Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | LENSAR, INC. | |
Entity Central Index Key | 0001320350 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,248,507 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | LNSR | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-39473 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0125724 | |
Entity Address, Address Line One | 2800 Discovery Drive | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32826 | |
City Area Code | 888 | |
Local Phone Number | 536-7271 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||
Product and service revenue | $ 8,271 | $ 6,276 | $ 25,215 | $ 20,840 |
Lease | 1,524 | 1,472 | 4,844 | 4,286 |
Total revenue | 9,795 | 7,748 | 30,059 | 25,126 |
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | 4,918 | 3,859 | 14,101 | 11,653 |
Operating expenses | ||||
Selling, general and administrative expenses | 5,117 | 6,119 | 19,726 | 19,966 |
Research and development expenses | 1,527 | 1,577 | 4,676 | 10,199 |
Amortization of intangible assets | 273 | 276 | 824 | 872 |
Operating loss | (2,040) | (4,083) | (9,268) | (17,564) |
Other (expense) income | ||||
Change in fair value of warrant liabilities | 4,343 | (1,654) | ||
Other income, net | 265 | 92 | 465 | 140 |
Net income (loss) | $ 2,568 | $ (3,991) | $ (10,457) | $ (17,424) |
Earnings (loss) per common share: | ||||
Basic | $ 0.13 | $ (0.39) | $ (0.96) | $ (1.73) |
Diluted | $ (0.23) | $ (0.39) | $ (0.96) | $ (1.73) |
Weighted-average number of common shares used in calculation of earnings (loss) per share: | ||||
Basic | 11,102 | 10,225 | 10,881 | 10,089 |
Diluted | 11,956 | 10,225 | 10,881 | 10,089 |
Product | ||||
Revenue | ||||
Product and service revenue | $ 7,156 | $ 5,486 | $ 22,191 | $ 18,188 |
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | 2,933 | 2,189 | 8,897 | 6,648 |
Service | ||||
Revenue | ||||
Product and service revenue | 1,115 | 790 | 3,024 | 2,652 |
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | 1,461 | 1,182 | 3,690 | 3,559 |
Lease | ||||
Cost of revenue (exclusive of amortization) | ||||
Total cost of revenue | $ 524 | $ 488 | $ 1,514 | $ 1,446 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 24,920 | $ 14,674 |
Accounts receivable, net of allowance of $36 and $56, respectively | 3,848 | 6,040 |
Notes receivable, net of allowance of $5 and $4, respectively | 264 | 200 |
Inventories | 17,481 | 11,740 |
Prepaid and other current assets | 2,132 | 1,062 |
Total current assets | 48,645 | 33,716 |
Property and equipment, net | 482 | 563 |
Equipment under lease, net | 6,956 | 6,316 |
Notes and other receivables, long-term, net of allowance of $23 and $9, respectively | 1,131 | 442 |
Intangible assets, net | 11,298 | 12,122 |
Other assets | 2,341 | 2,685 |
Total assets | 70,853 | 55,844 |
Current liabilities: | ||
Accounts payable | 3,936 | 5,422 |
Accrued liabilities | 5,457 | 4,700 |
Deferred revenue | 1,064 | 768 |
Operating lease liabilities | 554 | 531 |
Total current liabilities | 11,011 | 11,421 |
Long-term operating lease liabilities | 1,893 | 2,272 |
Warrant liabilities | 7,259 | |
Other long-term liabilities | 560 | 167 |
Total liabilities | 20,723 | 13,860 |
Commitments and contingencies (Note 9) | ||
Series A Redeemable Convertible Preferred Stock, par value $0.01 per share, 20 and no shares authorized at September 30, 2023 and December 31, 2022, respectively; 20 and no shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively; aggregate liquidation preference of $20,000 and $0 at September 30, 2023 and December 31, 2022, respectively | 13,747 | |
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 9,980 and 10,000 shares authorized at September 30, 2023 and December 31, 2022, respectively; no shares issued and outstanding at September 30, 2023 and December 31, 2022 | ||
Common stock, par value $0.01 per share, 150,000 shares authorized at September 30, 2023 and December 31, 2022; 11,246 and 11,093 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 112 | 111 |
Additional paid-in capital | 144,236 | 139,381 |
Accumulated deficit | (107,965) | (97,508) |
Total stockholders’ equity | 36,383 | 41,984 |
Total liabilities, convertible preferred stock, and stockholders' equity | $ 70,853 | $ 55,844 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance | $ 36 | $ 56 |
Notes receivable, allowance | 5 | 4 |
Notes and other receivables, long-term, allowance | $ 23 | $ 9 |
Temporary equity, par value per share | $ 0.01 | $ 0.01 |
Temporary equity, shares authorized | 20,000 | 0 |
Temporary equity, shares issued | 20,000 | 0 |
Temporary equity, shares outstanding | 20,000 | 0 |
Temporary equity, aggregate liquidation preference | $ 20,000 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 9,980,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 11,246,000 | 11,093,000 |
Common stock, shares outstanding | 11,246,000 | 11,093,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (10,457) | $ (17,424) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,767 | 1,681 |
Amortization of intangible assets | 824 | 872 |
Non-cash operating lease cost | 400 | 391 |
Provision for expected credit losses | (4) | |
Write-down of inventory | 66 | 173 |
Loss on disposal of property and equipment | 11 | |
Stock-based compensation expense | 4,723 | 4,916 |
Change in fair value of warrant liabilities | 1,654 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,212 | 1,065 |
Notes receivable | (769) | 346 |
Prepaid and other current assets | (1,069) | 398 |
Inventories | (7,940) | (3,105) |
Accounts payable | (1,489) | 783 |
Accrued liabilities | 626 | 362 |
Other | 277 | (567) |
Net cash used in operating activities | (9,179) | (10,098) |
Cash flows from investing activities | ||
Purchase of property and equipment | (191) | (58) |
Net cash used in investing activities | (191) | (58) |
Cash flows from financing activities | ||
Proceeds from issuance of redeemable convertible preferred stock, net of offering costs | 13,882 | |
Proceeds from issuance of warrants | 5,605 | |
Proceeds from issuance of common stock under employee stock purchase plan | 181 | 212 |
Net settlement of stock-based compensation awards | (52) | |
Payment of contingent consideration | (2,400) | |
Net cash provided by (used in) financing activities | 19,616 | (2,188) |
Net increase (decrease) in cash and cash equivalents | 10,246 | (12,344) |
Cash and cash equivalents at beginning of the period | 14,674 | 31,637 |
Cash and cash equivalents at end of the period | 24,920 | 19,293 |
Supplemental cash flow information | ||
Cash paid for taxes | 18 | 10 |
Supplemental schedule of non-cash investing and financing activities | ||
Transfer from Inventories to Equipment under lease, net | 2,879 | 1,496 |
Transfer from (to) Inventories to (from) Property and equipment, net | (746) | 34 |
Accounts payable for purchases of Property and equipment, net | (2) | $ (31) |
Accrued offering costs | $ (135) |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Series A Redeemable Convertible Preferred Stock | Common Stock | Common Stock At The Market | Additional Paid-in Capital | Accumulated Deficit |
Beginning Balance at Dec. 31, 2021 | $ 54,879 | $ 110 | $ 132,363 | $ (77,594) | ||
Beginning Balance, Shares at Dec. 31, 2021 | 10,990,000 | |||||
Stock-based compensation | 1,607 | 1,607 | ||||
Restricted stock awards cancelled | (5,000) | |||||
Net loss | (6,674) | (6,674) | ||||
Ending Balance at Mar. 31, 2022 | 49,812 | $ 110 | 133,970 | (84,268) | ||
Ending Balance, Shares at Mar. 31, 2022 | 10,985,000 | |||||
Beginning Balance at Dec. 31, 2021 | 54,879 | $ 110 | 132,363 | (77,594) | ||
Beginning Balance, Shares at Dec. 31, 2021 | 10,990,000 | |||||
Net loss | (17,424) | |||||
Ending Balance at Sep. 30, 2022 | 42,583 | $ 110 | 137,491 | (95,018) | ||
Ending Balance, Shares at Sep. 30, 2022 | 11,023,000 | |||||
Beginning Balance at Mar. 31, 2022 | 49,812 | $ 110 | 133,970 | (84,268) | ||
Beginning Balance, Shares at Mar. 31, 2022 | 10,985,000 | |||||
Stock-based compensation | 1,637 | 1,637 | ||||
Issuance of common stock under the 2020 ESPP | 212 | 212 | ||||
Issuance of common stock under the 2020 ESPP, Shares | 37,000 | |||||
Restricted stock awards cancelled | (1,000) | |||||
Net loss | (6,759) | (6,759) | ||||
Ending Balance at Jun. 30, 2022 | 44,902 | $ 110 | 135,819 | (91,027) | ||
Ending Balance, Shares at Jun. 30, 2022 | 11,021,000 | |||||
Stock-based compensation | 1,672 | 1,672 | ||||
Issuance of common stock, Shares | 2,000 | |||||
Net loss | (3,991) | (3,991) | ||||
Ending Balance at Sep. 30, 2022 | 42,583 | $ 110 | 137,491 | (95,018) | ||
Ending Balance, Shares at Sep. 30, 2022 | 11,023,000 | |||||
Beginning Balance at Dec. 31, 2022 | ||||||
Beginning Balance, Shares at Dec. 31, 2022 | 0 | |||||
Beginning Balance at Dec. 31, 2022 | $ 41,984 | $ 111 | 139,381 | (97,508) | ||
Beginning Balance, Shares at Dec. 31, 2022 | 11,093,000 | |||||
Stock-based compensation | 1,726 | 1,726 | ||||
Issuance of common stock, Shares | 15,000 | |||||
Restricted stock awards cancelled | (5,000) | |||||
Net loss | (4,272) | (4,272) | ||||
Ending Balance at Mar. 31, 2023 | 39,438 | $ 111 | 141,107 | (101,780) | ||
Ending Balance, Shares at Mar. 31, 2023 | 11,103,000 | |||||
Beginning Balance at Dec. 31, 2022 | ||||||
Beginning Balance, Shares at Dec. 31, 2022 | 0 | |||||
Beginning Balance at Dec. 31, 2022 | $ 41,984 | $ 111 | 139,381 | (97,508) | ||
Beginning Balance, Shares at Dec. 31, 2022 | 11,093,000 | |||||
Net loss | (10,457) | |||||
Ending Balance at Sep. 30, 2023 | $ 13,747 | |||||
Ending Balance, Shares at Sep. 30, 2023 | 20,000 | 20,000 | ||||
Ending Balance at Sep. 30, 2023 | $ 36,383 | $ 13,747 | $ 112 | 144,236 | (107,965) | |
Ending Balance, Shares at Sep. 30, 2023 | 11,246,000 | |||||
Beginning Balance at Mar. 31, 2023 | 39,438 | $ 111 | 141,107 | (101,780) | ||
Beginning Balance, Shares at Mar. 31, 2023 | 11,103,000 | |||||
Stock-based compensation | 1,824 | 1,824 | ||||
Issuance of Series A Redeemable Convertible Preferred Stock, net of offering costs | $ 13,747 | |||||
Issuance of Series A Convertible Preferred Stock, net of offering costs, Shares | 20,000 | |||||
Issuance of common stock under the 2020 ESPP | 181 | $ 1 | 180 | |||
Issuance of common stock under the 2020 ESPP, Shares | 71,000 | |||||
Issuance of common stock under the 2020 Plan | $ (1) | |||||
Issuance of common stock under the 2020 Plan, Shares | 26,000 | |||||
Net loss | (8,753) | (8,753) | ||||
Ending Balance, Shares at Jun. 30, 2023 | 20,000 | |||||
Ending Balance at Jun. 30, 2023 | 32,690 | $ 13,747 | $ 112 | 143,111 | (110,533) | |
Ending Balance, Shares at Jun. 30, 2023 | 11,199,000 | |||||
Stock-based compensation | 1,173 | 1,173 | ||||
Issuance of common stock under the 2020 Plan, net of forfeitures, Shares | 47,000 | |||||
Issuance of common stock under the 2020 Plan, net of forfeitures | (48) | (48) | ||||
Net loss | 2,568 | 2,568 | ||||
Ending Balance at Sep. 30, 2023 | $ 13,747 | |||||
Ending Balance, Shares at Sep. 30, 2023 | 20,000 | 20,000 | ||||
Ending Balance at Sep. 30, 2023 | $ 36,383 | $ 13,747 | $ 112 | $ 144,236 | $ (107,965) | |
Ending Balance, Shares at Sep. 30, 2023 | 11,246,000 |
CONDENSED STATEMENTS OF CHANG_2
CONDENSED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Series A Redeemable Convertible Preferred Stock | |
