Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BIOL | |
Entity Registrant Name | BIOLASE, INC. | |
Entity Central Index Key | 0000811240 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 153,279,540 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock at par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36385 | |
Entity Tax Identification Number | 87-0442441 | |
Entity Address, Address Line One | 27042 Towne Centre Drive | |
Entity Address, Address Line Two | Suite 270 | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92610 | |
City Area Code | 949 | |
Local Phone Number | 361-1200 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 33,385,000 | $ 17,564,000 |
Restricted cash | 204,000 | 312,000 |
Accounts receivable, less allowance of $2,871 and $4,017 as of September 30, 2021 and December 31, 2020, respectively | 3,637,000 | 3,059,000 |
Inventory | 14,062,000 | 11,157,000 |
Prepaid expenses and other current assets | 1,366,000 | 3,018,000 |
Total current assets | 52,654,000 | 35,110,000 |
Property, plant, and equipment, net | 889,000 | 782,000 |
Goodwill | 2,926,000 | 2,926,000 |
Right of use asset | 1,823,000 | 1,976,000 |
Other assets | 222,000 | 231,000 |
Total assets | 58,514,000 | 41,025,000 |
Current liabilities: | ||
Accounts payable | 3,597,000 | 2,651,000 |
Accrued liabilities | 6,182,000 | 6,667,000 |
Deferred revenue, current portion | 2,278,000 | 1,905,000 |
Current portion of term loans, net of discount | 1,400,000 | 0 |
Total current liabilities | 13,457,000 | 11,223,000 |
Deferred revenue | 294,000 | 374,000 |
Warranty accrual | 472,000 | 384,000 |
Non current term loans, net of discount | 12,114,000 | 16,186,000 |
Non current operating lease liability | 1,557,000 | 1,774,000 |
Other liabilities | 298,000 | 1,056,000 |
Total liabilities | 28,192,000 | 30,997,000 |
Commitments and contingencies — Note 11 | ||
Stockholders' equity: | ||
Series F Preferred stock, par value $0.001 per share; 18 shares authorized, 0 and 1 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 34,000 | 118,000 |
Common stock, par value $0.001 per share; 180,000 shares authorized, 153,322 and 97,709 shares issued and 153,277 and 97,663 outstanding as of September 30, 2021 and December 31, 2020, respectively | 153,000 | 98,000 |
Additional paid-in-capital | 292,948,000 | 261,573,000 |
Accumulated other comprehensive loss | (558,000) | (385,000) |
Accumulated deficit | (262,255,000) | (251,376,000) |
Total stockholders' equity | 30,322,000 | 10,028,000 |
Total liabilities, redeemable preferred stock and stockholders' equity | $ 58,514,000 | $ 41,025,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 2,871 | $ 4,017 |
Series E Preferred stock, shares authorized | 1,000,000 | |
Series E Preferred stock, shares outstanding | 0 | 0 |
Series F Preferred stock, par value | $ 0.001 | $ 0.001 |
Series F Preferred stock, shares authorized | 18,000 | 18,000 |
Series F Preferred stock, shares issued | 0 | 1,000 |
Series F Preferred stock, shares outstanding | 0 | 1,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 153,322,000 | 97,709,000 |
Common stock, shares outstanding | 153,277,000 | 97,663,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net revenue | $ 9,531,000 | $ 6,539,000 | $ 26,780,000 | $ 14,260,000 |
Cost of revenue | 4,689,000 | 4,265,000 | 15,157,000 | 9,692,000 |
Gross profit | 4,842,000 | 2,274,000 | 11,623,000 | 4,568,000 |
Operating expenses: | ||||
Sales and marketing | 3,451,000 | 2,678,000 | 10,315,000 | 7,475,000 |
General and administrative | 2,479,000 | 2,300,000 | 8,613,000 | 7,446,000 |
Engineering and development | 1,540,000 | 963,000 | 4,506,000 | 2,644,000 |
Loss on patent litigation settlement | 29,000 | 0 | 190,000 | 0 |
Total operating expenses | 7,499,000 | 5,941,000 | 23,624,000 | 17,565,000 |
Loss from operations | (2,657,000) | (3,667,000) | (12,001,000) | (12,997,000) |
Gain (Loss) on foreign currency transactions | (36,000) | 53,000 | (172,000) | (68,000) |
Interest expense, net | (569,000) | (568,000) | (1,727,000) | (1,782,000) |
Gain on debt forgiveness | 0 | 0 | 3,014,000 | 0 |
Other income, net | 0 | 4,209,000 | 0 | 4,209,000 |
Non-operating gain (loss), net | (605,000) | 3,694,000 | 1,115,000 | 2,359,000 |
Loss before income tax (provision) benefit | (3,262,000) | 27,000 | (10,886,000) | (10,638,000) |
Income tax (provision) benefit | (14,000) | (15,000) | 7,000 | (49,000) |
Net income (loss) | (3,276,000) | 12,000 | (10,879,000) | (10,687,000) |
Other comprehensive loss items: | ||||
Foreign currency translation adjustments | (90,000) | 111,000 | (173,000) | 167,000 |
Comprehensive income (loss) | (3,366,000) | 123,000 | (11,052,000) | (10,520,000) |
Net income (loss) | (3,276,000) | 12,000 | (10,879,000) | (10,687,000) |
Deemed dividend on convertible preferred stock | (9,000) | (17,378,000) | (546,000) | (17,378,000) |
Net loss attributable to common stockholders | $ (3,285,000) | $ (17,366,000) | $ (11,425,000) | $ (28,065,000) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.02) | $ (0.21) | $ (0.08) | $ (0.56) |
Diluted | $ (0.02) | $ (0.21) | $ (0.08) | $ (0.56) |
Shares used in the calculation of net loss per share: | ||||
Basic | 151,941 | 81,341 | 145,809 | 50,366 |
Diluted | 151,941 | 81,341 | 145,809 | 50,366 |
Consolidated Statements Of Rede
Consolidated Statements Of Redeemable Preferred Stock and Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Series E Convertible Preferred Stock | Series F Convertible Preferred Stock | July 2020 Warrants | June 2020 Warrants | Common Stock | Common StockSeries E Convertible Preferred Stock | Common StockSeries F Convertible Preferred Stock | Common StockJune 2020 Warrants | Additional Paid-in Capital | Additional Paid-in CapitalSeries E Convertible Preferred Stock | Additional Paid-in CapitalSeries F Convertible Preferred Stock | Additional Paid-in CapitalJuly 2020 Warrants | Additional Paid-in CapitalJune 2020 Warrants | Convertible Preferred Stock | Convertible Preferred StockSeries F Convertible Preferred Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Mezzanine EquitySeries E Convertible Preferred Stock |
Beginning balance at Dec. 31, 2019 | $ 377 | $ 31 | $ 235,594 | $ (701) | $ (234,547) | ||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 3,965 | ||||||||||||||||||
Beginning balance, shares at Dec. 31, 2019 | 70,000 | ||||||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 31,459,000 | ||||||||||||||||||
Issuance of convertible preferred stock in rights offering, net of offering costs | $ 2,411 | $ 2,411 | |||||||||||||||||
Issuance of convertible preferred stock in rights offering, net of offering costs, shares | 18,000 | ||||||||||||||||||
Beneficial conversion on Convertible Preferred Stock | $ 2,700 | $ (2,700) | |||||||||||||||||
Conversion of convertible preferred stock | $ 3,965 | $ 7 | $ 43 | $ 3,958 | 16,905 | $ (16,948) | $ (3,965) | ||||||||||||
Conversion of convertible preferred stock, shares | 6,957,000 | 42,370,000 | (17,000) | (70,000) | |||||||||||||||
Sale of common stock | 3,872 | $ 11 | 3,861 | ||||||||||||||||
Sale of common stock, shares | 10,800,000 | ||||||||||||||||||
Sale of common stock warrants | 3,031 | $ 9,450 | 3,031 | $ 9,450 | |||||||||||||||
Issuance of restricted shares | 164 | ||||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | (17,378) | (17,378) | $ 17,378 | ||||||||||||||||
Stock offering costs | (856) | (856) | |||||||||||||||||
Stock-based compensation | 1,846 | 1,846 | |||||||||||||||||
Warrants issued in connection with debt instruments | 67 | 67 | |||||||||||||||||
Issuance of stock from RSUs, net | 162 | $ 1 | 161 | ||||||||||||||||
Issuance of stock from RSUs, net, shares | 1,297,000 | ||||||||||||||||||
Exercise of common stock warrants | $ 46 | $ 46 | |||||||||||||||||
Exercise of common stock warrants, shares | 116,000 | ||||||||||||||||||
Net loss | (10,687) | (10,687) | |||||||||||||||||
Foreign currency translation adjustments | 167 | 167 | |||||||||||||||||
Ending balance at Sep. 30, 2020 | 13,851 | $ 93 | 259,385 | $ 141 | (534) | (245,234) | |||||||||||||
Balance (in shares) at Sep. 30, 2020 | 92,999,000 | ||||||||||||||||||
Ending balance, shares at Sep. 30, 2020 | 1,000 | ||||||||||||||||||
Beginning balance at Dec. 31, 2019 | 377 | $ 31 | 235,594 | (701) | (234,547) | ||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 3,965 | ||||||||||||||||||
Beginning balance, shares at Dec. 31, 2019 | 70,000 | ||||||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 31,459,000 | ||||||||||||||||||
Sale of common stock, shares | 17,000 | ||||||||||||||||||
Ending balance at Dec. 31, 2020 | $ 10,028 | $ 98 | 261,573 | $ 118 | (385) | (251,376) | |||||||||||||
Balance (in shares) at Dec. 31, 2020 | 97,709,000 | 97,709,000 | |||||||||||||||||
Ending balance, shares at Dec. 31, 2020 | 0 | 882 | 1,000 | ||||||||||||||||
Beginning balance at Jun. 30, 2020 | $ 1,308 | $ 50 | 247,149 | (645) | (245,246) | ||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 50,322,000 | ||||||||||||||||||
Issuance of convertible preferred stock in rights offering, net of offering costs | $ 2,411 | $ 2,411 | |||||||||||||||||
Issuance of convertible preferred stock in rights offering, net of offering costs, shares | 18,000 | ||||||||||||||||||
Beneficial conversion on Convertible Preferred Stock | 2,700 | $ (2,700) | |||||||||||||||||
Conversion of convertible preferred stock | $ 43 | 16,905 | $ (16,948) | ||||||||||||||||
Conversion of convertible preferred stock, shares | 42,370,000 | (17,000) | |||||||||||||||||
Sale of common stock warrants | $ 9,450 | $ 9,450 | |||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | (17,378) | $ (17,378) | $ 17,378 | ||||||||||||||||
Stock-based compensation | 513 | 513 | |||||||||||||||||
Issuance of stock from RSUs, net, shares | 191,000 | ||||||||||||||||||
Exercise of common stock warrants | $ 46 | $ 46 | |||||||||||||||||
Exercise of common stock warrants, shares | 116,000 | ||||||||||||||||||
Net loss | 12 | 12 | |||||||||||||||||
Foreign currency translation adjustments | 111 | 111 | |||||||||||||||||
Ending balance at Sep. 30, 2020 | 13,851 | $ 93 | 259,385 | $ 141 | (534) | (245,234) | |||||||||||||
Balance (in shares) at Sep. 30, 2020 | 92,999,000 | ||||||||||||||||||
Ending balance, shares at Sep. 30, 2020 | 1,000 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 10,028 | $ 98 | 261,573 | $ 118 | (385) | (251,376) | |||||||||||||
Beginning balance, shares at Dec. 31, 2020 | 0 | 882 | 1,000 | ||||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 97,709,000 | 97,709,000 | |||||||||||||||||
Conversion of convertible preferred stock | $ 2 | 628 | $ (630) | ||||||||||||||||
Conversion of convertible preferred stock, shares | 1,577,000 | (1,000) | |||||||||||||||||
Sale of common stock | $ 13,291 | $ 14 | 13,277 | ||||||||||||||||
Sale of common stock, shares | 18,000 | 14,000,000 | |||||||||||||||||
Exercise of stock option Shares | 176,000 | 176,000 | |||||||||||||||||
Exercise of stock option | $ 66 | 66 | |||||||||||||||||
Issuance of restricted shares, Shares | 260,000 | ||||||||||||||||||
Issuance of restricted shares | 164 | ||||||||||||||||||
Issuance of common stock for settlement of liability | 510 | $ 1 | 509 | ||||||||||||||||
Issuance of common stock for settlement of liability, Shares | 500,000 | ||||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | (546) | (546) | $ 546 | ||||||||||||||||
Stock-based compensation | 2,253 | 2,253 | |||||||||||||||||
Issuance of stock from RSUs, net | $ 3 | (3) | |||||||||||||||||
Issuance of stock from RSUs, net, shares | 3,381,000 | ||||||||||||||||||
Exercise of common stock warrants | 15,062 | $ 35 | 15,027 | ||||||||||||||||
Exercise of common stock warrants, shares | 35,719,000 | ||||||||||||||||||
Net loss | (10,879) | (10,879) | |||||||||||||||||
Foreign currency translation adjustments | (173) | (173) | |||||||||||||||||
Ending balance at Sep. 30, 2021 | $ 30,322 | $ 153 | 292,948 | 34 | (558) | (262,255) | |||||||||||||
Balance (in shares) at Sep. 30, 2021 | 153,322,000 | 153,322,000 | |||||||||||||||||
Ending balance, shares at Sep. 30, 2021 | 0 | 251 | |||||||||||||||||
Beginning balance at Jun. 30, 2021 | $ 33,256 | $ 151 | 292,517 | 35 | (468) | (258,979) | |||||||||||||
Balance (in shares) at Jun. 30, 2021 | 151,236,000 | ||||||||||||||||||
Conversion of convertible preferred stock | 10 | (10) | |||||||||||||||||
Conversion of convertible preferred stock, shares | 25,000 | ||||||||||||||||||
Exercise of stock option Shares | 176,000 | ||||||||||||||||||
Exercise of stock option | $ 66 | 66 | |||||||||||||||||
Issuance of restricted shares, Shares | 260,000 | ||||||||||||||||||
Issuance of restricted shares | $ 164 | 164 | |||||||||||||||||
Deemed Dividend on Convertible Preferred Stock | (9) | (9) | 9 | ||||||||||||||||
Stock-based compensation | 192 | 192 | |||||||||||||||||
Issuance of stock from RSUs, net | $ 2 | (2) | |||||||||||||||||
Issuance of stock from RSUs, net, shares | 1,600,000 | ||||||||||||||||||
Exercise of common stock warrants | 10 | 10 | |||||||||||||||||
Exercise of common stock warrants, shares | 25,000 | ||||||||||||||||||
Net loss | (3,276) | (3,276) | |||||||||||||||||
Foreign currency translation adjustments | (90) | (90) | |||||||||||||||||
Ending balance at Sep. 30, 2021 | $ 30,322 | $ 153 | $ 292,948 | $ 34 | $ (558) | $ (262,255) | |||||||||||||
Balance (in shares) at Sep. 30, 2021 | 153,322,000 | 153,322,000 | |||||||||||||||||
Ending balance, shares at Sep. 30, 2021 | 0 | 251 |
Consolidated Statements Of Re_2
Consolidated Statements Of Redeemable Preferred Stock And Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Series F Convertible Preferred Stock | ||
Convertible preferred stock in right offering, issuance cost | $ 0.3 | $ 0.3 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (10,879) | $ (10,687) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||
Depreciation and amortization | 281 | 527 |
Provision for bad debts | (162) | 1,263 |
Provision for sales returns | 0 | 87 |
Inventory write-offs and disposals | (117) | 0 |
Amortization of discounts on lines of credit | 126 | 123 |
Amortization of debt issuance costs | 290 | 240 |
Patent litigation mark-to-market | 190 | 0 |
Change in fair value of warrants | 0 | (5,850) |
Issuance of restricted shares | 164 | 0 |
Issuance costs for common stock warrants | 0 | 1,640 |
Stock-based compensation | 1,488 | 2,367 |
Gain on debt forgiveness | 3,014 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (417) | 4,017 |
Inventory | (2,788) | (1,597) |
Prepaid expenses and other current assets | 235 | 430 |
Accounts payable and accrued liabilities | 705 | (3,445) |
Deferred revenue | 292 | (562) |
Net cash and cash equivalents used in operating activities | (13,606) | (11,447) |
Cash Flows from Investing Activities: | ||
Purchases of property, plant, and equipment | (396) | (78) |
Net cash and cash equivalents used in investing activities | (396) | (78) |
Cash Flows from Financing Activities: | ||
Proceeds from the sale of common stock | 13,291 | 6,912 |
Proceeds from sale of common stock warrants | 0 | 15,300 |
Proceeds from the issuance of Series F Convertible Preferred Stock | 0 | 2,700 |
Payments of equity offering costs | (6) | (1,281) |
Payment of July 2020 Warrant issuance costs | 0 | (1,640) |
Borrowings on other long-term loans | 0 | 3,140 |
Principal payment on loan | 0 | (700) |
Borrowings on credit facility | 0 | 3,000 |
Repayment of credit facility | 0 | (3,000) |
Proceeds from the exercise of common stock warrants | 16,560 | 46 |
Payment of debt issuance costs | (25) | (75) |
Proceeds from exercise of stock options | 66 | 0 |
