Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | INGN | |
Entity Registrant Name | INOGEN, INC. | |
Entity Central Index Key | 0001294133 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 22,117,647 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36309 | |
Entity Tax Identification Number | 33-0989359 | |
Entity Address, Address Line One | 326 Bollay Drive | |
Entity Address, City or Town | Goleta | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93117 | |
City Area Code | (805) | |
Local Phone Number | 562-0500 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 213,984 | $ 198,037 |
Marketable securities | 6,525 | 11,057 |
Accounts receivable, net | 31,691 | 34,325 |
Inventories, net | 29,220 | 35,664 |
Income tax receivable | 3,105 | 2,976 |
Prepaid expenses and other current assets | 18,856 | 10,160 |
Total current assets | 303,381 | 292,219 |
Property and equipment | ||
Rental equipment, net | 44,464 | 39,308 |
Manufacturing equipment and tooling | 10,274 | 9,704 |
Computer equipment and software | 7,196 | 7,266 |
Furniture and equipment | 2,277 | 1,730 |
Leasehold improvements | 4,567 | 4,388 |
Land and building | 125 | 125 |
Construction in process | 1,572 | 1,773 |
Total property and equipment | 70,475 | 64,294 |
Less accumulated depreciation | (45,155) | (44,856) |
Property and equipment, net | 25,320 | 19,438 |
Goodwill | 33,054 | 32,954 |
Intangible assets, net | 71,009 | 77,533 |
Operating lease right-of-use asset | 9,318 | 5,855 |
Deferred tax asset - noncurrent | 14,083 | 14,452 |
Other assets | 4,166 | 4,888 |
Total assets | 460,331 | 447,339 |
Current liabilities | ||
Accounts payable and accrued expenses | 29,200 | 30,730 |
Accrued payroll | 7,234 | 6,215 |
Warranty reserve - current | 5,887 | 4,923 |
Operating lease liability - current | 1,890 | 2,014 |
Deferred revenue - current | 6,628 | 5,478 |
Income tax payable | 1,132 | 821 |
Total current liabilities | 51,971 | 50,181 |
Long-term liabilities | ||
Warranty reserve - noncurrent | 8,040 | 7,648 |
Operating lease liability - noncurrent | 8,570 | 4,702 |
Earnout liability - noncurrent | 26,393 | 26,559 |
Deferred revenue - noncurrent | 12,766 | 13,541 |
Deferred tax liability - noncurrent | 91 | 87 |
Total liabilities | 107,831 | 102,718 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 200,000,000 authorized; 22,116,291 and 22,031,410 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 22 | 22 |
Additional paid-in capital | 271,345 | 263,252 |
Retained earnings | 80,726 | 81,434 |
Accumulated other comprehensive income (loss) | 407 | (87) |
Total stockholders' equity | 352,500 | 344,621 |
Total liabilities and stockholders' equity | $ 460,331 | $ 447,339 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 22,116,291 | 22,031,410 |
Common stock, shares outstanding | 22,116,291 | 22,031,410 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Sales revenue | $ 66,809 | $ 86,392 | $ 215,561 | $ 267,073 |
Rental revenue | 7,520 | 5,369 | 18,948 | 15,953 |
Total revenue | 74,329 | 91,761 | 234,509 | 283,026 |
Cost of revenue | ||||
Cost of sales revenue | 37,714 | 44,769 | 120,914 | 134,066 |
Cost of rental revenue, including depreciation of $1,475 and $1,482, for the three months ended and $3,995 and $4,781 for the nine months ended, respectively | 3,609 | 3,677 | 9,474 | 11,021 |
Total cost of revenue | 41,323 | 48,446 | 130,388 | 145,087 |
Gross profit | ||||
Gross profit-sales revenue | 29,095 | 41,623 | 94,647 | 133,007 |
Gross profit-rental revenue | 3,911 | 1,692 | 9,474 | 4,932 |
Total gross profit | 33,006 | 43,315 | 104,121 | 137,939 |
Operating expense | ||||
Research and development | 3,511 | 2,636 | 10,406 | 5,773 |
Sales and marketing | 22,882 | 24,047 | 72,131 | 80,006 |
General and administrative | 8,586 | 8,525 | 28,087 | 27,050 |
Total operating expense | 34,979 | 35,208 | 110,624 | 112,829 |
Income (loss) from operations | (1,973) | 8,107 | (6,503) | 25,110 |
Other income (expense) | ||||
Interest income | 114 | 1,149 | 842 | 3,877 |
Other income (expense) | (54) | (503) | 5,586 | (478) |
Total other income, net | 60 | 646 | 6,428 | 3,399 |
Income (loss) before provision (benefit) for income taxes | (1,913) | 8,753 | (75) | 28,509 |
Provision (benefit) for income taxes | (214) | 1,890 | 633 | 6,184 |
Net income (loss) | (1,699) | 6,863 | (708) | 22,325 |
Other comprehensive income (loss), net of tax | ||||
Change in foreign currency translation adjustment | 385 | (309) | 405 | (340) |
Change in net unrealized gains (losses) on foreign currency hedging | (82) | (420) | 162 | (954) |
Less: reclassification adjustment for net (gains) losses included in net income | (213) | 338 | (67) | 796 |
Total net change in unrealized gains (losses) on foreign currency hedging | (295) | (82) | 95 | (158) |
Change in net unrealized gains (losses) on marketable securities | (1) | (18) | (6) | 18 |
Total other comprehensive income (loss), net of tax | 89 | (409) | 494 | (480) |
Comprehensive income (loss) | $ (1,610) | $ 6,454 | $ (214) | $ 21,845 |
Basic net income (loss) per share attributable to common stockholders (Note 7) | $ (0.08) | $ 0.31 | $ (0.03) | $ 1.02 |
Diluted net income (loss) per share attributable to common stockholders (Note 7) | $ (0.08) | $ 0.31 | $ (0.03) | $ 1 |
Weighted-average number of shares used in calculating net income (loss) per share attributable to common stockholders: | ||||
Basic common shares | 21,998,299 | 21,840,473 | 21,959,521 | 21,802,468 |
Diluted common shares | 21,998,299 | 22,191,688 | 21,959,521 | 22,387,146 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Depreciation | $ 1,475 | $ 1,482 | $ 3,995 | $ 4,781 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2018 | $ 310,424 | $ 22 | $ 249,194 | $ 60,484 | $ 724 |
Beginning Balance, shares at Dec. 31, 2018 | 21,778,632 | ||||
Stock-based compensation | 6,930 | 6,930 | |||
Employee stock purchases | 2,748 | 2,748 | |||
Employee stock purchases, shares | 47,816 | ||||
Restricted stock awards issued, net of forfeitures, shares | 79,058 | ||||
Vesting of restricted stock units | (73) | (73) | |||
Vesting of restricted stock units, shares | 24,817 | ||||
Shares withheld related to net restricted stock settlement | (764) | (764) | |||
Shares withheld related to net restricted stock settlement, shares | (14,002) | ||||
Stock options exercised | 2,036 | 2,036 | |||
Stock options exercised, shares | 82,053 | ||||
Net income (loss) | 22,325 | 22,325 | |||
Other comprehensive income (loss) | (480) | (480) | |||
Ending Balance at Sep. 30, 2019 | 343,146 | $ 22 | 260,071 | 82,809 | 244 |
Ending Balance, shares at Sep. 30, 2019 | 21,998,374 | ||||
Beginning Balance at Jun. 30, 2019 | 333,798 | $ 22 | 257,177 | 75,946 | 653 |
Beginning Balance, shares at Jun. 30, 2019 | 21,933,669 | ||||
Stock-based compensation | 1,565 | 1,565 | |||
Employee stock purchases | 1,223 | 1,223 | |||
Employee stock purchases, shares | 31,049 | ||||
Restricted stock awards issued, net of forfeitures, shares | 24,456 | ||||
Vesting of restricted stock units | (6) | (6) | |||
Vesting of restricted stock units, shares | 3,441 | ||||
Shares withheld related to net restricted stock settlement | (46) | (46) | |||
Shares withheld related to net restricted stock settlement, shares | (979) | ||||
Stock options exercised | 158 | 158 | |||
Stock options exercised, shares | 6,738 | ||||
Net income (loss) | 6,863 | 6,863 | |||
Other comprehensive income (loss) | (409) | (409) | |||
Ending Balance at Sep. 30, 2019 | 343,146 | $ 22 | 260,071 | 82,809 | 244 |
Ending Balance, shares at Sep. 30, 2019 | 21,998,374 | ||||
Beginning Balance at Dec. 31, 2019 | 344,621 | $ 22 | 263,252 | 81,434 | (87) |
Beginning Balance, shares at Dec. 31, 2019 | 22,031,410 | ||||
Stock-based compensation | 6,111 | 6,111 | |||
Employee stock purchases | 2,084 | 2,084 | |||
Employee stock purchases, shares | 68,467 | ||||
Restricted stock awards issued, net of forfeitures, shares | (27,729) | ||||
Vesting of restricted stock units | (14) | (14) | |||
Vesting of restricted stock units, shares | 41,647 | ||||
Shares withheld related to net restricted stock settlement | (274) | (274) | |||
Shares withheld related to net restricted stock settlement, shares | (6,828) | ||||
Stock options exercised | $ 186 | 186 | |||
Stock options exercised, shares | 9,324 | 9,324 | |||
Net income (loss) | $ (708) | (708) | |||
Other comprehensive income (loss) | 494 | 494 | |||
Ending Balance at Sep. 30, 2020 | 352,500 | $ 22 | 271,345 | 80,726 | 407 |
Ending Balance, shares at Sep. 30, 2020 | 22,116,291 | ||||
Beginning Balance at Jun. 30, 2020 | 351,114 | $ 22 | 268,349 | 82,425 | 318 |
Beginning Balance, shares at Jun. 30, 2020 | 22,065,961 | ||||
Stock-based compensation | 2,050 | 2,050 | |||
Employee stock purchases | 996 | 996 | |||
Employee stock purchases, shares | 40,513 | ||||
Vesting of restricted stock units | (3) | (3) | |||
Vesting of restricted stock units, shares | 11,431 | ||||
Shares withheld related to net restricted stock settlement | (47) | (47) | |||
Shares withheld related to net restricted stock settlement, shares | (1,614) | ||||
Net income (loss) | (1,699) | (1,699) | |||
Other comprehensive income (loss) | 89 | 89 | |||
Ending Balance at Sep. 30, 2020 | $ 352,500 | $ 22 | $ 271,345 | $ 80,726 | $ 407 |
Ending Balance, shares at Sep. 30, 2020 | 22,116,291 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (708) | $ 22,325 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 13,654 | 9,216 |
Loss on rental units and other fixed assets | 502 | 473 |
Gain on sale of former rental assets | (84) | (64) |
Provision for sales revenue returns and doubtful accounts | 8,341 | 13,204 |
Provision for rental revenue adjustments | 2,115 | 1,701 |
Provision for inventory losses | 720 | 593 |
Stock-based compensation expense | 6,111 | 6,930 |
Deferred income taxes | 369 | 5,908 |
Change in fair value of earnout liability | (166) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,716) | (19,109) |
Inventories | 2,597 | (7,936) |
Income tax receivable | (129) | (212) |
Prepaid expenses and other current assets | (8,695) | (3,607) |
Operating lease right-of-use asset | (3,463) | (6,356) |
Other noncurrent assets | 2,105 | (2,088) |
Accounts payable and accrued expenses | (1,495) | 3,462 |
Accrued payroll | 1,017 | (4,702) |
Warranty reserve | 1,356 | 1,946 |
Deferred revenue | 375 | 2,825 |
Income tax payable | 265 | 210 |
Operating lease liability | 3,744 | 7,317 |
Other noncurrent liabilities | (832) | |
Net cash provided by operating activities | 20,815 | 31,204 |
Cash flows from investing activities | ||
Purchases of marketable securities | (6,531) | (58,681) |
Maturities of marketable securities | 11,057 | 57,900 |
Investment in intangible assets | (215) | (31) |
Investment in property and equipment | (3,352) | (2,275) |
Production and purchase of rental equipment | (8,217) | (2,187) |
Proceeds from sale of former assets | 140 | 166 |
Payment for acquisition, net of cash acquired | (70,401) | |
Net cash used in investing activities | (7,118) | (75,509) |
Net cash used in investing activities | (7,118) | (75,509) |
Cash flows from financing activities | ||
Proceeds from stock options exercised | 186 | 2,036 |
Proceeds from employee stock purchases | 2,084 | 2,748 |
Payment of employment taxes related to release of restricted stock | (288) | (837) |
Net cash provided by financing activities | 1,982 | 3,947 |
Effect of exchange rates on cash | 268 | (145) |
Net increase (decrease) in cash and cash equivalents | 15,947 | (40,503) |
Cash and cash equivalents, beginning of period | 198,037 | 196,634 |
Cash and cash equivalents, end of period | 213,984 | 156,131 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for income taxes, net of refunds received | 158 | 221 |
Supplemental disclosure of non-cash transactions | ||
Accrued value of earnout related to acquisition | 25,749 | |
Property and equipment in accounts payable and accrued liabilities | $ 32 | $ 18 |
Business Overview
Business Overview | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Overview | 1. Business overview Inogen, Inc. (Company or Inogen) was incorporated in Delaware on November 27, 2001. The Company is a medical technology company that primarily develops, manufactures and markets innovative portable oxygen concentrators (POCs) used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. Traditionally, these patients have relied on stationary oxygen concentrator systems for use in the home and oxygen tanks or cylinders for mobile use, which the Company calls the delivery model. The tanks and cylinders must be delivered regularly and have a finite amount of oxygen, which requires patients to plan activities outside of their homes around delivery schedules and a finite oxygen supply. Additionally, patients must attach long, cumbersome tubing to their stationary concentrators simply to enable mobility within their homes. The Company’s proprietary Inogen One ® Since adopting the Company’s direct-to-consumer rental strategy in 2009, the Company has directly sold or rented more than 922,000 of its Inogen oxygen concentrators as of September 30, 2020. The Company incorporated Inogen Europe Holding B.V., a Dutch limited liability company, on April 13, 2017. On May 4, 2017, Inogen Europe Holding B.V. acquired all issued and outstanding capital stock of MedSupport Systems B.V. (MedSupport) and began operating under the name Inogen Europe B.V. The Company merged Inogen Europe Holding B.V. and Inogen Europe B.V. on December 28, 2018. Inogen Europe B.V. is the remaining legal entity. Inogen completed the acquisition of New Aera, Inc. (New Aera) on August 9, 2019. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of presentation and summary of significant accounting policies The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The results of operations for the three months and nine months ended September 30, 2020 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2020. In the opinion of the Company’s management, the information contained herein reflects all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. Certain footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations relating to interim financial statements. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2020. Except as further described below, there have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 25, 2020. Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition and determining the stand-alone selling price (SSP) of performance obligations, inventory and rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, warranty expense, stock compensation expense, depreciation and amortization, income tax provision and uncertain tax positions, fair value of financial instruments, fair value of acquired intangible assets and goodwill and fair value of earnout liabilities. Actual results could differ from these estimates. Government grants The Company may receive cash payments from government grants during a public health emergency (PHE). The Company considers the nature and substance of the government grant and records the cash payment in accordance with the terms and conditions of the grant. Income is deferred until all considerations required for receiving the grant are met and is recognized in the consolidated statements of comprehensive income (loss) based on the nature of the terms and conditions of the grant. In nine months ended September 30, 2020, the Company received a grant of from the Public Health and Social Services Emergency Fund (Relief Fund), which was among the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act signed into law on March 27, 2020. During the nine months ended September 30, 2020, t Recently issued accounting pronouncements not yet adopted In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The new guidance also improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740 by clarifying and amending the existing guidance. currently evaluating the effect of the new guidance. Recently adopted accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Accounting for Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions On August 6, 2019, the Company entered into an Agreement and Plan of Merger (Merger Agreement) by and among the Company, New Aera, Inc., a Delaware corporation, Move Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company, and Gregory J. Kapust, as stockholder representative. On August 9, 2019, the Company completed the acquisition of New Aera pursuant to and on the terms set forth in the Merger Agreement. In connection with the Merger Agreement, the Company also separately acquired certain intellectual property assets from Silverbow Development, LLC, an affiliate of New Aera (Silverbow). New Aera is an innovative developer and manufacturer of portable non-invasive ventilators for people suffering from various chronic lung diseases. Goodwill associated with this acquisition is not expected to be deductible for income tax purposes. Assets and liabilities of the acquired company were recorded at their estimated fair values at the date of acquisition. The excess purchase price over the fair value of net tangible assets and identifiable intangible asset s acquired has been allocated to goodwill. Goodwill represents the expected synergies with the existing business, the acquired assembled workforce, and future cash flows after the acquisition . The fair value assigned to the identifiable intangible asset was determined primarily by using the excess earnings method. T he key assumption s included in the excess earnings method included revenue recognized , cost of revenue and the discount rate. The fair value of the earnout liability was measured using a Monte Carlo simulation and was discounted using a rate that appropriately captures the risk associated with the obligation. The key assumption included in the simulation included revenue recognized . Preliminary fair values of assets acquired and liabilities assumed have been updated for deferred taxes. The purchase accounting for this acquisition has been finalized. The following table summarizes the purchase price allocation for the acquisition of New Aera: Cash $ 122 Inventories 140 Other current assets 8 Property and equipment 224 Goodwill 30,742 Intangible assets 77,700 Total assets acquired $ 108,936 Deferred tax liability - noncurrent $ 12,664 Earnout liability - noncurrent 25,749 Total liabilities assumed 38,413 Total purchase price $ 70,523 The consolidated financial and operating results reflect the New Aera operations beginning August 9, 2019. The following unaudited pro forma information for the three months and nine months ended September 30, 2019 presents the revenue and net income assuming the acquisition of New Aera had occurred as of January 1, 2018. Three months ended Nine months ended September 30, 2019 September 30, 2019 Total revenue $ 91,756 $ 283,036 Net income $ 5,108 $ 18,784 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair value measurements Accounting Standards Codification (ASC) 820 — Fair Value Measurements and Disclosures Level input Input definition Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Company’s financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses. The carrying values of its financial instruments approximate fair value based on their short-term nature. Cash, cash equivalents and marketable securities The Company obtained the fair value of its available-for-sale investments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company's professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g., large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered, and the fair value is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values against the fair values provided by its investment managers. The Company's investment managers use similar techniques to its professional pricing service to derive pricing as described above. As all significant inputs were observable, derived from observable information in the marketplace or supported by observable levels at which transactions are executed in the marketplace, the Company has classified its marketable securities within Level 2 of the fair value hierarchy. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of September 30, 2020 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 46,137 $ — $ 46,137 $ 46,137 $ — Level 1: Money market accounts 167,847 — 167,847 167,847 — Level 2: Corporate bonds 6,524 1 6,525 — 6,525 Total $ 220,508 $ 1 $ 220,509 $ 213,984 $ 6,525 As of December 31, 2019 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 51,560 $ — $ 51,560 $ 51,560 $ — Level 1: Money market accounts 146,477 — 146,477 146,477 — Level 2: Corporate bonds 2,011 2 2,013 — 2,013 U.S. Treasury securities 9,038 6 9,044 — 9,044 Total $ 209,086 $ 8 $ 209,094 $ 198,037 $ 11,057 Derivative instruments and hedging activities The Company transacts business in foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company has entered into foreign currency forward contracts, generally with maturities of twelve months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. These contracts allow the Company to sell Euros in exchange for U.S. dollars at specified contract rates. Forward contracts are used to hedge forecasted sales over specific months. Changes in the fair value of these forward contracts designed as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in the consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding sales occur. The Company may also enter into foreign exchange contracts that are not designated as hedging instruments for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain asset and liability balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of the non-designated contracts are reported in other expense, net in the consolidated statements of comprehensive income. The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in other income (expense), net. The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheet. The Company had a related payable of $470 and $514 as of September 30, 2020 and December 31, 2019, respectively. The Company classifies the foreign currency derivative instruments within Level 2 in the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of whether it is designated and qualifies for hedge accounting. The Company documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company assesses hedge effectiveness and ineffectiveness at a minimum quarterly but may assess it monthly. For derivative instruments that are designed and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) and reclassified into earnings in the same periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period earnings. The Company will discontinue hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedge risk. The cash flow hedge is de-designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in the fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company will discontinue hedge accounting and recognize immediately in earnings gains and losses that were accumulated in other comprehensive income (loss) related to the hedging relationship. Accumulated other comprehensive income (loss) The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains (losses) gains (losses) other translation on marketable on cash comprehensive adjustments securities flow hedges income (loss) Balance as of December 31, 2019 $ 271 $ 6 $ (364 ) $ (87 ) Other comprehensive income (loss) 405 (6 ) 95 494 Balance as of September 30, 2020 $ 676 $ — $ (269 ) $ 407 Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for net income and unrealized gains and losses on cash flow hedges, the Company does not have any transactions or other economic events that qualify as comprehensive income (loss). Earnout liability The Com pany has obligations to pay up to $31,400 in earnout payments in cash if certain future financial results are met. The earnout liability was valued using Level 3 inputs. The fair value of the earnout was determined by employing a Monte Carlo simulation in a risk-neutral framework. The underlying simulated variable includes recognized revenue. The recognized revenue volatility estimate was based on a study of historical asset volatility for a set of comparable public companies. The model includes other assumptions including the market price of risk, which was calculated as the weighted average cost of capital (WACC) less the long-term risk free rate. The earnout period for recognized revenue is each calendar year beginning with calendar year 2019 and ending on the calendar year in which the earnout consideration equals the earnout cap The following table provides quantitative information about Level 3 inputs for fair value measurement of the earnout liability as of September 30, 2020 and December 31, 2019. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement: As of As of Simulation input September 30, 2020 December 31, 2019 Revenue volatility 35.00 % 35.00 % WACC 12.00 % 13.00 % 20-year risk free rate 1.23 % 2.25 % Market price of risk 8.00 % 10.00 % The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows: Three months ended Nine months ended September 30, September 30, 2020 2020 Balance at beginning of period $ 26,539 $ 26,559 Change in fair value (146 ) (166 ) Balance at end of period $ 26,393 $ 26,393 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 5. Balance sheet components Cash, cash equivalents and marketable securities The Company considers all short-term highly liquid investments with a maturity of three months or less to be cash equivalents. The Company’s marketable debt securities are classified and accounted for as available-for-sale. Cash equivalents are recorded at cost plus accrued interest, which is considered adjusted cost, and approximates fair value. Marketable debt securities are included in cash equivalents and marketable securities based on the maturity date of the security. Short-term investments are included in marketable securities in the current period presentation. The Company considers investments with maturities greater than three months, but less than one year, to be marketable securities. Investments are reported at fair value with realized and unrealized gains or losses reported in other income (expense), net. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company's intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Credit losses and other-than-temporary impairments are declines in fair value that are not expected to recover and are charged to other income (expense), net. September 30, December 31, Cash and cash equivalents 2020 2019 Cash $ 46,137 $ 51,560 Money market accounts 167,847 146,477 Total cash and cash equivalents $ 213,984 $ 198,037 Marketable securities Corporate bonds $ 6,525 $ 2,013 U.S. Treasury securities — 9,044 Total marketable securities $ 6,525 $ 11,057 Accounts receivable and allowance for bad debts, returns, and adjustments Accounts receivable are customer obligations due under normal sales and rental terms. The Company performs credit evaluations of the customers’ financial condition and generally does not require collateral. The allowance for doubtful accounts is maintained at a level that, in management’s opinion, is adequate to absorb potential losses related to accounts receivable and is based upon the Company’s continuous evaluation of the collectability of outstanding balances. Management’s evaluation takes into consideration such factors as past bad debt experience, economic conditions and information about specific receivables. The Company’s evaluation also considers the age and composition of the outstanding amounts in determining their net realizable value. The allowance for doubtful accounts is based on estimates, and ultimate losses may vary from current estimates. As adjustments to these estimates become necessary, they are reported in general and administrative expense for sales revenue and as a reduction of rental revenue in the periods in which they become known. The allowance is increased by bad debt provisions, net of recoveries, and is reduced by direct write-offs. The Company generally does not allow returns from providers for reasons not covered under its standard warranty. Therefore, provision for returns applies primarily to direct-to-consumer sales. This reserve is calculated based on actual historical return rates under the Company’s 30-day return program and is