Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36046 | |
Entity Registrant Name | Axogen, Inc. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1301878 | |
Entity Address, Address Line One | 13631 Progress Blvd., Suite 400 | |
Entity Address, City or Town | Alachua, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32615 | |
City Area Code | 386 | |
Local Phone Number | 462-6800 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | AXGN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,832,050 | |
Entity Central Index Key | 0000805928 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 7,707 | $ 15,284 |
Restricted cash | 6,252 | 6,251 |
Investments | 30,160 | 33,505 |
Accounts receivable, net of allowance for doubtful accounts of $383 and $650, respectively | 22,278 | 22,186 |
Inventory | 19,849 | 18,905 |
Prepaid expenses and other | 2,453 | 1,944 |
Total current assets | 88,699 | 98,075 |
Property and equipment, net | 83,049 | 79,294 |
Operating lease right-of-use assets | 13,868 | 14,369 |
Intangible assets, net | 3,858 | 3,649 |
Total assets | 189,474 | 195,387 |
Current liabilities: | ||
Accounts payable and accrued expenses | 20,188 | 22,443 |
Current maturities of long-term lease obligations | 1,050 | 1,310 |
Total current liabilities | 21,238 | 23,753 |
Long-term debt, net of debt discount and financing fees | 45,931 | 45,712 |
Long-term lease obligations | 20,089 | 20,405 |
Debt derivative liabilities | 4,703 | 4,518 |
Total liabilities | 91,961 | 94,388 |
Commitments and contingencies - see Note 12 | ||
Shareholders’ equity: | ||
Common stock, 0.01 par value per share; 100,000,000 shares authorized; 42,809,994 and 42,445,517 shares issued and outstanding | 428 | 424 |
Additional paid-in capital | 363,739 | 360,155 |
Accumulated deficit | (266,654) | (259,580) |
Total shareholders’ equity | 97,513 | 100,999 |
Total liabilities and shareholders’ equity | $ 189,474 | $ 195,387 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 383 | $ 650 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 42,809,994 | 42,445,517 |
Common stock outstanding (in shares) | 42,809,994 | 42,445,517 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 36,664 | $ 31,007 |
Cost of goods sold | 6,709 | 5,546 |
Gross profit | 29,955 | 25,461 |
Costs and expenses: | ||
Sales and marketing | 21,618 | 20,888 |
Research and development | 6,679 | 6,275 |
General and administrative | 8,999 | 9,618 |
Total costs and expenses | 37,296 | 36,781 |
Loss from operations | (7,341) | (11,320) |
Other income (expense): | ||
Investment income (loss) | 549 | (46) |
Interest expense | (16) | (354) |
Change in fair value of derivatives | (185) | 252 |
Other expense | (81) | (7) |
Total other income (expense), net | 267 | (155) |
Net loss | $ (7,074) | $ (11,475) |
Weighted average common shares outstanding - basic (in shares) | 42,571,021 | 41,804,330 |
Weighted average common shares outstanding - diluted (in shares) | 42,571,021 | 41,804,330 |
Loss per common share - basic (in USD per share) | $ (0.17) | $ (0.27) |
Loss per common share - diluted (in USD per share) | $ (0.17) | $ (0.27) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (7,074) | $ (11,475) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 709 | 704 |
Amortization of right-of-use assets | 464 | 427 |
Amortization of intangible assets | 71 | 69 |
Amortization of debt discount and deferred financing fees | 219 | 220 |
(Recovery of) provision for bad debt | (267) | 267 |
Provision for inventory write-down | 581 | 459 |
Change in fair value of derivatives | 185 | (252) |
Investment (gains) loss | (426) | 96 |
Stock-based compensation | 2,954 | 2,678 |
Change in operating assets and liabilities: | ||
Accounts receivable | 175 | (624) |
Inventory | (1,525) | (1,166) |
Prepaid expenses and other | (509) | (1,030) |
Accounts payable and accrued expenses | (2,442) | (1,104) |
Operating lease obligations | (537) | (320) |
Cash paid for interest portion of finance leases | (1) | 0 |
Net cash used in operating activities | (7,423) | (11,051) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (4,304) | (5,037) |
Purchase of investments | (10,203) | (6,024) |
Proceeds from sale of investments | 13,974 | 4,400 |
Cash payments for intangible assets | (253) | (580) |
Net cash used in investing activities | (786) | (7,241) |
Cash flows from financing activities: | ||
Cash paid for debt portion of finance leases | (1) | (2) |
Proceeds from exercise of stock options and ESPP stock purchases | 634 | 97 |
Net cash provided by financing activities | 633 | 95 |
Net decrease in cash, cash equivalents, and restricted cash | (7,576) | (18,197) |
Cash, cash equivalents, and restricted cash, beginning of period | 21,535 | 39,007 |
Cash, cash equivalents, and restricted cash, end of period | 13,959 | 20,810 |
Supplemental disclosures of cash flow activity: | ||
Cash paid for interest, net of capitalized interest | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Acquisition of fixed assets in accounts payable and accrued expenses | 1,026 | 1,119 |
Obtaining a right-of-use asset in exchange for a lease liability | 0 | 641 |
Acquisition of intangible assets in accounts payable and accrued expenses | $ 326 | $ 239 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 41,736,950 | |||
Beginning balance at Dec. 31, 2021 | $ 112,550 | $ 417 | $ 342,765 | $ (230,632) |
Increase (Decrease) in Stockholders' Equity | ||||
Net loss | (11,475) | (11,475) | ||
Stock-based compensation | 2,678 | 2,678 | ||
Issuance of restricted and performance stock units (in shares) | 215,287 | |||
Issuance of restricted and performance stock units | 0 | $ 2 | (2) | |
Exercise of stock options and employee stock purchase plan (in shares) | 20,750 | |||
Exercise of stock options and employee stock purchase plan | 98 | $ 1 | 97 | |
Ending balance (in shares) at Mar. 31, 2022 | 41,972,987 | |||
Ending balance at Mar. 31, 2022 | $ 103,851 | $ 420 | 345,538 | (242,107) |
Beginning balance (in shares) at Dec. 31, 2022 | 42,445,517 | 42,445,517 | ||
Beginning balance at Dec. 31, 2022 | $ 100,999 | $ 424 | 360,155 | (259,580) |
Increase (Decrease) in Stockholders' Equity | ||||
Net loss | (7,074) | |||
Stock-based compensation | 2,954 | 2,954 | ||
Issuance of restricted and performance stock units (in shares) | 238,719 | |||
Issuance of restricted and performance stock units | 0 | $ 3 | (3) | |
Exercise of stock options and employee stock purchase plan (in shares) | 125,758 | |||
Exercise of stock options and employee stock purchase plan | $ 634 | $ 1 | 633 | |
Ending balance (in shares) at Mar. 31, 2023 | 42,809,994 | 42,809,994 | ||
Ending balance at Mar. 31, 2023 | $ 97,513 | $ 428 | $ 363,739 | $ (266,654) |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Axogen, Inc. (together with its wholly-owned subsidiaries, the “Company”) was incorporated in Minnesota and is the leader in the science, development and commercialization of the technologies used for peripheral nerve regeneration and repair. The Company's products include Avance ® Nerve Graft, Axoguard Nerve Connector ® , Axoguard Nerve Protector ® , Axoguard Nerve Cap ® and Axotouch ® Two-Point Discriminator . The Company is headquartered in Florida. The Company has processing, warehousing, and distribution facilities in Texas and Ohio. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Please see Note 2 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission ("SEC") on March 14, 2023, for a description of all significant accounting policies. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company as of March 31, 2023, and December 31, 2022, and for the three months ended March 31, 2023, and 2022. The Company’s condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and; therefore, do not include all information and footnotes necessary for a fair presentation of consolidated financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The interim condensed consolidated financial statements are unaudited, and in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results for the full year. