28,810,068 | 28,059,897 |
Net loss per share - basic | $ (0.34) | $ (0.8) | $ (0.91) | $ (1.22) |
Net loss per share - diluted | $ (0.34) | $ (0.8) | $ (0.91) | $ (1.22) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Common Stock Equivalents Excluded from Calculation of Diluted Loss per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee share-based awards to purchase common stock [Member] | ||||
Stock options to purchase common stock | 4,019,909 | 3,311,656 | 4,000,857 | 3,133,232 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Meeches L L C [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment for Rent Expense | $ 0 | $ 0.1 | $ 0.1 | $ 0.2 |