applied to the related sales revenue for the last month of the quarter reported. The Company also records an allowance for rental revenue adjustments which is recorded as a reduction of rental revenue and net rental accounts receivable balances. These adjustments result from contractual adjustments, audit adjustments, untimely claims filings, or billings not paid due to another provider performing same or similar functions for the patient in the same period, all of which prevent billed revenue from becoming realizable. The reserve is based on historical revenue adjustments as a percentage of rental revenue billed and unbilled during the related period. When recording the allowance for doubtful accounts for sales revenue, the bad debt expense account (general and administrative expense account) is charged; when recording allowance for sales returns, the sales returns account (contra sales revenue account) is charged; and when recording the allowances for rental reserve adjustments and doubtful accounts, the rental revenue adjustments account (contra rental revenue account) is charged. As of September 30, 2020 and December 31, 2019, included in accounts receivable on the consolidated balance sheets were earned but unbilled receivables of $1,659 and $590, respectively. These balances reflect gross unbilled receivables prior to any allowances for adjustments and write-offs. The Company consistently applies its allowance estimation methodology from period-to-period. The Company’s best estimate is made on an accrual basis and adjusted in future periods as required. Any adjustments to the prior period estimates are included in the current period. As additional information becomes known, the Company adjusts its assumptions accordingly to change its estimate of the allowance. Gross accounts receivable balance concentrations by major category as of September 30, 2020 and December 31, 2019 were as follows: September 30, December 31, Gross accounts receivable 2020 2019 Rental (1) $ 5,081 $ 3,003 Business-to-business and other receivables (2) 28,018 33,101 Total gross accounts receivable $ 33,099 $ 36,104 Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2020 and December 31, 2019 were as follows: September 30, December 31, Net accounts receivable 2020 2019 Rental (1) $ 4,354 $ 2,464 Business-to-business and other receivables (2) 27,337 31,861 Total net accounts receivable $ 31,691 $ 34,325 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $5,568 and $10,695 as of September 30, 2020 and December 31, 2019, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $10,000 in coverage as of September 30, 2020 and allocated up to $20,000 in coverage as of December 31, 2019 for this customer with a $400 deductible and 10% retention. The following tables set forth the accounts receivable allowances as of September 30, 2020 and December 31, 2019: September 30, December 31, Allowances - accounts receivable 2020 2019 Doubtful accounts $ 114 $ 205 Rental revenue adjustments 640 411 Sales returns 654 1,163 Total allowances - accounts receivable $ 1,408 $ 1,779 Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, marketable securities and accounts receivable. At times, cash account balances may be in excess of the amounts insured by the Federal Deposit Insurance Corporation (FDIC). However, management believes the risk of loss to be minimal. The Company performs periodic evaluations of the relative credit standing of these institutions and has not experienced any losses on its cash and cash equivalents to date. The Company has also entered into hedging relationships with a single counterparty to offset the forecasted Euro-based revenues. The credit risk has been reduced due to a net settlement arrangement whereby the Company is allowed to net settle transactions with a single net amount payable by one party to the other. Concentration of customers and vendors The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries primarily on a credit basis. The Company also sells its products direct-to-consumers on a primarily prepayment basis. One single customer represented more than 10% of the Company’s total revenue for the nine months ended September 30, 2020, and no single customer represented more than 10% of the Company’s total revenue for the nine months ended September 30, 2019. Two customers each represented more than 10% of the Company’s net accounts receivable balance with accounts receivable balances of $9,386 and $5,568, respectively, as of September 30, 2020, and $10,695 and $5,228, respectively, as of December 31, 2019. The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. The three major vendors supply the Company with raw materials used to manufacture the Company’s products. For the nine months ended September 30, 2020, the Company’s three major vendors accounted for 20.7%, 11.1%, and 9.7%, respectively, of total raw material purchases. For the nine months ended September 30, 2019, the Company’s three major vendors accounted for 22.1%, 13.8% and 9.7%, respectively, of total raw material purchases. A portion of revenue is earned from sales outside the United States. Approximately 83.4% and 70.3% of the non-U.S. revenue for the three months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. Approximately 75.6% and 71.2% of the non-U.S. revenue for the nine months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2020 and September 30, 2019, respectively, is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 U.S. revenue $ 59,748 $ 73,269 $ 185,971 $ 222,167 Non-U.S. revenue 14,581 18,492 48,538 60,859 Total revenue $ 74,329 $ 91,761 $ 234,509 $ 283,026 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using a standard cost method, including material, labor and manufacturing overhead, whereby the standard costs are updated at least quarterly to reflect approximate actual costs using the first-in, first-out (FIFO) method. The Company records adjustments at least quarterly to inventory for potentially excess, obsolete, slow-moving or impaired items. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $2,459 and $1,076 as of September 30, 2020 and December 31, 2019, respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. During the nine months ended September 30, 2020 and September 30, 2019, $1,795 and $798, respectively, of inventory was transferred to rental equipment and was considered a noncash transaction in the production and purchase of rental equipment on the consolidated statements of cash flow. Inventories that are considered current consist of the following: September 30, December 31, 2020 2019 Raw materials and work-in-progress $ 25,566 $ 31,676 Finished goods 4,560 5,174 Less: reserves (906 ) (1,186 ) Inventories, net $ 29,220 $ 35,664 Property and equipment Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5-5 years Manufacturing equipment and tooling 3-5 years Computer equipment and software 2-3 years Furniture and equipment 3-5 years Leasehold improvements Lesser of estimated useful life or remaining lease term Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $0. Repair and maintenance costs on rental equipment are included in cost of rental revenue on the consolidated statements of comprehensive income. Repair and maintenance expense, which includes labor, parts and freight, for rental equipment was $653 and $938 for the three months ended September 30, 2020 and September 30, 2019, respectively, and $1,776 and $2,301 for the nine months ended September 30, 2020 and September 30, 2019, respectively. Included within property and equipment is construction in process, primarily related to the design and engineering of tooling, jigs and other machinery. In addition, this item also includes computer software or development costs that have been purchased but have not completed the final configuration process for implementation into the Company’s systems. These items have not been placed in service; therefore, no depreciation or amortization was recognized for these items in the respective periods. Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three and nine months ended September 30, 2020 and September 30, 2019, respectively. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Rental equipment $ 1,475 $ 1,482 $ 3,995 $ 4,781 Other property and equipment 982 911 2,912 2,514 Total depreciation and amortization $ 2,457 $ 2,393 $ 6,907 $ 7,295 Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of September 30, 2020 and December 31, 2019, respectively. September 30, December 31, Property and equipment 2020 2019 Rental equipment, net of allowances of $345 and $395, respectively $ 44,464 $ 39,308 Other property and equipment 26,011 24,986 Property and equipment 70,475 64,294 Accumulated depreciation Rental equipment 30,625 30,984 Other property and equipment 14,530 13,872 Accumulated depreciation 45,155 44,856 Property and equipment, net Rental equipment, net of allowances of $345 and $395, respectively 13,839 8,324 Other property and equipment 11,481 11,114 Property and equipment, net $ 25,320 $ 19,438 Long-lived assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360 — Property, Plant, and Equipment Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2020 were as follows: Balance as of December 31, 2019 $ 32,954 Translation adjustment 100 Balance as of September 30, 2020 $ 33,054 Intangible assets There were no impairments recorded related to the Company’s intangible assets as of September 30, 2020 and September 30, 2019. Amortization expense for intangible assets for the three months ended September 30, 2020 and September 30, 2019 was $2,255 and $1,269, respectively, and for the nine months ended September 30, 2020 and September 30, 2019 was $6,747 and $1,921, respectively. The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated September 30, 2020 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 8,741 $ 68,959 Licenses 10 185 171 14 Patents and websites 5 4,483 2,834 1,649 Customer relationships 4 1,407 1,202 205 Commercials 2-3 698 516 182 Total $ 84,473 $ 13,464 $ 71,009 Average estimated Gross useful lives carrying Accumulated December 31, 2019 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 2,914 $ 74,786 Licenses 10 185 165 20 Patents and websites 5 4,274 2,308 1,966 Customer relationships 4 1,346 897 449 Commercials 2-3 777 465 312 Total $ 84,282 $ 6,749 $ 77,533 Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2020 Remaining 3 months of 2020 $ 2,257 2021 8,728 2022 8,410 2023 7,835 2024 7,830 Thereafter 35,949 $ 71,009 Current liabilities Accounts payable and accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, 2020 2019 Accounts payable $ 9,514 $ 16,399 Accrued inventory (in-transit and unvouchered receipts) and trade payables 8,812 11,124 Accrued purchasing card liability 2,323 1,675 Accrued franchise, sales and use taxes 429 713 Other accrued expenses 8,122 819 Accounts payable and accrued expenses $ 29,200 $ 30,730 Accrued payroll as of September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, 2020 2019 Accrued bonuses $ 4 $ 87 Accrued wages and other payroll related items 4,463 3,158 Accrued vacation 2,620 2,169 Accrued employee stock purchase plan deductions 147 801 Accrued payroll $ 7,234 $ 6,215 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases The Company has entered into operating leases primarily for commercial buildings. These leases have terms which range from 2 years to 11 years, some of which include options to extend the leases for up to 5 years. There are no economic penalties for the Company to extend the lease, and it is not reasonably assured that the Company will exercise the extension options. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. The operating leases do not contain material residual value guarantees or material restrictive covenants. T he Company leases a property owned by a related party. Operating lease cost for the property was $8 and $25 for the three and nine months ended September 30, 2020, respectively, which was included in the total operating lease cost. Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Nine months ended September 30, 2020 2019 Cash paid for operating lease liabilities $ 1,803 $ 1,820 Operating lease cost 2,045 1,703 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 5,234 6,418 Weighted-average remaining lease term 2.9 years 2.5 years Weighted-average discount rate 3.3 % 3.8 % Maturities of lease liabilities due in the 12-month period ending September 30, 2021 $ 2,199 2022 1,993 2023 1,844 2024 1,842 2025 596 Thereafter 3,211 11,685 Less imputed interest (1,225 ) Total lease liabilities $ 10,460 Operating lease liability - current $ 1,890 Operating lease liability - noncurrent $ 8,570 Total lease liabilities $ 10,460 As of September 30, 2020, the Company has additional operating leases for its corporate headquarters in California and industrial space in Texas that have not yet commenced, with total minimum lease payments of $21,433. Lease payments for its corporate headquarters will increase annually by the lesser of the change, if any, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor or three and one-half percent (3.5%) at each annual adjustment date thereafter. Lease payments for the Company’s industrial space in Texas will increase annually by two and one-half percent (2.5%) at each annual adjustment date thereafter. These operating leases are estimated to commence in the first quarter of 2021 with a lease term of approximately 10 years. The table above excludes lease payments that were not fixed at commencement or modification. |
Earnings (loss) per Share