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year due primarily to the impact of the continued uncertainty of general economic conditions that may impact the Company's markets for the remainder of fiscal year 2023. Cash and Cash Equivalents and Concentration Cash and cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of acquisition. Certain of the Company's cash and cash equivalents balances exceed Federal Deposit Insurance Corporation ("FDIC") insured limits or are invested in money market accounts with investment banks that are not FDIC-insured. The Company places its cash and cash equivalents in what they believe to be credit-worthy financial institutions. As of March 31, 2023, $6,957 of the cash and cash equivalents balance was in excess of FDIC limits. Restricted Cash Amounts included in restricted cash represent those required to be set aside to meet contractual terms of a lease agreement held by the Company. See Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees - Other Credit Facilities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: (In thousands) March 31, December 31, Cash and cash equivalents $ 7,707 $ 15,284 Restricted cash 6,252 6,251 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 13,959 $ 21,535 Capitalized Interest The interest cost on capital projects, including facilities build-outs, is capitalized and included in the cost of the project. Capitalization begins with the first expenditure for the project and continues until the project is substantially complete and ready for its intended use. For the quarters ended March 31, 2023, and 2022, the Company capitalized $2,147 and $1,445, respectively, of interest expense into property and equipment. Shipping and Handling All shipping and handling costs, including facility and warehousing overhead, directly related to bringing the Company’s products to their final selling destination are included in sales and marketing expense. Shipping and handling costs included in sales and marketing expense were $1,457 and $1,318 for the three months ended, March 31, 2023, and 2022, respectively. Recent Accounting Pronouncements All other Accounting Standards Updates ("ASU's") issued and not yet effective as of December 31, 2022, and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s current or future financial position or results of operations except for the following: |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following: (in thousands) March 31, December 31, Finished goods $ 12,922 $ 12,651 Work in process 1,070 1,026 Raw materials 5,857 5,228 Inventory $ 19,849 $ 18,905 The provision for inventory write-down is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Provision for inventory write-down $ 581 $ 459 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consist of the following: (in thousands) March 31, December 31, Furniture and equipment $ 6,147 $ 5,316 Leasehold improvements 15,482 15,482 Processing equipment 4,264 4,227 Land 731 731 Projects in process 67,299 63,703 Finance lease right-of-use assets 131 131 Property and equipment, at cost 94,054 89,590 Less: accumulated depreciation and amortization (11,005) (10,296) Property and equipment, net $ 83,049 $ 79,294 Depreciation expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Depreciation expense $ 709 $ 704 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents $ 4,061 $ (665) $ 3,396 $ 3,792 $ (621) $ 3,170 License agreements 1,101 (1,041) 60 1,101 (1,014) 87 Total amortizable intangible assets 5,162 (1,706) 3,456 4,893 (1,635) 3,258 Unamortized intangible assets: Trademarks 402 — 402 391 — 391 Total intangible assets $ 5,564 $ (1,706) $ 3,858 $ 5,284 $ (1,635) $ 3,649 Amortization expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Amortization expense $ 71 $ 69 As of March 31, 2023, future amortization of patents and license agreements is as follows: Year Ending December 31, (in thousands) 2023 (excluding the three months ended March 31, 2023) $ 189 2024 195 2025 195 2026 194 2027 190 Thereafter 2,493 Total $ 3,456 License Agreements The Company has various license agreements that require the payment of royalty fees. Royalty fee expense included in sales and marketing expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Royalty fee expense $ 831 $ 673 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following tables present the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023, and December 31, 2022: March 31, 2023 (in thousands) (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 1,507 $ — $ — $ 1,507 U.S. government securities 13,806 — — 13,806 Commercial paper — 16,354 — 16,354 Total assets $ 15,313 $ 16,354 $ — $ 31,667 Liabilities: Debt derivative liabilities $ — $ — $ 4,703 $ 4,703 Total liabilities $ — $ — $ 4,703 $ 4,703 December 31, 2022 (in thousands) (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 10,354 $ — $ — $ 10,354 U.S. government securities 12,316 — — 12,316 Commercial paper — 21,189 — 21,189 Total assets $ 22,669 $ 21,189 $ — $ 43,859 Liabilities: Debt derivative liabilities $ — $ — $ 4,518 $ 4,518 Total liabilities $ — $ — $ 4,518 $ 4,518 The changes in Level 3 liabilities measured at fair value on a recurring basis are as follows: Three Months Ended March 31, 2023 Balance, December 31, 2022 $ 4,518 Change in fair value included in net loss 185 Balance, March 31, 2023 $ 4,703 Three Months Ended March 31, 2022 Balance, December 31, 2021 $ 5,562 Change in fair value included in net loss (252) Balance, March 31, 2022 $ 5,310 The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued expenses approximates the carrying values because of the short-term nature of these instruments. The carrying value and fair value of the Credit Facility were $45,931 and $50,898 at March 31, 2023, and $45,712 and $50,293 at December 31, 2022, respectively. See Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees. The debt derivative liabilities are measured using a ‘with and without’ valuation model to compare the fair value of each tranche of the Credit Facility including the identified embedded derivative features and the fair value of a plain vanilla note with the same terms. The fair value of the Credit Facility including the identified embedded derivative features was determined using a probability-weighted expected return model based on four potential settlement scenarios for the financing agreement as disclosed in the table below. The estimated settlement value of each scenario, which would include any required make-whole payment, (see Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees), is then discounted to present value using a discount rate that is derived based on the initial terms of the financing agreement at issuance and corroborated utilizing a synthetic credit rating analysis. The significant inputs that are included in the valuation of the debt derivative liability - first tranche include: March 31, 2023 December 31, 2022 Input Remaining term (years) 4.25 years 4.5 years Maturity date June 30, 2027 June 30, 2027 Coupon rate 9.5% - 12.7% 9.5% -12.7% Revenue participation payments Maximum each year Maximum each year Discount rate 13.4% (1) 13.9% (1) Probability of mandatory prepayment before 2024 5.0 % (1) 5.0 % (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0 % (1) 15.0 % (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0 % (1) 5.0 % (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input The significant inputs that are included in the valuation of the debt derivative liability - second tranche include: March 31, 2023 December 31, 2022 Input Remaining term (years) 5.25 years 5.5 years Maturity date June 30, 