Net cash and cash equivalents provided by financing activities | 29,886 | 24,402 |
Effect of exchange rate changes | (171) | 181 |
Increase in cash, cash equivalents and restricted cash | 15,713 | 13,058 |
Cash, cash equivalents and restricted cash, beginning of period | 17,876 | 6,101 |
Cash, cash equivalents and restricted cash, end of period | 33,589 | 19,159 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 1,328 | 1,438 |
Cash received for interest | 44 | 0 |
Cash paid for income taxes | 154 | 21 |
Cash paid for operating leases | 185 | 417 |
Non-cash settlement of liability | 510 | 151 |
Non-cash right-of-use assets obtained in exchange for lease obligation | 48 | 2,037 |
Deemed dividend on preferred stock | 546 | 17,378 |
Warrants issued in connection with debt instruments | $ 0 | $ 67 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION The Company BIOLASE, Inc. (“BIOLASE” and, together with its consolidated subsidiaries, the “Company”) is a leading provider of advanced laser systems for the dental industry. The Company develops, manufactures, markets, and sells laser systems that provide significant benefits for dental practitioners and their patients. The Company’s proprietary systems allow dentists, periodontists, endodontists, pediatric dentists, oral surgeons, and other dental specialists to perform a broad range of minimally invasive dental procedures, including cosmetic, restorative, and complex surgical applications. The Company’s laser systems are designed to provide clinically superior results for many types of dental procedures compared to those achieved with drills, scalpels, and other conventional instruments. Potential patient benefits include less pain, fewer shots, faster healing, decreased fear and anxiety, and fewer appointments. Potential practitioner benefits include improved patient care and the ability to perform a higher volume and wider variety of procedures and generate more patient referrals. Basis of Presentation The unaudited consolidated financial statements include the accounts of BIOLASE and its wholly-owned subsidiaries and have been prepared on a basis consistent with the December 31, 2020 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments and the elimination of all material intercompany transactions and balances, necessary to fairly present the information set forth therein. The unaudited consolidated financial statements do not include all the footnotes, presentations, and disclosures normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. The consolidated results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2020, included in BIOLASE’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021 (the “2020 Form 10-K”). Liquidity and Management’s Plans The Company incurred losses from operations and used cash in operating activities for the three and nine months ended September 30, 2021 and for the years ended December 31, 2020, 2019, and 2018. As of September 30, 2021, the Company had working capital of approximately $ 39.2 million . The Company’s principal sources of liquidity as of September 30, 2021 consisted of approximately $ 33.6 million in cash, cash equivalents, and restricted cash, $ 3.6 million of net accounts receivable, and unused availability under the PMB Loan (as defined below) of approximately $ 2.8 million. As of December 31, 2020 , the Company had working capital of approximately $ 23.9 million, $ 17.9 million in cash, cash equivalents and restricted cash and $ 3.1 million of net accounts receivable. The increase in cash, cash equivalents, and restricted cash since December 31, 2020 was primarily due to gross proceeds of $ 14.4 million from the issuance of common stock and $ 16.6 million from warrants exercised in the nine months ended September 30, 2021. See Note 4 to the consolidated financial statements for additional information on these common stock issuances and warrant exercises. Additional capital requirements may depend on many factors, including, among other things, the rate at which the Company’s business grows, the COVID-19 pandemic and the actions taken to contain it, demands for working capital, manufacturing capacity, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to raise capital through either equity or debt offerings. The Company cannot provide assurance that it will be able to successfully enter into any such equity or debt financings in the future or that the required capital would be available on acceptable terms, if at all, or that any such financing activity would not be dilutive to its’ stockholders. COVID-19 Risk and Uncertainties and CARES Act The COVID-19 pandemic severely impacted global economic activity, and many countries and many states in the United States reacted to the COVID-19 pandemic by instituting quarantines, mandating business and school closures and restricting travel. These mandated business closures included dental office closures worldwide, in large part, for all but emergency procedures. The ability of the Company’s salespeople to call on dental customers during these closures was greatly limited. In addition, most dental shows and workshops scheduled in 2020 were canceled. As a result of reduced sales due to the COVID-19 pandemic and actions taken to contain it, cash generated from the Company’s operations during 2020 were less than anticipated. Given the uncertainties regarding the ongoing and future effects of COVID-19, there is no assurance that sales will return to normal levels during the remainder of 2021 or at any time thereafter. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act") was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer-side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company analyzed the provisions of the CARES Act and determined that it will not have a material impact on its future financial condition, results of operations, or liquidity, other than approximately $ 1.8 million received as part of the Employee Retention Credit. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, goodwill and the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates. Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management as discussed in the Company’s 2020 audited financial statements included in the 2020 Form 10-K. Management believes that there have been no significant changes during the nine months ended September 30, 2021 in the Company’s critical accounting policies from those disclosed in the Company’s 2020 audited financial statements included in the 2020 Form 10-K. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of non-performance risk. Under the accounting guidance for fair value hierarchy, there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable, either directly or indirectly. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, and the SWK Loan (as defined below) as discussed in Note 9, approximate fair value because of the nature of these items. Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, and trade accounts receivable. The Company maintains its cash and cash equivalents and restricted cash with established commercial banks. At times, balances may exceed federally insured limits. To minimize the risk associated with trade accounts receivable, management performs ongoing credit evaluations of customers’ financial condition and maintains relationships with the Company’s customers that allow management to monitor current changes in business operations so the Company can respond as needed. The Company does not, generally, require customers to provide collateral before it sells them its products. However, the Company has required certain distributors to make prepayments for significant purchases of products. Substantially all of the Company’s revenue is denominated in U.S. dollars, including sales to international distributors. Only a small portion of its revenue and expenses is denominated in foreign currencies, principally the Euro and Indian Rupee. The Company’s foreign currency expenditures primarily consist of the cost of maintaining offices, consulting services, and employee-related costs. During the three and nine months ended September 30, 2021 and 2020 , respectively, the Company did not enter into any hedging contracts. Future fluctuations in the value of the U.S. dollar may affect the price competitiveness of the Company’s products outside the U.S. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Recently Issued Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This ASU clarifies the accounting for modifications or exchanges of freestanding equity-classified written call options (i.e. warrants) so that the transaction should be treated as an exchange of the original instrument for a new instrument. This standard is effective for fiscal years beginning after December 15, 2021 on a prospective basis, with early adoption permitted. The adoption of this update is not expected to have a material impact on the Company's consolidated financial position and results of operations. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step-up in the tax basis of goodwill and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance effective January 1, 2021, and the adoption of this standard did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard is effective for the Company beginning on January 1, 2022, with early adoption permitted only in the first quarter of 2021. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company is currently assessing the impact the new guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard’s main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope and to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for the Company beginning January 1, 2023, with early adoption permitted beginning January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 3—REVENUE RECOGNITION Contracts with Customers Revenue for sales of products and services is derived from contracts with customers. The products and services promised in customer contracts include delivery of laser systems, imaging systems, and consumables as well as certain ancillary services such as training and extended warranties. Contracts with each customer generally state the terms of the sale, including the description, quantity and price of each product or service. Payment terms are stated in the contract and vary according to the arrangement. Because the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the Company’s contracts do not contain variable consideration. The Company establishes a provision for estimated warranty expense. Performance Obligations At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customers. In order to identify performance obligations, the Company considers all of the products or services promised in contracts regardless of whether they are explicitly stated or are implied by customary business practices. Revenue from products and services transferred to customers at a single point in time accounted for 88 % of net revenue for the three and nine months ended September 30, 2021 and 86 % and 78 % of net revenue for the three and nine months ended September 30, 2020, respectively. The majority of the Company’s revenue recognized at a point in time is for the sale of laser systems and consumables. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. Revenue from services transferred to customers over time accounted for 12 % of net revenue for the three and nine months ended September 30, 2021 and 14 % and 22 % of net revenue for the three and nine months ended September 30, 2020 , respectively. The majority of the Company’s revenue that is recognized over time relates to product training and extended warranties. Deferred revenue attributable to undelivered elements, which primarily consists of product training, totaled approximately $ 1.0 million and $ 0.7 million as of September 30, 2021 and December 31, 2020, respectively. Transaction Price Allocation The transaction price for a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in a contract. The primary method used to estimate standalone selling price is the observable price when the good or service is sold separately in similar circumstances and to similar customers. Significant Judgments Revenue is recorded for extended warranties over time as the customer benefits from the warranty coverage. This revenue will be recognized equally throughout the contract period as the customer receives benefits from the Company's promise to provide such services. Revenue is recorded for product training as the customer attends a training program or upon the expiration of the obligation, which is generally after nine months. The Company also has contracts that include both the product sales and product training as performance obligations. In those cases, the Company records revenue for product sales at the point in time when the product has been shipped. The customer obtains control of the product when it is shipped, as all shipments are made FOB shipping point, and after the customer selects its shipping method and pays all shipping costs and insurance. The Company has concluded that control is transferred to the customer upon shipment. Accounts Receivable Accounts receivable are stated at estimated net realizable value. The allowance for doubtful accounts is based on an analysis of customer accounts and the Company’s historical experience with accounts receivable write-offs. Contract Liabilities The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): September 30, December 31, 2021 2020 Undelivered elements (training, installation, product $ 1,015 $ 670 Extended warranty contracts 1,557 1,609 Total deferred revenue 2,572 2,279 Less: long-term portion of deferred revenue ( 294 ) ( 374 ) Deferred revenue — current $ 2,278 $ 1,905 The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables at September 30, 2021 and December 31, 2020. The amount of revenue recognized during the nine months ended September 30, 2021 and 2020 that was included in the opening contract liability balance related to undelivered elements was $ 0.2 million and $ 0.3 million, respectively. The amounts related to extended warranty contracts was $ 1.1 million and $ 2.0 million, for the nine months ended September 30, 2021 and 2020, respectively. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. The Company’s revenues related to the following geographic areas were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 5,939 $ 4,755 $ 17,024 $ 10,079 International 3,592 1,784 9,756 4,181 Total net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue recognized over time $ 1,116 $ 898 $ 3,269 $ 3,143 Revenue recognized at a point in time 8,415 5,641 23,511 11,117 Net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 The Company’s sales by end market were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 End-customer $ 5,939 $ 5,087 $ 17,024 $ 9,845 Distributors 3,592 1,452 9,756 4,415 Net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 Shipping and Handling Costs and Revenues Shipping and freight costs are treated as fulfillment costs. For shipments to end-customers, the customer bears the shipping and freight costs and has control of the product upon shipment. For shipments to distributors, the distributor bears the shipping and freight costs, including insurance, tariffs and other import/export costs. |
Redeemable Preferred Stock and
Redeemable Preferred Stock and Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity And Equity [Abstract] | |