Earnings (loss) per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. Earnings (loss) per share Earnings (loss) per share (EPS) is computed in accordance with ASC 260 —Earnings per Share Basic earnings (loss) per share is calculated using the Company’s weighted-average outstanding common shares. Diluted earnings (loss) per share is calculated using the Company’s weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The computation of EPS is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator—basic and diluted: Net income (loss) $ (1,699 ) $ 6,863 $ (708 ) $ 22,325 Denominator: Weighted-average common shares - basic common stock (1) 21,998,299 21,840,473 21,959,521 21,802,468 Weighted-average common shares - diluted common stock 21,998,299 22,191,688 21,959,521 22,387,146 Net income (loss) per share - basic common stock $ (0.08 ) $ 0.31 $ (0.03 ) $ 1.02 Net income (loss) per share - diluted common stock (2) $ (0.08 ) $ 0.31 $ (0.03 ) $ 1.00 Denominator calculation from basic to diluted: Weighted-average common shares - basic common stock (1) 21,998,299 21,840,473 21,959,521 21,802,468 Stock options and other dilutive awards 206,274 351,215 252,096 584,678 Weighted-average common shares - diluted common stock 22,204,573 22,191,688 22,211,617 22,387,146 Shares excluded from diluted weighted-average shares: Stock options 655,953 82,380 473,390 — Restricted stock units and restricted stock awards 395,395 233,045 218,080 235,002 Shares excluded from diluted weighted-average shares 1,051,348 315,425 691,470 235,002 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. (2) Due to a net loss for the three and nine months ended September 30, 2020, dilutive loss per share is the same as basic. The computations of diluted net income attributable to common stockholders exclude common stock options, restricted stock units, and restricted stock awards, which were anti-dilutive for the three and nine months ended September 30, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income taxes The Company accounts for income taxes in accordance with ASC 740 —Income Taxes The Company accounts for uncertainties in income tax in accordance with ASC 740-10 —Accounting for Uncertainty in Income Taxes The Company recognizes interest and penalties on taxes, if any, within its income tax provision on its consolidated statements of comprehensive income. No significant interest or penalties were recognized during the periods presented. The Company operates in several taxing jurisdictions, including U.S. federal, multiple U.S. states and the Netherlands. The statute of limitations has expired for all tax years prior to 2016 for federal and prior to 2015 to 2016 for various state tax purposes. However, the net operating loss generated on the Company’s federal and state tax returns in prior years may be subject to adjustments by the federal and state tax authorities. The Company determined the income tax provision for interim periods using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimated annual effective tax rate, and if the estimated annual effective On March 27, 2020, the CARES Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 PHE. The CARES Act includes, among other things, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material tax impact on the Company’s consolidated financial statement presentation or results as of and for the three and nine months ended September 30, 2020. The Company is continuing to assess the future implications of these provisions within the CARES Act. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ equity The Company has a 2002 Stock Incentive Plan (2002 Plan) as amended, under which the Company granted options to purchase shares of its common stock. As of September 30, 2020, options to purchase 333 shares of common stock remained outstanding under the 2002 Plan. The 2002 Plan was terminated in March 2012 in connection with the adoption of the 2012 Plan, and, accordingly, no new options are available for issuance under this plan. The 2002 Plan continues to govern outstanding awards granted thereunder. The Company has a 2012 Equity Incentive Plan (2012 Plan) under which the Company granted options to purchase shares of its common stock. As of September 30, 2020, options to purchase 138,736 shares of common stock remained outstanding under the 2012 Plan. The 2012 Plan was terminated in connection with the Company’s initial public offering in February 2014, and accordingly, no new options are available for issuance under this plan. The 2012 Plan continues to govern outstanding awards granted thereunder. The Company has a 2014 Equity Incentive Plan (2014 Plan) that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants. As of September 30, 2020, awards with respect to 1,206,292 shares of the Company’s common stock were outstanding, and 1,609,397 shares of common stock remained available for issuance under the 2014 Plan. The shares available for issuance under the 2014 Plan will be increased by any shares returned to the 2002 Plan, 2012 Plan and the 2014 Plan as a result of expiration or termination of awards (provided that the maximum number of shares that may be added to the 2014 Plan pursuant to such previously granted awards under the 2002 Plan and 2012 Plan is 2,328,569 shares). The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year by an amount equal to the least of: • 895,346 • 4 • such other amount as the Company’s board of directors may determine. For 2020, no additional shares were added to the 2014 Plan share reserve pursuant to the provision described above. Stock options Options typically expire between seven and ten years from the date of grant and vest over one to four year terms. Options have been granted to employees, directors and consultants of the Company, as determined by the board of directors, at the deemed fair market value of the shares underlying the options at the date of grant. The activity for stock options under the Company’s stock plans for the nine months ended September 30, 2020 is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2019 980,884 $0.75-$83.30 $ 35.24 2.84 $ 34.07 Exercised (9,324 ) 1.17-44.19 20.00 Forfeited (6,779 ) 44.19-56.72 48.23 Outstanding as of September 30, 2020 964,781 0.75-83.30 35.30 2.09 5.56 Vested and exercisable as of September 30, 2020 964,781 0.75-83.30 35.30 2.09 5.56 Vested and expected to vest as of September 30, 2020 964,781 $0.75-$83.30 $ 35.30 2.09 $ 5.56 The total intrinsic value of options exercised during the nine months ended September 30, 2020 and September 30, 2019 was $269 and $7,017, respectively. As of September 30, 2020, all stock-based compensation expense for options granted under the Plans was recognized. Stock incentive awards The Company grants restricted stock units (RSUs) and restricted stock awards (RSAs) under the 2014 Plan (Stock Awards). The Stock Awards vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. Stock Awards are subject to forfeiture if the holder’s services to the Company terminate before vesting. Stock Awards granted with only time-based service vesting conditions generally vest over a four-year three-year Stock Awards activity for the nine months ended September 30, 2020 is summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units as of December 31, 2019 108,976 3,134 112,110 $ 83.48 Granted 202,924 88,458 291,382 43.85 Vested (42,040 ) — (42,040 ) 83.06 Forfeited/canceled (18,858 ) (3,134 ) (21,992 ) 76.90 Unvested restricted stock units as of September 30, 2020 (1) 251,002 88,458 339,460 $ 50.52 Unvested and expected to vest restricted stock units outstanding as of September 30, 2020 251,623 $ 51.24 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2019 71,070 62,628 133,698 $ 95.74 Vested (22,704 ) — (22,704 ) 89.76 Forfeited/canceled — (29,273 ) (29,273 ) 110.27 Unvested restricted stock awards outstanding as of September 30, 2020 (1) 48,366 33,355 81,721 $ 93.42 Unvested and expected to vest restricted stock awards outstanding as of September 30, 2020 50,193 $ 86.23 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. As of September 30, 2020, the unrecognized compensation cost related to unvested employee restricted stock units and restricted stock awards was $14,971, excluding estimated forfeitures. This amount is expected to be recognized over a weighted-average period of 2.6 years. Employee stock purchase plan The Company’s 2014 Employee Stock Purchase Plan (ESPP) provides for the grant to all eligible employees an option to purchase stock under the ESPP, within the meaning Section 423 of the Internal Revenue Code. The ESPP permits participants to purchase common stock through payroll deductions of up to 15% of their eligible compensation, which includes a participant’s base straight time gross earnings, incentive compensation, bonuses, overtime and shift premium, but exclusive of payments for equity compensation and other similar compensation. A participant may purchase a maximum of 1,500 shares during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of the Company’s common stock at the end of each six-month period. The purchase price of the shares will be 85% of the lower of the fair market value of the Company’s common stock on the first trading day of each offering period or on the exercise date. The offering periods are currently approximately six months in length beginning on the first business day on or after March 1 and September 1 of each year and ending on the first business day on or after September 1 and March 1 approximately six months later. As of September 30, 2020, a total of 630,165 shares of common stock were available for sale pursuant to the ESPP. The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year by an amount equal to the least of: • 179,069 • 1.5 • such other amount as may be determined by the administrator. For 2020, no additional shares were added to the ESPP share reserve pursuant to the provision described above. Stock-based compensation Stock-based compensation expense recognized for the three and nine months ended September 30, 2020 and September 30, 2019, was as follows: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Stock-based compensation expense by type of award: Stock option plan awards $ — $ 590 $ 709 $ 2,513 Restricted stock units and restricted stock awards 1,878 834 4,853 3,882 Employee stock purchase plan 172 141 549 535 Total stock-based compensation expense $ 2,050 $ 1,565 $ 6,111 $ 6,930 Employee stock-based compensation expense was calculated based on awards of stock options, restricted stock units and restricted stock awards ultimately expected to vest based on the Company’s historical award cancellations. The employee stock-based compensation expense recognized for the nine months ended September 30, 2020 and September 30, 2019 has been reduced for estimated forfeitures of stock option plan awards at a rate of 7.3% and 7.3%, respectively. ASC 718 – Compensation-Stock Compensation For the three and nine months ended September 30, 2020 and September 30, 2019, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 185 $ 172 $ 511 $ 656 Research and development 233 221 726 825 Sales and marketing 516 263 1,587 1,289 General and administrative 1,116 909 3,287 4,160 Total stock-based compensation expense $ 2,050 $ 1,565 $ 6,111 $ 6,930 401(k) retirement savings plan The Company maintains a 401(k) retirement savings plan for the benefit of eligible employees. Under the terms of this plan, eligible employees are able to make contributions to the plan on a tax-deferred basis. The Company matched employees’ contributions from January 1, 2017 through June 30, 2020. The Company suspended its 401(k) match, effective July 1, 2020. The Company contributed $455 and $695, net of forfeitures, to the 401(k) plan for the nine months ended September 30, 2020 and September 30, 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and contingencies Non-cancelable contractual obligations The Company enters into non-cancelable contractual obligations for software licenses and maintenance agreements. As of September 30, 2020, the minimum aggregate payments due under specified non-cancelable contractual obligations are summarized as follows: Non-cancelable contractual obligations Remaining 3 months of 2020 $ 144 2021 457 2022 — 2023 — 2024 — Thereafter — $ 601 Purchase obligations The Company had approximately $56,500 of outstanding purchase orders with its outside vendors and suppliers as of September 30, 2020. Warranty obligations The following table identifies the changes in the Company’s aggregate product warranty liabilities for the nine and twelve-month periods ended September 30, 2020 and December 31, 2019, respectively: September 30, December 31, 2020 2019 Product warranty liability at beginning of period $ 12,571 $ 9,530 Accruals for warranties issued 7,299 8,131 Adjustments related to preexisting warranties (including changes in estimates) (627 ) 1,433 Settlements made (in cash or in kind) (5,316 ) (6,523 ) Product warranty liability at end of period $ 13,927 $ 12,571 Contract liabilities Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The increase in deferred revenue related to lifetime warranties for the nine months ended September September Legislation and HIPAA The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Government activity has continued with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers. Violations of these laws and regulations could result in exclusion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. The Company believes that it is in compliance in all material respects with applicable fraud and abuse regulations and other applicable government laws and regulations. Compliance with such laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted to en sure health insurance portability, reduce healthcare fraud and abuse, guarantee security and privacy of health information, and enforce standards for health information. The Health Information Technology for Economic and Clinical Health Act (HITECH Act) , in part, imposes notification requirements of certain security breaches relating to protected health information. The Company believes that it complies in all material respects with the provisions of those regulations that are applicable to the Company’s business. Legal proceedings Intellectual property lawsuit On November 21, 2019, Breathe Technologies, Inc. (Breathe), a subsidiary of Hill-Rom Holdings, filed a lawsuit against Inogen, Inc., New Aera, Inc., Silverbow Development, LLC, and Todd W. Allum in the United States District Court for the Northern District of California (N.D. Cal. Lawsuit). Breathe alleged: willful infringement of the ‘250 patent assigned to Breathe; that inventorship was incorrectly assigned and that Breathe owns rights to certain patents filed by New Aera, Inc. and Silverbow