2028 June 30, 2028 Coupon rate 9.5% - 12.7% 9.5% -12.7% Revenue participation payments Maximum each year Maximum each year Discount rate 17.0 % (1) 17.56 % (1) Probability of mandatory prepayment before 2024 5.0% (1) 5.0% (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0% (1) 15.0% (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0% (1) 5.0% (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases administrative, processing, research and distribution facilities through operating leases. Several of the leases include fixed payments, including rent and non-lease components such as common area or other maintenance costs. Operating lease expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease expense $ 1,298 $ 1,408 Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) March 31, 2023 December 31, 2022 Operating Leases Right-of-use operating assets $ 13,868 $ 14,369 Current maturities of long-term lease obligations $ 1,043 $ 1,303 Long-term lease obligations $ 20,073 $ 20,387 Financing Leases Right-of-use financing leases (1) $ 35 $ 41 Current maturities of long-term lease obligations $ 7 $ 7 Long-term lease obligations $ 16 $ 18 Weighted average operating lease term (in years): 11 11 Weighted average financing lease term (in years): 4 4 Weighted average discount rate operating leases 10.65% 10.58% Weighted average discount rate financing leases 12.07% 11.91% (1) Financing leases are included in property and equipment, net on the condensed consolidated balance sheets. Future minimum lease payments under operating and financing leases at March 31, 2023, are as follows: (In thousands) 2023 (excluding the three months ended March 31, 2023) $ 2,417 2024 3,253 2025 3,336 2026 3,348 2027 2,920 Thereafter 20,932 Total 36,206 Less: Imputed interest (15,067) Total lease liability 21,139 Less: Current lease liability (1,050) Long-term lease liability $ 20,089 |
Leases | Leases The Company leases administrative, processing, research and distribution facilities through operating leases. Several of the leases include fixed payments, including rent and non-lease components such as common area or other maintenance costs. Operating lease expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease expense $ 1,298 $ 1,408 Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) March 31, 2023 December 31, 2022 Operating Leases Right-of-use operating assets $ 13,868 $ 14,369 Current maturities of long-term lease obligations $ 1,043 $ 1,303 Long-term lease obligations $ 20,073 $ 20,387 Financing Leases Right-of-use financing leases (1) $ 35 $ 41 Current maturities of long-term lease obligations $ 7 $ 7 Long-term lease obligations $ 16 $ 18 Weighted average operating lease term (in years): 11 11 Weighted average financing lease term (in years): 4 4 Weighted average discount rate operating leases 10.65% 10.58% Weighted average discount rate financing leases 12.07% 11.91% (1) Financing leases are included in property and equipment, net on the condensed consolidated balance sheets. Future minimum lease payments under operating and financing leases at March 31, 2023, are as follows: (In thousands) 2023 (excluding the three months ended March 31, 2023) $ 2,417 2024 3,253 2025 3,336 2026 3,348 2027 2,920 Thereafter 20,932 Total 36,206 Less: Imputed interest (15,067) Total lease liability 21,139 Less: Current lease liability (1,050) Long-term lease liability $ 20,089 |
Long-Term Debt, Net of Debt Dis
Long-Term Debt, Net of Debt Discount and Financing Fees | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net of Debt Discount and Financing Fees | Long-Term Debt, Net of Debt Discount and Financing Fees Long-term debt, net of debt discount and financing fees consists of the following: (in thousands) March 31, December 31, 2022 Credit Facility - first tranche $ 35,000 $ 35,000 Credit Facility - second tranche 15,000 15,000 Less - unamortized debt discount and deferred financing fees (4,069) (4,288) Long-term debt, net of debt discount and financing fees $ 45,931 $ 45,712 Credit Facility On June 30, 2020, the Company entered into a seven-year financing agreement (the "Credit Facility") with Oberland Capital and its affiliates TPC Investments II LP and Argo LLC (collectively, the "Lender") and obtained the first tranche of $35,000 at closing. On June 30, 2021, the second tranche of $15,000 was drawn down by the Company. Each tranche under the Credit Facility requires quarterly interest payments for seven years. Interest is calculated as 7.5% plus the greater of LIBOR or 2.0% (12.25% at March 31, 2023). Each tranche of the Credit Facility has a term of seven years from the date of issuance (with the first tranche issued on June 30, 2020, maturing on June 30, 2027, and the second tranche issued on June 30, 2021, maturing on June 30, 2028). In connection with the Credit Facility, the Company entered into a revenue participation agreement (the “Revenue Participation Agreement”) with the Lender, which provided that, among other things, a quarterly royalty payment as a percentage of the Company’s net revenues, up to $70 million in any given year, after April 1, 2021, ending on the date upon which all amounts owed under the Credit Facility have been paid in full. This structure re s ults in approximately 1.0% per year of additional interest payments on the outstanding loan amount. The Company recorded $396 and $335 as interest expense for this Revenue Participation Agreement for the three months ended March 31, 2023, and 2022, respectively. The Company pays the quarterly debt interest on the last day of the quarter and for the three months ended March 31, 2023, and 2022, paid $1,532 and $1,187, respectively, to the Lender. The Company capitalized interest of $2,147 and $1,445 for the three months ended March 31, 2023, and 2022, respectively, towards the costs to construct and retrofit the Axogen Processing Center ("APC Facility") in Vandalia, Ohio. See Note 12 - Commitments and Contingencies. To date, the Company has capitalized interest of $13,576 related to this project. The capitalized interest is recorded as part of property and equipment, net in the condensed consolidated balance sheets. As of March 31, 2023, the Company was in compliance with all financial covenants. Embedded Derivatives The fair values of the debt derivative liabilities were $4,703 and $4,518 at March 31, 2023, and December 31, 2022, respectively. See Note 6 - Fair Value Measurement. Unamortized Debt Discount and Financing Fees The unamortized debt discount consists of the remaining initial fair values of the embedded derivatives related to the Credit Facility. The financing fees for the Credit Facility were $642 and were recorded as a contra liability to long-term debt on the consolidated balance sheet. Amortization of debt discount and deferred financing fees for the three months ended March 31, 2023, and 2022 was $219 and $220, respectively. Other Credit Facilities The Company had restricted cash of $6,252 and $6,251 at March 31, 2023, and December 31, 2022, respectively. The March 31, 2023, and December 31, 2022 balances both include $6,000 and $250, which represent collateral for two irrevocable standby letters of credit. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's stock-based compensation plans are described in Note 11. Stock-Based Compensation to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. During the three months ended March 31, 2023, the following stock compensation was awarded to officers and employees. All awards were granted under the 2019 Amended and Restated Long-Term Incentive Plan ("2019 Plan"), with the exception of the inducement shares awarded as inducements material to new employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). Type of Award Target Shares or Units Weighted Average Grant Date Fair Value Stock Options (1) 1,046,800 $ 4.96 Restricted Stock Units (2) 1,129,718 $ 8.39 Performance Stock Units (3) 744,000 $ 8.27 Inducement Shares (4) Stock Options 150,000 $ 4.92 Restricted Stock Units 75,000 $ 8.16 (1) Options were awarded to officers and employees during the quarter, vesting over a four year period. (2) Restricted stock units were awarded to officers and employees, vesting over a four year period. Upon vesting, the outstanding number of restricted stock units vested are converted into common stock. (3) Performance shares were issued to officers and employees. Vesting occurs over a three year performance period. Participants will earn from 0% to 150% upon achievement of the target depending on the attainment of specific revenue goals. The maximum number of units that can be issued under this award is 1,116,000. (4) I nducement shares were issued to two officers as inducements material to new employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). Vesting for both the stock options and restricted stock units are over a four year period. Total stock-based compensation expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Stock-based compensation expense $ 2,954 $2,678 |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended March 31, (In thousands, except per share amounts) 2023 2022 Numerator: Net loss $ (7,074) $ (11,475) Denominator: Weighted-average common shares outstanding (Basic) 42,571,021 41,804,330 Weighted-average common shares outstanding (Diluted) 42,571,021 41,804,330 Net loss per common share (Basic and Diluted) $ (0.17) $ (0.27) Anti-dilutive shares excluded from the calculation of diluted earnings per share (1) Stock options 3,338,761 2,983,351 Restricted stock units 449,941 581,171 (1) These common equivalent shares are not included in the diluted per share calculations as they would be anti-dilutive if the Company was in a net income position. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has no recorded income tax expense or income tax benefit for the three months ended March 31, 2023, and 2022 due to the generation of net operating losses, the benefits of which have been fully reserved. The Company has not recorded current income tax expense due to the generation of net operating losses. Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. A full valuation allowance has been established on the deferred tax asset as it is more likely than not that a future tax benefit will not be realized. In addition, future utilization of the available net operating loss carryforward may be limited under Internal Revenue Code Section 382 as a result of changes in ownership. The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more likely than not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the condensed consolidated balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s remaining open tax years subject to examination by federal tax authorities include the years ended December 31, 2019 through 2022. However, for tax years 2004 through 2017, federal taxing authorities may examine and adjust loss carryforwards in the years in which those loss carryforwards are ultimately utilized. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Service Agreements The Company pays Community Blood Center, (d/b/a Community Tissue Service) ("CTS") a facility fee for the use of clean rooms, storage and office space and for services in support of its tissue processing including for routine sterilization of daily supplies, providing disposable supplies and microbial services, and office support. The Company paid $729 and $622 for the three months ended March 31, 2023, and 2022, respectively, related to the agreement with CTS. The agreement terminates on December 31, 2023, subject to earlier termination by either party at any time for cause, or without cause upon six months prior notice. The Company expects to reduce its utilization of CTS in the second half of 2023. In December 2011, the Company entered into a Master Services Agreement for clinical research and related services. The Company was required to pay $151 upon execution of this agreement and the remainder monthly based on activities associated with the execution of the Company's phase 3 pivotal clinical trial to support the biologics license application ("BLA") for Avance Nerve Graft. Payments made under this agreement were $112 and $327 for the three months ended March 31, 2023, and 2022, respectively. Axogen Processing Center Facility The Company is highly dependent on the continued availability of its processing facilities at the CTS facility in Dayton, Ohio and could be harmed if the physical infrastructure of this facility is unavailable for any prolonged period of time. On July 31, 2018, the Company purchased the APC Facility in Vandalia, Ohio, located near the CTS processing facility where Avance Nerve Graft is currently processed. The APC Facility, when and if operational, will be the new processing facility for Avance Nerve Graft to provide continued capacity for growth and to support the transition of Avance Nerve Graft from a human cellular and tissue-based product to a biologic product. The APC Facility is comprised of a 107,000 square foot building on approximately 8.6 acres of land. The Company paid $731 for the land and this is recorded as land within Property and equipment, net on the condensed consolidated balance sheets. The Company paid $4,300 for the building and this is recorded in projects in process within Property and equipment, net on the condensed consolidated balance sheets. On July 9, 2019, the Company entered into a Standard Form of Agreement Between Owner and Design-Builder with CRB Builders, L.L.C., (“CRB”), pursuant to which CRB will renovate and retrofit the APC Facility. For the three months ended March 31, 2023, the Company has recorded $1,599 related to renovations and design and build in projects in progress. The Company has recorded $47,953 to date related to this project. In addition to these project costs, the Company has capitalized interest of $2,147 for the three months ended March 31, 2023. To date, the Company has capitalized interest of $13,576 related to this project. These items are recorded in projects in process within Property and equipment, net on the condensed consolidated balance sheet. The Company anticipates recording an additional $1,700 to $2,700 in the remainder of 2023. The Company expects that the renovation and validation of the APC Facility will be complete in mid-2023 and anticipates transitioning to the new facility in mid-2023. The Company obtained certain economic development grants from state and local authorities totaling up to $2,685 including $1,250 of cash grants to offset costs to acquire and develop the APC Facility. The economic development grants are subject to certain job creation milestones to be reached by December 31, 2023, and have clawback clauses if the Company does not meet the job creation milestones. The Company has requested extensions from the grant authorities to extend the job creation milestone date and has not yet received any decisions regarding whether the extensions will be granted. As of March 31, 2023, the Company has received $1,188 from the cash grants. Fair Value of the Debt Derivative Liabilities The fair value of the debt derivative liabilities is $4,703 as of March 31, 2023. The fair value of the debt derivative liabilities was determined using a probability-weighted expected return model based upon the four potential settlement scenarios for the Credit Facility. The estimated settlement value of each scenario, which includes any required make-whole payment, is then discounted to present value using a discount rate that is derived based upon the initial terms of the Credit Facility at issuance and corroborated utilizing a synthetic rating analysis. The calculated fair values under the four scenarios are then