Offering costs | $ 649 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and B asis of Presentation Overview and Organization LENSAR, Inc. (“LENSAR” or the “Company”) is a global medical device business focused on the design, development and commercialization of advanced technology for the treatment of cataracts and management of astigmatism to achieve improved visual outcomes for patients. The Company is a public company whose stock is listed and trading under the symbol “LNSR” on The Nasdaq Stock Market LLC (“Nasdaq”). The Company’s revenue is derived from the sale and lease of the Company’s laser systems, which may include equipment, a consumable referred to as the Patient Interface Device (“PID”), procedure licenses, training, installation, limited warranty and maintenance agreements through extended warranty. The Company has developed its next-generation ALLY ® Adaptive Cataract Treatment System (“ALLY System”), which combines all of the features from the LENSAR Laser System with a dual-pulse laser, integrated in a small, compact cataract treatment system that is designed to allow surgeons to perform a sterile femtosecond laser assisted cataract procedure in a single operating room or in-office surgical suite. The ALLY System, which has received clearance from the U.S. Food and Drug Administration (“FDA”), enables cataract surgeons to complete the femtosecond-laser-assisted cataract surgery (“FLACS”) procedure in a single, sterile environment. The Company executed a controlled and targeted initial launch of the ALLY System beginning in August 2022. The ALLY System is now available to U.S. cataract surgeons and has also received regulatory clearance in India. In addition, the Company submitted the ALLY System for certification in the European Union, or EU, in September 2022 and, in 2023, submitted documentation to distributors in South Korea, Taiwan, and the Philippines for additional marketing or certification applications outside the United States. This is the first step in an effort to commercialize the ALLY System in additional countries and operating regions. The Company has incurred recurring losses and operating cash outflows since its inception and, as of September 30, 2023, had an accumulated deficit of $ 107,965 . The Company expects to continue to incur losses and cash outflows from operating activities for the near-term future. In addition, the Company’s results of operations, financial condition and cash flows have been adversely affected by the COVID-19 pandemic, including supply chain shortages, inflationary pressures and price increases that originated during the pandemic. The Company has experienced some supply chain disruptions and increased costs or unavailability of various component parts needed for the development and supply of the ALLY System originally connected with the COVID-19 pandemic, including increasing lead times required for the ordering of component parts to meet targeted production goals and unpredictability with respect to the availability and delivery timing of these parts. In addition, pricing increases in component parts for the ALLY System resulting from inflationary pressures and related macroeconomic conditions may necessitate an increase in overall cost to customers, which in turn may have an adverse impact on customer demand. Management believes the Company’s cash and cash equivalents on hand, together with cash generated from the future sale and lease of products, will provide sufficient funds for its operating, investing, and financing cash flows for a period of at least twelve months from the date of issuance of these financial statements. The Company expects annual revenue and selling, general and administrative expenses to increase from current levels associated with the commercialization of the ALLY System. In addition, the successful commercialization of the ALLY System depends in part on the Company’s ability to produce the ALLY System in sufficient quantities, within requested timelines and at an acceptable price to satisfy customer demand. The Company’s liquidity needs will be largely determined by the Company’s ability to successfully commercialize its products and the progression, additional regulatory clearances or certifications and launch of the ALLY System in additional jurisdictions in the future. In the future, the Company may need to raise additional capital through equity or debt financings, borrowings under credit facilities or from other sources in the future. The Company may issue securities, including common stock, preferred stock, warrants, and/or debt securities through private placement transactions or registered public offerings in the future. The Company’s ability to raise additional funds will depend, among other factors, on financial, economic and market conditions, many of which are outside of the Company’s control, and the Company may be unable to raise financing when needed, or on terms favorable to the Company. If the necessary funds are not available from these sources, the Company may have to delay, reduce or suspend the scope of its sales and marketing efforts, research and development activities, or other components of its operations. Basis of Presentation These condensed financial statements of the Company are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information and, therefore, omit or condense certain footnotes and other information normally included. The condensed financial statements include all adjustments (consisting only of normal recurring adjustments) that management of the Company believes are necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year. The December 31, 2022 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed financial statements and related financial information should be read in conjunction with the Company’s annual audited financial statements and the related notes thereto for the fiscal year ended December 31, 2022 , included in the Annual Report on Form 10-K (the “Annual Report”) as filed with the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Other than policies noted below, there have been no significant changes to the significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies , of the annual audited financial statements included in the Annual Report. Accounting Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes to the condensed financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, revenue recognition and allowance for expected credit losses, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, operating lease right-of-use assets and liabilities, the recognition and measurement of current and deferred income tax assets and liabilities, and the valuation of warrant liabilities. Management evaluates its estimates on an ongoing basis as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from these estimates. As of the date of issuance of these unaudited condensed interim financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update estimates, judgments or revise the carrying value of any assets or liabilities. Derivative Financial Instruments The Company evaluates financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the condensed statements of operations. Warrants issued by the Company that do not meet the criteria for equity treatment are recorded as liabilities. We do not use financial instruments or derivatives for any trading purposes. Fair Value Measurement The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or the Company paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: • Level 1—based on quoted market prices in active markets for identical assets and liabilities. • Level 2—based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. Fair value measurements are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of September 30, 2023: September 30, 2023 Level 1 Level 2 Level 3 Total Assets $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Warrant derivative liabilities $ — $ — $ 7,259 $ 7,259 Total liabilities $ — $ — $ 7,259 $ 7,259 There were no assets or liabilities measured at fair value as of September 30, 2022. The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the period ended September 30, 2023 is set forth below: Fair Value at May 18, 2023 Change in Fair Value Fair Value at September 30, 2023 Series A Warrant $ 2,971 $ 862 $ 3,833 Series B Warrant 2,634 792 3,426 Total warrant liabilities $ 5,605 $ 1,654 $ 7,259 The carrying value of the Company’s cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk. There have been no transfers between levels. Income Taxes Income tax expense/(benefit) from continuing operations for the three and nine months ended September 30, 2023 and 2022 was $ 0 in each period, which resulted primarily from maintaining a full valuation allowance against the Company’s deferred tax assets. Under the Internal Revenue Code (“IRC”) Sections 382 and 383, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating loss and tax credit carryforwards that may be used in future years. The Company has not completed an analysis to determine whether any such limitations have been triggered as of September 30, 2023, however, the Company notes that the Securities Purchase Agreement may have an impact on ownership for purposes of this analysis. Until a study is completed and any limitation known, the Company will not make adjustments to its deferred tax assets. Due to the existence of the valuation allowance, future changes in the Company’s deferred taxes will not impact its effective tax rate or balance sheet. Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recent pronouncements issued by the FASB and other authoritative standards groups with future effective dates and concluded the pronouncements are either not applicable to the Company or are not expected to have a material impact on the Company’s financial position or results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 3. Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes the Company’s product and service revenue disaggregated by geographic region, which is determined based on customer location, for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 5,743 $ 4,367 $ 17,112 $ 12,434 South Korea 9 74 34 2,170 Europe 934 805 4,455 3,380 Asia (excluding South Korea) 1,104 932 2,940 2,483 Other 481 98 674 373 Total 1 $ 8,271 $ 6,276 $ 25,215 $ 20,840 1. The table above does not include lease revenue of $ 1,524 and $ 1,472 for the three months ended September 30, 2023 and 2022, respectively, and $ 4,844 and $ 4,286 for the nine months ended September 30, 2023 and 2022, respectively. Substantially all lease revenue originates from the United States. Refer to Note 5, Leases . Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers: Classification As of As of Accounts receivable, current Accounts receivable, net $ 3,848 $ 6,040 Notes receivable, current Notes receivable, net $ 264 $ 200 Notes receivable, long-term Notes and other receivables, long-term, net $ 1,131 $ 442 Contract asset, current Prepaid and other current assets $ 888 $ 332 Deferred revenue, current Deferred revenue $ 1,064 $ 768 Deferred revenue, non-current Other long-term liabilities $ 331 $ 17 Contract liability, long-term Other long-term liabilities $ 223 $ 150 Accounts Receivables, Net – Accounts receivables, net, include amounts billed and due from customers. The amounts due are stated at their net estimated realizable value and are classified as current or noncurrent based on the timing of when the Company expects to receive payment. Most customers are on pre-paid or 30 -day payment terms, depending on the product purchased. The Company maintains an allowance for expected credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer credit worthiness, historical payment experience, the age of outstanding receivables, collateral to the extent applicable and reflects the possible impact of current conditions and reasonable forecasts not already reflected in historical loss information. The following table summarizes the activity in the allowance for accounts receivable: Amount Accounts receivable, allowance for credit losses as of $ 56 Provision for credit losses ( 20 ) Write-offs — Accounts receivable, allowance for credit losses as of $ 36 Accounts receivable, allowance for credit losses as of $ 47 Provision for credit losses 1 Write-offs ( 17 ) Accounts receivable, allowance for credit losses as of $ 31 Notes Receivables, Net – Notes receivable, net includes amounts