Development LLC; breach of contract; inducing breach of contract; interference with contract; and violation of California Business and Professional Code Section 17200. The complaint seeks to correct inventorship of certain patents now owned by the Company, injunctive relief, compensatory and punitory damages in an unspecified amount including trebling of all damages awarded with respect to infringement of the ‘250 patent, costs and expenses, including attorneys’ fees and expert fees, prejudgment and post-judgment interest and such other relief as the court deems proper. On March 31, 2020, Breathe filed a First Amended Complaint in which it dropped the patent infringement claims in the N.D. Cal. Lawsuit and added another claim for violation of California Business and Professional Code Section 17200. On the same day, Breathe re-filed the ‘250 patent infringement claims in the United States District Court for the Central District of California (C.D. Cal. Lawsuit). On August 17, 2020, the court in the N.D. Cal. Lawsuit ordered that Breathe’s claims be arbitrated, with the sole exception of the correction of inventorship claim, which the court ordered be stayed pending completion of the arbitration on the other claims. On September 4, 2020, Breathe filed a demand for arbitration with the American Arbitration Association, in which Breathe reiterated the claims it filed in the N.D. Cal. Lawsuit. The Company intends to vigorously defend itself against the allegations in both lawsuits and in the arbitration. The Company recorded a contingent liability of $7,000 during the nine months ended September 30, 2020. The related payable was recorded in accounts payable and accrued expenses and receivable from the New Aera acquisition escrow account in prepaid expenses and other current assets as of September 30, 2020. Securities class action and derivative lawsuits On March 6, 2019, plaintiff William Fabbri filed a lawsuit against Inogen, Scott Wilkinson, and Alison Bauerlein, in the United States District Court for the Central District of California on behalf of a purported class of purchasers of the Company’s securities. On March 21, 2019, plaintiff Steven Friedland filed a substantially similar lawsuit against the same defendants in the same court. On May 20, 2019, the court issued an order consolidating the two lawsuits under the name In re Inogen, Inc. Sec. Litig., O On June 26, 2019, plaintiff Twana Brown filed a shareholder derivative lawsuit against Inogen, Scott Wilkinson, Alison Bauerlein, Benjamin Anderson-Ray, Scott Beardsley, R. Scott Greer, Raymond Huggenberger, Heath Lukatch, Loren McFarland, and Heather Rider in the United States District Court for the Central District of California. The complaint purports to bring claims on behalf of Inogen against the individual defendants for breaches of their fiduciary duties as directors and/or officers of Inogen, unjust enrichment, waste of corporate assets and violations of section 14(a) of the Securities Exchange Act of 1934, as amended. The complaint generally alleges similar claims to the securities class action. The complaint seeks compensatory damages and restitution in an unspecified amount, changes to the Company’s corporate governance and internal procedures, costs and expenses, including attorneys’ fees and expert fees, and such other relief as the court deems proper. On August 5, 2019, the court issued an order staying the derivative action pending the resolution of the motion to dismiss stage in In re Inogen, Inc. Sec. Litig Between October 7, 2019 and October 31, 2019, three additional shareholder derivative complaints On January 13, 2020, the court consolidated the four derivative lawsuits before it under the name In re Inogen, Inc. S’holder Deriv. Litig. , Lead Case No. 2:19-cv-5568-FMO-AGR and ordered that the consolidated action be stayed pending the resolution of the motion to dismiss stage in In re Inogen, Inc., Sec. Litig. On September 13, 2019, plaintiff Dustin Weller filed a shareholder derivative lawsuit against Inogen, Scott Wilkinson, Alison Bauerlein, Benjamin Anderson-Ray, Scott Beardsley, R. Scott Greer, Raymond Huggenberger, Heath Lukatch, Loren McFarland, and Heather Rider in the United States District Court for the District of Delaware captioned Weller v. Wilkinson, et al. , No. 1:19-cv-01723-MN. On October 17, 2019, plaintiff Sharokh Soltanipour filed a shareholder derivative lawsuit against the same defendants in the same court, captioned Soltanipour v. Wilkinson, et al. , No. 1:19-cv-1968-MN. The complaints generally allege similar claims to those in In re Inogen, Inc., S’holder Deriv. Litig. The complaints purport to bring claims on behalf of Inogen compensatory damages in unspecified amounts, changes to the Company’s corporate governance and internal procedures, return of compensation, disgorgement of profits from sale of stock, costs and expenses, including attorneys’ fees and expert fees, and such other relief as the court deems proper. On May 15, 2020, the court consolidated the two derivative lawsuits before it under the name In re Inogen, Inc. S’holder Deriv. Litig. , Lead Case No. 1:19-cv-01723-MN-JLH. On July 8, 2020, the court ordered that the consolidated action be stayed pending the resolution of the motion to dismiss in the securities class action, In re Inogen, Inc., Sec. Litig . Department of Health and Human Services and the Centers for Medicare and Medicaid Services lawsuit On September 21, 2020, Inogen filed a lawsuit against defendants, Alex M. Azar, Secretary of the Department of Health and Human Services (HHS), in his official capacity, Seema Verma, Administrator of the Centers for Medicare and Medicaid Services (CMS), in her official capacity and Palmetto GBA, LLC. The lawsuit seeks to invalidate the defendants’ arbitrary and capricious decision to retract a valid HCPCS code to Inogen’s Tidal Assist Ventilator, thereby eliminating reimbursements for the ventilator, in violation of the Administrative Procedures Act (5 U.S.C. §§ 551 , et seq. Other litigation In addition to the lawsuits discussed above, the Company is party to various legal proceedings arising in the normal course of business. The Company carries insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, the Company does not anticipate that any of these other proceedings arising in the normal course of business will have a material adverse effect on the Company’s business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Foreign currency exchange contracts and hedging | 11. Foreign currency exchange contracts and hedging As of September 30, 2020 and September 30, 2019, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $2,221 and $1,176, respectively, and $20,805 and $4,105, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within one to fifteen months. During the nine months ended September 30, 2020 and September 30, 2019, these contracts had, net of tax, unrealized gains of $95 and unrealized losses of $158, respectively. The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the nine months ended September 30, 2020 and September 30, 2019, there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. As of September 30, 2020, the Company had nineteen designated hedges and one non-designated hedge. As of September 30, 2019, the Company had five designated hedges and two non-designated hedges. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the accounts of Inogen, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition and determining the stand-alone selling price (SSP) of performance obligations, inventory and rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, warranty expense, stock compensation expense, depreciation and amortization, income tax provision and uncertain tax positions, fair value of financial instruments, fair value of acquired intangible assets and goodwill and fair value of earnout liabilities. Actual results could differ from these estimates. |
Government Grants | The Company may receive cash payments from government grants during a public health emergency (PHE). The Company considers the nature and substance of the government grant and records the cash payment in accordance with the terms and conditions of the grant. Income is deferred until all considerations required for receiving the grant are met and is recognized in the consolidated statements of comprehensive income (loss) based on the nature of the terms and conditions of the grant. In nine months ended September 30, 2020, the Company received a grant of from the Public Health and Social Services Emergency Fund (Relief Fund), which was among the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act signed into law on March 27, 2020. During the nine months ended September 30, 2020, t |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently issued accounting pronouncements not yet adopted In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The new guidance also improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740 by clarifying and amending the existing guidance. currently evaluating the effect of the new guidance. |
Recently Adopted Accounting Pronouncements | Recently adopted accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Accounting for Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
Business Segments | Business segments The Company operates and reports in only one operating and reportable segment – development, manufacturing, marketing, sales, and rental of respiratory products. Management reports financial information on a consolidated basis to the Company’s chief operating decision maker. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation for Acquisition | The following table summarizes the purchase price allocation for the acquisition of New Aera: Cash $ 122 Inventories 140 Other current assets 8 Property and equipment 224 Goodwill 30,742 Intangible assets 77,700 Total assets acquired $ 108,936 Deferred tax liability - noncurrent $ 12,664 Earnout liability - noncurrent 25,749 Total liabilities assumed 38,413 Total purchase price $ 70,523 |
Summary of Unaudited Pro Forma Information | The consolidated financial and operating results reflect the New Aera operations beginning August 9, 2019. The following unaudited pro forma information for the three months and nine months ended September 30, 2019 presents the revenue and net income assuming the acquisition of New Aera had occurred as of January 1, 2018. Three months ended Nine months ended September 30, 2019 September 30, 2019 Total revenue $ 91,756 $ 283,036 Net income $ 5,108 $ 18,784 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities | The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and marketable securities: As of September 30, 2020 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 46,137 $ — $ 46,137 $ 46,137 $ — Level 1: Money market accounts 167,847 — 167,847 167,847 — Level 2: Corporate bonds 6,524 1 6,525 — 6,525 Total $ 220,508 $ 1 $ 220,509 $ 213,984 $ 6,525 As of December 31, 2019 Gross Cash Adjusted unrealized and cash Marketable cost gains Fair value equivalents securities Cash $ 51,560 $ — $ 51,560 $ 51,560 $ — Level 1: Money market accounts 146,477 — 146,477 146,477 — Level 2: Corporate bonds 2,011 2 2,013 — 2,013 U.S. Treasury securities 9,038 6 9,044 — 9,044 Total $ 209,086 $ 8 $ 209,094 $ 198,037 $ 11,057 |
Summary of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) were as follows: Foreign Unrealized Unrealized Accumulated currency gains (losses) gains (losses) other translation on marketable on cash comprehensive adjustments securities flow hedges income (loss) Balance as of December 31, 2019 $ 271 $ 6 $ (364 ) $ (87 ) Other comprehensive income (loss) 405 (6 ) 95 494 Balance as of September 30, 2020 $ 676 $ — $ (269 ) $ 407 |
Summary of Quantitative Information about Level 3 Inputs for Fair Value Measurement of Earnout Liability | The following table provides quantitative information about Level 3 inputs for fair value measurement of the earnout liability as of September 30, 2020 and December 31, 2019. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement: As of As of Simulation input September 30, 2020 December 31, 2019 Revenue volatility 35.00 % 35.00 % WACC 12.00 % 13.00 % 20-year risk free rate 1.23 % 2.25 % Market price of risk 8.00 % 10.00 % |
Summary of Reconciliation of Earnout Liability Measured and Carried Fair Value on a Recurring Basis | The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows: Three months ended Nine months ended September 30, September 30, 2020 2020 Balance at beginning of period $ 26,539 $ 26,559 Change in fair value (146 ) (166 ) Balance at end of period $ 26,393 $ 26,393 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents, and marketable securities consist of the following: September 30, December 31, Cash and cash equivalents 2020 2019 Cash $ 46,137 $ 51,560 Money market accounts 167,847 146,477 Total cash and cash equivalents $ 213,984 $ 198,037 Marketable securities Corporate bonds $ 6,525 $ 2,013 U.S. Treasury securities — 9,044 Total marketable securities $ 6,525 $ 11,057 |
Schedule of Gross Accounts Receivable Balance Concentrations by Major Category | Gross accounts receivable balance concentrations by major category as of September 30, 2020 and December 31, 2019 were as follows: September 30, December 31, Gross accounts receivable 2020 2019 Rental (1) $ 5,081 $ 3,003 Business-to-business and other receivables (2) 28,018 33,101 Total gross accounts receivable $ 33,099 $ 36,104 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $5,568 and $10,695 as of September 30, 2020 and December 31, 2019, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $10,000 in coverage as of September 30, 2020 and allocated up to $20,000 in coverage as of December 31, 2019 for this customer with a $400 deductible and 10% retention. |