compared to the fair value of a plain vanilla note, with the difference reflecting the fair value of the debt derivative liabilities. The Company estimated the make-whole payments required under each scenario according to the terms of the Credit Facility to generate an internal rate of return equal to 11.5% through the scheduled maturity dates, less the total of all quarterly interest and royalty payments previously paid to the Lender . The calculation utilized the XIRR function in Microsoft Excel as required by the Credit Facility. If the debt is not prepaid but instead is held to its scheduled maturities, the Company’s estimate of the make-whole payment for the first tranche and second tranche of the Credit Facility due on June 30, 2027, and June 30, 2028, respectively, are approximately zero. The Company has consistently applied this approach since the inception of the debt agreement on June 30, 2020. The Company has become aware that Credit Capital may have an alternative interpretation of the calculation of the make-whole payments that the Company believ es does not properly utilize the same methodology utilized by the XIRR function in Microsoft Excel as described in the Credit Facility. The Company estimates the top end of the range of the make-whole payments if the debt is held to scheduled maturity under an alternative interpretation to be approximately $10,000 for the first tranche of the Credit Facility due on June 30, 2027, and approximately $4,000 for the second tranche of the Credit Facility due on June 30, 2028. Further, if the debt is prepaid prior to the scheduled maturity dates and subject to the alternative interpretation, the make-whole payment would be larger than the amounts herein. Legal Proceedings The Company is and may be subject to various claims, lawsuits, and proceedings in the ordinary course of the Company's business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. While there can be no assurances as to the ultimate outcome of any legal proceeding or other loss contingency involving the Company, in the opinion of management, such claims are either adequately covered by insurance or otherwise indemnified, or are not expected individually or in the aggregate, to result in a material, adverse effect on the Comp any's financial condition, results of operations or cash flows. However, it is possible that the Company's results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company as of March 31, 2023, and December 31, 2022, and for the three months ended March 31, 2023, and 2022. The Company’s condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and; therefore, do not include all information and footnotes necessary for a fair presentation of consolidated financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The interim condensed consolidated financial statements are unaudited, and in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results for the full year. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Concentration and Restricted Cash | Cash and Cash Equivalents and Concentration Cash and cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of acquisition. Certain of the Company's cash and cash equivalents balances exceed Federal Deposit Insurance Corporation ("FDIC") insured limits or are invested in money market accounts with investment banks that are not FDIC-insured. The Company places its cash and cash equivalents in what they believe to be credit-worthy financial institutions. As of March 31, 2023, $6,957 of the cash and cash equivalents balance was in excess of FDIC limits. Restricted Cash Amounts included in restricted cash represent those required to be set aside to meet contractual terms of a lease agreement held by the Company. See Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees - Other Credit Facilities. |
Capitalized Interest | Capitalized Interest The interest cost on capital projects, including facilities build-outs, is capitalized and included in the cost of the project. Capitalization begins with the first expenditure for the project and continues until the project is substantially complete and ready for its intended use. For the quarters ended March 31, 2023, and 2022, the Company capitalized $2,147 and $1,445, respectively, of interest expense into property and equipment. |
Shipping and Handling | Shipping and Handling All shipping and handling costs, including facility and warehousing overhead, directly related to bringing the Company’s products to their final selling destination are included in sales and marketing expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements All other Accounting Standards Updates ("ASU's") issued and not yet effective as of December 31, 2022, and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s current or future financial position or results of operations except for the following: |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: (In thousands) March 31, December 31, Cash and cash equivalents $ 7,707 $ 15,284 Restricted cash 6,252 6,251 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 13,959 $ 21,535 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consists of the following: (in thousands) March 31, December 31, Finished goods $ 12,922 $ 12,651 Work in process 1,070 1,026 Raw materials 5,857 5,228 Inventory $ 19,849 $ 18,905 The provision for inventory write-down is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Provision for inventory write-down $ 581 $ 459 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consist of the following: (in thousands) March 31, December 31, Furniture and equipment $ 6,147 $ 5,316 Leasehold improvements 15,482 15,482 Processing equipment 4,264 4,227 Land 731 731 Projects in process 67,299 63,703 Finance lease right-of-use assets 131 131 Property and equipment, at cost 94,054 89,590 Less: accumulated depreciation and amortization (11,005) (10,296) Property and equipment, net $ 83,049 $ 79,294 Depreciation expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Depreciation expense $ 709 $ 704 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents $ 4,061 $ (665) $ 3,396 $ 3,792 $ (621) $ 3,170 License agreements 1,101 (1,041) 60 1,101 (1,014) 87 Total amortizable intangible assets 5,162 (1,706) 3,456 4,893 (1,635) 3,258 Unamortized intangible assets: Trademarks 402 — 402 391 — 391 Total intangible assets $ 5,564 $ (1,706) $ 3,858 $ 5,284 $ (1,635) $ 3,649 |
Schedule of indefinite-lived intangible assets | Intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents $ 4,061 $ (665) $ 3,396 $ 3,792 $ (621) $ 3,170 License agreements 1,101 (1,041) 60 1,101 (1,014) 87 Total amortizable intangible assets 5,162 (1,706) 3,456 4,893 (1,635) 3,258 Unamortized intangible assets: Trademarks 402 — 402 391 — 391 Total intangible assets $ 5,564 $ (1,706) $ 3,858 $ 5,284 $ (1,635) $ 3,649 |
Schedule of amortization expense | Amortization expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Amortization expense $ 71 $ 69 |
Schedule of future amortization | As of March 31, 2023, future amortization of patents and license agreements is as follows: Year Ending December 31, (in thousands) 2023 (excluding the three months ended March 31, 2023) $ 189 2024 195 2025 195 2026 194 2027 190 Thereafter 2,493 Total $ 3,456 |
Schedule of royalty expenses | Royalty fee expense included in sales and marketing expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Royalty fee expense $ 831 $ 673 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value financial assets measured on a recurring basis | The following tables present the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023, and December 31, 2022: March 31, 2023 (in thousands) (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 1,507 $ — $ — $ 1,507 U.S. government securities 13,806 — — 13,806 Commercial paper — 16,354 — 16,354 Total assets $ 15,313 $ 16,354 $ — $ 31,667 Liabilities: Debt derivative liabilities $ — $ — $ 4,703 $ 4,703 Total liabilities $ — $ — $ 4,703 $ 4,703 December 31, 2022 (in thousands) (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 10,354 $ — $ — $ 10,354 U.S. government securities 12,316 — — 12,316 Commercial paper — 21,189 — 21,189 Total assets $ 22,669 $ 21,189 $ — $ 43,859 Liabilities: Debt derivative liabilities $ — $ — $ 4,518 $ 4,518 Total liabilities $ — $ — $ 4,518 $ 4,518 |