billed and due from customers under extended payment terms with a significant financing component. Interest rates on notes receivable range from 6.8 % to 8.1 %. The Company recorded interest income on notes receivable during the three months ended September 30, 2023 and 2022 of $ 19 and $ 3 , respectively, and during the nine months ended September 30, 2023 and 2022 of $ 51 and $ 11 , respectively, in other income, net in the statement of operations. The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for credit losses as of $ 13 Provision for credit losses 15 Write-offs — Notes receivable, allowance for credit losses as of $ 28 Notes receivable, allowance for credit losses as of $ 63 Provision for credit losses ( 1 ) Write-offs ( 59 ) Notes receivable, allowance for credit losses as of $ 3 Contract Assets – The Company's contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing has not yet occurred. The Company classifies contract assets in Prepaid and other current assets in the Company's condensed balance sheets. The following table provides information about contract assets from contracts with customers: Amount Contract assets as of December 31, 2022 $ 332 Contract assets recognized 1,052 Payments received ( 350 ) Write-off due to contract modification ( 146 ) Contract assets as of September 30, 2023 $ 888 Contract Liabilities – The Company’s contract liabilities represent services and products sold to customers for which the performance obligation has not been completed by the Company. The Company classifies contract liabilities as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of contract liabilities is included in other long-term liabilities in the Company’s condensed balance sheets. The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2022 $ 935 Billings not yet recognized as revenue 1,497 Beginning contract liabilities recognized as revenue ( 814 ) Contract liabilities as of September 30, 2023 $ 1,618 Contract liabilities as of December 31, 2021 $ 970 Billings not yet recognized as revenue 674 Beginning contract liabilities recognized as revenue ( 814 ) Contract liabilities as of September 30, 2022 $ 830 Transaction Price Allocated to Future Performance Obligations At September 30, 2023 , the revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $ 18,525 . The Company expects to satisfy its remaining performance obligations by December 31, 2029, with $ 1,953 to be satisfied by December 31, 2023 , $ 5,725 to be satisfied by December 31, 2024 , $ 4,525 to be satisfied by December 31, 2025 , $ 3,008 to be satisfied by December 31, 2026 , $ 2,167 to be satisfied by December 31, 2027 , $ 1,026 to be satisfied by December 31, 2028 , and $ 118 to be satisfied thereafter . The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected lengths of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for the products delivered or services performed. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventory balances were as follows: As of As of Finished Goods $ 7,266 $ 4,002 Work-in-process 2,070 797 Raw Materials 8,145 6,941 Total $ 17,481 $ 11,740 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 5. Leases Lessor Arrangements The Company has operating leases for systems. The Company’s leases have remaining lease terms of less than one year to six years . Lease revenue for the three and nine months ended September 30, 2023 and 2022 was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Lease revenue $ 1,524 $ 1,472 $ 4,844 $ 4,286 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. Intangible Assets The components of intangible assets were as follows: As of September 30, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ ( 2,278 ) $ 2,014 $ 4,292 $ ( 2,028 ) $ 2,264 Acquired technology 1,3,4 13,900 ( 4,616 ) 9,284 13,900 ( 4,042 ) 9,858 Acquired trademarks 1 570 ( 570 ) — 570 ( 570 ) — $ 18,762 $ ( 7,464 ) $ 11,298 $ 18,762 $ ( 6,640 ) $ 12,122 1. Certain intangible assets were established upon PDL BioPharma, Inc.’s acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a period of 15 years. The intangible assets for customer relationships are amortized on a straight-line basis or a double declining basis over their estimated useful lives up to 20 years based on the method that better represents the economic benefits to be obtained. 2. LENSAR acquired certain intangible assets for customer relationships from a domestic distributor in an asset acquisition, which are being amortized on a straight-line basis over a period of 10 years. 3. LENSAR acquired certain intangible assets from a medical technology company in an asset acquisition, which are being amortized on a straight-line basis over a period of 15 years. 4. In 2019, LENSAR acquired certain intellectual property from a third party. Pursuant to the Company's agreement with the third party, the Company made milestone payments of $ 2,400 during the year ended December 31, 2022. The intangible assets will be amortized on a straight-line basis over a period of 15 years. Amortization expense for three months ended September 30, 2023 and 2022 was $ 273 and $ 276 , respectively, and for the nine months ended September 30, 2023 and 2022 was $ 824 and $ 872 , respectively. Based on the intangible assets recorded at September 30, 2023, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows: Fiscal Year Amount Remainder of 2023 273 2024 1,125 2025 1,234 2026 1,224 2027 1,215 2028 1,008 Thereafter 5,219 Total remaining estimated amortization expense $ 11,298 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Note 7. Accrued Liabilities Accrued liabilities consist of the following: As of As of Compensation $ 3,618 $ 3,348 Professional services 691 437 Customer advances 69 171 Warranty 212 120 Accrued offering costs 187 — Other 680 624 Total $ 5,457 $ 4,700 |
Warrant Liabilities
Warrant Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrant Liabilities | Note 8. Warrant Liabilities In May 2023, the Company completed the Private Placement (as defined below), which included the issuance of warrants (the “Warrants”) to purchase an aggregate of 4,367 shares of common stock (the “Warrant Shares”). Fifty percent of the Warrants have an exercise price equal to $ 2.45 per share (the “Series A Warrant”), and 50 % of the Warrants have an exercise price equal to $ 3.0625 per share (the “Series B Warrant”), subject in each instance to adjustments as provided under the terms of the Warrants. Refer to Note 10, Redeemable Convertible Preferred Stock , for more details related to the Private Placement. Upon the occurrence of certain transactions (“Fundamental Transactions,” as defined below), the Warrants provide that they are redeemable by the holder thereof for a value determined using a Black Scholes option pricing model with inputs calculated as described in the applicable Warrant, which includes a 100 % floor on the volatility input to be utilized. The Company has determined that this provision introduces leverage to the holders of the Warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Accordingly, pursuant to ASC 815, the Company classified the fair value of the Warrants as a liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. Of the $ 20,000 gross proceeds for the Private Placement, $ 5,605 was allocated to the Warrants and the remaining $ 14,395 was allocated to the Series A Redeemable Convertible Preferred Stock. The Company estimated the fair value of the warrant liabilities using recently quoted market prices of the Company's common stock and the Black-Scholes option pricing model. The fair value of the warrant liabilities was estimated using the following assumptions as of September 30, 2023 and May 18, 2023: September 30, 2023 May 18, 2023 Risk-free interest rate 4.6 % 3.7 % Expected term (years) 4.6 5.0 Expected volatility 55 % 55 % Dividends 0.0 % 0.0 % Expected term : The expected term for the warrant liabilities was based on the remaining contractual term of the Warrants. Risk-free interest rate : The risk-free interest rate was based on the rates paid on securities issued by the U.S. Treasury with a term approximating the expected term. Expected volatility : The expected volatility for the warrant liabilities was based on an index of the historical volatilities of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the volatility of its common stock. Expected dividend yield : The Company does not intend to pay dividends for the foreseeable future. Accordingly, the Company used a dividend yield of zero in the assumptions. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Purchase Obligation LENSAR is a party to various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $ 7,586 over the next 15 months. LENSAR expects to meet these requirements. Royalty Payments The Company acquired certain intellectual property, which would result in royalty payments at a rate of 3 % of certain revenue upon the phacoemulsification features being cleared for commercialization and operational in the ALLY System. Employee Retention Credit In March 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act provides for an employee retention credit (“ERC”), which is a refundable tax credit against certain employment taxes paid in 2020 and 2021. During the quarter ended September 30, 2023 , the Company received a majority of the ERC. As such, the Company recorded $ 1,368 as a reduction of selling, general and administrative expenses, which represents the ERC net of professional fees. Legal Matters The medical device market in which LENSAR participates is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. From time to time, we may become involved in various legal proceedings relating to matters incidental to the ordinary course of our business, including intellectual property, commercial, product liability, employment, class action, whistleblower and other litigation and claims, and governmental and other regulatory investigations and proceedings. In addition, on August 14, 2023, stockholders Ryan Schaper and Christopher P. Bolster filed a Verified Amended Class Action Complaint against the Company and certain of its officers and members of the board of directors (“Defendants”) in the matter captioned Schaper v. LENSAR, Inc., et al., Case No. 1:23-cv-00692-GBW (D. Del.). On August 18, 2023, the parties filed a joint stipulation extending Defendants’ time to respond to the complaint until a lead plaintiff is appointed and plaintiffs file a second amended complaint or designate the Verified Amended Class Action Complaint as operative. The Company vigorously denies that the definitive proxy statement filed with the SEC on June 20, 2023 was deficient in any respect. The Company believes the allegations and claims asserted in the Schaper Action are without merit and that supplemental disclosures were not required or necessary under applicable laws. At this time, the Company cannot predict the outcome, or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. This matter or other such matters may be time-consuming, divert management’s attention and resources, cause us to incur significant expenses or liability or require us to change our business practices, even if we believe the claims asserted against us are without merit. Because of the potential risks, expenses and uncertainties of litigation, we may, from time to time, settle disputes, even where we believe that we have meritorious claims or defenses. Because litigation is inherently unpredictable, we cannot assure you that the results of any such actions will not have a material adverse effect on our business, results of operations, financial condition or cash flows. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Convertible Preferred Stock [Abstract] | |