Schedule of Net Accounts Receivable Balance Concentrations by Major Category | Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of September 30, 2020 and December 31, 2019 were as follows: September 30, December 31, Net accounts receivable 2020 2019 Rental (1) $ 4,354 $ 2,464 Business-to-business and other receivables (2) 27,337 31,861 Total net accounts receivable $ 31,691 $ 34,325 (1) Rental includes Medicare, Medicaid/other government, private insurance and patient pay. (2) Business-to-business receivables included one customer with a gross accounts receivable balance of $5,568 and $10,695 as of September 30, 2020 and December 31, 2019, respectively. This customer received extended payment terms through a direct financing plan offered. The Company also has a credit insurance policy in place, which allocated up to $10,000 in coverage as of September 30, 2020 and allocated up to $20,000 in coverage as of December 31, 2019 for this customer with a $400 deductible and 10% retention. |
Schedule of Allowances for Accounts Receivable | The following tables set forth the accounts receivable allowances as of September 30, 2020 and December 31, 2019: September 30, December 31, Allowances - accounts receivable 2020 2019 Doubtful accounts $ 114 $ 205 Rental revenue adjustments 640 411 Sales returns 654 1,163 Total allowances - accounts receivable $ 1,408 $ 1,779 |
Breakdown of Company's Revenue from U.S. and Non-U.S. Sources | A portion of revenue is earned from sales outside the United States. Approximately 83.4% and 70.3% of the non-U.S. revenue for the three months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. Approximately 75.6% and 71.2% of the non-U.S. revenue for the nine months ended September 30, 2020 and September 30, 2019, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three and nine months ended September 30, 2020 and September 30, 2019, respectively, is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 U.S. revenue $ 59,748 $ 73,269 $ 185,971 $ 222,167 Non-U.S. revenue 14,581 18,492 48,538 60,859 Total revenue $ 74,329 $ 91,761 $ 234,509 $ 283,026 |
Schedule of Inventories | Inventories that are considered current consist of the following: September 30, December 31, 2020 2019 Raw materials and work-in-progress $ 25,566 $ 31,676 Finished goods 4,560 5,174 Less: reserves (906 ) (1,186 ) Inventories, net $ 29,220 $ 35,664 |
Computation of Depreciation and Amortization using Straight Line Method Over Estimated Useful Lives of Assets | Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful lives as follows: Rental equipment 1.5-5 years Manufacturing equipment and tooling 3-5 years Computer equipment and software 2-3 years Furniture and equipment 3-5 years Leasehold improvements Lesser of estimated useful life or remaining lease term |
Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment | Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three and nine months ended September 30, 2020 and September 30, 2019, respectively. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Rental equipment $ 1,475 $ 1,482 $ 3,995 $ 4,781 Other property and equipment 982 911 2,912 2,514 Total depreciation and amortization $ 2,457 $ 2,393 $ 6,907 $ 7,295 |
Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation | Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of September 30, 2020 and December 31, 2019, respectively. September 30, December 31, Property and equipment 2020 2019 Rental equipment, net of allowances of $345 and $395, respectively $ 44,464 $ 39,308 Other property and equipment 26,011 24,986 Property and equipment 70,475 64,294 Accumulated depreciation Rental equipment 30,625 30,984 Other property and equipment 14,530 13,872 Accumulated depreciation 45,155 44,856 Property and equipment, net Rental equipment, net of allowances of $345 and $395, respectively 13,839 8,324 Other property and equipment 11,481 11,114 Property and equipment, net $ 25,320 $ 19,438 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2020 were as follows: Balance as of December 31, 2019 $ 32,954 Translation adjustment 100 Balance as of September 30, 2020 $ 33,054 |
Summary of Changes in Net Carrying Values of Intangible Assets | The following tables represent the changes in net carrying values of intangible assets as of the respective dates: Average estimated Gross useful lives carrying Accumulated September 30, 2020 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 8,741 $ 68,959 Licenses 10 185 171 14 Patents and websites 5 4,483 2,834 1,649 Customer relationships 4 1,407 1,202 205 Commercials 2-3 698 516 182 Total $ 84,473 $ 13,464 $ 71,009 Average estimated Gross useful lives carrying Accumulated December 31, 2019 (in years) amount amortization Net amount Technology 10 $ 77,700 $ 2,914 $ 74,786 Licenses 10 185 165 20 Patents and websites 5 4,274 2,308 1,966 Customer relationships 4 1,346 897 449 Commercials 2-3 777 465 312 Total $ 84,282 $ 6,749 $ 77,533 |
Schedule of Annual Estimated Amortization Expense | Annual estimated amortization expense for each of the succeeding fiscal years is as follows: September 30, 2020 Remaining 3 months of 2020 $ 2,257 2021 8,728 2022 8,410 2023 7,835 2024 7,830 Thereafter 35,949 $ 71,009 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, 2020 2019 Accounts payable $ 9,514 $ 16,399 Accrued inventory (in-transit and unvouchered receipts) and trade payables 8,812 11,124 Accrued purchasing card liability 2,323 1,675 Accrued franchise, sales and use taxes 429 713 Other accrued expenses 8,122 819 Accounts payable and accrued expenses $ 29,200 $ 30,730 |
Schedule of Accrued Payroll | Accrued payroll as of September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, 2020 2019 Accrued bonuses $ 4 $ 87 Accrued wages and other payroll related items 4,463 3,158 Accrued vacation 2,620 2,169 Accrued employee stock purchase plan deductions 147 801 Accrued payroll $ 7,234 $ 6,215 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | Information related to the Company's right-of-use assets and related operating lease liabilities were as follows: Nine months ended September 30, 2020 2019 Cash paid for operating lease liabilities $ 1,803 $ 1,820 Operating lease cost 2,045 1,703 Non-cash right-of-use assets obtained in exchange for new operating lease obligations 5,234 6,418 Weighted-average remaining lease term 2.9 years 2.5 years Weighted-average discount rate 3.3 % 3.8 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities due in the 12-month period ending September 30, 2021 $ 2,199 2022 1,993 2023 1,844 2024 1,842 2025 596 Thereafter 3,211 11,685 Less imputed interest (1,225 ) Total lease liabilities $ 10,460 Operating lease liability - current $ 1,890 Operating lease liability - noncurrent $ 8,570 Total lease liabilities $ 10,460 |
Earnings (loss) per Share (Tabl
Earnings (loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of EPS is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator—basic and diluted: Net income (loss) $ (1,699 ) $ 6,863 $ (708 ) $ 22,325 Denominator: Weighted-average common shares - basic common stock (1) 21,998,299 21,840,473 21,959,521 21,802,468 Weighted-average common shares - diluted common stock 21,998,299 22,191,688 21,959,521 22,387,146 Net income (loss) per share - basic common stock $ (0.08 ) $ 0.31 $ (0.03 ) $ 1.02 Net income (loss) per share - diluted common stock (2) $ (0.08 ) $ 0.31 $ (0.03 ) $ 1.00 Denominator calculation from basic to diluted: Weighted-average common shares - basic common stock (1) 21,998,299 21,840,473 21,959,521 21,802,468 Stock options and other dilutive awards 206,274 351,215 252,096 584,678 Weighted-average common shares - diluted common stock 22,204,573 22,191,688 22,211,617 22,387,146 Shares excluded from diluted weighted-average shares: Stock options 655,953 82,380 473,390 — Restricted stock units and restricted stock awards 395,395 233,045 218,080 235,002 Shares excluded from diluted weighted-average shares 1,051,348 315,425 691,470 235,002 (1) Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. (2) Due to a net loss for the three and nine months ended September 30, 2020, dilutive loss per share is the same as basic. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Stock Options Activity | The activity for stock options under the Company’s stock plans for the nine months ended September 30, 2020 is as follows: Remaining weighted- Weighted- average Per share average contractual average Price per exercise terms intrinsic Options share price (in years) value Outstanding as of December 31, 2019 980,884 $0.75-$83.30 $ 35.24 2.84 $ 34.07 Exercised (9,324 ) 1.17-44.19 20.00 Forfeited (6,779 ) 44.19-56.72 48.23 Outstanding as of September 30, 2020 964,781 0.75-83.30 35.30 2.09 5.56 Vested and exercisable as of September 30, 2020 964,781 0.75-83.30 35.30 2.09 5.56 Vested and expected to vest as of September 30, 2020 964,781 $0.75-$83.30 $ 35.30 2.09 $ 5.56 |
Summary of Restricted Stock Activity | Stock Awards activity for the nine months ended September 30, 2020 is summarized below: Weighted- average grant Performance date fair and value Restricted stock units Time-based time-based Total per share Unvested restricted stock units as of December 31, 2019 108,976 3,134 112,110 $ 83.48 Granted 202,924 88,458 291,382 43.85 Vested (42,040 ) — (42,040 ) 83.06 Forfeited/canceled (18,858 ) (3,134 ) (21,992 ) 76.90 Unvested restricted stock units as of September 30, 2020 (1) 251,002 88,458 339,460 $ 50.52 Unvested and expected to vest restricted stock units outstanding as of September 30, 2020 251,623 $ 51.24 Weighted- average grant Performance date fair and value Restricted stock awards Time-based time-based Total per share Unvested restricted stock awards outstanding as of December 31, 2019 71,070 62,628 133,698 $ 95.74 Vested (22,704 ) — (22,704 ) 89.76 Forfeited/canceled — (29,273 ) (29,273 ) 110.27 Unvested restricted stock awards outstanding as of September 30, 2020 (1) 48,366 33,355 81,721 $ 93.42 Unvested and expected to vest restricted stock awards outstanding as of September 30, 2020 50,193 $ 86.23 (1) Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares. |
Summary of Stock-based Compensation Expense | Stock-based compensation Stock-based compensation expense recognized for the three and nine months ended September 30, 2020 and September 30, 2019, was as follows: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Stock-based compensation expense by type of award: Stock option plan awards $ — $ 590 $ 709 $ 2,513 Restricted stock units and restricted stock awards 1,878 834 4,853 3,882 Employee stock purchase plan 172 141 549 535 Total stock-based compensation expense $ 2,050 $ 1,565 $ 6,111 $ 6,930 For the three and nine months ended September 30, 2020 and September 30, 2019, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 185 $ 172 $ 511 $ 656 Research and development 233 221 726 825 Sales and marketing 516 263 1,587 1,289 General and administrative 1,116 909 3,287 4,160 Total stock-based compensation expense $ 2,050 $ 1,565 $ 6,111 $ 6,930 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Aggregate Payments Due under Operating Leases and Specified Non-Cancelable Contractual Obligations Consist of Software License and Maintenance Agreements | The Company enters into non-cancelable contractual obligations for software licenses and maintenance agreements. As of September 30, 2020, the minimum aggregate payments due under specified non-cancelable contractual obligations are summarized as follows: Non-cancelable contractual obligations Remaining 3 months of 2020 $ 144 2021 457 2022 — 2023 — 2024 — Thereafter — $ 601 |
Schedule of Changes in Aggregate Product Warranty Liabilities | The following table identifies the changes in the Company’s aggregate product warranty liabilities for the nine and twelve-month periods ended September 30, 2020 and December 31, 2019, respectively: September 30, December 31, 2020 2019 Product warranty liability at beginning of period $ 12,571 $ 9,530 Accruals for warranties issued 7,299 8,131 Adjustments related to preexisting warranties (including changes in estimates) (627 ) 1,433 Settlements made (in cash or in kind) (5,316 ) (6,523 ) Product warranty liability at end of period $ 13,927 $ 12,571 |
Business Overview - Additional
Business Overview - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Product | |
Inogen Europe Holding B.V. | |
Business Overview Disclosures [Line Items] | |
Date of incorporation of subsidiary | Apr. 13, 2017 |
Minimum | Inogen One | |
Business Overview Disclosures [Line Items] | |
Number of portable oxygen concentrators | 922,000 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Other income | $ (54) | $ (503) | $ 5,586 | $ (478) |
General and administrative | $ 8,586 | $ 8,525 | $ 28,087 | $ 27,050 |
Number of operating segments | Segment | 1 | |||
Number of reportable segments | Segment | 1 | |||
ASU 2016-13 | ||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||
ASU 2017-04 | ||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||
ASU 2018-13 | ||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||
CARES Act | ||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Grant amount received | $ 6,200 | |||
Other income | 5,300 | |||
General and administrative | $ 900 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - New Aera, Inc. | Aug. 09, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash paid at closing | $ 70,523,000 |
Maximum | |
Business Acquisition [Line Items] | |
Merger consideration | 101,923,000 |
Earnout payment | $ 31,400,000 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Aug. 09, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 33,054 | $ 32,954 | |
New Aera, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 122 | ||
Inventories | 140 | ||
Other current assets | 8 | ||
Property and equipment | 224 | ||
Goodwill | 30,742 | ||
Intangible assets | 77,700 | ||
Total assets acquired | 108,936 | ||
Deferred tax liability - noncurrent | 12,664 | ||
Earnout liability - noncurrent | 25,749 | ||
Total liabilities assumed | 38,413 | ||
Total purchase price | $ 70,523 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Details) - New Aera, Inc. - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 91,756 | $ 283,036 |
Net income | $ 5,108 | $ 18,784 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis for Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 213,984 | $ 198,037 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 220,508 | 209,086 |
Gross unrealized gains | 1 | 8 |
Fair value | 220,509 | 209,094 |
Cash and cash equivalents | 213,984 | 198,037 |
