Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
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 | 11,395,056 | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Public Float | $ 34.4 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Tampa, Florida | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2024 annual meeting of stockholders, which the registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended December 31, 2023 , are incorporated by reference into Part III of this Annual Report on Form 10-K. |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Product and service revenue | $ 35,716 | $ 29,443 |
Lease | 6,448 | 5,915 |
Total revenue | 42,164 | 35,358 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 21,057 | 15,403 |
Operating expenses | ||
Selling, general and administrative expenses | 26,100 | 27,170 |
Research and development expenses | 6,139 | 11,814 |
Amortization of intangible assets | 1,097 | 1,148 |
Operating loss | (12,229) | (20,177) |
Other (expense) income | ||
Change in fair value of warrant liabilities | (2,852) | |
Other income, net | 698 | 263 |
Net loss | (14,383) | (19,914) |
Other comprehensive gain | ||
Change in unrealized gain on investments | 4 | |
Net loss and comprehensive loss | $ (14,379) | $ (19,914) |
Net loss per common share: | ||
Basic | $ (1.31) | $ (1.96) |
Diluted | $ (1.31) | $ (1.96) |
Weighted-average number of shares used in calculation of net loss per common share: | ||
Basic | 10,971 | 10,159 |
Diluted | 10,971 | 10,159 |
Product | ||
Revenue | ||
Product and service revenue | $ 31,643 | $ 25,959 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 13,902 | 8,910 |
Service | ||
Revenue | ||
Product and service revenue | 4,073 | 3,484 |
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | 5,064 | 4,552 |
Lease | ||
Cost of revenue (exclusive of amortization) | ||
Total cost of revenue | $ 2,091 | $ 1,941 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 20,621 | $ 14,674 |
Short-term investments | 3,443 | |
Accounts receivable, net of allowance of $62 and $56, respectively | 4,001 | 6,040 |
Notes receivable, net of allowance of $7 and $4, respectively | 323 | 200 |
Inventories | 15,689 | 11,740 |
Prepaid and other current assets | 2,367 | 1,062 |
Total current assets | 46,444 | 33,716 |
Property and equipment, net | 679 | 563 |
Equipment under lease, net | 7,459 | 6,316 |
Long-term investments | 492 | |
Notes and other receivables, long-term, net of allowance of $26 and $9, respectively | 1,279 | 442 |
Intangible assets, net | 11,025 | 12,122 |
Other assets | 2,207 | 2,685 |
Total assets | 69,585 | 55,844 |
Current liabilities: | ||
Accounts payable | 4,007 | 5,422 |
Accrued liabilities | 5,717 | 4,700 |
Deferred revenue | 1,349 | 768 |
Operating lease liabilities | 559 | 531 |
Total current liabilities | 11,632 | 11,421 |
Long-term operating lease liabilities | 1,750 | 2,272 |
Warrant liabilities | 8,457 | |
Other long-term liabilities | 570 | 167 |
Total liabilities | 22,409 | 13,860 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Series A Redeemable Convertible Preferred Stock, par value $0.01 per share, 20 and no shares authorized at December 31, 2023 and 2022, respectively; 20 and no shares issued and outstanding at December 31, 2023 and 2022, respectively; aggregate liquidation preference of $20,000 and $0 at December 31, 2023 and 2022, respectively | 13,747 | |
Preferred stock, par value $0.01 per share, 9,980 and 10,000 shares authorized at December 31, 2023 and 2022; no shares issued and outstanding at December 31, 2023 and 2022 | ||
Common stock, par value $0.01 per share, 150,000 shares authorized at December 31, 2023 and 2022; 11,327 and 11,093 shares issued and outstanding at December 31, 2023 and 2022, respectively | 113 | 111 |
Additional paid-in capital | 145,203 | 139,381 |
Accumulated other comprehensive income | 4 | |
Accumulated deficit | (111,891) | (97,508) |
Total stockholders’ equity | 33,429 | 41,984 |
Total liabilities, redeemable convertible preferred stock, and stockholders' equity | $ 69,585 | $ 55,844 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 62 | $ 56 |
Notes receivable, allowance | 7 | 4 |
Notes and other receivables, long-term, allowance | $ 26 | $ 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 | 11,327,000 | 11,093,000 |
Common stock, shares outstanding | 11,327,000 | 11,093,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (14,383) | $ (19,914) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,418 | 2,258 |
Amortization of intangible assets | 1,097 | 1,148 |
Non-cash operating lease cost | 534 | 521 |
Provision for expected credit losses | 1 | 36 |
Write-down of inventory | 66 | 50 |
Loss on disposal of property and equipment | 7 | 11 |
Stock-based compensation expense | 5,539 | 6,611 |
Change in fair value of warrant liabilities | 2,852 | |
Amortization on investments, net | (12) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,057 | (1,440) |
Notes receivable | (980) | (180) |
Prepaid and other current assets | (1,305) | 637 |
Inventories | (7,461) | (6,889) |
Accounts payable | (1,417) | 2,729 |
Accrued liabilities | 892 | 96 |
Deferred revenue | 915 | (174) |
Operating lease liabilities | (539) | (512) |
Other | 60 | 156 |
Net cash used in operating activities | (9,659) | (14,856) |
Cash flows from investing activities | ||
Purchase of property and equipment | (236) | (115) |
Purchase of investments | (3,920) | |
Net cash used in investing activities | (4,156) | (115) |
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 | 327 | 408 |