Redeemable Preferred Stock and Stockholders' Equity | NOTE 4—REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY BIOLASE's board of directors (the "Board"), without further stockholder authorization, may issue from time to time up to 1,000,000 shares of the Company’s preferred stock. Of the 1,000,000 shares of preferred stock, 69,565 shares are designated as Series E Participating Convertible Preferred Stock, par value $ 0.001 per share (“Series E Preferred Stock”), and 18,000 shares are designated as Series F Convertible Preferred Stock, par value $ 0.001 per share (“Series F Preferred Stock”). Common Stock On February 10, 2021, BIOLASE issued and sold in an underwritten bought deal offering an aggregate of 14,000,000 shares of common stock at a price of $ 1.03 per share less underwriting discounts and commissions (the "Equity Offering"). The Company received gross proceeds of approximately $ 14.4 million before deducting underwriting discounts and commissions and estimated offering expenses of $ 1.1 million. Preferred Stock Series F Convertible Preferred Stock On July 23, 2020, the Company consummated the sale of an aggregate of 18,000 shares of Series F Preferred Stock and 45,000,000 warrants (the “July 2020 Warrants”), with each warrant exercisable for one share of BIOLASE common stock, through a registered rights offering the Company completed on July 22, 2020 (the “Rights Offering”). Each share of Series F Preferred Stock is convertible at the Company’s option at any time on or after July 22, 2021 or at the option of the holder at any time, into the number of shares of BIOLASE common stock determined by dividing the $ 1,000 stated value per share of the Series F Preferred Stock by a conversion price of $ 0.40 per share. Each share of Series F Preferred Stock is convertible into 2,500 shares of common stock, and each July 2020 Warrant entitles the holder thereof to purchase one share BIOLASE common stock at a conversion price of $ 0.40 per share. In accordance with applicable accounting standards, the $ 18.0 million gross proceeds from the Rights Offering were allocated to the Series F Preferred Stock and the July 2020 Warrants in the amount of $ 2.7 million and $ 15.3 million, respectively. The allocation was based on the fair value of the July 2020 Warrants of $ 15.3 million as of the commitment date, with the residual proceeds of $ 2.7 million allocated to the Series F Preferred Stock. The Series F Preferred Stock contained a beneficial conversion feature which resulted in a deemed dividend to preferred stockholders of approximately $ 2.7 million, upon immediate accretion. Additionally, the July 2020 Warrants were recognized as a discount to the Series F Preferred Stock, with the conversion of approximately 18,000 and 17,000 Series F Preferred Stock to common stock as of September 30, 2021 and December 31, 2020 respectively. Upon conversion, this discount was accreted and also recognized as a deemed dividend to preferred stockholders in the amount of $ 0.5 million and $ 14.7 million for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. Approximately 251 and 882 shares of Series F Preferred Stock remained outstanding as of September 30, 2021 and December 31, 2020, respectively. Redeemable Preferred Stock Series E Participating Convertible Preferred Stock As of September 30, 2021 and December 31, 2020 , there were no shares of Series E Preferred Stock issued and outstanding. Stock-Based Compensation 2002 Stock Incentive Plan The 2002 Stock Incentive Plan (as amended effective as of May 26, 2004, November 15, 2005, May 16, 2007, May 5, 2011, June 6, 2013, October 30, 2014, April 27, 2015, and May 6, 2017, the “2002 Plan”) was replaced by the 2018 Plan (as defined below) with respect to future equity awards. Persons eligible to receive awards under the 2002 Plan included officers, employees, directors of the Company, and consultants. As of September 30, 2021 , a total of 3,110,000 shares have been authorized for issuance under the 2002 Plan, of which approximately 1,036,00 shares of common stock have been issued pursuant to options that were exercised and restricted stock units ("RSUs") that were vested, approximately 879,000 shares of common stock have been reserved for options that are outstanding, and no shares of common stock remain available for future grants. 2018 Stock Incentive Plan At the 2018 annual meeting of stockholders, the Company’s stockholders approved the 2018 Long-Term Incentive Plan (as amended, the “2018 Plan”) which was amended by Amendment No. 1 to the 2018 Plan, approved by the Company’s stockholders at a special meeting on September 21, 2018, Amendment No. 2 to the 2018 Plan, as approved by the Company’s stockholders on May 15, 2019, Amendment No. 3 to the 2018 Plan, as approved by the Company’s stockholders on May 13, 2020, and Amendment No. 4 to the 2018 Plan, as approved by the Company's stockholders on June 11, 2021. Although the increase of 24,700,000 in the number of shares of BIOLASE common stock available for issuance under the 2018 Plan was approved by the stockholders on June 11, 2021, the proposal to amend BIOLASE's certificate of incorporation to increase the number of authorized shares of BIOLASE common stock was not approved by stockholders at the meeting. Therefore, the shares available for issuance under the 2018 Plan only increased by the number of remaining shares authorized for issuance. The purposes of the 2018 Plan are (i) to align the interests of the Company’s stockholders and recipients of awards under the 2018 Plan by increasing the proprietary interest of such recipients in the Company’s growth and success; (ii) to advance the interests of the Company by attracting and retaining non-employee directors, officers, other employees, consultants, independent contractors, and agents; and (iii) to motivate such persons to act in the long-term best interests of the Company and its stockholders. Under the terms of the 2018 Plan, approximately 36,921,000 shares of BIOLASE common stock are available for issuance; however, because the increase in the number of authorized shares under the certificate of incorporation was not approved by stockholders at the 2021 annual meeting, only approximately 2.4 million shares are available for future grants as of the date of these unaudited consolidated financial statements. As of September 30, 2021 , a total of approximately 4,744,000 shares of the Company’s common stock have been reserved for issuance upon the exercise of outstanding options and or settlement of unvested RSUs under the 2018 Plan. The Company recognized stock-based compensation expense of $ 0.2 million and $ 1.5 million for the three and nine months ended September 30, 2021 , respectively, and $ 0.8 million and $ 2.4 million for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021 and 2020 , the Company had approximately $ 0.8 million and $ 1.4 million, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to unvested share-based compensation arrangements. The Company expects that expense to be recognized over a weighted-average period of 1.5 years. As of September 30, 2021 and December 31, 2020 , $ 0.0 million and $ 0.9 million of the total stock compensation cost related to performance-based awards was recognized as a liability. The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cost of revenue $ 25 $ 79 $ 138 $ 208 Sales and marketing 62 183 291 571 General and administrative 61 517 777 1,424 Engineering and development 44 68 282 164 Total $ 192 $ 847 $ 1,488 $ 2,367 The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Expected term (years) 6.1 N/A 6.1 5.5 Volatility 111 % — % 111 % 103 % Annual dividend per share N/A N/A N/A N/A Risk-free interest rate 0.98 % — % 0.86 % 0.37 % A summary of option activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share data): Weighted Weighted Average Contractual Aggregate Shares Exercise Term Intrinsic Options outstanding at December 31, 2020 2,398 $ 2.96 7.2 $ 53 Granted at fair market value 50 $ 0.87 Exercised ( 176 ) $ 0.38 Forfeited, cancelled, or expired ( 102 ) $ 7.78 Options outstanding at September 30, 2021 2,170 $ 2.89 6.6 $ 286 Options exercisable at September 30, 2021 2,052 $ 3.00 6.5 $ 277 Vested options expired during the period 91 $ 8.48 (1) The intrinsic value calculation does not include negative values, which can occur when the fair market value on the reporting date is less than the exercise price of the award. A summary of unvested stock option activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2020 1,323 $ 0.34 Granted 50 $ 0.72 Vested ( 1,256 ) $ 0.31 Unvested options at September 30, 2021 117 $ 0.73 Fair value disclosures related to grants, exercises and vested options are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Proceeds from stock options exercised $ 66 $ — $ 66 $ — Tax benefit related to stock options exercised (1) N/A N/A N/A N/A Intrinsic value of stock options exercised (2) $ 42 $ — $ 42 $ — Weighted-average fair value of options granted $ 0.49 $ — $ 0.72 $ 0.29 Total fair value of stock options vested during the period $ 8 $ 34 $ 395 $ 188 (1) Excess tax benefits received related to stock option exercises are presented as operating cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the options. Restricted Stock Units During the nine months ended September 30, 2021 , the Company granted approximately 2.8 million RSUs and the Company canceled approximately 0.1 million RSUs with performance-based vesting due to non-achievement of the performance targets. A summary of unvested RSU activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share amounts): Weighted Average Grant Shares Date Fair Value Unvested RSUs at December 31, 2020 3,672 $ 0.66 Granted 2,808 $ 0.83 Vested ( 3,772 ) $ 0.69 Forfeited or cancelled ( 601 ) $ 1.33 Unvested RSUs at September 30, 2021 2,107 $ 0.63 Warrants The Company issues warrants to acquire shares of BIOLASE common stock as approved by the Board. During the first quarter of 2021, the Company received proceeds of $ 15.0 million from warrants exercised in 2021 and $ 1.5 million from warrants exercised at the end of the fourth quarter of 2020, which was a receivable included in other current assets as of December 31, 2020. A summary of warrant activity for the nine months ended September 30, 2021 is as follows (in thousands, except exercise price amounts): Weighted Average Shares Exercise Warrants outstanding, December 31, 2020 54,052 $ 0.62 Exercised ( 35,790 ) $ 0.43 Forfeited, cancelled, or expired ( 407 ) $ 10.00 Warrants outstanding at September 30, 2021 17,855 $ 0.80 Warrants exercisable at September 30, 2021 17,855 $ 0.80 Vested warrants expired during the period ( 407 ) $ 10.00 See Note 9 for information on the Western Alliance Warrants, the SWK Warrants, and the DPG Warrants (each as defined below). Phantom Awards and Stock Appreciation Rights During the nine months ended September 30, 2021 , the Company issued 10.1 million phantom RSUs in lieu of stock-settled RSUs historically granted for leadership bonuses and non-employee director service. The phantom RSUs have either time-based or performance-based vesting conditions and will be settled in cash in 2024 with the Company's option to settle the award in BIOLASE common stock at the sole discretion of the Board. These phantom RSUs are included as a component of long-term liability on the consolidated balance sheet and are not considered stock-based compensation due to the cash-settlement feature of the award. If at any time the determination is made to settle the phantom RSUs in BIOLASE common stock, the awards will be included as a component of additional paid-in capital on the consolidated balance sheet. The expense recognized during the three and nine months ended September 30, 2021 was $ 0.2 million. During the nine months ended September 30, 2021 , the Company issued 0.7 million stock appreciation rights ("SARs") in lieu of stock-settled RSUs historically granted for non-employee director service. Upon exercise, the SARs will be settled in cash with the Company's option to settle in BIOLASE common stock at the sole discretion of the Board. These SARS are included in accrued liabilities on the consolidated balance sheet and are not considered stock-based compensation due to the cash-settlement feature of the award. If at any time the determination is made to settle in BIOLASE common stock, the awards will be included as a component of additional paid-in capital on the consolidated balance sheet. The expense recognized during the three and nine months ended September 30, 2021 was $ 0.1 million and $ 0.2 million, respectively. Net Loss Per Share – Basic and Diluted Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of BIOLASE common stock outstanding for the period. In computing diluted net loss per share, the weighted average number of shares of common stock outstanding is adjusted to reflect the effect of potentially dilutive securities. Net income (loss) is adjusted for any deemed dividends to preferred stockholders to compute net income attributable to common stockholders. Outstanding stock options, RSUs, and warrants to purchase approximately 24.0 million and 67.2 million shares were not included in the calculation of diluted loss per share amounts for the periods ended September 30, 2021 and September 30, 2020, respectively, as their effect would have been anti-dilutive. Also excluded in the calculation of diluted loss per share amount for the three and nine months ended September 30, 2021 are the 627,500 shares of BIOLASE common stock issuable upon conversion of the 251 shares of Series F Preferred Stock outstanding as of September 30, 2021 . |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5—INVENTORY Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): September 30, December 31, 2021 2020 Raw materials $ 5,122 $ 3,721 Work-in-process 1,784 1,158 Finished goods 7,156 6,278 Inventory $ 14,062 $ 11,157 Inventory has been reduced by estimates for excess and obsolete amounts totaling $ 0.7 million as of September 30, 2021 and December 31, 2020 . |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | NOTE 6—PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net is comprised of the following (in thousands): September 30, December 31, 2021 2020 Building $ 215 $ 229 Leasehold improvements 90 52 Equipment and computers 7,876 7,477 Furniture and fixtures 471 465 Construction in progress — 46 Total 8,652 8,269 Accumulated depreciation and amortization ( 7,931 ) ( 7,664 ) Property, plant, and equipment, net before land 721 605 Land 168 177 Property, plant, and equipment, net $ 889 $ 782 Depreciation and amortization expense related to property, plant, and equipment totaled $ 0.1 million and $ 0.3 million for the three and nine months ended September 30, 2021 and $ 0.1 million and $ 0.5 million for the three and nine months ended September 30, 2020 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets And Goodwill | NOTE 7—INTANGIBLE ASSETS AND GOODWILL The Company conducted its annual impairment test of goodwill as of December 31, 2020 and determined that there was no impairment. The Company also tests its intangible assets and goodwill between the annual impairment tests if events occur or circumstances change that would more likely than not reduce the fair value of the Company or its assets below their carrying amounts. For intangible assets subject to amortization, the Company performs its impairment test when indicators, such as reductions in demand or significant economic slowdowns, are present. No events have occurred since December 31, 2020 through the date of these unaudited consolidated financial statements that would trigger further impairment testing of the Company’s intangible assets and goodwill. As of September 30, 2021 and December 31, 2020, the Company had goodwill of $ 2.9 million . As of September 30, 2021 and December 31, 2020 , all intangible assets have been fully amortized and no amortization expense was recognized during the three and nine months ended September 30, 2021 and 2020 . |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | NOTE 8—ACCRUED LIABILITIES Accrued liabilities are comprised of the following (in thousands): September 30, December 31, 2021 2020 Payroll and benefits $ 3,017 $ 3,552 Settlement accrual 680 — Warranty accrual, current portion 545 748 Lease liability 404 305 Taxes 357 165 Accrued professional services 283 281 Accrued insurance premium — 885 Other 896 731 Accrued liabilities $ 6,182 $ 6,667 The CARES Act allows employers to defer the deposit and payment of the employer's share of Social Security taxes through December 31, 2020. Under the CARES Act, the Company deferred $ 0.4 million as of September 30, 2021. The deferred liability is included in accrued payroll and benefits. As of September 30, 2021 , a settlement accrual liability of $ 0.7 million related to the CAO Settlement Agreement (as defined below) was included in current accrued liabilities. See Note 11 for additional information. Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties are included within accrued liabilities and were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance, beginning of period $ 551 $ 853 $ 1,132 $ 1,110 Provision for estimated warranty cost 832 345 1,129 575 Warranty expenditures ( 366 ) ( 344 ) ( 1,244 ) ( 831 ) Balance, end of period 1,017 854 1,017 854 Less: long-term portion of warranty accrual 472 204 472 204 Current portion of warranty accrual $ 545 $ 650 $ 545 $ 650 The Company's Waterlase laser systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to one year from the date of sale to the end-user by the Company or a distributor. The Company's diode systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to two years from the date of sale to the end-user by the Company or a distributor. Waterlase systems and diode systems sold internationally are covered by a warranty against defects in material and workmanship for a period of up to 28 months from date of sale to the international distributor. The Company's laser systems warranty covers parts and service for sales in its North American territories and parts only for international distributor sales. In North America and select international locations, the Company sells extended warranty contracts to its laser systems end users that cover the period after the expiration of the Company's standard warranty coverage for its laser systems. Extended warranty coverage provided under the Company's service contracts varies by the type of system and the level of service desired by the customer. Products or accessories remanufactured, refurbished, or sold by unauthorized parties, voids all warranties in place for such products and exempts the Company from liability issues relating to the use of such products. The Company distributes extended warranties on certain imaging products, including its digital radiography products. However, all imaging products that the Company distributes are initially covered by manufacturer’s warranties. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9—DEBT The following table presents the details of the principal outstanding and unamortized discount (in thousands): September 30, December 31, 2021 2020 SWK Loan $ 14,300 $ 14,300 PPP Loan — 2,980 EIDL Loan 150 150 Discount and debt issuance costs on SWK Loan ( 936 ) ( 1,244 ) Total 13,514 16,186 Current term loans, net of discount ( 1,400 ) — Non current term loans, net of discount $ 12,114 $ 16,186 The Company recognized approximately $ 0.6 million and $ 1.7 million in interest expense for the three and nine months ended September 30, 2021 and $ 0.6 million and $ 1.8 million in interest expense for the three and nine months ended September 30, 2020, respectively. The weighted-average interest rate as of September 30, 2021 was 12.25 %. The future minimum principal and interest payments as of September 30, 2021 are as follows (in thousands): Principal Interest (1) Remainder of 2021 $ — $ 443 2022 2,100 1,716 2023 2,800 1,393 2024 9,400 1,899 2025 1 8 2026 and thereafter 149 88 Total future payments $ 14,450 $ 5,547 (1) Estimated using London Interbank Bank Offered Rate (“LIBOR”) as of September 30, 2021 Lines of Credit Pacific Mercantile Bank On October 28, 2019, the Company entered into a loan and security agreement (the “Loan Agreement”) with Pacific Mercantile Bank, as lender (“PMB”), which provides for a revolving line of credit (the “PMB Loan”) in a maximum principal amount not to exceed the lesser of (i) $ 3 million or (ii) the sum of 90 % of the Eligible Accounts (as defined in the Loan Agreement) plus 75 % of the Eligible Inventory (as defined in the Loan Agreement, and subject to certain limitations set forth therein); provided that the maximum principal amount of the PMB Loan may be reduced from time to time in PMB’s good faith business judgment as set forth in the Loan Agreement. Borrowings under the PMB Loan may be used for working capital. The PMB Loan matures on October 28, 2021 , unless earlier terminated. The Company’s obligations under the PMB Loan are secured by a security interest in substantially all of the Company’s property. No borrowings may be made under the PMB Loan Agreement unless and until Exim Bank agrees to guarantee the PMB Loan and the Company has entered into a borrower agreement with Exim Bank. Borrowings under the PMB Loan bear interest at a daily rate equal to the prime rate published in the Wall Street Journal, plus 1.5 % per annum; provided, that the interest rate in effect on any day shall not be less than 6.0 % per annum. Additionally, the Company is required to pay an initial and annual fee of $ 52,500 to Exim Bank. The PMB Loan Agreement requires the Company to maintain unrestricted cash at PMB plus unused availability under the PMB Loan in an amount equal to at least the Burn Rate. “Burn Rate” means the Company’s net profit/net loss plus depreciation plus amortization plus stock-based compensation plus the change in the accounts receivable reserve, measured on a trailing three-month basis. In addition, the PMB Loan Agreement contains customary affirmative and negative covenants for financings of its type (subject to customary exceptions). As of September 30, 2021 and December 31, 2020 , the Company had no borrowings outstanding and unused availability under the PMB Loan of approximately $ 2.8 million and $ 2.3 million, respectively. Term Loan On November 9, 2018, the Company entered into a five-year secured Credit Agreement (the “Credit Agreement”) with SWK Funding LLC (“SWK”), pursuant to which the Company has borrowed $ 14.3 million (“SWK Loan”) as of September 30, 2021 . The Company’s obligations under the Credit Agreement are secured by substantially all of the Company’s assets. Under the terms of the Credit Agreement and subsequent amendments as discussed in the Company’s 2020 Form 10-K, repayment of the SWK Loan is interest-only through the second quarter of 2022, paid quarterly with the option to extend the interest-only period. Principal repayments begin in the second quarter of 2022 and will be approximately $ 0.7 million quarterly until the SWK Loan matures in the second quarter of 2024 . The loan bears interest of 10 % plus LIBOR floor of 2.25% or another index that approximates LIBOR as close as possible if and when LIBOR no longer exists. In light of the Company's increase in working capital from the Equity Offering and cash received from warrants exercised, the Company entered into the Seventh Amendment to the Credit Agreement (the “Seventh Amendment”) with SWK on February 24, 2021, which provides for adjusted minimum aggregate revenue and EBITDA requirements at the end of certain periods, to the extent that the Company's liquid assets are less than $ 15 million. While the Company's liquid assets are at or above $ 15 million, no financial maintenance covenants are applicable. For the Seventh Amendment, the Company paid an incremental amendment fee of $ 25,000 , which is being amortized over the remaining life of the loan as of the date of the amendment. As of September 30, 2021, the Company was in compliance with debt covenants of the Credit Agreement. Paycheck Protection Program Loan On April 14, 2020, the Company was granted a loan (the “PPP Loan”) under the Paycheck Protection Program from PMB in the aggregate amount of $ 2,980,000 , pursuant to the Paycheck Protection Program under the CARES Act. The PPP Loan, which was in the form of a note dated April 13, 2020 issued by BIOLASE, matures on April 13, 2022 and bears interest at a rate of 1.0 % per annum. Interest is payable monthly commencing on November 1, 2020 . The note may be prepaid at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. The Company recorded the principal amount of approximately $ 3.0 million due on the PPP Loan in non-current term loans in the consolidated balance sheet as of December 31, 2020. Interest on the PPP Loan was not material. The Company believes it used the entire PPP Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. In July 2020, the Company amended the provisions of the PPP Loan. The amendment modifies the original payment deferment period from six months to the date that the United States Small Business Administration (“SBA") remits the Company’s loan forgiveness to PMB or if no forgiveness is requested to ten months after the end of the 24-week measurement period. The amendment also increased the amount of non-payroll costs eligible for loan forgiveness from 25 % to 40 %. During 2020, the Company requested forgiveness in accordance with the application requirements. In June 2021, the Company received a reply to its request, and the PPP Loan along with all accrued interest was forgiven by the SBA. The amount of loan forgiveness is presented as a component of non-operating (gain) loss on the Company's consolidated statement of operations. The SBA may undertake a review of a loan of any size during the six-year period following forgiveness of the loan. The review may include the loan forgiveness application, as well as whether the Company received the proper loan amount. There can be no assurance as to the result of any such SBA review. EIDL Loan On May 22, 2020, the Company executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. The principal amount of the EIDL Loan is $ 150,000 , with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75 %, per annum and installment payments, including principal and interest, are due monthly beginning in July 2021 and are payable through July 2050. In April 2021, the SBA announced that it was extending the first payment due date for all loans until 2022 , or 24 months from the loan execution date. The Company is obligated to begin making payments on this EIDL Loan starting in May 2022. Western Alliance Warrants On March 6, 2018, the Company issued to Western Alliance warrants (the “Original Western Alliance Warrants”) to purchase up to the number of shares of common stock equal to $ 120,000 divided by the applicable exercise price at the time such warrants are exercised. The Original Western Alliance Warrants are fully vested and exercisable. The Original Western Alliance Warrants may be exercised with a cash payment from Western Alliance, or, in lieu of a cash payment, Western Alliance may convert the warrants into a number of shares, in whole or in part. The initial exercise price of the warrants was $ 2.35 per share. On September 27, 2018, the Company entered into the Second Modification Agreement to amend the Original Business Financing Agreement. In connection with the Second Modification Agreement, the Original Western Alliance Warrants were terminated, and the Company issued new warrants (the “Western Alliance Warrants”) to purchase up to the number of shares of common stock equal to $ 120,000 divided by the exercise price of $ 2.13 , which was the closing price of the Company’s common stock on September 27, 2018. The Western Alliance Warrants are immediately exercisable and expire on September 27, 2028 . These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price per share less than the exercise price. The sale of common stock in the second quarter of 2020 triggered an adjustment to the exercise price to approximately $ 0.60 per share. The impact of the adjustment to the exercise price was not material. SWK Warrants In connection with the Credit Agreement, on November 9, 2018, the Company issued to SWK warrants (the “SWK Warrants”) to purchase up to 372,023 shares of BIOLASE common stock. The SWK Warrants were immediately exercisable and expire on November 9, 2026 . The initial exercise price of the SWK Warrants was $ 1.34 , which was the average closing price of BIOLASE common stock for the ten trading days immediately preceding November 9, 2018. These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price per share less than the exercise price. The fair value of the SWK Warrants was estimated using the Black-Scholes option-pricing model with the following assumptions: expected term of 8 years ; volatility of 81.79 %; annual dividend per share of $ 0.00 ; and risk-free interest rate of 3.13 %; and resulted in an estimated fair value of $ 0.4 million. In November 2019, these warrants were consolidated and the exercise price was adjusted to $ 1.00 , and in March 2020, the exercise price was adjusted a second time to $ 0.49 . The impact of both reprice events was de minimis to the consolidated financial statements. In connection with the Fifth Amendment, the Company entered into a Third Amendment to the SWK Warrant Agreement. Under this amendment, the Company granted to SWK 63,779 additional common stock warrants at an exercise price of approximately $ 0.39 . All other terms and conditions to the additional warrants were the same as those previously granted. The Company also revised the exercise price of the 487,198 common stock warrants held by SWK to $ 0.39 . The Company measured the fair value of the 63,779 warrants granted using the Black-Scholes. The fair value of the additional warrants and the aggregate impact of the exercise price adjustments in previous amendments to the Warrant Agreement were less than $ 0.1 million and not material to the consolidated financial statements. Due to the repricing that occurred in the second quarter of 2020, the down round features of these warrants was not triggered by the Company’s June 2020 sale of common stock. DPG Warrants In connection with the SWK Loan, the Company paid a finder’s fee to Deal Partners Group ("DPG") of $ 0.4 million cash and issued warrants to purchase up to 279,851 shares of common stock (the “DPG Warrants”). The DPG Warrants were issued on November 14, 2018, were exercisable immediately, and expire on November 9, 2026 . The initial exercise price of the DPG Warrants was $ 1.34 which was the average closing price of the Company’s common stock for the ten trading days immediately preceding November 9, 2018. These warrants contain down-round features that require the Company to adjust the exercise price proportionately should the Company issue shares at a price per share less than the exercise price. The fair value of the DPG Warrants of $ 0.3 million was estimated using the Black-Scholes option pricing model with the following assumptions: expected term of 8 years ; volatility of 81.79 %; annual dividend per share of $ 0.00 ; and risk-free interest rate of 3.13 %. In May 2019 the Company