Marketable securities | 6,525 | 11,057 |
Fair Value Measurements Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 46,137 | 51,560 |
Fair value | 46,137 | 51,560 |
Cash and cash equivalents | 46,137 | 51,560 |
Fair Value Measurements Recurring | Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 167,847 | 146,477 |
Fair value | 167,847 | 146,477 |
Cash and cash equivalents | 167,847 | 146,477 |
Fair Value Measurements Recurring | Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 6,524 | 2,011 |
Gross unrealized gains | 1 | 2 |
Fair value | 6,525 | 2,013 |
Marketable securities | $ 6,525 | 2,013 |
Fair Value Measurements Recurring | Level 2 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Adjusted cost | 9,038 | |
Gross unrealized gains | 6 | |
Fair value | 9,044 | |
Marketable securities | $ 9,044 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Related receivables | $ 31,691,000 | $ 34,325,000 |
Fair Value Measurements Recurring | Level 3 | Maximum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Earnout liability | 31,400,000 | |
Forward Contracts | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Payable | $ 470,000 | $ 514,000 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 351,114 | $ 333,798 | $ 344,621 | $ 310,424 |
Other comprehensive income (loss) | 89 | (409) | 494 | (480) |
Ending Balance | 352,500 | 343,146 | 352,500 | 343,146 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 271 | |||
Other comprehensive income (loss) | 405 | |||
Ending Balance | 676 | 676 | ||
Unrealized Gains (Losses) on Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 6 | |||
Other comprehensive income (loss) | (6) | |||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (364) | |||
Other comprehensive income (loss) | 95 | |||
Ending Balance | (269) | (269) | ||
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 318 | 653 | (87) | 724 |
Other comprehensive income (loss) | 89 | (409) | 494 | (480) |
Ending Balance | $ 407 | $ 244 | $ 407 | $ 244 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Quantitative Information about Level 3 Inputs for Fair Value Measurement of Earnout Liability (Details) - Level 3 | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue Volatility | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 35 | 35 |
WACC | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 12 | 13 |
20-Year Risk Free Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 1.23 | 2.25 |
Market Price of Risk | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout liability, measurement input | 8 | 10 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Reconciliation of Earnout Liability Measured and Carried Fair Value on a Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning Balance | $ 26,539 | $ 26,559 |
Change in fair value | (146) | (166) |
Ending Balance | $ 26,393 | $ 26,393 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||
Cash | $ 46,137 | $ 51,560 |
Money market accounts | 167,847 | 146,477 |
Total cash and cash equivalents | 213,984 | 198,037 |
Marketable securities | ||
Marketable securities | 6,525 | 11,057 |
Corporate Bonds | ||
Marketable securities | ||
Marketable securities | $ 6,525 | 2,013 |
U.S. Treasury Securities | ||
Marketable securities | ||
Marketable securities | $ 9,044 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Customer | Sep. 30, 2019USD ($)Customer | Dec. 31, 2019USD ($) | |
Schedule Of Balance Sheet Components [Line Items] | |||||
Unbilled Receivables | $ 1,659,000 | $ 1,659,000 | $ 590,000 | ||
Accounts receivable, net | $ 31,691,000 | $ 31,691,000 | 34,325,000 | ||
Percentage of Non-US revenue invoiced in Euros | 83.40% | 70.30% | 75.60% | 71.20% | |
Transfer of inventory to rental equipment | $ 1,795,000 | $ 798,000 | |||
Salvage value of expenditures for additions, improvements and replacements | $ 0 | 0 | |||
Repairs and maintenance expense | 653,000 | $ 938,000 | 1,776,000 | 2,301,000 | |
Depreciation and amortization | 2,457,000 | 2,393,000 | 6,907,000 | 7,295,000 | |
Impairments of long-lived assets | 0 | 0 | |||
Impairment of finite lived intangible assets | 0 | 0 | |||
Amortization of intangible assets | 2,255,000 | $ 1,269,000 | 6,747,000 | 1,921,000 | |
Construction in Process and Computer Software or Development Cost | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Depreciation and amortization | 0 | $ 0 | |||
Other Noncurrent Assets | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Noncurrent inventories expected to be realized or consumed | 2,459,000 | 2,459,000 | 1,076,000 | ||
Customer Concentration Risk | Customer One | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | 9,386,000 | 9,386,000 | 10,695,000 | ||
Customer Concentration Risk | Customer Two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Accounts receivable, net | $ 5,568,000 | $ 5,568,000 | $ 5,228,000 | ||
Sales Revenue, Net | Customer Concentration Risk | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Number of customers | Customer | 1 | 0 | |||
Net Accounts Receivable | Customer Concentration Risk | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Number of customers | Customer | 2 | ||||
Raw materials | Supplier Concentration Risk | Vendor one | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration risk, percentage | 20.70% | 22.10% | |||
Raw materials | Supplier Concentration Risk | Vendor two | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration risk, percentage | 11.10% | 13.80% | |||
Raw materials | Supplier Concentration Risk | Vendor three | |||||
Schedule Of Balance Sheet Components [Line Items] | |||||
Concentration risk, percentage | 9.70% | 9.70% |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Gross Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 33,099 | $ 36,104 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | 5,081 | 3,003 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 28,018 | $ 33,101 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 31,691 | $ 34,325 |
Rental | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | 4,354 | 2,464 |
Business To Business And Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Net accounts receivable | $ 27,337 | $ 31,861 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Net Accounts Receivable Balance Concentrations by Major Category (Parenthetical) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | |
Accounts Notes And Loans Receivable [Line Items] | ||
Gross accounts receivable | $ 33,099,000 | $ 36,104,000 |
Customer Concentration Risk | Business To Business Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of customers | Customer | 1 | 1 |
Gross accounts receivable | $ 5,568,000 | $ 10,695,000 |
Credit insurance policy, deductible amount | $ 400,000 | |
Credit insurance policy, retention percentage | 10.00% | |
Customer Concentration Risk | Business To Business Receivables | Maximum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Credit insurance policy, coverage limit | $ 10,000,000 | $ 20,000,000 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Allowances for Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Allowances - accounts receivable | ||
Doubtful accounts | $ 114 | $ 205 |
Rental revenue adjustments | 640 | 411 |
Sales returns | 654 | 1,163 |
Total allowances - accounts receivable | $ 1,408 | $ 1,779 |
Balance Sheet Components - Brea
Balance Sheet Components - Breakdown of the Company Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Revenues | $ 74,329 | $ 91,761 | $ 234,509 | $ 283,026 |
U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | 59,748 | 73,269 | 185,971 | 222,167 |
Non-U.S. revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 14,581 | $ 18,492 | $ 48,538 | $ 60,859 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 25,566 | $ 31,676 |
Finished goods | 4,560 | 5,174 |
Less: reserves | (906) | (1,186) |
Inventories, net | $ 29,220 | $ 35,664 |
Balance Sheet Components - Comp
Balance Sheet Components - Computation of Depreciation and Amortization Using Straight Line Method Over Estimated Useful Lives of Assets (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Rental equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 1 year 6 months |
Rental equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Manufacturing equipment and tooling | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Manufacturing equipment and tooling | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Computer equipment and software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 2 years |
Computer equipment and software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Furniture and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | Lesser of estimated useful life or remaining lease term |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Depreciation and Amortization Expense of Rental Equipment and Other Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation | $ 1,475 | $ 1,482 | $ 3,995 | $ 4,781 |
Depreciation and amortization | 2,457 | 2,393 | 6,907 | 7,295 |
Rental equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation | 1,475 | 1,482 | 3,995 | 4,781 |
Other property and equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 982 | $ 911 | $ 2,912 | $ 2,514 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 70,475 | $ 64,294 |
Accumulated depreciation | 45,155 | 44,856 |
Property and equipment, net | 25,320 | 19,438 |
Rental equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 44,464 | 39,308 |
Accumulated depreciation | 30,625 | 30,984 |
Property and equipment, net | 13,839 | 8,324 |
Other property and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 26,011 | 24,986 |
Accumulated depreciation | 14,530 | 13,872 |
Property and equipment, net | $ 11,481 | $ 11,114 |
Balance Sheet Components - Su_4
Balance Sheet Components - Summary of Property Plant and Equipment and Rental Equipment with Associated Accumulated Depreciation (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Rental equipment, allowance | $ 345 | $ 395 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2019 | $ 32,954 |
Translation adjustment | 100 |
Balance as of September 30, 2020 | $ 33,054 |
Balance Sheet Components - Su_5
Balance Sheet Components - Summary of Changes in Net Carrying Values of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 84,473 | $ 84,282 |
Accumulated amortization | 13,464 | 6,749 |
Net amount | $ 71,009 | $ 77,533 |
Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 77,700 | $ 77,700 |
Accumulated amortization | 8,741 | 2,914 |
Net amount | $ 68,959 | $ 74,786 |
Licenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 10 years | 10 years |
Gross carrying amount | $ 185 | $ 185 |
Accumulated amortization | 171 | 165 |
Net amount | $ 14 | $ 20 |
Patents And Websites | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | 5 years |
Gross carrying amount | $ 4,483 | $ 4,274 |
Accumulated amortization | 2,834 | 2,308 |
Net amount | $ 1,649 | $ 1,966 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 4 years | 4 years |
Gross carrying amount | $ 1,407 | $ 1,346 |
Accumulated amortization | 1,202 | 897 |
Net amount | 205 | 449 |
Commercials | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 698 | 777 |
Accumulated amortization | 516 | 465 |
Net amount | $ 182 | $ 312 |
Commercials | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 2 years | 2 years |
Commercials | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 3 years | 3 years |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Annual Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remaining 3 months of 2020 | $ 2,257 | |
2021 | 8,728 | |
2022 | 8,410 | |
2023 | 7,835 | |
2024 | 7,830 | |
Thereafter | 35,949 | |
Net amount | $ 71,009 | $ 77,533 |
Balance Sheet Components - Sc_8
Balance Sheet Components - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 9,514 | $ 16,399 |
Accrued inventory (in-transit and unvouchered receipts) and trade payables | 8,812 | 11,124 |
Accrued purchasing card liability | 2,323 | 1,675 |
Accrued franchise, sales and use taxes | 429 | 713 |
Other accrued expenses | 8,122 | 819 |
Accounts payable and accrued expenses | $ 29,200 | $ 30,730 |
Balance Sheet Components - Sc_9
Balance Sheet Components - Schedule of Accrued Payroll (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued bonuses | $ 4 | $ 87 |
Accrued wages and other payroll related items | 4,463 | 3,158 |
Accrued vacation | 2,620 | 2,169 |
Accrued employee stock purchase plan deductions | 147 | 801 |
Accrued payroll | $ 7,234 | $ 6,215 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | |||
Operating lease, option to extend | options to extend the leases for up to 5 years. | ||
Operating lease, existence of option to extend [true false] | true | ||
Operating lease cost | $ 2,045,000 | $ 1,703,000 | |
Corporate Headquarters in California | |||
Lessee Lease Description [Line Items] | |||
Annual percentage increase in rental expense | 3.50% | ||
Lease payments annual increase description | Lease payments for its corporate headquarters will increase annually by the lesser of the change, if any, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor or three and one-half percent (3.5%) at each annual adjustment date thereafter. | ||
Industrial Space in Texas | |||
Lessee Lease Description [Line Items] | |||
Annual percentage increase in rental expense | 2.50% | ||
Lease payments annual increase description | Lease payments for the Company’s industrial space in Texas will increase annually by two and one-half percent (2.5%) at each annual adjustment date thereafter | ||
Corporate Headquarters in California and Industrial Space in Texas | |||
Lessee Lease Description [Line Items] | |||
Operating leases, lease term | 10 years | 10 years | |
Property owned by a related party | |||
Lessee Lease Description [Line Items] | |||
Operating lease cost | $ 8,000 | $ 25,000 | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Operating leases, lease term | 2 years | 2 years | |
Minimum | Corporate Headquarters in California and Industrial Space in Texas | |||
Lessee Lease Description [Line Items] | |||
Additional operating lease cost | $ 21,433,000 | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Operating leases, lease term | 11 years | 11 years | |