Net settlement of stock-based compensation awards | (52) | |
Payment of contingent consideration | (2,400) | |
Net cash provided by (used in) financing activities | 19,762 | (1,992) |
Net increase (decrease) in cash and cash equivalents | 5,947 | (16,963) |
Cash and cash equivalents at beginning of the year | 14,674 | 31,637 |
Cash and cash equivalents at end the year | 20,621 | 14,674 |
Supplemental cash flow information | ||
Cash paid for taxes | 18 | 3 |
Supplemental schedule of non-cash investing and financing activities | ||
Transfer from Inventories to Equipment under lease, net | 3,938 | 1,553 |
Transfer from (to) Inventories to (from) Property and equipment, net | (491) | $ 34 |
Accrued offering costs | $ (135) |
STATEMENT OF CHANGES IN REDEEMA
STATEMENT OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Series A Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning Balance at Dec. 31, 2021 | $ 54,879 | $ 110 | $ 132,363 | $ (77,594) | ||
Beginning Balance, Shares at Dec. 31, 2021 | 10,990,000 | |||||
Issuance of common stock under the 2020 ESPP | 408 | $ 1 | 407 | |||
Issuance of common stock under the 2020 ESPP, Shares | 107,000 | |||||
Issuance of common stock under the ATM offering, net of offering costs, shares | 2,000 | |||||
Stock-based compensation under the 2020 Plan | 6,611 | 6,611 | ||||
Restricted stock awards cancelled | (6,000) | |||||
Net Income (Loss) | $ (19,914) | (19,914) | ||||
Ending Balance, Shares at Dec. 31, 2022 | 0 | |||||
Ending Balance at Dec. 31, 2022 | $ 41,984 | $ 111 | 139,381 | (97,508) | ||
Ending Balance, Shares at Dec. 31, 2022 | 11,093,000 | |||||
Issuance of Series A Convertible Preferred Stock, net of offering costs, Shares | 20,000 | |||||
Issuance of Series A Redeemable Convertible Preferred Stock, net of offering costs | $ 13,747 | |||||
Issuance of common stock under the 2020 ESPP | 327 | $ 1 | 326 | |||
Issuance of common stock under the 2020 ESPP, Shares | 140,000 | |||||
Stock-based compensation under the 2020 Plan | 5,539 | 5,539 | ||||
Issuance of common stock under the 2020 Plan, net of forfeitures | (42) | $ 1 | (43) | |||
Issuance of common stock under the 2020 Plan, net of forfeitures, Shares | 100,000 | |||||
Restricted stock awards cancelled | (6,000) | |||||
Net Income (Loss) | (14,383) | (14,383) | ||||
Change in unrealized gain on investments | $ 4 | $ 4 | ||||
Ending Balance, Shares at Dec. 31, 2023 | 20,000 | 20,000 | ||||
Ending Balance at Dec. 31, 2023 | $ 33,429 | $ 13,747 | $ 113 | $ 145,203 | $ (111,891) | $ 4 |
Ending Balance, Shares at Dec. 31, 2023 | 11,327,000 |
STATEMENT OF CHANGES IN REDEE_2
STATEMENT OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Offering costs | $ 901 |
Series A Redeemable Convertible Preferred Stock | |
Offering costs | $ 649 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (14,383) | $ (19,914) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arr Modified Flag | false |
Non-Rule 10b5-1 Arr Modified Flag | false |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis 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. 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 available to U.S. cataract surgeons and has also received regulatory clearance in India and the Philippines. 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 China for additional marketing or certification applications. The Company has incurred recurring losses and operating cash outflows since its inception and as of December 31, 2023 had an accumulated deficit of $ 111,891 . The Company expects to continue to incur losses and cash outflows from operating activities for the near-term future. 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 increase in ALLY System placements. In addition, the Company's growth 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 financial statements 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”). Certain balances in the prior year financial statements have been reclassified for comparison purposes to conform to the presentation in the current period financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the 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 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. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on an entity-wide basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As of December 31, 2023 and 2022 , 95 % and 92 % of long-lived assets were in the United States, respectively. Revenue is attributed to a geographic region based on the location of the customer. Cash and Cash Equivalents The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market funds and U.S. Treasury bills that are stated at fair value, based on quoted market prices. Investments Investments consist of money market funds, U.S. treasury bills and certificates of deposit. The Company’s investments are classified as available-for-sale and carried at estimated fair values and reported in cash equivalents, short-term investments, and long-term investments. Management determines the appropriate classification of the investments at the time they are purchased and evaluates the appropriateness of such classifications at each balance sheet date. Investments with contractual maturities greater than 12 months are considered long-term investments. Changes in unrealized gains or losses of investments are recorded in other comprehensive income on the statements of operations. The Company regularly reviews its investments for declines in estimated fair value below amortized cost. The factors considered in determining whether a credit loss exists