issued 149,727 warrants to purchase common stock at a weighted average exercise price of $ 2.17 to SWK and DPG. In November 2019, the exercise price of the DPG Warrants issued on November 14, 2018 was adjusted from $ 1.34 per share to $ 0.88 per share and the exercise price of the DPG Warrants issued on May 7, 2019 was adjusted from $ 2.17 per share to $ 1.42 per share. The impact of the reprice was de minimis to the unaudited consolidated financial statements. The June 2020 sale of common stock triggered the down round features of these warrants, and in August 2020, the Company adjusted the exercise price of these warrants to $ 0.62 and $ 0.38 per share. The impact of this reprice was not material. The value of both the SWK Warrants and the DPG Warrants was recognized as a discount on the SWK Loan and is being amortized on a straight-line basis which approximates the effective-interest method, over the loan term of five years . Additionally, based on the adoption of ASU 2017-11 in the fourth quarter of 2018, these warrants are classified as equity in the consolidated balance sheet as of September 30, 2021 and December 31, 2020 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 10—LEASES The Company enters into operating leases primarily for real estate, office equipment, and fleet vehicles. Lease terms generally range from one to five years , and often include options to renew for one year . The Company leases its 11,000 square foot corporate headquarters pursuant to a lease that expires on December 31, 2025 and leases a manufacturing facility located in Corona, California, which expires on June 30, 2025 . The Company also leases additional office space and certain office equipment under various operating lease arrangements. On January 22, 2020, the Company entered into a five-year real property lease agreement for an approximately 11,000 square foot facility in Corona, California and moved its manufacturing operations. The lease commenced on July 1, 2020 . On February 4, 2020, the Company also entered into a 66-month real property lease agreement for office space of approximately 11,000 square feet of office space in Foothill Ranch, California. The lease commenced on July 1, 2020 . Information related to the Company’s right-of-use assets and related liabilities were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash paid for operating lease liabilities $ 62 $ 87 $ 185 $ 417 Right-of-use assets obtained in exchange for new operating $ - $ 1,440 48 $ 2,037 Weighted-average remaining lease term 3.8 years 4.9 years 3.8 years 5.2 years Weighted-average discount rate 12.3 % 12.3 % 12.3 % 12.3 % Lease expense consists of payments for real property, office copiers, and IT equipment. The Company recognizes payments for non-lease components such as common area maintenance in the period incurred. As of September 30, 2021, the Company had no significant leases that had not commenced. The Company allocates lease cost amongst lease and non-lease components. The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. Maturities of lease liabilities as of September 30, 2021 for leases that have commenced are as follows (in thousands): September 30, 2022 $ 624 2023 621 2024 613 2025 519 2026 and thereafter 121 Total future minimum lease obligations 2,498 Less imputed interest ( 537 ) Total lease liabilities $ 1,961 Current operating lease liabilities, included in $ 404 Non current lease liabilities 1,557 Total lease liabilities $ 1,961 As of September 30, 2021 , right-of-use assets were $ 1.8 million and lease liabilities were $ 2.0 million. Rent expense totaled $ 0.2 million and $ 0.6 million for the three and nine months ended September 30, 2021 and $ 0.1 million and $ 0.5 million for the three and nine months ended September 30, 2020. Future minimum rental commitments under lease agreements, as of September 30, 2021, with non-cancelable terms greater than one year for each of the years ending December 31 are as follows (in thousands): Year Ended December 31, Remainder of 2021 $ 166 2022 610 2023 624 2024 609 2025 and thereafter 489 Total future minimum lease obligations 2,498 Less imputed interest ( 537 ) Total lease liabilities $ 1,961 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11—COMMITMENTS AND CONTINGENCIES On April 24, 2012, CAO Group, Inc. (“CAO”) filed a lawsuit against BIOLASE in the District of Utah alleging that BIOLASE’s ezlase dental laser infringes on U.S. Patent No. 7,485,116 (the “116 Patent”). On September 9, 2012, CAO amended its complaint, adding claims for (1) business disparagement/injurious falsehood under common law and (2) unfair competition under 15 U.S.C. Section 1125(a). The additional claims stem from a press release that BIOLASE issued on April 30, 2012, which CAO claims contained false statements that are disparaging to CAO and its diode product. The amended complaint sought injunctive relief, treble damages, attorneys’ fees, punitive damages, and interest. Until January 24, 2018, this lawsuit was stayed in connection with United States Patent and Trademark Office proceedings relating to the 116 Patent, which proceedings ultimately culminated in a January 27, 2017 decision by the United States Court of Appeals for the Federal Circuit, affirming the findings of the Patent Trial and Appeal Board, which were generally favorable to the Company. On January 25, 2018, CAO moved for leave to file a second amended complaint to add certain claims, which filing the Company did not oppose. On January 23, 2018, CAO filed a lawsuit against BIOLASE in the Central District of California alleging that BIOLASE’s diode lasers infringe on U.S. Patent Nos. 8,337,097, 8,834,497, 8,961,040 and 8,967,883. The complaint sought injunctive relief, treble damages, attorneys’ fees, punitive damages, and interest. On January 25, 2019 (the “Effective Date”), BIOLASE entered into a settlement agreement (the “CAO Settlement Agreement”) with CAO. Pursuant to the CAO Settlement Agreement, CAO agreed to dismiss with prejudice the lawsuits filed by CAO against the Company in April 2012 and January 2018. In addition, CAO granted to the Company and its affiliates a non-exclusive, non-transferable (except as provided in the CAO Settlement Agreement), royalty-free, fully-paid, worldwide license to the licensed patents for use in the licensed products and agreed not to sue the Company, its affiliates or any of its manufacturers, distributors, suppliers or customers for use of the licensed patents in the licensed products, and the parties agreed to a mutual release of claims. The Company agreed (i) to pay to CAO, within five days of the Effective Date, $ 500,000 in cash, (ii) to issue to CAO, within 30 days of the Effective Date, 500,000 restricted shares of common stock of the Company (the “Stock Consideration”), and (iii) to pay to CAO, within 30 days of December 31, 2021, an amount in cash equal to the difference (if positive) between $ 1,000,000 and the value of the Stock Consideration on December 31, 2021. The Stock Consideration vests and becomes transferrable on December 31, 2021, subject to the terms of a restricted stock agreement entered into between the parties. The Company considered this a Type I subsequent event and recognized a $ 1.5 million contingent loss on patent litigation settlement in its consolidated statement of operations for the year ended December 31, 2018. In January 2019, the Company paid CAO $ 500,000 in cash. On January 31, 2019, the case was dismissed with prejudice. During the three-month period ended March 31, 2019, the Company recorded an additional loss on patent litigation of $ 0.2 million which represented the change in fair value of the restricted stock to be issued to CAO at March 31, 2019. Subsequent to March 31, 2019, the Company reversed the additional loss commensurate with the fluctuations in the Company’s share price. In August 2020, the Company signed a Letter Agreement to terminate the Manufacturing Agreement and purchase from CAO raw materials and other inventory held by CAO as part of the original CAO Settlement Agreement. In February 2021, the Company issued 500,000 restricted shares of common stock in satisfaction of its obligation to issue the Stock Consideration to CAO under the CAO Settlement Agreement and reduced the accrued liability to $ 0.6 million. As of September 30, 2021 , the remaining accrued liability related to the CAO Settlement Agreement was included in current accrued liabilities in the amount of $ 0.7 million. As of December 31, 2020, the accrued liability related to the CAO Settlement Agreement was $ 1.0 million and was included in non-current other liabilities. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12—SEGMENT INFORMATION The Company currently operates in a single business segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. For the three and nine months ended September 30, 2021 , sales to customers in the United States accounted for approximately 62 % and 64 % of net revenue and international sales accounted for approximately 38 % and 36 % of net revenue, respectively. For the three and nine months ended September 30, 2020 , sales to customers in the United States accounted for approximately 73 % and 71 % of net revenue and international sales accounted for approximately 27 % and 29 % of net revenue, respectively. No individual country, other than the United States, represented more than 10% of total net revenue during the three and nine months ended September 30, 2021 or 2020. Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 5,939 $ 4,755 $ 17,024 $ 10,079 International 3,592 1,784 9,756 4,181 Total net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 Property, plant, and equipment by geographic location was as follows (in thousands): September 30, December 31, 2021 2020 United States $ 618 $ 486 International 271 296 Total $ 889 $ 782 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 13—CONCENTRATIONS Revenue from the Company’s products are as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Laser systems $ 6,084 63.8 % $ 3,712 56.7 % $ 16,588 61.9 % $ 6,854 48.1 % Consumables and other $ 2,331 24.5 % 1,929 29.5 % 6,923 25.9 % 4,263 29.9 % Services $ 1,116 11.7 % 898 13.8 % 3,269 12.2 % 3,143 22.0 % Total net revenue $ 9,531 100.0 % $ 6,539 100.0 % $ 26,780 100.0 % $ 14,260 100.0 % No individual customer represented more than 10 % of the Company’s revenue for the three and nine months ended September 30, 2021 or 2020. The Company maintains its cash and cash equivalents in money market investment accounts with established commercial banks. Such cash deposits periodically exceed the Federal Deposit Insurance Corporation insured limit. No individual customer represented more than 10 % of the Company’s accounts receivable at September 30, 2021 and December 31, 2020. The Company currently purchases certain key components of its products from single suppliers. Although there are a limited number of manufacturers of these key components, management believes that other suppliers could provide similar key components on comparable terms. A change in suppliers, however, could cause delays in manufacturing and a possible loss of sales, which could adversely affect the Company’s business, results of operations and financial condition. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14—INCOME TAXES The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered, and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Based on the Company’s net losses in prior years, management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has elected to classify interest and penalties as a component of its income tax provision. With respect to the liability for unrecognized tax benefits, including related estimates of penalties and interest, the Company did no t record a liability for unrecognized tax benefits for the three and nine months ended September 30, 2021 and 2020. The Company does not expect any changes to its unrecognized tax benefit for the next 12 months that would materially impact its consolidated financial statements. During the three and nine months ended September 30, 2021 , the Company recorded an income tax provision of $ 14,000 and income tax benefit of $ 7,000 , respectively, resulting in an effective tax rate of 0.4 % and 0.1 %, respectively. During the three and nine months ended September 30, 2020 , the Company recorded an income tax provision of $ 15,000 and $ 49,000 , respectively, resulting in an effective tax rate of 55.6 % and 0.5 %, respectively. The income tax provisions and benefit for the three and nine months ended September 30, 2021 and 2020 were calculated using the discrete year-to-date method. The effective tax rate differs from the statutory tax rate of 21 % primarily due to the existence of valuation allowances against net deferred tax assets and current liabilities resulting from the estimated state income tax liabilities and foreign tax liability. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, goodwill and the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates. |
Critical Accounting Policies | Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management as discussed in the Company’s 2020 audited financial statements included in the 2020 Form 10-K. Management believes that there have been no significant changes during the nine months ended September 30, 2021 in the Company’s critical accounting policies from those disclosed in the Company’s 2020 audited financial statements included in the 2020 Form 10-K. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of non-performance risk. Under the accounting guidance for fair value hierarchy, there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable, either directly or indirectly. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, and the SWK Loan (as defined below) as discussed in Note 9, approximate fair value because of the nature of these items. |
Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate | Concentration of Credit Risk, Interest Rate Risk and Foreign Currency Exchange Rate Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, and trade accounts receivable. The Company maintains its cash and cash equivalents and restricted cash with established commercial banks. At times, balances may exceed federally insured limits. To minimize the risk associated with trade accounts receivable, management performs ongoing credit evaluations of customers’ financial condition and maintains relationships with the Company’s customers that allow management to monitor current changes in business operations so the Company can respond as needed. The Company does not, generally, require customers to provide collateral before it sells them its products. However, the Company has required certain distributors to make prepayments for significant purchases of products. Substantially all of the Company’s revenue is denominated in U.S. dollars, including sales to international distributors. Only a small portion of its revenue and expenses is denominated in foreign currencies, principally the Euro and Indian Rupee. The Company’s foreign currency expenditures primarily consist of the cost of maintaining offices, consulting services, and employee-related costs. During the three and nine months ended September 30, 2021 and 2020 , respectively, the Company did not enter into any hedging contracts. Future fluctuations in the value of the U.S. dollar may affect the price competitiveness of the Company’s products outside the U.S. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Recently Issued Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This ASU clarifies the accounting for modifications or exchanges of freestanding equity-classified written call options (i.e. warrants) so that the transaction should be treated as an exchange of the original instrument for a new instrument. This standard is effective for fiscal years beginning after December 15, 2021 on a prospective basis, with early adoption permitted. The adoption of this update is not expected to have a material impact on the Company's consolidated financial position and results of operations. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step-up in the tax basis of goodwill and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance effective January 1, 2021, and the adoption of this standard did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard is effective for the Company beginning on January 1, 2022, with early adoption permitted only in the first quarter of 2021. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company is currently assessing the impact the new guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard’s main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope and to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for the Company beginning January 1, 2023, with early adoption permitted beginning January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Summary of Opening and Closing Balances of Contract Liabilities | The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): September 30, December 31, 2021 2020 Undelivered elements (training, installation, product $ 1,015 $ 670 Extended warranty contracts 1,557 1,609 Total deferred revenue 2,572 2,279 Less: long-term portion of deferred revenue ( 294 ) ( 374 ) Deferred revenue — current $ 2,278 $ 1,905 |
Summary of Disaggregation of Revenues Related to Geographic Areas | The Company’s revenues related to the following geographic areas were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 5,939 $ 4,755 $ 17,024 $ 10,079 International 3,592 1,784 9,756 4,181 Total net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 |
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred | Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue recognized over time $ 1,116 $ 898 $ 3,269 $ 3,143 Revenue recognized at a point in time 8,415 5,641 23,511 11,117 Net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 |
Summary of Sales by End Market | The Company’s sales by end market were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 End-customer $ 5,939 $ 5,087 $ 17,024 $ 9,845 Distributors 3,592 1,452 9,756 4,415 Net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 |
Redeemable Preferred Stock an_2
Redeemable Preferred Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of Income Statement Classification of Compensation Expense | The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cost of revenue $ 25 $ 79 $ 138 $ 208 Sales and marketing 62 183 291 571 General and administrative 61 517 777 1,424 Engineering and development 44 68 282 164 Total $ 192 $ 847 $ 1,488 $ 2,367 |
Assumptions on Estimation of Stock Option Fair Values | The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Expected term (years) 6.1 N/A 6.1 5.5 Volatility 111 % — % 111 % 103 % Annual dividend per share N/A N/A N/A N/A Risk-free interest rate 0.98 % — % 0.86 % 0.37 % |
Summary of Option Activity | A summary of option activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share data): Weighted Weighted Average Contractual Aggregate Shares Exercise Term Intrinsic Options outstanding at December 31, 2020 2,398 $ 2.96 7.2 $ 53 Granted at fair market value 50 $ 0.87 Exercised ( 176 ) $ 0.38 Forfeited, cancelled, or expired ( 102 ) $ 7.78 Options outstanding at September 30, 2021 2,170 $ 2.89 6.6 $ 286 Options exercisable at September 30, 2021 2,052 $ 3.00 6.5 $ 277 Vested options expired during the period 91 $ 8.48 (1) The intrinsic value calculation does not include negative values, which can occur when the fair market value on the reporting date is less than the exercise price of the award. |
Summary of Unvested Stock Option Activity | A summary of unvested stock option activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2020 1,323 $ 0.34 Granted 50 $ 0.72 Vested ( 1,256 ) $ 0.31 Unvested options at September 30, 2021 117 $ 0.73 |
Fair Value Disclosures Related to Grants, Exercises and Vesting Options | Fair value disclosures related to grants, exercises and vested options are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Proceeds from stock options exercised $ 66 $ — $ 66 $ — Tax benefit related to stock options exercised (1) N/A N/A N/A N/A Intrinsic value of stock options exercised (2) $ 42 $ — $ 42 $ — Weighted-average fair value of options granted $ 0.49 $ — $ 0.72 $ 0.29 Total fair value of stock options vested during the period $ 8 $ 34 $ 395 $ 188 (1) Excess tax benefits received related to stock option exercises are presented as operating cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the options. |
Summary of Unvested Restricted Stock Units | A summary of unvested RSU activity for the nine months ended September 30, 2021 is as follows (in thousands, except per share amounts): Weighted Average Grant Shares Date Fair Value Unvested RSUs at December 31, 2020 3,672 $ 0.66 Granted 2,808 $ 0.83 Vested ( 3,772 ) $ 0.69 Forfeited or cancelled ( 601 ) $ 1.33 Unvested RSUs at September 30, 2021 2,107 $ 0.63 |
Summary of Warrant Activity | A summary of warrant activity for the nine months ended September 30, 2021 is as follows (in thousands, except exercise price amounts): Weighted Average Shares Exercise Warrants outstanding, December 31, 2020 54,052 $ 0.62 Exercised ( 35,790 ) $ 0.43 Forfeited, cancelled, or expired ( 407 ) $ 10.00 Warrants outstanding at September 30, 2021 17,855 $ 0.80 Warrants exercisable at September 30, 2021 17,855 $ 0.80 Vested warrants expired during the period ( 407 ) $ 10.00 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): September 30, December 31, 2021 2020 Raw materials $ 5,122 $ 3,721 Work-in-process 1,784 1,158 Finished goods 7,156 6,278 Inventory $ 14,062 $ 11,157 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant, and equipment, net is comprised of the following (in thousands): September 30, December 31, 2021 2020 Building $ 215 $ 229 Leasehold improvements 90 52 Equipment and computers 7,876 7,477 Furniture and fixtures 471 465 Construction in progress — 46 Total 8,652 8,269 Accumulated depreciation and amortization ( 7,931 ) ( 7,664 ) Property, plant, and equipment, net before land 721 605 Land 168 177 Property, plant, and equipment, net $ 889 $ 782 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities are comprised of the following (in thousands): September 30, December 31, 2021 2020 Payroll and benefits $ 3,017 $ 3,552 Settlement accrual 680 — Warranty accrual, current portion 545 748 Lease liability 404 305 Taxes 357 165 Accrued professional services 283 281 Accrued insurance premium — 885 Other 896 731 Accrued liabilities $ 6,182 $ 6,667 |
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties | Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties are included within accrued liabilities and were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance, beginning of period $ 551 $ 853 $ 1,132 $ 1,110 Provision for estimated warranty cost 832 345 1,129 575 Warranty expenditures ( 366 ) ( 344 ) ( 1,244 ) ( 831 ) Balance, end of period 1,017 854 1,017 854 Less: long-term portion of warranty accrual 472 204 472 204 Current portion of warranty accrual $ 545 $ 650 $ 545 $ 650 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Principal Outstanding and Unamortized Discount | The following table presents the details of the principal outstanding and unamortized discount (in thousands): September 30, December 31, 2021 2020 SWK Loan $ 14,300 $ 14,300 PPP Loan — 2,980 EIDL Loan 150 150 Discount and debt issuance costs on SWK Loan ( 936 ) ( 1,244 ) Total 13,514 16,186 Current term loans, net of discount ( 1,400 ) — Non current term loans, net of discount $ 12,114 $ 16,186 |
Summary of Future Minimum Principal and Interest Payments | The future minimum principal and interest payments as of September 30, 2021 are as follows (in thousands): Principal Interest (1) Remainder of 2021 $ — $ 443 2022 2,100 1,716 2023 2,800 1,393 2024 9,400 1,899 2025 1 8 2026 and thereafter 149 88 Total future payments $ 14,450 $ 5,547 (1) Estimated using London Interbank Bank Offered Rate (“LIBOR”) as of September 30, 2021 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Information related to Right-of-use Assets and Liabilities | Information related to the Company’s right-of-use assets and related liabilities were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash paid for operating lease liabilities $ 62 $ 87 $ 185 $ 417 Right-of-use assets obtained in exchange for new operating $ - $ 1,440 48 $ 2,037 Weighted-average remaining lease term 3.8 years 4.9 years 3.8 years 5.2 years Weighted-average discount rate 12.3 % 12.3 % 12.3 % 12.3 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2021 for leases that have commenced are as follows (in thousands): September 30, 2022 $ 624 2023 621 2024 613 2025 519 2026 and thereafter 121 Total future minimum lease obligations 2,498 Less imputed interest ( 537 ) Total lease liabilities $ 1,961 Current operating lease liabilities, included in $ 404 Non current lease liabilities 1,557 Total lease liabilities $ 1,961 |
Future minimum rental commitments under lease agreements with non-cancelable Operating Leases | Future minimum rental commitments under lease agreements, as of September 30, 2021, with non-cancelable terms greater than one year for each of the years ending December 31 are as follows (in thousands): Year Ended December 31, Remainder of 2021 $ 166 2022 610 2023 624 2024 609 2025 and thereafter 489 Total future minimum lease obligations 2,498 Less imputed interest ( 537 ) Total lease liabilities $ 1,961 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Geographic Location | Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 5,939 $ 4,755 $ 17,024 $ 10,079 International 3,592 1,784 9,756 4,181 Total net revenue $ 9,531 $ 6,539 $ 26,780 $ 14,260 |
Summary of Property, Plant and Equipment by Geographic Location | Property, plant, and equipment by geographic location was as follows (in thousands): September 30, December 31, 2021 2020 United States $ 618 $ 486 International 271 296 Total $ 889 $ 782 |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Summary of Net Revenue from Various Products | Revenue from the Company’s products are as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Laser systems $ 6,084 63.8 % $ 3,712 56.7 % $ 16,588 61.9 % $ 6,854 48.1 % Consumables and other $ 2,331 24.5 % 1,929 29.5 % 6,923 25.9 % 4,263 29.9 % Services $ 1,116 11.7 % 898 13.8 % 3,269 12.2 % 3,143 22.0 % Total net revenue $ 9,531 100.0 % $ 6,539 100.0 % $ 26,780 100.0 % $ 14,260 100.0 % |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | Feb. 10, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 |
Basis Of Presentation [Line Items] | |||||
Series F Preferred stock, shares issued | 1 | 0 | |||
Gross proceeds from the issuance of common stock, net of offering costs | $ 14,400 | ||||
Gross proceeds from warrant exercises | $ 1,500 | $ 16,560 | $ 46 | ||
Cash, cash equivalents, and restricted cash | 17,876 | 33,589 | $ 19,159 | $ 6,101 | |
Accounts receivable, net | 3,059 | 3,637 | |||
Equity raise of gross proceeds | $ 14,400 | ||||
Amount received for Employee Retention Credit | 1,800 | ||||
SWK Loan | |||||
Basis Of Presentation [Line Items] | |||||
Working capital | 23,900 | 39,200 | |||
Pacific Mercantile Bank | Loan Agreement | |||||
Basis Of Presentation [Line Items] | |||||
Unused availability | $ 2,300 | $ 2,800 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |||||
Revenue recognized from contract liability | $ 200 | $ 300 | |||
Contract With Customer Liability Revenue Recognized Extended Warranty | 1,100 | $ 2,000 | |||
Undelivered elements (product training, installation, product and support services) | $ 1,015 | $ 1,015 | $ 670 | ||
Revenue from services transferred to customers over time, percentage | 12.00% | 14.00% | 12.00% | 22.00% | |
Revenue from products and services transferred to customers, percentage | 88.00% | 86.00% | 88.00% | 78.00% |
Summary of Opening and Closing
Summary of Opening and Closing Balances of Contract Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue Recognition [Abstract] | ||
Undelivered elements (training, installation, product and support services) | $ 1,015 | $ 670 |
Extended warranty contracts | 1,557 | 1,609 |
Total deferred revenue | 2,572 | 2,279 |
Less long-term portion of deferred revenue | (294) | (374) |
Deferred revenue — current | $ 2,278 | $ 1,905 |
Summary of Disaggregation of Re
Summary of Disaggregation of Revenues Related to Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | $ 9,531 | $ 6,539 | $ 26,780 | $ 14,260 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 5,939 | 4,755 | 17,024 | 10,079 |
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | $ 3,592 | $ 1,784 | $ 9,756 | $ 4,181 |
Summary of Revenues Disaggregat
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 9,531 | $ 6,539 | $ 26,780 | $ 14,260 |
Revenue Recognized Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,116 | 898 | 3,269 | 3,143 |
Revenue Recognized at a Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 8,415 | $ 5,641 | $ 23,511 | $ 11,117 |
Summary of Sales by End Market
Summary of Sales by End Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 9,531 | $ 6,539 | $ 26,780 | $ 14,260 |
End-customer | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 5,939 | 5,087 | 17,024 | 9,845 |
Distributors | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 3,592 | $ 1,452 | $ 9,756 | $ 4,415 |
Redeemable Preferred Stock an_3
Redeemable Preferred Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) | Jun. 11, 2021 | Feb. 10, 2021 | Feb. 10, 2021 | Jul. 23, 2020 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Temporary equity preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||||||
Common stock, shares authorized | 180,000,000 | 180,000,000 | 180,000,000 | 180,000,000 | |||||||
Common stock, shares issued | 14,000,000 | 14,000,000 | 153,322,000 | 97,709,000 | 153,322,000 | 97,709,000 | |||||
Shares Issued, Price Per Share | $ 1.03 | $ 1.03 | |||||||||
Equity raise of gross proceeds | $ 14,400,000 | ||||||||||
Series F Preferred stock, shares issued | 0 | 1,000 | 0 | 1,000 | |||||||
Common stock value | $ 1,000 | $ 153,000 | $ 98,000 | $ 153,000 | $ 98,000 | ||||||
Proceeds from Warrant Exercise | $ 15,000,000 | ||||||||||
Proceeds from the exercise of common stock warrants | $ 1,500,000 | $ 16,560,000 | $ 46,000 | ||||||||
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 5 years 6 months | ||||||||
Risk-free interest rate | 0.98% | 0.00% | 0.86% | 0.37% | |||||||
Change in fair value of warrants | $ 0 | $ (5,850,000) | |||||||||
Issuance costs for common stock warrants | $ 0 | 1,640,000 | |||||||||
Series E Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||||||
Conversion of preferred stock into common stock | 251 | 251 | |||||||||
Convertible preferred stock, shares outstanding | 0 | 0 | 0 | 0 | |||||||
Compensation expense related to stock options | $ 200,000 | $ 800,000 | $ 1,500,000 | 2,400,000 | |||||||
Total unrecognized compensation expense | 800,000 | 1,400,000 | $ 800,000 | 1,400,000 | |||||||
Unrecognized share based compensation expense to be recognized over weighted-average period | 1 year 6 months | ||||||||||