Schedule of fair value instruments classified Level 3 | The changes in Level 3 liabilities measured at fair value on a recurring basis are as follows: Three Months Ended March 31, 2023 Balance, December 31, 2022 $ 4,518 Change in fair value included in net loss 185 Balance, March 31, 2023 $ 4,703 Three Months Ended March 31, 2022 Balance, December 31, 2021 $ 5,562 Change in fair value included in net loss (252) Balance, March 31, 2022 $ 5,310 |
Schedule of significant inputs in liability valuation | The significant inputs that are included in the valuation of the debt derivative liability - first tranche include: March 31, 2023 December 31, 2022 Input Remaining term (years) 4.25 years 4.5 years Maturity date June 30, 2027 June 30, 2027 Coupon rate 9.5% - 12.7% 9.5% -12.7% Revenue participation payments Maximum each year Maximum each year Discount rate 13.4% (1) 13.9% (1) Probability of mandatory prepayment before 2024 5.0 % (1) 5.0 % (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0 % (1) 15.0 % (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0 % (1) 5.0 % (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input The significant inputs that are included in the valuation of the debt derivative liability - second tranche include: March 31, 2023 December 31, 2022 Input Remaining term (years) 5.25 years 5.5 years Maturity date June 30, 2028 June 30, 2028 Coupon rate 9.5% - 12.7% 9.5% -12.7% Revenue participation payments Maximum each year Maximum each year Discount rate 17.0 % (1) 17.56 % (1) Probability of mandatory prepayment before 2024 5.0% (1) 5.0% (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0% (1) 15.0% (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0% (1) 5.0% (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of operating lease expense | Operating lease expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease expense $ 1,298 $ 1,408 |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) March 31, 2023 December 31, 2022 Operating Leases Right-of-use operating assets $ 13,868 $ 14,369 Current maturities of long-term lease obligations $ 1,043 $ 1,303 Long-term lease obligations $ 20,073 $ 20,387 Financing Leases Right-of-use financing leases (1) $ 35 $ 41 Current maturities of long-term lease obligations $ 7 $ 7 Long-term lease obligations $ 16 $ 18 Weighted average operating lease term (in years): 11 11 Weighted average financing lease term (in years): 4 4 Weighted average discount rate operating leases 10.65% 10.58% Weighted average discount rate financing leases 12.07% 11.91% |
Schedule of operating lease maturity | Future minimum lease payments under operating and financing leases at March 31, 2023, are as follows: (In thousands) 2023 (excluding the three months ended March 31, 2023) $ 2,417 2024 3,253 2025 3,336 2026 3,348 2027 2,920 Thereafter 20,932 Total 36,206 Less: Imputed interest (15,067) Total lease liability 21,139 Less: Current lease liability (1,050) Long-term lease liability $ 20,089 |
Schedule of finance lease maturity | Future minimum lease payments under operating and financing leases at March 31, 2023, are as follows: (In thousands) 2023 (excluding the three months ended March 31, 2023) $ 2,417 2024 3,253 2025 3,336 2026 3,348 2027 2,920 Thereafter 20,932 Total 36,206 Less: Imputed interest (15,067) Total lease liability 21,139 Less: Current lease liability (1,050) Long-term lease liability $ 20,089 |
Long-Term Debt, Net of Debt D_2
Long-Term Debt, Net of Debt Discount and Financing Fees (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt, net of debt discount and financing fees | Long-term debt, net of debt discount and financing fees consists of the following: (in thousands) March 31, December 31, 2022 Credit Facility - first tranche $ 35,000 $ 35,000 Credit Facility - second tranche 15,000 15,000 Less - unamortized debt discount and deferred financing fees (4,069) (4,288) Long-term debt, net of debt discount and financing fees $ 45,931 $ 45,712 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock unit activity | During the three months ended March 31, 2023, the following stock compensation was awarded to officers and employees. All awards were granted under the 2019 Amended and Restated Long-Term Incentive Plan ("2019 Plan"), with the exception of the inducement shares awarded as inducements material to new employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). Type of Award Target Shares or Units Weighted Average Grant Date Fair Value Stock Options (1) 1,046,800 $ 4.96 Restricted Stock Units (2) 1,129,718 $ 8.39 Performance Stock Units (3) 744,000 $ 8.27 Inducement Shares (4) Stock Options 150,000 $ 4.92 Restricted Stock Units 75,000 $ 8.16 (1) Options were awarded to officers and employees during the quarter, vesting over a four year period. (2) Restricted stock units were awarded to officers and employees, vesting over a four year period. Upon vesting, the outstanding number of restricted stock units vested are converted into common stock. (3) Performance shares were issued to officers and employees. Vesting occurs over a three year performance period. Participants will earn from 0% to 150% upon achievement of the target depending on the attainment of specific revenue goals. The maximum number of units that can be issued under this award is 1,116,000. (4) I |
Schedule of stock based compensation expense | Total stock-based compensation expense is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Stock-based compensation expense $ 2,954 $2,678 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of net loss per common share | The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended March 31, (In thousands, except per share amounts) 2023 2022 Numerator: Net loss $ (7,074) $ (11,475) Denominator: Weighted-average common shares outstanding (Basic) 42,571,021 41,804,330 Weighted-average common shares outstanding (Diluted) 42,571,021 41,804,330 Net loss per common share (Basic and Diluted) $ (0.17) $ (0.27) Anti-dilutive shares excluded from the calculation of diluted earnings per share (1) Stock options 3,338,761 2,983,351 Restricted stock units 449,941 581,171 (1) These common equivalent shares are not included in the diluted per share calculations as they would be anti-dilutive if the Company was in a net income position. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 24 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Cash and cash equivalents balance outside of FDIC limit | $ 6,957 | |||
Interest capitalized | 2,147 | $ 1,445 | ||
Sales and marketing | 21,618 | 20,888 | ||
Credit Facility | ||||
Term of debt (in years) | 7 years | 7 years | ||
Shipping and Handling | ||||
Sales and marketing | $ 1,457 | $ 1,318 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 7,707 | $ 15,284 | ||
Restricted cash | 6,252 | 6,251 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 13,959 | $ 21,535 | $ 20,810 | $ 39,007 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 12,922 | $ 12,651 | |
Work in process | 1,070 | 1,026 | |
Raw materials | 5,857 | 5,228 | |
Inventory | 19,849 | $ 18,905 | |
Provision for inventory write-down | $ 581 | $ 459 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Finance lease right-of-use assets | $ 131 | $ 131 |
Property and equipment, at cost | 94,054 | 89,590 |
Less: accumulated depreciation and amortization | (11,005) | (10,296) |