Redeemable Convertible Preferred Stock | Note 10. Redeemable Convertible Preferred Stock Series A Redeemable Convertible Preferred Stock In May 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with NR-GRI Partners, LP (“NR-GRI”), whereby it sold to NR-GRI, for an aggregate purchase price of $ 20,000 , 20 shares of Series A Redeemable Convertible Preferred Stock and the Warrants (the “Private Placement”). Refer to Note 8, Warrant Liabilities , for more details related to the Warrants. The Series A Redeemable Convertible Preferred Stock is convertible into 7,940 shares of common stock at the election of NR-GRI. On August 1, 2023, the Company’s stockholders voted to approve the issuance of shares of the Company’s common stock issuable upon conversion of the shares of Series A Redeemable Convertible Preferred Stock and exercise of the Warrants. As a result of the stockholders’ approval of the Private Placement, applicable ownership limitations under Nasdaq rules were lifted, and NR-GRI became entitled to convert shares of Series A Redeemable Convertible Preferred Stock or exercise Warrants up to the full amount purchased in the Private Placement. Holders of Series A Redeemable Convertible Preferred Stock are entitled to vote on an as-converted basis with holders of common stock. The Series A Redeemable Convertible Preferred Stock ranks senior to the common stock as to distributions and payments upon the liquidation, dissolution and winding up of the Company, and holders of Series A Redeemable Convertible Preferred Stock participate with the holders of the common stock on an as-converted basis to the extent any dividends are declared on common stock. The shares of Series A Redeemable Convertible Preferred Stock will automatically be redeemed in connection with certain transactions (“Fundamental Transactions”), including a merger, sale of all or substantially all the assets of the Company, recapitalization, or the sale by the Company of shares resulting in more than 50 % ownership by a person or group. In such event, the redemption price would be equal to the greater of the stated value of the shares of Series A Redeemable Convertible Preferred Stock or the consideration per share of common stock in the Fundamental Transaction (or in the absence of such consideration, the volume-weighted average price of the Company’s common stock immediately preceding the closing of the Fundamental Transaction). The Series A Redeemable Convertible Preferred Stock is classified as temporary equity in the condensed balance sheet because redemption automatically occurs upon a Fundamental Transaction. However, redemption is not considered probable; therefore, the Series A Redeemable Convertible Preferred Stock is not accreted to face value. The proceeds of the transaction were allocated first to the fair value of warrants due to the classification of the warrants as a liability on the condensed balance sheet and the remainder of the proceeds were allocated to the Series A Redeemable Convertible Preferred Stock. Offering costs of $ 901 were allocated ratably based on the allocation of proceeds; $ 253 was allocated to the general and administrative expenses and $ 648 was allocated to Series A Redeemable Convertible Preferred Stock. Series A Redeemable Convertible Preferred Stock is presented net of offering costs on the condensed balance sheet. In connection with the parties’ entry into the SPA, the Company and NR-GRI entered into a Registration Rights Agreement, pursuant to which the Company filed a resale registration statement on Form S-3 (No. 333-272930) with respect to the resale of the shares of the Company’s common stock issuable upon conversion of the shares of Series A Redeemable Convertible Preferred Stock and exercise of the Warrants. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity Common Stock The Company has a single class of common stock in which stockholders are entitled to one vote for each share of common stock . No cash dividend was declared on common stock during the three and nine months ended September 30, 2023 and 2022. The Company currently has an effective shelf registration statement on Form S-3 (No. 333-255136), which was filed with the SEC on April 8, 2021 (the “Registration Statement”), under which the Company may offer from time to time in one or more offerings any combination of common and preferred stock, debt securities, depositary shares, warrants, purchase contracts and units of up to $ 100.0 million in the aggregate. The Company also simultaneously entered into a sales agreement providing for the offering, issuance and sale by the Company of up to an aggregate $ 35.0 million of its common stock from time to time in “at-the-market” (“ATM”) offerings under the Registration Statement. During the three months ended September 30, 2022, the Company sold 2 shares of its common stock, pursuant to ATM offerings, at a weighted average sales price of $ 6.46 per share. Proceeds from the sale were offset by offering costs and commissions associated with the transactions. No shares were sold under the ATM during the three and nine months ended September 30, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation Stock-Based Incentive Plans The 2020 Plan In July 2020, the Board of Directors approved the LENSAR Inc. 2020 Incentive Award Plan (the “2020 Plan”). The 2020 Plan provides for the grant of stock options, restricted stock, restricted stock unit awards and other stock-based awards to recipients. The amount and terms of grants are determined by the Company’s Board of Directors or a duly authorized committee thereof. Participants must pay the Company, or make provisions to pay, any required withholding taxes by the date of the event creating the tax liability. Participants may satisfy the tax liability in cash or in stock. A total of 3,333 shares of common stock were initially reserved for issuance pursuant to the 2020 Plan. The number of shares available for issuance under the 2020 Plan includes an annual increase on the first day of each fiscal year beginning fiscal 2021, equal to the lesser of (i) 5 % of the aggregate number of shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as determined by the Board of Directors. As of September 30, 2023 , the Company has reserved a total of 4,984 shares of common stock for issuance under the 2020 Plan. A summary of the shares available for issuance under the 2020 Plan is as follows: Number of Shares Balance at December 31, 2022 1,002 Authorized 555 Granted/Awarded ( 1,374 ) Cancelled/Forfeited 90 Balance at September 30, 2023 273 Stock Options The exercise price of incentive stock options (“ISOs”) and nonqualified stock options (“NSOs”) shall not be less than 100 % of the fair market value on the grant date of the option and the term may not exceed 10 years. The exercise price of ISOs granted to a 10 % stockholder shall not be less than 110 % of the estimated fair market value on the grant date of the option and the term may not exceed five years . To date, options have a term of 10 years and generally vest over one to four years from the grant date. Option award activity under the 2020 Plan is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2022 1,202 $ 6.91 8.7 $ — Options granted 831 $ 2.98 Options exercised — $ — Options cancelled/forfeited ( 36 ) $ 5.61 Outstanding at September 30, 2023 1,997 $ 5.30 8.6 $ 154 Vested and expected to vest at September 30, 2023 1,997 $ 5.30 8.6 $ 154 Vested and exercisable at September 30, 2023 840 $ 6.70 8.0 $ — The weighted average grant date fair value of options granted during the three and nine months ended September 30, 2023 was $ 1.98 and $ 1.94 , respectively. The total fair value of options vested during the three and nine months ended September 30, 2023 was approximately $ 655 and $ 2,445 , respectively. Total unrecognized compensation expense of $ 2,927 related to stock options will be recognized over a weighted average period of 2.2 years. The following table summarizes information about stock options outstanding and vested as of September 30, 2023: Options Outstanding Options Vested Exercise Price Options Outstanding Weighted Average Remaining Contractual Term (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 2.52 - $ 3.10 359 9.3 $ 2.66 — $ — $ 3.23 455 9.7 $ 3.23 88 $ 3.23 $ 3.27 - $ 5.95 32 8.9 $ 5.40 8 $ 5.81 $ 6.04 416 8.3 $ 6.04 174 $ 6.04 $ 6.07 - $ 8.62 735 7.7 $ 7.44 570 $ 7.45 1,997 8.6 $ 5.30 840 $ 6.70 The Company estimated the fair value of stock-options using the Black-Scholes option pricing model. The fair value of stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of stock options was estimated using the following assumptions for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Risk-free interest rate 4.1 - 4.3 % 2.7 - 3.4 % 3.5 - 4.3 % 1.5 - 3.4 % Expected term (years) 6 6 6 6 Expected volatility 57 - 70 % 70 % 57 - 70 % 70 % Dividends 0.0 % 0.0 % 0.0 % 0.0 % Expected term : The expected term for the Company’s stock-based compensation awards was based on an index of the expected terms of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the expected term of its awards. Risk-free interest rate : The risk-free interest rate was based on the rates paid on securities issued by the U.S. Treasury with a term approximating the expected term. Expected volatility : The expected volatility for the Company’s stock-based compensation awards was based on an index of the historical volatilities of a group of comparable publicly-traded medical device and other peer companies, which the Company believed was representative of the volatility of its common stock. Expected dividend yield : The Company does not intend to pay dividends for the foreseeable future. Accordingly, the Company used a dividend yield of zero in the assumptions. Restricted Stock Awards Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock. The compensation expense related to these awards is determined using the fair market value of the Company’s common stock on the date of the grant. Under the Company’s restricted stock plans, restricted stock awards typically vest over three years and compensation expense associated with these awards is recognized on a straight-line basis over the vesting period. Restricted stock award activity under the 2020 Plan is set forth below: Restricted Stock Awards Outstanding Number of Units Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2022 622 $ 10.29 Restricted stock awards granted — $ — Restricted stock awards vested ( 541 ) $ 10.30 Restricted stock awards cancelled ( 6 ) $ 10.81 Non-vested at September 30, 2023 75 $ 10.20 The total fair value of restricted stock awards vested during the three and nine months ended September 30, 2023 was approximately $ 1,768 and $ 5,574 , respectively. At September 30, 2023 there was approximately $ 89 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.5 months. The remaining 75 restricted stock awards are expected to vest in the quarter ending December 31, 2023. Restricted Stock Units Restricted stock units granted to employees and non-employees generally vest over one to four years in annual equal increments. The fair value of restricted stock units is based on the Company’s closing stock price on the date of grant. Restricted stock unit activity under the 2020 Plan is set forth below: Restricted Stock Units Outstanding Number of Units Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2022 86 $ 6.33 Restricted stock units granted 544 $ 2.73 Restricted stock units vested ( 101 ) $ 4.27 Restricted stock units cancelled ( 36 ) $ 2.65 Non-vested at September 30, 2023 493 $ 3.05 The total fair value of restricted stock units vested during the three and nine months ended September 30, 2023 was approximately $ 160 and $ 431 , respectively. At September 30, 2023 there was approximately $ 1,117 of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.5 years. 