Allocated Share-based Compensation Expense | $ 192,000 | $ 847,000 | $ 1,488,000 | $ 2,367,000 | |||||||
Outstanding stock options, RSUs and warrants excluded from diluted loss per share | 24,000,000 | 67,200,000 | |||||||||
July 2020 Warrants | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Warrant issued | 45,000,000 | ||||||||||
Proceeds from issuance of warrants | $ 15,300,000 | ||||||||||
Warrants issued in connection with debt instruments | $ 15,300,000 | ||||||||||
July 2020 Warrants | Rights Offering | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Allocated to the warrants based upon fair values | $ 15,300,000 | ||||||||||
Common Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Other offering expenses | $ 1,100,000 | ||||||||||
Series F Convertible Preferred Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Conversion price | $ 0.40 | ||||||||||
Series E Convertible Preferred Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Temporary equity preferred stock, shares authorized | 69,565 | 69,565 | |||||||||
Series E Preferred stock, shares authorized | 69,565 | 69,565 | |||||||||
Convertible preferred stock, shares issued | 0 | 0 | 0 | 0 | |||||||
Preferred stock par value | $ 0.001 | $ 0.001 | |||||||||
Series F Convertible Preferred Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Temporary equity preferred stock, shares authorized | 18,000 | 18,000 | |||||||||
Convertible preferred stock, Common shares issued upon conversion | 2,500 | ||||||||||
Series F Preferred stock, shares issued | 18,000 | ||||||||||
Proceeds from issuance of warrants | 2,700,000 | ||||||||||
Conversion price | $ 0.40 | ||||||||||
Proceeds of common stock and warrants | $ 18,000,000 | ||||||||||
Warrants issued in connection with debt instruments | $ 2,700,000 | ||||||||||
Sale of common stock, shares | 18,000 | 17,000 | |||||||||
Deemed dividend on convertible preferred stock | 2,700,000 | $ 500,000 | $ 14,700,000 | ||||||||
Series E Preferred stock, shares authorized | 18,000 | 18,000 | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||
Convertible preferred stock, shares outstanding | 251 | 882 | 251 | 882 | |||||||
Series F Convertible Preferred Stock | Rights Offering | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Proceeds allocated to the warrants based upon fair values | $ 2,700,000 | ||||||||||
Private Placement | Series F Convertible Preferred Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Common stock, shares issued | 627,500 | 627,500 | |||||||||
Maximum | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Temporary equity preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||||||
Series E Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||||||
2002 Stock Incentive Plan | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Common stock authorized for issuance | 3,110,000 | 3,110,000 | |||||||||
Options and restricted stock units outstanding | 879,000 | 879,000 | |||||||||
2018 Long-Term Incentive Plan | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Common Stock Issued Pursuant To Options Exercised | 4,744,000 | ||||||||||
Increase in Number of Units Available for Issuance | 24,700,000 | ||||||||||
Common stock issued pursuant to options exercised | 4,744,000 | ||||||||||
2018 Long-Term Incentive Plan | Common Stock | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Common stock authorized for issuance | 36,921,000 | 36,921,000 | |||||||||
Options available for future grants | 2,400,000 | 2,400,000 | |||||||||
Restricted Stock Units (RSUs) | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 2,800,000 | ||||||||||
Cancelled RSU due to non achievement of performance targets | 100,000 | ||||||||||
Performance-Based Awards | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Compensation expense related to stock options | $ 0 | $ 900,000 | |||||||||
Phantom Share Units (PSUs) | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Allocated Share-based Compensation Expense | $ 200,000 | $ 200,000 | |||||||||
Shares issued in period | 10,100,000 | ||||||||||
Stock Appreciation Rights (SARs) | |||||||||||
Temporary Equity And Stockholders Equity [Line Items] | |||||||||||
Allocated Share-based Compensation Expense | $ 100,000 | $ 200,000 | |||||||||
Shares issued in period | 700,000 |
Classification of Compensation
Classification of Compensation Expense Associated with Share-Based Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 192 | $ 847 | $ 1,488 | $ 2,367 |
Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 25 | 79 | 138 | 208 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 62 | 183 | 291 | 571 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 61 | 517 | 777 | 1,424 |
Engineering and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 44 | $ 68 | $ 282 | $ 164 |
Assumptions Used in Estimating
Assumptions Used in Estimating Fair Value of Stock Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 5 years 6 months | |
Volatility | 111.00% | 0.00% | 111.00% | 103.00% |
Risk-free interest rate | 0.98% | 0.00% | 0.86% | 0.37% |
Summary of Option Activity (Det
Summary of Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |||
Equity [Abstract] | ||||
Beginning Balance | shares | 2,398 | |||
Granted at fair market value | shares | 50 | |||
Exercised | shares | (176) | |||
Forfeited, cancelled, or expired | shares | (102) | |||
Ending Balance | shares | 2,170 | 2,398 | ||
Options exercisable at September 30, 2021 | shares | 2,052 | |||
Vested options expired during the period ended September 30, 2021 | shares | 91 | |||
Beginning Balance | $ / shares | $ 2.96 | |||
Granted at fair market value | $ / shares | 0.87 | |||
Exercised | $ / shares | 0.38 | |||
Forfeited, cancelled, or expired | $ / shares | 7.78 | |||
Ending Balance | $ / shares | 2.89 | $ 2.96 | ||
Options exercisable at September 30, 2021 | $ / shares | 3 | |||
Vested options expired during the period ended September 30, 2021 | $ / shares | $ 8.48 | |||
Weighted-Average Remaining Contractual Term (Years) | ||||
Options outstanding | 6 years 7 months 6 days | 7 years 2 months 12 days | ||
Options exercisable | 6 years 6 months | |||
Options outstanding | $ | $ 286 | [1] | $ 53 | [1] |
Options exercisable | $ | $ 277 | [1] | ||
[1] | The intrinsic value calculation does not include negative values, which can occur when the fair market value on the reporting date is less than the exercise price of the award. |
Summary of Unvested Stock Optio
Summary of Unvested Stock Option Activity (Detail) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted | $ 0.49 | $ 0 | $ 0.72 | $ 0.29 |
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Beginning Balance | 1,323 | |||
Granted | 50 | |||
Vested | (1,256) | |||
Ending Balance | 117 | 117 | ||
Beginning Balance | $ 0.34 | |||
Granted | 0.72 | |||
Vested | 0.31 | |||
Ending Balance | $ 0.73 | $ 0.73 |
Fair Value Disclosures Related
Fair Value Disclosures Related to Grants, Exercises and Vested Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Share-based Payment Arrangement [Abstract] | |||||
Proceeds from stock options exercised | $ 66 | $ 0 | $ 66 | $ 0 | |
Intrinsic value of stock options exercised | [1] | $ 42 | $ 0 | $ 42 | $ 0 |
Weighted-average fair value of options granted during period | $ 0.49 | $ 0 | $ 0.72 | $ 0.29 | |
Total fair value of stock options vested during the period | $ 8 | $ 34 | $ 395 | $ 188 | |
[1] | The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the options. |
Summary of Unvested Restricted
Summary of Unvested Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | shares | 3,672 |
Granted | shares | 2,808 |
Vested | shares | (3,772) |
Forfeited or cancelled | shares | (601) |
Ending Balance | shares | 2,107 |
Unvested RSUs at December 31, 2020 | $ / shares | $ 0.66 |
Granted | $ / shares | 0.83 |
Vested | $ / shares | 0.69 |
Forfeited or cancelled | $ / shares | 1.33 |
Unvested RSUs at September 30, 2021 | $ / shares | $ 0.63 |
Summary of Warrant Activity (De
Summary of Warrant Activity (Detail) - Warrants shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | shares | 54,052 |
Exercised | shares | (35,790) |
Forfeited, cancelled, or expired | shares | (407) |
Ending Balance | shares | 17,855 |
Warrants exercisable at September 30, 2021 | shares | 17,855 |
Vested warrants expired during the period ended June 30, 2021 | shares | (407) |
Beginning Balance | $ / shares | $ 0.62 |
Exercised | $ / shares | 0.43 |
Forfeited, cancelled, or expired | $ / shares | 10 |
Ending Balance | $ / shares | 0.80 |
Warrants exercisable at September 30, 2021 | $ / shares | 0.80 |
Vested warrants expired during the period ended September 30, 2021 | $ / shares | $ 10 |
Components of Inventory (Detail
Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Components of inventory, net of allowances | ||
Raw materials | $ 5,122 | $ 3,721 |
Work-in-process | 1,784 | 1,158 |
Finished goods | 7,156 | 6,278 |
Inventory | $ 14,062 | $ 11,157 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory reduced by estimate for excess and obsolete amount | $ 0.7 | $ 0.7 |
Summary of Property, Plant, and
Summary of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | $ 8,652 | $ 8,269 |
Accumulated depreciation and amortization | (7,931) | (7,664) |
Property, plant, and equipment, net before land | 721 | 605 |
Land | 168 | 177 |
Property, plant, and equipment, net | 889 | 782 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 215 | 229 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 90 | 52 |
Equipment and Computers | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 7,876 | 7,477 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | 471 | 465 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant, and equipment gross, excluding land | $ 0 | $ 46 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expenses | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.5 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment loss | $ 0 | ||||
Intangible assets and goodwill impairment | 0 | ||||
Goodwill | $ 2,926,000 | $ 2,926,000 | $ 2,926,000 | ||
Amortization expense | $ 0 | $ 0 | $ 0 | $ 0 |
Components of Accrued Liabiliti
Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||||
Payroll and benefits | $ 3,017 | $ 3,552 | ||
Settlement accrual | 680 | 0 | ||
Warranty accrual, current portion | 545 | 748 | $ 650 | |
Lease liability | 404 | 305 | ||
Taxes | 357 | 165 | ||
Accrued professional services | 283 | 281 | ||
Accrued insurance premium | 0 | 885 | ||
Other | 896 | 731 | ||
Accrued liabilities | $ 6,182 | $ 600 | $ 6,667 |
Changes in Initial Product Warr
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual | |||||
Balance, beginning of period | $ 551 | $ 853 | $ 1,132 | $ 1,110 | |
Provision for estimated warranty cost | 832 | 345 | 1,129 | 575 | |
Warranty expenditures | (366) | (344) | (1,244) | (831) | |
Balance, end of period | 1,017 | 854 | 1,017 | 854 | |
Less: long-term portion of warranty accrual | 472 | 204 | 472 | 204 | $ 384 |
Current portion of warranty accrual | $ 545 | $ 650 | $ 545 | $ 650 | $ 748 |
Accrued Liabilities - Additiona
Accrued Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | |
Accrued Liabilities [Line Items] | |||
Deferred Liability | $ 400 | ||
Accrued liability | 6,182 | $ 600 | $ 6,667 |
CAO Settlement Agreement | |||
Accrued Liabilities [Line Items] | |||
Accrued liability | $ 700 | ||
Maximum | United States | Waterlase Laser Systems | |||
Accrued Liabilities [Line Items] | |||
Product warrant period | 1 year | ||
Maximum | United States | Diode Systems | |||
Accrued Liabilities [Line Items] | |||
Product warrant period | 2 years | ||
Maximum | International | Waterlase Systems And Diode Systems | |||
Accrued Liabilities [Line Items] | |||
Product warrant period | 28 months |
Debt - Summary of Principal Out
Debt - Summary of Principal Outstanding and Unamortized Discount (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Non current term loans | $ 13,514 | $ 16,186 |
Term loan, net of discount | 1,400 | 0 |
Non current term loans, net of discount | 12,114 | 16,186 |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Non current term loans | 0 | 2,980 |
EIDL Loan | ||
Debt Instrument [Line Items] | ||
Non current term loans | 150 | 150 |
SWK Loan | ||
Debt Instrument [Line Items] | ||
Non current term loans | 14,300 | 14,300 |
Discount and debt issuance costs on SWK Loan | $ (936) | $ (1,244) |
Debt - Additional Information (
Debt - Additional Information (Detail) | May 22, 2020USD ($) | Apr. 13, 2020USD ($) | Oct. 28, 2019USD ($) | Nov. 09, 2018USD ($)d$ / sharesshares | Sep. 27, 2018USD ($)$ / shares | Apr. 30, 2021 | Sep. 30, 2020$ / shares | Aug. 31, 2020$ / shares | Jul. 31, 2020 | Mar. 31, 2020USD ($)$ / sharesshares | Nov. 30, 2019$ / shares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Jun. 30, 2020$ / shares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Feb. 24, 2021USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Jul. 23, 2020USD ($)shares | Apr. 14, 2020USD ($) | Dec. 31, 2019$ / shares | May 31, 2019$ / sharesshares | May 07, 2019$ / shares | Nov. 14, 2018$ / shares | Mar. 06, 2018USD ($)$ / shares |
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowings under lines of credit | $ 0 | $ 3,000,000 | |||||||||||||||||||||||
Debt issuance costs | 25,000 | 75,000 | |||||||||||||||||||||||
Common stock value | $ 153,000 | 153,000 | $ 98,000 | $ 1,000 | |||||||||||||||||||||
EBITDA target | $ (2,657,000) | $ (3,667,000) | $ (12,001,000) | (12,997,000) | |||||||||||||||||||||
Preferred stock, shares issued | shares | 0 | 0 | 1,000 | ||||||||||||||||||||||
Preferred stock par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||
Non current term loans | $ 13,514,000 | $ 13,514,000 | $ 16,186,000 | ||||||||||||||||||||||
Interest expense | $ 600,000 | $ 600,000 | $ 1,700,000 | 1,800,000 | |||||||||||||||||||||
Weighted-average interest rate | 12.25% | 12.25% | |||||||||||||||||||||||
Warrants adjusted exercise price | $ / shares | $ 0.60 | ||||||||||||||||||||||||
Warrants, estimated fair value | $ 0 | (5,850,000) | |||||||||||||||||||||||
Change in fair value of warrants | $ 0 | $ (5,850,000) | |||||||||||||||||||||||
Series F Convertible Preferred Stock | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Preferred stock, shares issued | shares | 18,000 | ||||||||||||||||||||||||
SWK Warrants | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants adjusted strike price | $ / shares | $ 0.49 | $ 1 | |||||||||||||||||||||||
Warrants issued to purchase shares of common stock | shares | 487,198 | ||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | $ 1.34 | $ 0.39 | |||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | $ 1.34 | $ 0.39 | |||||||||||||||||||||||
Warrants expire date | Nov. 9, 2026 | ||||||||||||||||||||||||
Number of trading days of average closing price of common stock | d | 10 | ||||||||||||||||||||||||
Warrants expiration period | 8 years | ||||||||||||||||||||||||
Warrants fair value assumptions, expected volatility rate | 81.79% | ||||||||||||||||||||||||
Warrants fair value assumptions annual dividend per share | $ / shares | $ 0 | ||||||||||||||||||||||||
Warrants fair value assumptions, risk-free interest rate | 3.13% | ||||||||||||||||||||||||
Warrants, estimated fair value | $ 400,000 | ||||||||||||||||||||||||
Additional Warrants issued to purchase shares of common stock | shares | 63,779 | ||||||||||||||||||||||||
Change in fair value of warrants | 400,000 | ||||||||||||||||||||||||
Warrants effective-interest method amortization period | 5 years | ||||||||||||||||||||||||
DPG Warrants | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Finder's fee | $ 400,000 | ||||||||||||||||||||||||