Property and equipment, net | 83,049 | 79,294 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 6,147 | 5,316 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 15,482 | 15,482 |
Processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 4,264 | 4,227 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 731 | 731 |
Projects in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 67,299 | $ 63,703 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 709 | $ 704 |
Intangible Assets, Net - Compon
Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 5,162 | $ 4,893 |
Accumulated Amortization | (1,706) | (1,635) |
Net Carrying Amount | 3,456 | 3,258 |
Unamortized intangible assets: | ||
Intangible assets, gross | 5,564 | 5,284 |
Intangible assets, net | 3,858 | 3,649 |
Trademarks | ||
Unamortized intangible assets: | ||
Carrying amount | 402 | 391 |
Patents | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 4,061 | 3,792 |
Accumulated Amortization | (665) | (621) |
Net Carrying Amount | 3,396 | 3,170 |
License agreements | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,101 | 1,101 |
Accumulated Amortization | (1,041) | (1,014) |
Net Carrying Amount | $ 60 | $ 87 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 71 | $ 69 |
Intangible Assets, Net - Future
Intangible Assets, Net - Future Amortization of Patents and License Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Intangible assets | ||
Net Carrying Amount | $ 3,456 | $ 3,258 |
Patents And License Agreements | ||
Intangible assets | ||
2023 (excluding the three months ended March 31, 2023) | 189 | |
2024 | 195 | |
2025 | 195 | |
2026 | 194 | |
2027 | 190 | |
Thereafter | 2,493 | |
Net Carrying Amount | $ 3,456 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Royalty Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Selling and Marketing Expense | ||
Intangible assets | ||
Royalty fee expense | $ 831 | $ 673 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt derivative liabilities | $ 4,703 | $ 4,518 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 31,667 | 43,859 |
Total liabilities | 4,703 | 4,518 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,507 | 10,354 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 13,806 | 12,316 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 16,354 | 21,189 |
Recurring | Debt derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt derivative liabilities | 4,703 | 4,518 |
(Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 15,313 | 22,669 |
Total liabilities | 0 | 0 |
(Level 1) | Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,507 | 10,354 |
(Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 13,806 | 12,316 |
(Level 1) | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 1) | Recurring | Debt derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt derivative liabilities | 0 | 0 |
(Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 16,354 | 21,189 |
Total liabilities | 0 | 0 |
(Level 2) | Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 2) | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 16,354 | 21,189 |
(Level 2) | Recurring | Debt derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt derivative liabilities | 0 | 0 |
(Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 4,703 | 4,518 |
(Level 3) | Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 3) | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
(Level 3) | Recurring | Debt derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt derivative liabilities | $ 4,703 | $ 4,518 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Instruments Classified as Level 3 (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 4,518 | $ 5,562 |
Ending balance | 4,703 | 5,310 |
Debt derivative liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Change in fair value included in net loss | $ 185 | $ (252) |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - Oberland Facility $ in Thousands | Mar. 31, 2023 USD ($) settlementScenario | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 45,931 | $ 45,712 |
Fair value of long-term debt | $ 50,898 | $ 50,293 |
Debt derivative liabilities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Number of potential settlement scenarios | settlementScenario | 4 |
Fair Value Measurement - Signif
Fair Value Measurement - Significant Inputs Included in the Valuation of the Debt Derivative Liability (Details) - Debt derivative liabilities | Mar. 31, 2023 | Dec. 31, 2022 |
First Tranche | Remaining term (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 4.25 | 4.5 |
First Tranche | Coupon rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.095 | 0.095 |
First Tranche | Coupon rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.127 | 0.127 |
First Tranche | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.134 | 0.139 |
First Tranche | Mandatory prepayment rate | Probability of mandatory prepayment before 2024 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.050 | 0.050 |
First Tranche | Mandatory prepayment rate | Probability of mandatory prepayment 2024 or after | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.150 | 0.150 |
First Tranche | Mandatory prepayment rate | Probability of optional prepayment event | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.050 | 0.050 |
Second Tranche | Remaining term (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 5.25 | 5.5 |
Second Tranche | Coupon rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.095 | 0.095 |
Second Tranche | Coupon rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.127 | |
Second Tranche | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.170 | 0.1756 |
Second Tranche | Mandatory prepayment rate | Probability of mandatory prepayment before 2024 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.050 | 0.050 |
Second Tranche | Mandatory prepayment rate | Probability of mandatory prepayment 2024 or after | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.150 | 0.150 |
Second Tranche | Mandatory prepayment rate | Probability of optional prepayment event | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability measurement input (as a percent) | 0.050 | 0.050 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,298 | $ 1,408 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term lease obligations | Current maturities of long-term lease obligations |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term lease obligations | Long-term lease obligations |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term lease obligations | Current maturities of long-term lease obligations |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term lease obligations | Long-term lease obligations |
Operating Leases | ||
Right-of-use operating assets | $ 13,868 | $ 14,369 |
Current maturities of long-term lease obligations | 1,043 | 1,303 |
Long-term lease obligations | 20,073 | 20,387 |
Financing Leases | ||
Right-of-use financing leases | 35 | 41 |
Current maturities of long-term lease obligations | 7 | 7 |
Long-term lease obligations | $ 16 | $ 18 |
Weighted average operating lease term (in years): | 11 years | 11 years |
Weighted average financing lease term (in years): | 4 years | 4 years |
Weighted average discount rate operating leases | 10.65% | 10.58% |
Weighted average discount rate financing leases | 12.07% | 11.91% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 (excluding the three months ended March 31, 2023) | $ 2,417 |
2024 | 3,253 |
2025 | 3,336 |
2026 | 3,348 |
2027 | 2,920 |
Thereafter | 20,932 |
Total | 36,206 |
Less: Imputed interest | (15,067) |
Total lease liability | 21,139 |
Less: Current lease liability | (1,050) |
Long-term lease liability | $ 20,089 |
Long-Term Debt, Net of Debt D_3