2020 Employee Stock Purchase Plan In September 2020, the Board of Directors approved the LENSAR, Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”), under which eligible employees are permitted to purchase common stock at a discount through payroll deductions. A total of 340 shares of common stock were initially reserved for issuance. The number of shares available for issuance under the 2020 ESPP includes an increase on the first day of each fiscal year, beginning in 2022, by an amount equal to the lesser of (i) 1.0 % of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (ii) a lesser amount as determined by the Board of Directors. As of September 30, 2023 , the Company has reserved 451 shares of common stock for issuance under the 2020 ESPP. The price of the common stock purchased will be the lower of 85 % of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. The 2020 ESPP is intended to qualify as an "employee stock purchase plan" within the meaning of Section 423 of the Internal Revenue Code of 1986. As of September 30, 2023 , 235 shares of common stock have been issued to employees participating in the 2020 ESPP and 216 shares were available for future issuance under the 2020 ESPP. The grant date fair value of the shares to be issued under the Company’s 2020 ESPP was estimated using the Black-Scholes valuation model. The following table sets forth the total stock-based compensation expense recognized under the 2020 Plan and the 2020 ESPP in the Company's condensed statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue - product $ 5 $ — $ 5 $ — Cost of revenue – product 64 57 234 163 Cost of revenue – service 38 33 134 95 Selling, general and administrative expenses 943 1,423 3,867 4,197 Research and development expenses 123 159 483 461 Total $ 1,173 $ 1,672 $ 4,723 $ 4,916 Total unrecognized stock-based compensation expense is expected to be amortized as follows: Fiscal Year Amount Remainder of 2023 $ 793 2024 2,114 2025 1,005 2026 215 2027 6 Thereafter — Total unrecognized stock-based compensation expense $ 4,133 The amounts included in this table are based on restricted stock awards, restricted stock units, and stock options outstanding at September 30, 2023 and assumes the requisite service period is fulfilled for all awards outstanding. Actual stock-based compensation expense in future periods may vary from those reflected in the table. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Note 13. Earnings (Loss) per Share The following is a reconciliation of the numerator (earnings (loss)) and the denominator (number of shares) used in the basic and diluted earnings (loss) per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator Net income (loss) $ 2,568 $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Percentage allocated to common stockholders (1) 56 % 100 % 100 % 100 % Numerator for basic earnings (loss) per common share $ 1,433 $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Undistributed income allocated to Series A Warrants and Series B Warrants 110 Change in fair value of warrant liabilities ( 4,343 ) — — — Numerator for diluted loss per common share $ ( 2,800 ) $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Denominator Weighted average number of shares of common stock, basic 11,102 10,225 10,881 10,089 Series A Warrants and Series B Warrants 854 — — — Weighted average number of shares of common stock, diluted 11,956 10,225 10,881 10,089 Basic earnings (loss) per common share $ 0.13 $ ( 0.39 ) $ ( 0.96 ) $ ( 1.73 ) Diluted loss per common share $ ( 0.23 ) $ ( 0.39 ) $ ( 0.96 ) $ ( 1.73 ) (1) Basic weighted average common stock outstanding 11,102 10,225 10,881 10,089 Basic weighted average common stock and participating securities (Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants) 19,897 10,225 10,881 10,089 Percentage allocated to common stockholders 56 % 100 % 100 % 100 % Basic earnings (loss) per common share is calculated by dividing the earnings (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted earnings (loss) per share calculation, Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants, stock options, restricted stock awards, and restricted stock units are considered to be potentially dilutive securities. Basic and diluted earnings (loss) attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities. The Company considers Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants to be participating securities, because holders of such instruments participate in the event a dividend is paid on common stock. The holder of the Series A Redeemable Convertible Preferred Stock, Series A Warrants and Series B Warrants does not have a contractual obligation to share in the Company’s losses. As such, losses are attributed entirely to common stockholders and for periods in which the Company has reported a net loss, diluted loss per common share is the same as basic loss per common share. The Company excluded the following amounts of equity securities from its diluted loss per share calculations for the three and nine months ended September 30, 2023 and 2022 because their effect was anti-dilutive: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — 7,940 — Series A Warrants and Series B Warrants — — 4,367 — Restricted stock awards and units 568 821 568 821 Outstanding stock options 1,997 1,207 1,997 1,207 The anti-dilutive weighted average shares excluded from the diluted loss per share calculations were: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — 4,014 — Series A Warrants — — 322 — Series B Warrants — — 126 — Restricted stock awards and units 639 882 785 982 Outstanding stock options 1,997 1,199 1,750 1,131 Total 10,576 2,081 6,997 2,113 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions In May 2023, the Company completed the Private Placement with NR-GRI, an affiliate of North Run Capital, LP (“North Run”). Pursuant to the terms of the Private Placement, Thomas B. Ellis and Todd B. Hammer, co-managing partners of North Run, joined the Company’s Board of Directors following the Company’s 2023 Annual Meeting of Stockholders. Refer to Note 8, Warrant Liabilities , and Note 10, Stockholders' Equity , for more details related to the Private Placement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes to the condensed financial statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, but are not limited to, revenue recognition and allowance for expected credit losses, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, operating lease right-of-use assets and liabilities, the recognition and measurement of current and deferred income tax assets and liabilities, and the valuation of warrant liabilities. Management evaluates its estimates on an ongoing basis as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from these estimates. As of the date of issuance of these unaudited condensed interim financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update estimates, judgments or revise the carrying value of any assets or liabilities. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the condensed statements of operations. Warrants issued by the Company that do not meet the criteria for equity treatment are recorded as liabilities. We do not use financial instruments or derivatives for any trading purposes. |
Fair Value Measurement | Fair Value Measurement The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or the Company paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: • Level 1—based on quoted market prices in active markets for identical assets and liabilities. • Level 2—based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. Fair value measurements are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of September 30, 2023: September 30, 2023 Level 1 Level 2 Level 3 Total Assets $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Warrant derivative liabilities $ — $ — $ 7,259 $ 7,259 Total liabilities $ — $ — $ 7,259 $ 7,259 There were no assets or liabilities measured at fair value as of September 30, 2022. The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the period ended September 30, 2023 is set forth below: Fair Value at May 18, 2023 Change in Fair Value Fair Value at September 30, 2023 Series A Warrant $ 2,971 $ 862 $ 3,833 Series B Warrant 2,634 792 3,426 Total warrant liabilities $ 5,605 $ 1,654 $ 7,259 The carrying value of the Company’s cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk. There have been no transfers between levels. |
Income Taxes | Income Taxes Income tax expense/(benefit) from continuing operations for the three and nine months ended September 30, 2023 and 2022 was $ 0 in each period, which resulted primarily from maintaining a full valuation allowance against the Company’s deferred tax assets. Under the Internal Revenue Code (“IRC”) Sections 382 and 383, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating loss and tax credit carryforwards that may be used in future years. The Company has not completed an analysis to determine whether any such limitations have been triggered as of September 30, 2023, however, the Company notes that the Securities Purchase Agreement may have an impact on ownership for purposes of this analysis. Until a study is completed and any limitation known, the Company will not make adjustments to its deferred tax assets. Due to the existence of the valuation allowance, future changes in the Company’s deferred taxes will not impact its effective tax rate or balance sheet. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted The Company reviewed recent pronouncements issued by the FASB and other authoritative standards groups with future effective dates and concluded the pronouncements are either not applicable to the Company or are not expected to have a material impact on the Company’s financial position or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of September 30, 2023: September 30, 2023 Level 1 Level 2 Level 3 Total Assets $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Warrant derivative liabilities $ — $ — $ 7,259 $ 7,259 Total liabilities $ — $ — $ 7,259 $ 7,259 |
Summary of Change in Fair Value of Warrant Liabilities | The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the period ended September 30, 2023 is set forth below: Fair Value at May 18, 2023 Change in Fair Value Fair Value at September 30, 2023 Series A Warrant $ 2,971 $ 862 $ 3,833 Series B Warrant 2,634 792 3,426 Total warrant liabilities $ 5,605 $ 1,654 $ 7,259 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Product and Service Revenue Disaggregated by Geographic Region | The following table summarizes the Company’s product and service revenue disaggregated by geographic region, which is determined based on customer location, for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 5,743 $ 4,367 $ 17,112 $ 12,434 South Korea 9 74 34 2,170 Europe 934 805 4,455 3,380 Asia (excluding South Korea) 1,104 932 2,940 2,483 Other 481 98 674 373 Total 1 $ 8,271 $ 6,276 $ 25,215 $ 20,840 1. The table above does not include lease revenue of $ 1,524 and $ 1,472 for the three months ended September 30, 2023 and 2022, respectively, and $ 4,844 and $ 4,286 for the nine months ended September 30, 2023 and 2022, respectively. Substantially all lease revenue originates from the United States. Refer to Note 5, Leases . |
Summary of Information about Receivables and Contract Liabilities from Contracts with Customers | The following table provides information about receivables and contract liabilities from contracts with customers: Classification As of As of Accounts receivable, current Accounts receivable, net $ 3,848 $ 6,040 Notes receivable, current Notes receivable, net $ 264 $ 200 Notes receivable, long-term Notes and other receivables, long-term, net $ 1,131 $ 442 Contract asset, current Prepaid and other current assets $ 888 $ 332 Deferred revenue, current Deferred revenue $ 1,064 $ 768 Deferred revenue, non-current Other long-term liabilities $ 331 $ 17 Contract liability, long-term Other long-term liabilities $ 223 $ 150 The following table provides information about contract assets from contracts with customers: Amount Contract assets as of December 31, 2022 $ 332 Contract assets recognized 1,052 Payments received ( 350 ) Write-off due to contract modification ( 146 ) Contract assets as of September 30, 2023 $ 888 The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2022 $ 935 Billings not yet recognized as revenue 1,497 Beginning contract liabilities recognized as revenue ( 814 ) Contract liabilities as of September 30, 2023 $ 1,618 Contract liabilities as of December 31, 2021 $ 970 Billings not yet recognized as revenue 674 Beginning contract liabilities recognized as revenue ( 814 ) Contract liabilities as of September 30, 2022 $ 830 |