Warrants expire date | Nov. 9, 2026 | ||||||||||||||||||||||||
Class Of Warrant Or Rights Expiration Date | Nov. 9, 2026 | ||||||||||||||||||||||||
Number of trading days of average closing price of common stock | d | 10 | ||||||||||||||||||||||||
Warrants expiration period | 8 years | ||||||||||||||||||||||||
Warrants fair value assumptions, expected volatility rate | 81.79% | ||||||||||||||||||||||||
Warrants fair value assumptions annual dividend per share | $ / shares | $ 0 | ||||||||||||||||||||||||
Warrants fair value assumptions, risk-free interest rate | 3.13% | ||||||||||||||||||||||||
Warrants, estimated fair value | $ 300,000 | ||||||||||||||||||||||||
Change in fair value of warrants | $ 300,000 | ||||||||||||||||||||||||
Adjusted exercise price of warrants | $ / shares | $ 0.62 | $ 0.38 | |||||||||||||||||||||||
DPG Warrants | Warrants Issued on November 9, 2018 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | $ 0.88 | $ 1.34 | |||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | 0.88 | $ 1.34 | |||||||||||||||||||||||
DPG Warrants | Warrants Issued on May, 2019 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | 1.42 | $ 2.17 | |||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | $ 1.42 | $ 2.17 | |||||||||||||||||||||||
Original Western Alliance Warrant | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | $ 2.35 | ||||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | $ 2.35 | ||||||||||||||||||||||||
Western Alliance Warrant | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | $ 2.13 | ||||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | $ 2.13 | ||||||||||||||||||||||||
Warrants expire date | Sep. 27, 2028 | ||||||||||||||||||||||||
SWK Warrants and DPG Warrants | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants issued to purchase shares of common stock | shares | 149,727 | ||||||||||||||||||||||||
Initial exercise price of warrants | $ / shares | $ 2.17 | ||||||||||||||||||||||||
Weighted average exercise price of warrants | $ / shares | $ 2.17 | ||||||||||||||||||||||||
PPP Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Loan forgiveness description of period | The review may include the loan forgiveness application, as well as whether the Company received the proper loan amount. There can be no assurance as to the result of any such SBA review. | ||||||||||||||||||||||||
Non current term loans | $ 0 | $ 0 | 2,980,000 | ||||||||||||||||||||||
Period for review of forgiveness of loan | 6 years | ||||||||||||||||||||||||
EIDL Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Note interest rate per annum | 3.75% | ||||||||||||||||||||||||
Non current term loans | 150,000 | $ 150,000 | 150,000 | ||||||||||||||||||||||
Loan principal amount | $ 150,000,000 | ||||||||||||||||||||||||
Loan interest rate per annum | 3.75% | ||||||||||||||||||||||||
Loan periodic payment terms | installment payments, including principal and interest, are due monthly beginning in July 2021 and are | ||||||||||||||||||||||||
Loan balance payment terms | payable through July 2050. | ||||||||||||||||||||||||
Extension of loan due date | 2022 | ||||||||||||||||||||||||
Maximum | SWK Warrants | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants issued to purchase shares of common stock | shares | 372,023,000 | ||||||||||||||||||||||||
Warrants, estimated fair value | $ 100,000 | ||||||||||||||||||||||||
Change in fair value of warrants | $ 100,000 | ||||||||||||||||||||||||
Maximum | DPG Warrants | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants issued to purchase shares of common stock | shares | 279,851 | ||||||||||||||||||||||||
Maximum | Original Western Alliance Warrant | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants issued to purchase shares of common stock equal value | $ 120,000 | ||||||||||||||||||||||||
Maximum | Western Alliance Warrant | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Warrants issued to purchase shares of common stock equal value | $ 120,000 | ||||||||||||||||||||||||
Maximum | PPP Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Nonpayroll costs eligible for loan forgiveness percentage | 40.00% | ||||||||||||||||||||||||
Minimum | PPP Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Nonpayroll costs eligible for loan forgiveness percentage | 25.00% | ||||||||||||||||||||||||
Pacific Mercantile Bank | PPP Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Loan granted amount from bank | $ 2,980,000 | ||||||||||||||||||||||||
Note issued date | Apr. 13, 2020 | ||||||||||||||||||||||||
Note maturity date | Apr. 13, 2022 | ||||||||||||||||||||||||
Note interest rate per annum | 1.00% | ||||||||||||||||||||||||
Note payable commencing date | Nov. 1, 2020 | ||||||||||||||||||||||||
Note prepayment penalties | $ 0 | ||||||||||||||||||||||||
Non current term loans | 3,000,000 | ||||||||||||||||||||||||
Loan interest rate per annum | 1.00% | ||||||||||||||||||||||||
SWK Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Repayments of lines of credit | $ 700,000 | ||||||||||||||||||||||||
Line of credit facility term | 5 years | ||||||||||||||||||||||||
Borrowings under lines of credit | 14,300,000 | ||||||||||||||||||||||||
Debt instrument, principal repayments beginning term | 2022 | ||||||||||||||||||||||||
Debt instrument, maturity term | 2024 | ||||||||||||||||||||||||
Non current term loans | 14,300,000 | $ 14,300,000 | 14,300,000 | ||||||||||||||||||||||
SWK Loan | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility interest rate description | or another index that approximates LIBOR as close as possible if and when LIBOR no longer exists. | ||||||||||||||||||||||||
Line of credit facility bearing floating interest rate per annum | 10.00% | ||||||||||||||||||||||||
SWK Loan | Credit Agreement, Seventh Amendment | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Incremental amendment fee | $ 25,000 | ||||||||||||||||||||||||
SWK Loan | Maximum | Credit Agreement, Seventh Amendment | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument covenants unencumbered liquid assets | $ 15,000,000 | ||||||||||||||||||||||||
SWK Loan | Minimum | Credit Agreement, Seventh Amendment | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument covenants unencumbered liquid assets | $ 15,000,000 | ||||||||||||||||||||||||
Loan Agreement | Pacific Mercantile Bank | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | ||||||||||||||||||||||||
Maximum borrowing base percentage of eligible accounts | 90.00% | ||||||||||||||||||||||||
Maximum borrowing base percentage of eligible inventory | 75.00% | ||||||||||||||||||||||||
Line of credit facility expiration date | Oct. 28, 2021 | ||||||||||||||||||||||||
Interest rate | 1.50% | ||||||||||||||||||||||||
Line of credit, outstanding borrowings | 0 | 0 | 0 | ||||||||||||||||||||||
Line of credit facility, unused availability | $ 2,800,000 | $ 2,800,000 | $ 2,300,000 | ||||||||||||||||||||||
Loan Agreement | Pacific Mercantile Bank | Minimum | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||||||||||
Loan Agreement | Exim Bank | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility initial and annual fee | $ 52,500 |
Debt - Summary of Future Minimu
Debt - Summary of Future Minimum Principal and Interest Payments (Detail) $ in Thousands | Sep. 30, 2021USD ($) | |
Debt Disclosure [Abstract] | ||
Remainder of 2021 | $ 0 | |
2022 | 2,100 | |
2023 | 2,800 | |
2024 | 9,400 | |
2025 | 1 | |
2026 and thereafter | 149 | |
Total future payments | 14,450 | |
Remainder of 2021 | 443 | [1] |
2022 | 1,716 | [1] |
2023 | 1,393 | [1] |
2024 | 1,899 | [1] |
2025 | 8 | [1] |
2026 and thereafter | 88 | [1] |
Total future payments | $ 5,547 | [1] |
[1] | (1) Estimated using London Interbank Bank Offered Rate (“LIBOR”) as of September 30, 2021 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Feb. 04, 2020ft² | Jan. 22, 2020ft² | Sep. 30, 2021USD ($)ft² | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)ft² | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Lessee Lease Description [Line Items] | |||||||
Rent expense | $ 200 | $ 100 | $ 600 | $ 500 | |||
Operating lease, options to renew term | 1 year | 1 year | |||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||||
Operating lease, right-of-use asset | $ 1,823 | $ 1,823 | $ 1,976 | ||||
Operating lease, liability | $ 1,961 | $ 1,961 | |||||
Corona Lease [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease term | 5 years | ||||||
Lease Expiration Date | Jun. 30, 2025 | ||||||
Lease Commencement Date | Jul. 1, 2020 | ||||||
Foothill Ranch [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease term | 66 months | ||||||
Lease Expiration Date | Dec. 31, 2025 | ||||||
Lease Commencement Date | Jul. 1, 2020 | ||||||
Lease facility area | ft² | 11,000 | ||||||
Foothill Ranch [Member] | Corona Lease [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease facility area | ft² | 11,000 | 11,000 | 11,000 | ||||
Minimum | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease term | 1 year | 1 year | |||||
Maximum | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease term | 5 years | 5 years | |||||
Lease initial term of contract | 1 year |
Leases - Information related to
Leases - Information related to Right-of-use Assets and Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Cash paid for operating lease liabilities | $ 62 | $ 87 | $ 185 | $ 417 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 0 | $ 1,440 | $ 48 | $ 2,037 |
Weighted-average remaining lease term | 3 years 9 months 18 days | 4 years 10 months 24 days | 3 years 9 months 18 days | 5 years 2 months 12 days |
Weighted-average discount rate | 12.30% | 12.30% | 12.30% | 12.30% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 624 | |
2023 | 621 | |
2024 | 613 | |
2025 | 519 | |
2026 and thereafter | 121 | |
Total operating lease liability | 2,498 | |
Less imputed interest | (537) | |
Total lease liabilities | 1,961 | |
Current operating lease liabilities | 404 | $ 305 |
Non current operating lease liability | $ 1,557 | $ 1,774 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Lease Agreements (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 166 |
2022 | 610 |
2023 | 624 |
2024 | 609 |
2025 and thereafter | 489 |
Total future minimum lease obligations | 2,498 |
Less imputed interest | (537) |
Total lease liabilities | $ 1,961 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jan. 25, 2019 | Feb. 28, 2021 | Jan. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2020 |
Commitment And Contingencies [Line Items] | ||||||||||
Litigation settlement share issued | 500,000 | |||||||||
Contingent loss on patent litigation settlement | $ (29,000) | $ 0 | $ (190,000) | $ 0 | ||||||
Accrued liability | $ 600,000 | 6,182,000 | 6,182,000 | $ 6,667,000 | ||||||
CAO Settlement Agreement | ||||||||||
Commitment And Contingencies [Line Items] | ||||||||||
Accrued liability | 700,000 | 700,000 | ||||||||
CAO Settlement Agreement | Patent Litigation | ||||||||||
Commitment And Contingencies [Line Items] | ||||||||||
Settlement agreement date | January 25, 2019 | |||||||||
Number of days litigation settlement to be paid in cash | 5 days | |||||||||
Litigation settlement in cash | $ 500,000 | |||||||||
Number of days litigation settlement shares to be issued | 30 days | |||||||||
Litigation settlement share issued | 500,000 | |||||||||
Number of days litigation settlement to be paid in value of stock consideration | 30 days | |||||||||
Settlement agreement, terms | The Company agreed (i) to pay to CAO, within five days of the Effective Date, $500,000 in cash, (ii) to issue to CAO, within 30 days of the Effective Date, 500,000 restricted shares of common stock of the Company (the “Stock Consideration”), and (iii) to pay to CAO, within 30 days of December 31, 2021, an amount in cash equal to the difference (if positive) between $1,000,000 and the value of the Stock Consideration on December 31, 2021. | |||||||||
Litigation settlement amount in cash equal to difference between value of stock consideration | $ 1,000,000 | |||||||||
Contingent loss on patent litigation settlement | $ 1,500,000 | |||||||||
Payment for litigation settlement in cash | $ 500,000 | |||||||||
Loss on litigation settlement | $ (200,000) | |||||||||
Accrued liability | $ 700,000 | $ 700,000 | $ 1,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Sales Revenue, Net - Customer | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Customer Concentration Risk | United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 62.00% | 73.00% | 64.00% | 71.00% |
Customer Concentration Risk | International | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 38.00% | 27.00% | 36.00% | 29.00% |
Geographic Concentration Risk | International | ||||
Segment Reporting Information [Line Items] | ||||
Number of customers which represented more than 10% of the Company's revenue | 0 | 0 | 0 | 0 |
Summary of Net Revenue by Geogr
Summary of Net Revenue by Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 9,531 | $ 6,539 | $ 26,780 | $ 14,260 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 5,939 | 4,755 | 17,024 | 10,079 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 3,592 | $ 1,784 | $ 9,756 | $ 4,181 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment by Geographic Location (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | $ 889 | $ 782 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | 618 | 486 |
International | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment, net | $ 271 | $ 296 |
Concentrations - Summary of Net
Concentrations - Summary of Net Revenue from Various Products (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Total net revenue | $ 9,531 | $ 6,539 | $ 26,780 | $ 14,260 |
Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 100.00% | 100.00% | 100.00% | 100.00% |
Laser systems | ||||
Concentration Risk [Line Items] | ||||
Total net revenue | $ 6,084 | $ 3,712 | $ 16,588 | $ 6,854 |
Laser systems | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 63.80% | 56.70% | 61.90% | 48.10% |
Consumables and other | ||||
Concentration Risk [Line Items] | ||||
Total net revenue | $ 2,331 | $ 1,929 | $ 6,923 | $ 4,263 |
Consumables and other | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 24.50% | 29.50% | 25.90% | 29.90% |
Services | ||||
Concentration Risk [Line Items] | ||||
Total net revenue | $ 1,116 | $ 898 | $ 3,269 | $ 3,143 |
Services | Product Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 11.70% | 13.80% | 12.20% | 22.00% |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) - Customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Product Concentration Risk | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Number of customers which represented more than 10% of the Company's revenue | 0 | 0 | 0 | 0 | |
Concentration Risk Percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Product Concentration Risk | Account Receivable | |||||
Concentration Risk [Line Items] | |||||
Number of customers which represented more than 10% of the Company's accounts receivable | 0 | 0 | |||
Minimum | Product Concentration Risk | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Minimum | Customer Concentration Risk | Account Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk Percentage | 10.00% | 10.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Liability for unrecognized tax benefit, including related estimates of penalties and interest | $ 0 | $ 0 | ||
Income tax provision (benefit) | $ (14,000) | $ (15,000) | $ 7,000 | $ (49,000) |
Projected annual effective tax rate | 0.40% | 55.60% | 0.10% | 0.50% |
Statutory tax rate | 21.00% |