Operating lease option to extend term | 5 years |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 1,803 | $ 1,820 |
Operating lease cost | 2,045 | 1,703 |
Non-cash right-of-use assets obtained in exchange for new operating lease obligations | $ 5,234 | $ 6,418 |
Weighted-average remaining lease term | 2 years 10 months 24 days | 2 years 6 months |
Weighted-average discount rate | 3.30% | 3.80% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Maturities of lease liabilities due in the 12-month period ending September 30, | ||
2021 | $ 2,199 | |
2022 | 1,993 | |
2023 | 1,844 | |
2024 | 1,842 | |
2025 | 596 | |
Thereafter | 3,211 | |
Operating lease liabilities payments due | 11,685 | |
Less imputed interest | (1,225) | |
Total lease liabilities | 10,460 | |
Operating lease liability - current | 1,890 | $ 2,014 |
Operating lease liability - noncurrent | 8,570 | $ 4,702 |
Total lease liabilities | $ 10,460 |
Earnings (loss) per Share - Com
Earnings (loss) per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator—basic and diluted: | ||||
Net income (loss) | $ (1,699) | $ 6,863 | $ (708) | $ 22,325 |
Denominator: | ||||
Weighted-average common shares - basic common stock | 21,998,299 | 21,840,473 | 21,959,521 | 21,802,468 |
Weighted-average common shares - diluted common stock | 21,998,299 | 22,191,688 | 21,959,521 | 22,387,146 |
Net income (loss) per share - basic common stock | $ (0.08) | $ 0.31 | $ (0.03) | $ 1.02 |
Net income (loss) per share - diluted common stock (2) | $ (0.08) | $ 0.31 | $ (0.03) | $ 1 |
Denominator calculation from basic to diluted: | ||||
Weighted-average common shares - basic common stock | 21,998,299 | 21,840,473 | 21,959,521 | 21,802,468 |
Stock options and other dilutive awards | 206,274 | 351,215 | 252,096 | 584,678 |
Weighted-average common shares - diluted common stock | 22,204,573 | 22,191,688 | 22,211,617 | 22,387,146 |
Shares excluded from diluted weighted-average shares: | ||||
Shares excluded from diluted weighted-average shares | 1,051,348 | 315,425 | 691,470 | 235,002 |
Stock options | ||||
Shares excluded from diluted weighted-average shares: | ||||
Shares excluded from diluted weighted-average shares | 655,953 | 82,380 | 473,390 | |
Restricted stock units and restricted stock awards | ||||
Shares excluded from diluted weighted-average shares: | ||||
Shares excluded from diluted weighted-average shares | 395,395 | 233,045 | 218,080 | 235,002 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, interest or penalties recognized | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Class Of Stock [Line Items] | ||
Total intrinsic value of options exercised | $ 269 | $ 7,017 |
401(k) Retirement Savings Plan | ||
Class Of Stock [Line Items] | ||
Defined benefit plan, contributed by employer net of forfeitures | $ 455 | $ 695 |
Stock options | ||
Class Of Stock [Line Items] | ||
Rate of reduced stock-based compensation expense for estimated forfeiture | 7.30% | 7.30% |
Time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 4 years | |
Performance and time based restricted stock awards | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Performance and time based restricted stock units | ||
Class Of Stock [Line Items] | ||
Vesting period | 3 years | |
Restricted stock units and restricted stock awards | ||
Class Of Stock [Line Items] | ||
Unrecognized compensation cost related to unvested employee excluding estimated forfeitures | $ 14,971 | |
Amount expected to recognized over weighted-average period | 2 years 7 months 6 days | |
Maximum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 10 years | |
Vesting period | 4 years | |
Minimum | Stock options | ||
Class Of Stock [Line Items] | ||
Stock option period, expiration | 7 years | |
Vesting period | 1 year | |
2002 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 333 | |
Number of equity awards available for grant | 0 | |
2012 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 138,736 | |
Number of equity awards available for grant | 0 | |
2014 Plan | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 1,206,292 | |
Number of equity awards available for grant | 1,609,397 | |
Terms of shares available for issuance | The number of shares available for issuance under the 2014 Plan also is increased annually on the first day of each fiscal year equal to the least of: 895,346 shares; 4% of the outstanding shares of common stock as of the last day of the Company's immediately preceding fiscal year; or such other amount as the Company's board of directors may determine. | |
Common stock capital shares reserved for future issuance maximum annual increase | 895,346 | |
Percentage on outstanding shares of common stock | 4.00% | |
Number of additional number of shares reserve to provision | 0 | |
2012 Plan and 2002 Plan | Maximum | ||
Class Of Stock [Line Items] | ||
Stock option shares outstanding | 2,328,569 | |
2014 ESPP Plan | ||
Class Of Stock [Line Items] | ||
Number of equity awards available for grant | 630,165 | |
Terms of shares available for issuance | The number of shares available for sale under the ESPP is increased annually on the first day of each fiscal year equal to the least of: 179,069 shares; 1.5% of the outstanding shares of the Company's common stock on the last day of the Company's immediately preceding fiscal year; or such other amount as may be determined by the administrator. | |
Percentage on outstanding shares of common stock | 1.50% | |
Number of additional number of shares reserve to provision | 0 | |
Maximum percentage of common stock eligible to purchase through payroll deductions for participants | 15.00% | |
Maximum number of shares available for participant to purchase during period | 1,500 | |
Purchase price as percentage of stock price on offering period | 85.00% | |
Purchase price as percentage of stock price on exercise date | 85.00% | |
Potential increase of shares available for issuance | 179,069 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | ||
Stock Options Outstanding, Beginning balance | 980,884 | |
Stock Options, Exercised | (9,324) | |
Stock Options, Forfeited | (6,779) | |
Stock Options Outstanding, Ending balance | 964,781 | 980,884 |
Stock Options, Vested and exercisable | 964,781 | |
Stock Options, Vested and expected to vest | 964,781 | |
Outstanding, Weighted-average exercise price, Beginning balance | $ 35.24 | |
Weighted-average exercise price, Exercised | 20 | |
Weighted-average exercise price, Forfeited | 48.23 | |
Outstanding, Weighted-average exercise price, Ending balance | 35.30 | $ 35.24 |
Weighted-average exercise price, Vested and exercisable | 35.30 | |
Weighted-average exercise price, Vested and expected to vest | $ 35.30 | |
Remaining weighted-average contractual term, Outstanding | 2 years 1 month 2 days | 2 years 10 months 2 days |
Remaining weighted-average contractual term, Vested and exercisable | 2 years 1 month 2 days | |
Remaining weighted-average contractual term, Vested and expected to vest | 2 years 1 month 2 days | |
Outstanding, Per share average intrinsic value | $ 5.56 | $ 34.07 |
Per share average intrinsic value, Vested and exercisable | 5.56 | |
Per share average intrinsic value, Vested and expected to vest | 5.56 | |
Minimum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 0.75 | |
Price per share, Exercised | 1.17 | |
Price per share, Forfeited | 44.19 | |
Outstanding, Price per share, Ending balance | 0.75 | 0.75 |
Price per share, Vested and exercisable | 0.75 | |
Price per share, Vested and expected to vest | 0.75 | |
Maximum | ||
Class Of Stock [Line Items] | ||
Outstanding, Price per share, Beginning balance | 83.30 | |
Price per share, Exercised | 44.19 | |
Price per share, Forfeited | 56.72 | |
Outstanding, Price per share, Ending balance | 83.30 | $ 83.30 |
Price per share, Vested and exercisable | 83.30 | |
Price per share, Vested and expected to vest | $ 83.30 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 108,976 |
Granted | 202,924 |
Vested | (42,040) |
Forfeited/canceled | (18,858) |
Unvested restricted stock units/ awards outstanding, Ending balance | 251,002 |
Performance and time based restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 3,134 |
Granted | 88,458 |
Forfeited/canceled | (3,134) |
Unvested restricted stock units/ awards outstanding, Ending balance | 88,458 |
Restricted stock units | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 112,110 |
Granted | 291,382 |
Vested | (42,040) |
Forfeited/canceled | (21,992) |
Unvested restricted stock units/ awards outstanding, Ending balance | 339,460 |
Unvested and expected to vest restricted stock units/awards outstanding | 251,623 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 83.48 |
Weighted-average grant date fair value per share, Granted | $ / shares | 43.85 |
Weighted-average grant date fair value per share, Vested | $ / shares | 83.06 |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 76.90 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 50.52 |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 51.24 |
Time based restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 71,070 |
Vested | (22,704) |
Unvested restricted stock units/ awards outstanding, Ending balance | 48,366 |
Performance and time based restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 62,628 |
Forfeited/canceled | (29,273) |
Unvested restricted stock units/ awards outstanding, Ending balance | 33,355 |
Restricted stock awards | |
Class Of Stock [Line Items] | |
Unvested restricted stock units/ awards outstanding, Beginning balance | 133,698 |
Vested | (22,704) |
Forfeited/canceled | (29,273) |
Unvested restricted stock units/ awards outstanding, Ending balance | 81,721 |
Unvested and expected to vest restricted stock units/awards outstanding | 50,193 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Beginning balance | $ / shares | $ 95.74 |
Weighted-average grant date fair value per share, Vested | $ / shares | 89.76 |
Weighted-average grant date fair value per share, Forfeited/canceled | $ / shares | 110.27 |
Weighted-average grant date fair value per share, Unvested restricted stock units/ awards outstanding, Ending balance | $ / shares | 93.42 |
Weighted-average grant date fair value per share, Unvested and expected to vest restricted stock units/awards outstanding | $ / shares | $ 86.23 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 2,050 | $ 1,565 | $ 6,111 | $ 6,930 |
Stock Option Plan Awards | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | 590 | 709 | 2,513 | |
Restricted stock units and restricted stock awards | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | 1,878 | 834 | 4,853 | 3,882 |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense by type of award: | ||||
Stock-based compensation expense | $ 172 | $ 141 | $ 549 | $ 535 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Stock-based Compensation Expense Recognized in Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class Of Stock [Line Items] | ||||
Stock-based compensation expense | $ 2,050 | $ 1,565 | $ 6,111 | $ 6,930 |
Cost of Revenue | ||||
Class Of Stock [Line Items] | ||||
Stock-based compensation expense | 185 | 172 | 511 | 656 |
Research and Development | ||||
Class Of Stock [Line Items] | ||||
Stock-based compensation expense | 233 | 221 | 726 | 825 |
Sales and Marketing | ||||
Class Of Stock [Line Items] | ||||
Stock-based compensation expense | 516 | 263 | 1,587 | 1,289 |
General and Administrative | ||||
Class Of Stock [Line Items] | ||||
Stock-based compensation expense | $ 1,116 | $ 909 | $ 3,287 | $ 4,160 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Aggregate Payments Due under Operating Leases and Specified Non-Cancelable Contractual Obligations Consist of Software License and Maintenance Agreements (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Non-cancelable contractual obligations, Remaining 3 months of 2020 | $ 144 |
Non-cancelable contractual obligations, 2021 | 457 |
Non-cancelable contractual obligations, Total minimum payments | $ 601 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 31, 2019Lawsuit | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | May 15, 2020Lawsuit | Jan. 13, 2020Lawsuit | May 20, 2019Lawsuit | |
Commitments And Contingencies [Line Items] | ||||||
Outstanding purchase orders with its outside vendors and suppliers | $ 56,500 | |||||
Payments received in advance of satisfying performance obligations | 3,980 | |||||
Performance obligation partially offset of revenue recognized | 3,901 | |||||
Number of lawsuits | Lawsuit | 2 | |||||
No. of additional shareholder derivative who filed lawsuits | Lawsuit | 3 | |||||
Number of derivative lawsuits | Lawsuit | 2 | 4 | ||||
Breathe | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contingent liability | 7,000 | |||||
Lifetime Warranties | Direct-to-Consumer | ||||||
Commitments And Contingencies [Line Items] | ||||||
Sales revenue | $ 17,807 | $ 17,728 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Changes in Aggregate Product Warranty Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Product warranty liability at beginning of period | $ 12,571 | $ 9,530 |
Accruals for warranties issued | 7,299 | 8,131 |
Adjustments related to preexisting warranties (including changes in estimates) | (627) | 1,433 |
Settlements made (in cash or in kind) | (5,316) | (6,523) |
Product warranty liability at end of period | $ 13,927 | $ 12,571 |
Foreign Currency Exchange Con_2
Foreign Currency Exchange Contracts and Hedging - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($)Contract | Sep. 30, 2019USD ($)Contract | |
Derivatives Fair Value [Line Items] | ||
Number of contract designated hedges | Contract | 19 | 5 |
Number of contract non-designated hedges | Contract | 1 | 2 |
Non-Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | $ 2,221,000 | $ 20,805,000 |
Designated Derivative Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts notional amounts | 1,176,000 | 4,105,000 |
Unrealized gain (loss) on derivative | $ 95,000 | $ (158,000) |
Minimum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 1 month | |
Maximum | ||
Derivatives Fair Value [Line Items] | ||
Derivative contracts expiration period | 15 months |