Summary of Allowance for Accounts Receivable | The following table summarizes the activity in the allowance for accounts receivable: Amount Accounts receivable, allowance for credit losses as of $ 56 Provision for credit losses ( 20 ) Write-offs — Accounts receivable, allowance for credit losses as of $ 36 Accounts receivable, allowance for credit losses as of $ 47 Provision for credit losses 1 Write-offs ( 17 ) Accounts receivable, allowance for credit losses as of $ 31 |
Summary of Allowance for Notes Receivable | The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for credit losses as of $ 13 Provision for credit losses 15 Write-offs — Notes receivable, allowance for credit losses as of $ 28 Notes receivable, allowance for credit losses as of $ 63 Provision for credit losses ( 1 ) Write-offs ( 59 ) Notes receivable, allowance for credit losses as of $ 3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: As of As of Finished Goods $ 7,266 $ 4,002 Work-in-process 2,070 797 Raw Materials 8,145 6,941 Total $ 17,481 $ 11,740 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Revenue | Lease revenue for the three and nine months ended September 30, 2023 and 2022 was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Lease revenue $ 1,524 $ 1,472 $ 4,844 $ 4,286 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The components of intangible assets were as follows: As of September 30, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ ( 2,278 ) $ 2,014 $ 4,292 $ ( 2,028 ) $ 2,264 Acquired technology 1,3,4 13,900 ( 4,616 ) 9,284 13,900 ( 4,042 ) 9,858 Acquired trademarks 1 570 ( 570 ) — 570 ( 570 ) — $ 18,762 $ ( 7,464 ) $ 11,298 $ 18,762 $ ( 6,640 ) $ 12,122 1. Certain intangible assets were established upon PDL BioPharma, Inc.’s acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a period of 15 years. The intangible assets for customer relationships are amortized on a straight-line basis or a double declining basis over their estimated useful lives up to 20 years based on the method that better represents the economic benefits to be obtained. 2. LENSAR acquired certain intangible assets for customer relationships from a domestic distributor in an asset acquisition, which are being amortized on a straight-line basis over a period of 10 years. 3. LENSAR acquired certain intangible assets from a medical technology company in an asset acquisition, which are being amortized on a straight-line basis over a period of 15 years. 4. In 2019, LENSAR acquired certain intellectual property from a third party. Pursuant to the Company's agreement with the third party, the Company made milestone payments of $ 2,400 during the year ended December 31, 2022. The intangible assets will be amortized on a straight-line basis over a period of 15 years. |
Schedule of Impairment of Underlying Assets, Remaining Amortization Expense | Based on the intangible assets recorded at September 30, 2023, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows: Fiscal Year Amount Remainder of 2023 273 2024 1,125 2025 1,234 2026 1,224 2027 1,215 2028 1,008 Thereafter 5,219 Total remaining estimated amortization expense $ 11,298 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of As of Compensation $ 3,618 $ 3,348 Professional services 691 437 Customer advances 69 171 Warranty 212 120 Accrued offering costs 187 — Other 680 624 Total $ 5,457 $ 4,700 |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Estimated Fair Value Assumptions of Warrant Liabilities | The fair value of the warrant liabilities was estimated using the following assumptions as of September 30, 2023 and May 18, 2023: September 30, 2023 May 18, 2023 Risk-free interest rate 4.6 % 3.7 % Expected term (years) 4.6 5.0 Expected volatility 55 % 55 % Dividends 0.0 % 0.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Shares Available for Issuance Under 2020 Plan | A summary of the shares available for issuance under the 2020 Plan is as follows: Number of Shares Balance at December 31, 2022 1,002 Authorized 555 Granted/Awarded ( 1,374 ) Cancelled/Forfeited 90 Balance at September 30, 2023 273 |
Summary of Option Award Activity | Option award activity under the 2020 Plan is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2022 1,202 $ 6.91 8.7 $ — Options granted 831 $ 2.98 Options exercised — $ — Options cancelled/forfeited ( 36 ) $ 5.61 Outstanding at September 30, 2023 1,997 $ 5.30 8.6 $ 154 Vested and expected to vest at September 30, 2023 1,997 $ 5.30 8.6 $ 154 Vested and exercisable at September 30, 2023 840 $ 6.70 8.0 $ — |
Summary of Stock Options Outstanding and Vested | The following table summarizes information about stock options outstanding and vested as of September 30, 2023: Options Outstanding Options Vested Exercise Price Options Outstanding Weighted Average Remaining Contractual Term (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 2.52 - $ 3.10 359 9.3 $ 2.66 — $ — $ 3.23 455 9.7 $ 3.23 88 $ 3.23 $ 3.27 - $ 5.95 32 8.9 $ 5.40 8 $ 5.81 $ 6.04 416 8.3 $ 6.04 174 $ 6.04 $ 6.07 - $ 8.62 735 7.7 $ 7.44 570 $ 7.45 1,997 8.6 $ 5.30 840 $ 6.70 |
Summary of Fair Value of Stock Options was Estimated Using Assumptions | The fair value of stock options was estimated using the following assumptions for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Risk-free interest rate 4.1 - 4.3 % 2.7 - 3.4 % 3.5 - 4.3 % 1.5 - 3.4 % Expected term (years) 6 6 6 6 Expected volatility 57 - 70 % 70 % 57 - 70 % 70 % Dividends 0.0 % 0.0 % 0.0 % 0.0 % |
Summary of Total Stock-Based Compensation Expense Recognized | The following table sets forth the total stock-based compensation expense recognized under the 2020 Plan and the 2020 ESPP in the Company's condensed statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue - product $ 5 $ — $ 5 $ — Cost of revenue – product 64 57 234 163 Cost of revenue – service 38 33 134 95 Selling, general and administrative expenses 943 1,423 3,867 4,197 Research and development expenses 123 159 483 461 Total $ 1,173 $ 1,672 $ 4,723 $ 4,916 |
Summary of Unrecognized Stock-based Compensation Expense Expected to be Amortized | Total unrecognized stock-based compensation expense is expected to be amortized as follows: Fiscal Year Amount Remainder of 2023 $ 793 2024 2,114 2025 1,005 2026 215 2027 6 Thereafter — Total unrecognized stock-based compensation expense $ 4,133 |
Restricted Stock Awards | |
Summary of Restricted Stock Award Activity | Restricted stock award activity under the 2020 Plan is set forth below: Restricted Stock Awards Outstanding Number of Units Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2022 622 $ 10.29 Restricted stock awards granted — $ — Restricted stock awards vested ( 541 ) $ 10.30 Restricted stock awards cancelled ( 6 ) $ 10.81 Non-vested at September 30, 2023 75 $ 10.20 |
Restricted Stock Units | |
Summary of Restricted Stock Award Activity | Restricted stock unit activity under the 2020 Plan is set forth below: Restricted Stock Units Outstanding Number of Units Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2022 86 $ 6.33 Restricted stock units granted 544 $ 2.73 Restricted stock units vested ( 101 ) $ 4.27 Restricted stock units cancelled ( 36 ) $ 2.65 Non-vested at September 30, 2023 493 $ 3.05 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings (Loss) Per Share | The following is a reconciliation of the numerator (earnings (loss)) and the denominator (number of shares) used in the basic and diluted earnings (loss) per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator Net income (loss) $ 2,568 $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Percentage allocated to common stockholders (1) 56 % 100 % 100 % 100 % Numerator for basic earnings (loss) per common share $ 1,433 $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Undistributed income allocated to Series A Warrants and Series B Warrants 110 Change in fair value of warrant liabilities ( 4,343 ) — — — Numerator for diluted loss per common share $ ( 2,800 ) $ ( 3,991 ) $ ( 10,457 ) $ ( 17,424 ) Denominator Weighted average number of shares of common stock, basic 11,102 10,225 10,881 10,089 Series A Warrants and Series B Warrants 854 — — — Weighted average number of shares of common stock, diluted 11,956 10,225 10,881 10,089 Basic earnings (loss) per common share $ 0.13 $ ( 0.39 ) $ ( 0.96 ) $ ( 1.73 ) Diluted loss per common share $ ( 0.23 ) $ ( 0.39 ) $ ( 0.96 ) $ ( 1.73 ) (1) Basic weighted average common stock outstanding 11,102 10,225 10,881 10,089 Basic weighted average common stock and participating securities (Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants) 19,897 10,225 10,881 10,089 Percentage allocated to common stockholders 56 % 100 % 100 % 100 % |
Schedule of Antidilutive Securities Excluded From Calculation of Diluted Loss Per Share | The Company excluded the following amounts of equity securities from its diluted loss per share calculations for the three and nine months ended September 30, 2023 and 2022 because their effect was anti-dilutive: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — 7,940 — Series A Warrants and Series B Warrants — — 4,367 — Restricted stock awards and units 568 821 568 821 Outstanding stock options 1,997 1,207 1,997 1,207 |
Schedule of Anti-Dilutive Weighted Average Shares Excluded From Diluted Loss Per Share Calculation | The anti-dilutive weighted average shares excluded from the diluted loss per share calculations were: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — 4,014 — Series A Warrants — — 322 — Series B Warrants — — 126 — Restricted stock awards and units 639 882 785 982 Outstanding stock options 1,997 1,199 1,750 1,131 Total 10,576 2,081 6,997 2,113 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Overview And Basis Of Presentation [Line Items] | ||
Accumulated deficit | $ (107,965) | $ (97,508) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of assets and liabilities at fair value (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Assets | ||
Total assets | $ 0 | |
Liabilities | ||
Warrant derivative liabilities | $ 7,259,000 | |
Total liabilities | 7,259,000 | $ 0 |
Level 3 | ||
Liabilities | ||
Warrant derivative liabilities | 7,259,000 | |
Total liabilities | $ 7,259,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Assets measured at fair value | $ 0 | $ 0 | ||
Liabilities measured at fair value | $ 7,259,000 | 0 | $ 7,259,000 | 0 |
Income tax expense/(benefit) from continuing operations | $ 0 | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Change in Fair Value of Warrant Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
Class of Warrant or Right [Line Items] | |||
Change in fair value of warrant liabilities | $ (4,343) | $ 1,654 | |
Level 3 | |||
Class of Warrant or Right [Line Items] | |||
Fair value, beginning balance | $ 5,605 | ||
Change in fair value of warrant liabilities | 1,654 | ||
Fair value, ending balance | 7,259 | 7,259 | 7,259 |
Series A Warrants | Level 3 | |||
Class of Warrant or Right [Line Items] | |||
Fair value, beginning balance | 2,971 | ||
Change in fair value of warrant liabilities | 862 | ||
Fair value, ending balance | 3,833 | 3,833 | 3,833 |
Series B Warrants | Level 3 | |||
Class of Warrant or Right [Line Items] | |||