Long-Term Debt, Net of Debt Discount and Financing Fees - Carrying Value of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less - unamortized debt discount and deferred financing fees | $ (4,069) | $ (4,288) |
Long-term debt, net of debt discount and financing fees | 45,931 | 45,712 |
Credit Facility - first tranche | ||
Debt Instrument [Line Items] | ||
Long-term debt | 35,000 | 35,000 |
Credit Facility - second tranche | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | $ 15,000 |
Long-Term Debt, Net of Debt D_4
Long-Term Debt, Net of Debt Discount and Financing Fees - Narrative (Details) $ in Thousands | 3 Months Ended | 24 Months Ended | ||||
Jun. 30, 2020 USD ($) | Mar. 31, 2023 USD ($) letterOfCredit | Mar. 31, 2022 USD ($) | Jun. 30, 2022 | Dec. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Interest capitalized | $ 2,147 | $ 1,445 | ||||
Amortization of debt discount and deferred financing fees | 219 | 220 | ||||
Restricted cash | $ 6,252 | $ 6,251 | ||||
Number of letters of credit | letterOfCredit | 2 | |||||
Debt derivative liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Debt derivative liabilities | $ 4,703 | 4,518 | ||||
Other Assets | ||||||
Debt Instrument [Line Items] | ||||||
Accumulated capitalized interest costs | 13,576 | |||||
Restricted Cash | ||||||
Debt Instrument [Line Items] | ||||||
Collateral amount | $ 6,000 | $ 250 | ||||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt (in years) | 7 years | 7 years | ||||
Long-term debt | $ 35,000 | $ 15,000 | ||||
Period for which quarterly interest payments should be made (in years) | 7 years | |||||
Interest rate (as a percent) | 7.50% | |||||
Interest rate at period end (as a percent) | 12.25% | |||||
Threshold revenue achievement for payment of additional quarterly royalty | $ 70,000 | |||||
Additional payment (as a percent) | 1% | |||||
Interest costs incurred | $ 396 | 335 | ||||
Cash paid for interest | 1,532 | $ 1,187 | ||||
Financing costs | $ 642 | |||||
Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Additional interest floor rate (as a percent) | 2% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation Activity (Details) | 3 Months Ended | |
Mar. 16, 2022 | Mar. 31, 2023 officer $ / shares shares | |
Weighted Average Grant Date Fair Value | ||
Number of officers | officer | 2 | |
Minimum | ||
Weighted Average Grant Date Fair Value | ||
Payout opportunity target (as a percent) | 0% | |
Maximum | ||
Weighted Average Grant Date Fair Value | ||
Payout opportunity target (as a percent) | 150% | |
Stock Option | ||
Target Shares or Units | ||
Stock options granted (in shares) | 1,046,800 | |
Weighted Average Grant Date Fair Value | ||
Stock options granted (in USD per shares) | $ / shares | $ 4.96 | |
Vesting period (in years) | 4 years | |
Stock Option | Inducement Shares | ||
Weighted Average Grant Date Fair Value | ||
Vesting period (in years) | 4 years | |
Restricted Stock Units | ||
Target Shares or Units | ||
Stock units granted (in shares) | 1,129,718 | |
Weighted Average Grant Date Fair Value | ||
Stock options/units granted (in USD per share) | $ / shares | $ 8.39 | |
Vesting period (in years) | 4 years | |
Performance Stock Units | ||
Target Shares or Units | ||
Stock units granted (in shares) | 744,000 | |
Weighted Average Grant Date Fair Value | ||
Stock options/units granted (in USD per share) | $ / shares | $ 8.27 | |
Vesting period (in years) | 3 years | |
Performance Stock Units | Maximum | ||
Target Shares or Units | ||
Stock units granted (in shares) | 1,116,000 | |
Performance Stock Units | Inducement Shares | ||
Weighted Average Grant Date Fair Value | ||
Vesting period (in years) | 4 years | |
Inducement Shares, Stock Options | ||
Target Shares or Units | ||
Stock options granted (in shares) | 150,000 | |
Weighted Average Grant Date Fair Value | ||
Stock options granted (in USD per shares) | $ / shares | $ 4.92 | |
Inducement Shares, Restricted Stock Units | ||
Target Shares or Units | ||
Stock units granted (in shares) | 75,000 | |
Weighted Average Grant Date Fair Value | ||
Stock options/units granted (in USD per share) | $ / shares | $ 8.16 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 2,954 | $ 2,678 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss | $ (7,074) | $ (11,475) |
Denominator: | ||
Weighted-average common shares outstanding (Basic) (in shares) | 42,571,021 | 41,804,330 |
Weighted-average common shares outstanding (Diluted) (in shares) | 42,571,021 | 41,804,330 |
Net loss per common share - Basic (in USD per share) | $ (0.17) | $ (0.27) |
Net loss per common share - Diluted (in USD per share) | $ (0.17) | $ (0.27) |
Stock Option | ||
Denominator: | ||
Anti-dilutive securities excluded from computation of net loss per share (in shares) | 3,338,761 | 2,983,351 |
Restricted Stock Units | ||
Denominator: | ||
Anti-dilutive securities excluded from computation of net loss per share (in shares) | 449,941 | 581,171 |
Commitments and Contingencies -
Commitments and Contingencies - Service Agreements Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2011 | Mar. 31, 2023 | Mar. 31, 2022 | |
CTS Agreement | |||
Service Agreements | |||
License fee amount | $ 729 | $ 622 | |
Master Services Agreement For Clinical Research and Related Services | |||
Service Agreements | |||
Service agreement amount paid upon execution of agreement | $ 151 | ||
Payments made under agreement | $ 112 | $ 327 |
Commitments and Contingencies_2
Commitments and Contingencies - Axogen Processing Center Facility Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | ||||
Jul. 31, 2018 USD ($) ft² a | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Concentrations | |||||
Interest capitalized | $ 2,147 | $ 1,445 | |||
Design Build Agreement | Projects in process | Minimum | Forecast | |||||
Concentrations | |||||
Anticipated costs associated with design build agreement in 2023 | $ 1,700 | ||||
Design Build Agreement | Projects in process | Maximum | Forecast | |||||
Concentrations | |||||
Anticipated costs associated with design build agreement in 2023 | $ 2,700 | ||||
Projects in process | |||||
Concentrations | |||||
Property and equipment gross | 67,299 | $ 63,703 | |||
Projects in process | Design Build Agreement | |||||
Concentrations | |||||
Property and equipment additions | 1,599 | ||||
Property and equipment gross | 47,953 | ||||
Interest capitalized | 2,147 | ||||
Accumulated capitalized interest costs | 13,576 | ||||
APC Facility | |||||
Concentrations | |||||
Size of building space (in sq ft) | ft² | 107 | ||||
Area of land where building resides (in acres) | a | 8.6 | ||||
Payments to acquire land | $ 731 | ||||
Payments to acquire building | $ 4,300 | ||||
APC Facility | Design Build Agreement | |||||
Concentrations | |||||
Grants receivable | 2,685 | ||||
Cash grants receivable | 1,250 | ||||
Economic development grant proceeds | $ 1,188 |
Commitments and Contingencies_3
Commitments and Contingencies - Fair Value of the Debt Derivative Liabilities (Details) | Mar. 31, 2023 USD ($) settlementScenario | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Credit Facility | Debt derivative liabilities | ||||
Debt Instrument [Line Items] | ||||
Number of potential settlement scenarios | settlementScenario | 4 | |||
Make-whole payment required under each scenario, internal rate of return (as a percent) | 11.50% | |||
Credit Facility - first tranche | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, held to maturity make-whole payment | $ 0 | |||
Held to maturity make-whole payment, alternative interpretation | 10,000,000 | |||
Credit Facility - second tranche | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, held to maturity make-whole payment | 0 | |||
Held to maturity make-whole payment, alternative interpretation | 4,000,000 | |||
Recurring | ||||
Debt Instrument [Line Items] | ||||
Fair value of derivative liabilities | $ 4,703,000 | $ 4,518,000 | $ 5,310,000 | $ 5,562,000 |