Fair value, beginning balance | 2,634 | ||
Change in fair value of warrant liabilities | 792 | ||
Fair value, ending balance | $ 3,426 | $ 3,426 | $ 3,426 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Summary of Product and Service Revenue Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | $ 8,271 | $ 6,276 | $ 25,215 | $ 20,840 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 5,743 | 4,367 | 17,112 | 12,434 |
South Korea | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 9 | 74 | 34 | 2,170 |
Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 934 | 805 | 4,455 | 3,380 |
Asia (Excluding South Korea) | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | 1,104 | 932 | 2,940 | 2,483 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Product and service revenue | $ 481 | $ 98 | $ 674 | $ 373 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue From Contracts With Customers [Line Items] | ||||
Lease revenue | $ 1,524 | $ 1,472 | $ 4,844 | $ 4,286 |
Accounts receivables payment terms | 30 days | |||
Interest income on notes receivable | 19 | $ 3 | $ 51 | $ 11 |
Revenue remaining performance obligation amount | $ 18,525 | $ 18,525 | ||
Minimum | ||||
Revenue From Contracts With Customers [Line Items] | ||||
Notes receivable interest rate | 6.80% | 6.80% | ||
Maximum | ||||
Revenue From Contracts With Customers [Line Items] | ||||
Notes receivable interest rate | 8.10% | 8.10% |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Summary of Information about Receivables and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, current | $ 3,848 | $ 6,040 |
Notes receivable, current | 264 | 200 |
Notes receivable, long-term | 1,131 | 442 |
Deferred revenue, current | 1,064 | 768 |
Contract liability, current | 1,064 | 768 |
Notes and Other Receivables, Long-Term, Net | ||
Schedule Of Contract Balances [Line Items] | ||
Notes receivable, long-term | 1,131 | 442 |
Prepaid and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract asset, current | 888 | 332 |
Other Long-Term Liabilities | ||
Schedule Of Contract Balances [Line Items] | ||
Deferred revenue, non-current | 331 | 17 |
Contract liability, non-current | $ 223 | $ 150 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Summary of Allowance for Accounts Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 56 | $ 47 |
Provision for credit losses | (20) | (1) |
Write-offs | 0 | (17) |
Ending balance | $ 36 | $ 31 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers - Summary of Allowance for Notes Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 13 | $ 63 |
Provision for credit losses | 15 | (1) |
Write-offs | 0 | (59) |
Ending balance | $ 28 | $ 3 |
Revenue From Contracts With C_8
Revenue From Contracts With Customers - Schedule of Information About Contract Assets from Contracts with Customers (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Beginning Balance | $ 332 |
Contract assets recognized | 1,052 |
Payments received | (350) |
Write-off due to contract modification | (146) |
Ending Balance | $ 888 |
Revenue From Contracts With C_9
Revenue From Contracts With Customers - Schedule of Information About Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 935 | $ 970 |
Billings not yet recognized as revenue | 1,497 | 674 |
Beginning contract liabilities recognized as revenue | (814) | (814) |
Ending balance | $ 1,618 | $ 830 |
Revenue From Contracts With _10
Revenue From Contracts With Customers - Additional Information (Details 1) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 18,525 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 1,953 |
Revenue remaining performance obligation expected timing of satisfaction period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 5,725 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 4,525 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 3,008 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 2,167 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 1,026 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 118 |
Revenue remaining performance obligation expected timing of satisfaction period |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished Goods | $ 7,266 | $ 4,002 |
Work-in-process | 2,070 | 797 |
Raw Materials | 8,145 | 6,941 |
Total | $ 17,481 | $ 11,740 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Minimum | |
Lessee and Lessor Lease Description [Line Items] | |
Lessor, operating leases, remaining lease terms | 1 year |
Maximum | |
Lessee and Lessor Lease Description [Line Items] | |
Lessor, operating leases, remaining lease terms | 6 years |
Leases - Schedule of Lease Reve
Leases - Schedule of Lease Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Lease revenue | $ 1,524 | $ 1,472 | $ 4,844 | $ 4,286 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,762 | $ 18,762 |
Accumulated Amortization | (7,464) | (6,640) |
Net Carrying Amount | 11,298 | 12,122 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,292 | 4,292 |
Accumulated Amortization | (2,278) | (2,028) |
Net Carrying Amount | 2,014 | 2,264 |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,900 | 13,900 |
Accumulated Amortization | (4,616) | (4,042) |
Net Carrying Amount | 9,284 | 9,858 |
Acquired Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 570 | 570 |
Accumulated Amortization | (570) | (570) |
Net Carrying Amount | $ 0 | $ 0 |
Intangible Assets - Component_2
Intangible Assets - Components of Intangible Assets (Parenthetical) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2019 | Dec. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets weighted average amortization period | 15 years | ||
Customer Relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets weighted average amortization period | 10 years | ||
Acquired Technology | |||
Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets weighted average amortization period | 15 years | 15 years | |
Contingent milestone payments | $ 2,400 | ||
Maximum | Customer Relationships | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful life | 20 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 273 | $ 276 | $ 824 | $ 872 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Impairment of Underlying Assets, Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2023 | $ 273 | |
2024 | 1,125 | |
2025 | 1,234 | |
2026 | 1,224 | |
2027 | 1,215 | |
2028 | 1,008 | |
Thereafter | 5,219 | |
Net Carrying Amount | $ 11,298 | $ 12,122 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Compensation | $ 3,618 | $ 3,348 |
Professional services | 691 | 437 |
Customer advances | 69 | 171 |
Warranty | 212 | 120 |
Accrued offering costs | 187 | |
Other | 680 | 624 |
Total | $ 5,457 | $ 4,700 |
Warrant Liabilities - Additiona
Warrant Liabilities - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
May 31, 2023 | Sep. 30, 2023 | |
Class of Warrant or Right [Line Items] | ||
Warrants to purchase aggregate shares of common stock | 4,367 | |
Warrant liability percentage of floor on volatility input | 100% | |
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants, Total | $ 20,000 | |
Proceeds from issuance of warrants | 5,605 | |
Proceeds from issuance of series A redeemable convertible preferred stock | $ 14,395 | |
Series A Warrants | ||
Class of Warrant or Right [Line Items] | ||
Percentage of warrants | 50% | |
Exercise price of warrants | $ 2.45 | |
Series B Warrants | ||
Class of Warrant or Right [Line Items] | ||
Percentage of warrants | 50% | |
Exercise price of warrants | $ 3.0625 |
Warrant Liabilities - Summary o
Warrant Liabilities - Summary of Estimated Fair Value Assumptions of Warrant Liabilities (Details) | 9 Months Ended | |
May 18, 2023 | Sep. 30, 2023 | |
Class of Warrant or Right [Line Items] | ||
Risk-free interest rate | 3.70% | 4.60% |
Expected term (years) | 5 years | 4 years 7 months 6 days |
Expected volatility | 55% | 55% |
Dividends | 0% | 0% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||
Reduction of selling, general and administrative expenses | $ 1,368 | |
Additional royalty payments rate | 3% | |
Supply Agreement | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Purchase obligation | $ 7,586 | $ 7,586 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) | 9 Months Ended | |
May 31, 2023 | Sep. 30, 2023 | |
Convertible Preferred Stock [line Items] | ||
Offering costs | $ 901,000 | |
General and administrative expenses | ||
Convertible Preferred Stock [line Items] | ||
Offering costs | 253,000 | |
Securities Purchase Agreement | Minimum | ||
Convertible Preferred Stock [line Items] | ||
Sale of ownership percentage | 50% | |
Series A Redeemable Convertible Preferred Stock | ||
Convertible Preferred Stock [line Items] | ||
Offering costs | $ 648,000 | |
Series A Redeemable Convertible Preferred Stock | Securities Purchase Agreement | ||
Convertible Preferred Stock [line Items] | ||
Aggregate purchase price of shares | $ 20,000 | |
Aggregate shares | 20 | |
Number of shares convertible into common stock | 7,940 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
May 31, 2023 | Apr. 08, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||||
Common stock voting rights | The Company has a single class of common stock in which stockholders are entitled to one vote for each share of common stock | ||||||
Cash dividend declared on common stock | $ 0 | $ 0 | $ 0 | $ 0 | |||
Maximum value of common and preferred stock and other securities issuable | $ 100,000,000 | ||||||
Securities Purchase Agreement | Series A Redeemable Convertible Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Aggregate purchase price of shares | $ 20,000 | ||||||
Aggregate shares | 20 | ||||||
Number of shares convertible into common stock | 7,940 | ||||||
Minimum | Securities Purchase Agreement | |||||||
Class of Stock [Line Items] | |||||||
Sale of ownership percentage | 50% | ||||||
ATM offerings | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock, Shares | 0 | 2 | 0 | ||||
Weighted average gross sales price | $ 6.46 | $ 6.46 | |||||
ATM offerings | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Aggregate amount offered, issuance and sale by the Company | $ 35,000,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value of options granted | $ 1.98 | $ 1.94 | ||||||
Total fair value of options vested | $ 655 | $ 2,445 | ||||||
Total unrecognized compensation expense | $ 2,927 | $ 2,927 | ||||||
Total unrecognized compensation expense, weighted-average period of recognition | 2 years 2 months 12 days | |||||||
Dividends | 0% | 0% | 0% | 0% | ||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||
2020 Employee Stock Purchase Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved | 216 | 216 | ||||||
Percentage of outstanding shares of common stock | 1% | |||||||
Exercise price of option on fair value (as a percent) | 85% | |||||||
Common stock, shares authorized | 451,000 | 451,000 | 340,000 | |||||
Shares of common stock have been issued to employees | 235 | |||||||
Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Award vesting percentage | 10% | |||||||
Restricted Stock Awards | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Total unrecognized compensation expense, weighted-average period of recognition | 1 month 15 days | |||||||
Total fair value of restricted stock awards vested | $ 1,768 | $ 5,574 | ||||||
Total unrecognized compensation expense | 89 | 89 | ||||||
Restricted Stock Awards | Forecast | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted stock awards are expected to vest | 75,000 | |||||||
Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Fair value of restricted stock units vested | $ 160 | $ 431 | ||||||
Minimum | Incentive Stock Options And Nonqualified Stock Options | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Minimum | Incentive Stock Options And Nonqualified Stock Options | Share-based Payment Arrangement, Tranche One | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exercise price of option on fair value (as a percent) | 100% | |||||||
Minimum | Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exercise price of option on fair value (as a percent) | 110% | |||||||
Minimum | Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Maximum | Incentive Stock Options And Nonqualified Stock Options | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Term of contract | 10 years | |||||||
Vesting period | 4 years | |||||||
Maximum | Incentive Stock Options And Nonqualified Stock Options | Share-based Payment Arrangement, Tranche One | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Term of contract | 10 years | |||||||
Maximum | Incentive Stock Options | Share-based Payment Arrangement, Tranche Two | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Term of contract | 5 years | |||||||
Maximum | Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
2020 Incentive Award Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved | 3,333,000 | 4,984,000 | 4,984,000 | |||||
Percentage of outstanding shares of common stock | 5% | |||||||
2020 Incentive Award Plan | Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Total unrecognized compensation expense | $ 1,117 | $ 1,117 | ||||||
Total unrecognized compensation expense, weighted-average period of recognition | 1 year 6 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Shares Available for Issuance Under 2020 Plan (Details) - 2020 Incentive Award Plan | 9 Months Ended |
Sep. 30, 2023 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Balance | 1,002 |
Authorized | 555 |
Granted/Awarded | (1,374) |
Cancelled/Forfeited | 90 |
Balance | 273 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Option Award Activity (Details) - 2020 Incentive Award Plan - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at December 31, 2022 | 1,202,000 | |
Options granted | 831,000 | |
Options cancelled/forfeited | (36,000) | |
Outstanding at September 30, 2023 | 1,997,000 | 1,202,000 |
Vested and expected to vest at September 30, 2023 | 1,997,000 | |
Vested and exercisable at September 30, 2023 | 840,000 | |
Outstanding at beginning of period, Weighted Average Exercise Price | $ 6.91 | |
Options granted, Weighted Average Exercise Price | 2.98 | |
Options cancelled/forfeited, Weighted Average Exercise Price | 5.61 | |
Outstanding at end of period, Weighted Average Exercise Price | 5.3 | $ 6.91 |
Vested and expected to vest at September 30, 2023, Weighted Average Exercise Price | 5.3 | |
Vested and exercisable at September 30, 2023, Weighted Average Exercise Price | $ 6.7 | |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 8 years 7 months 6 days | 8 years 8 months 12 days |
Vested and expected to vest at September 30, 2023, Weighted Average Remaining Contractual Term (in Years) | 8 years 7 months 6 days | |
Vested and exercisable at September 30, 2023, Weighted Average Remaining Contractual Term (in Years) | 8 years | |
Outstanding at September 30, 2023, Aggregate Intrinsic Value | $ 154 | |
Vested and expected to vest at September 30, 2023, Aggregate Intrinsic Value | $ 154 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Options Outstanding And Vested (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 1,997,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 8 years 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 5.3 |
Options vested, Number Exercisable | shares | shares | 840,000 |
Options vested, Weighted average exercise price | $ 6.7 |
Exercise Price $2.52 - $3.10 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 359,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 9 years 3 months 18 days |
Options outstanding, Weighted average exercise price | $ 2.66 |
Exercise Price $2.52 - $3.10 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | 2.52 |
Exercise price range (upper) | $ 3.1 |
Exercise Price $3.23 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 455,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 9 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ 3.23 |
Options vested, Number Exercisable | shares | shares | 88,000 |
Options vested, Weighted average exercise price | $ 3.23 |
Exercise Price $3.23 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | $ 3.23 |
Exercise Price $3.27 - $5.95 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 32,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 8 years 10 months 24 days |
Options outstanding, Weighted average exercise price | $ 5.4 |
Options vested, Number Exercisable | shares | shares | 8,000 |
Options vested, Weighted average exercise price | $ 5.81 |
Exercise Price $3.27 - $5.95 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | 3.27 |
Exercise price range (upper) | $ 5.95 |
Exercise Price $6.04 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 416,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 8 years 3 months 18 days |
Options outstanding, Weighted average exercise price | $ 6.04 |
Options vested, Number Exercisable | shares | shares | 174,000 |
Options vested, Weighted average exercise price | $ 6.04 |
Exercise Price $6.04 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | $ 6.04 |
Exercise Price $6.07 - $8.62 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 735,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 7 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ 7.44 |
Options vested, Number Exercisable | shares | shares | 570,000 |
Options vested, Weighted average exercise price | $ 7.45 |
Exercise Price $6.07 - $8.62 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | 6.07 |
Exercise price range (upper) | $ 8.62 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Fair Value of Employee and Non-Employee Stock Options was Estimated Using Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Risk-free interest rate, minimum | 4.10% | 2.70% | 3.50% | 1.50% |
Risk-free interest rate, maximum | 4.30% | 3.40% | 4.30% | 3.40% |
Expected term (years) | 6 years | 6 years | 6 years | 6 years |
Expected volatility | 70% | 70% | ||
Expected volatility, minimum | 57% | 57% | ||
Expected volatility, maximum | 70% | 70% | ||
Dividends | 0% | 0% | 0% | 0% |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock Awards - 2020 Incentive Award Plan shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested at December 31, 2022 | shares | 622 |
Restricted stock awards vested | shares | (541) |
Restricted stock awards cancelled | shares | (6) |
Non-vested at September 30, 2023 | shares | 75 |
Non-vested at December 31, 2022 | $ / shares | $ 10.29 |
Restricted stock awards vested | $ / shares | 10.3 |
Restricted stock awards cancelled | $ / shares | 10.81 |
Non-vested at September 30, 2023 | $ / shares | $ 10.2 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units - 2020 Incentive Award Plan shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested at December 31, 2022 | shares | 86 |
Restricted stock awards granted | shares | 544 |
Restricted stock awards vested | shares | (101) |
Restricted stock units cancelled | shares | (36) |
Non-vested at September 30, 2023 | shares | 493 |
Non-vested at December 31, 2022 | $ / shares | $ 6.33 |
Restricted stock awards granted | $ / shares | 2.73 |
Restricted stock awards vested | $ / shares | 4.27 |
Restricted stock awards cancelled | $ / shares | 2.65 |
Non-vested at September 30, 2023 | $ / shares | $ 3.05 |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,173 | $ 1,672 | $ 4,723 | $ 4,916 |
Sales | Product | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5 | 5 | ||
Cost of Sales | Product | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 64 | 57 | 234 | 163 |
Cost of Sales | Service | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 38 | 33 | 134 | 95 |
Selling, General and Administrative Expenses | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 943 | 1,423 | 3,867 | 4,197 |
Research and Development Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 123 | $ 159 | $ 483 | $ 461 |
Stock-Based Compensation - Su_8
Stock-Based Compensation - Summary of Unrecognized Stock-based Compensation Expense Expected to be Amortized (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
Remainder of 2023 | $ 793 |
2024 | 2,114 |
2025 | 1,005 |
2026 | 215 |
2027 | 6 |
Total unrecognized stock-based compensation expense | $ 4,133 |
Earnings (Loss) per Share - Rec
Earnings (Loss) per Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||||||
Net income (loss) | $ 2,568 | $ (8,753) | $ (4,272) | $ (3,991) | $ (6,759) | $ (6,674) | $ (10,457) | $ (17,424) |
Percentage allocated to common stockholders | 56% | 100% | 100% | 100% | ||||
Numerator for basic earnings (loss) per common share | $ 1,433 | $ (3,991) | $ (10,457) | $ (17,424) | ||||
Change in fair value of warrant liabilities | (4,343) | 1,654 | ||||||
Numerator for diluted loss per common share | $ (2,800) | $ (3,991) | $ (10,457) | $ (17,424) | ||||
Denominator | ||||||||
Weighted average number of shares of common stock basic | 11,102 | 10,225 | 10,881 | 10,089 | ||||
Weighted average number of shares of common stock, diluted | 11,956 | 10,225 | 10,881 | 10,089 | ||||
Basic earnings (loss) per common share | $ 0.13 | $ (0.39) | $ (0.96) | $ (1.73) | ||||
Diluted loss per common share | $ (0.23) | $ (0.39) | $ (0.96) | $ (1.73) | ||||
Series A Warrants and Series B Warrants [Member] | ||||||||
Numerator | ||||||||
Undistributed income allocated to warrants | $ 110 | |||||||
Denominator | ||||||||
Incremental common shares attributable to warrants | 854 |
Earnings (Loss) per Share - R_2
Earnings (Loss) per Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings (Loss) Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average common stock outstanding | 11,102 | 10,225 | 10,881 | 10,089 |
Percentage allocated to common stockholders | 56% | 100% | 100% | 100% |
Series A Redeemable Convertible Preferred Stock And Series A And Series B Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average common stock and participating securities | 19,897 | 10,225 | 10,881 | 10,089 |
Earnings (Loss) per Share - Sch
Earnings (Loss) per Share - Schedule of Antidilutive Securities Excluded From Calculation of Diluted Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Series A Redeemable Convertible Preferred Stock | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 7,940 | 7,940 | ||
Series A Warrants and Series B Warrants | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 4,367 | |||
Restricted Stock Awards and Units | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 568 | 821 | 568 | 821 |
Outstanding Stock Options | ||||
Earnings Per Share Basic [Line Items] | ||||
Shares excluded from the calculation of net loss per diluted share | 1,997 | 1,207 | 1,997 | 1,207 |
Earnings (Loss) per Share - S_2
Earnings (Loss) per Share - Schedule of Anti-Dilutive Weighted Average Shares Excluded From Diluted Loss Per Share Calculation (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 10,576 | 2,081 | 6,997 | 2,113 |
Series A Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 7,940 | 7,940 | ||
Series A Redeemable Convertible Preferred Stock | Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 7,940 | 4,014 | ||
Series A Warrants | Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 322 | |||
Series B Warrants | Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 126 | |||
Restricted Stock Awards and Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 568 | 821 | 568 | 821 |
Restricted Stock Awards and Units | Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 639 | 882 | 785 | 982 |
Outstanding Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 1,997 | 1,207 | 1,997 | 1,207 |
Outstanding Stock Options | Weighted Average | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average shares excluded from the calculation of net loss per diluted share | 1,997 | 1,199 | 1,750 | 1,131 |