include the creditworthiness of the security issuers, the number of investments in an unrealized loss position, the severity and duration of the unrealized losses, and whether it is more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. The cost of investments sold is based on the specific identification method. In circumstances when an unrealized loss is determined to be credit-related, or when the Company intends to sell or is more likely than not required to sell a security before it recovers its amortized cost basis, the difference between the fair value and the amortized cost of the security is recognized within other income, net in the statements of operations, and an allowance for credit loss is recorded on the balance sheets. In circumstances when the decline in fair value is non-credit related, the difference is reported in accumulated other comprehensive loss, net of tax as a separate component of stockholders’ equity. Concentration of Credit Risk, Credit Losses, and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents, and investments. The primary objectives for the Company’s investment portfolio are the preservation of capital and the maintenance of liquidity. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents and investments and issuers of investments. The Company manages its credit risk by holding its cash, cash equivalents and investments in large financial institutions within the U.S. In addition, the Company’s investment policy limits investments to certain types of instruments such as money market funds, debt securities issued by the U.S. government and its agencies, corporate debt securities, commercial paper as well as asset-backed securities, and places restrictions on the credit ratings, maturities and concentration by type and issuer. Furthermore, the Company limits the amount of credit exposure in any one financial instrument. The Company has not experienced any losses on its deposits of cash, cash equivalents and investments. Accounts Receivable The Company had $ 95 and $ 69 for allowance for credit losses as of December 31, 2023 and 2022 , respectively. The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends, changes in customer payment patterns, and possible impact of current conditions and reasonable forecasts not already reflected in historical loss information when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely, and the Company ceases collection efforts. 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 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. Inventory Inventory, which consists of raw materials, work-in-process and finished goods, is stated at the lower of cost or net realizable value. The Company determines cost using standard costs which approximates actual costs determined on the first-in, first-out basis. Inventory levels are analyzed periodically and written down to their net realizable value if they have become obsolete, have a cost basis in excess of expected net realizable value or are in excess of expected requirements. The Company analyzes current and future product demand relative to the remaining product shelf life to identify potential excess inventory. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classifies inventory as current on the balance sheets when the Company expects inventory to be consumed for commercial use within the next twelve months. Intangible Assets Intangible assets with finite useful lives consist primarily of acquired product rights, acquired technology, and customer relationships. Acquired product rights and acquired technology are amortized on a straight-line basis over their estimated useful lives of 15 to 20 years . 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. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The Company did no t record any impairment of its intangible assets for the years ended December 31, 2023 and 2022 . Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Research and development equipment 3 - 8 years Manufacturing equipment 3 - 5 years Computer and office equipment 3 years Transportation equipment 3 - 5 years Furniture and fixtures 7 years Software 3 years Equipment Under Lease Equipment under lease is related to systems which are leased to customers instead of sold. Equipment under operating lease is stated at cost less accumulated depreciation and is classified as Equipment under lease, net on the balance sheets. Depreciation is computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years . Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Policy Elections and Practical Expedients Taken The Company applies the following policy elections: Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue. Shipping and handling costs for the years ended December 31, 2023 and 2022 were $ 198 and $ 157 , respectively. General Revenue is recognized from the sale of products and services when the Company transfers control of such promised products and services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied. The Company principally derives its revenue from the sale and lease of systems and the sale of other related products and services, including PIDs, procedure licenses, and extended warranty service agreements. Most customers are on pre-paid or 30 -day payment terms, depending on the product purchased. Typically, returns are not allowed. Judgment is required to determine the level of interdependency between the system and the sale of other related products and services. For bundled packages, which include the sale or lease of a system and provision of other products and services, the Company accounts for individual products and services separately if they are distinct—i.e., if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The system, training and installation services are one performance obligation. The other products and services, including PIDs, procedure licenses, and extended warranty services, which are either sold together with the system or on a standalone basis, are all accounted for as separate performance obligations. The transaction price of bundled packages is allocated to each performance obligation on a relative standalone selling price basis. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, the Company estimates the selling price using available observable information. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below. Product Revenue . The Company recognizes revenue for the sale of the following products at a point in time: Equipment . The Company’s LENSAR Laser System and ALLY System sales are recognized as Product revenue when the Company transfers control of the system. This usually occurs after the customer signs a contract, the Company installs the system, and the Company performs the requisite training for use of the system for direct customers. System sales to distributors are recognized as revenue upon shipment as they do not require training and installation. PID and Procedure Licenses . The systems require both a PID and a procedure license to perform each procedure. The Company recognizes Product revenue for PIDs when the Company transfers control of the PID. The Company recognizes Product revenue for procedure licenses at the point in time when control of the procedure license is transferred to the customer. A procedure license represents a one-time right to utilize the system surgical application in connection with a surgery procedure. For the sale of PIDs and procedure licenses, the Company may offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transfers to the customer, the Company estimates the average per unit price, net of discounts. Service Revenue . The Company offers an extended warranty that provides additional maintenance services beyond the standard limited warranty. The Company recognizes Service revenue from the sale of extended warranties over the warranty period on a ratable basis as the Company stands ready to provide services as needed. Customers have the option of renewing the warranty period, which is considered a new and separate contract. Lease Revenue . For system operating leases, the Company recognizes lease revenue over the length of the lease in accordance with ASC Topic 842, Leases , (“ASC 842”). For additional information regarding accounting for leases, see the Leases section within this footnote below and Note 6, Leases . Contract Costs The Company offers a variety of commission plans to the Company’s salesforce. Certain compensation under these plans is earned by sales representatives solely as a result of obtaining a customer contract. These are considered incremental costs of obtaining a contract and are eligible for capitalization under ASC Topic 340-40, Other Assets and Deferred Costs – Contracts with Customers , to the extent they are recoverable. Incremental costs of obtaining a contract are deferred over the period the related revenue is recognized and the Company has elected not to defer costs related to goods or services to be delivered over a period that is one year or less. Significant Financing Component The Company provides extended payment terms to certain customers that represent a significant financing component. The Company adjusts the amount of promised consideration for the time value of money using its discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. Limited Warranty Obligations The Company offers limited warranties on the Company’s products which provide the customer assurance that the product will function as the parties intended because it complies with agreed-upon specifications; therefore, these assurance-type warranties are not treated as a separate revenue performance obligation and are accounted for as guarantees under U.S. GAAP. The Company regularly reviews its warranty liability and updates these balances based on historical warranty cost trends. Concentrations of Customers For the year ended December 31, 2023, one customer accounted for 10 % of the Company’s revenue and no customers accounted for 10 % or more of the Company’s accounts receivable, net as of December 31, 2023. For the year ended December 31, 2022, one customer accounted for 10 % of the Company’s revenue and no customers accounted for 10% or more of the Company’s accounts receivable, net as of December 31, 2022. Related Parties The Company follows ASC 850, Related Party Disclosures , for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which the Company may deal if one party to a transaction controls, or can significantly influence, the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Transactions involving related parties cannot be presumed to be conducted on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. In May 2023, the Company completed the Private Placement with NR-GRI Partners, LP (“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 10, Warrant Liabilities , and Note 12, Redeemable Convertible Preferred Stock , for more details related to the Private Placement. The Company entered into an international distribution agreement with a company owned by a current employee in India. The Company established the distributor relationship to gain regulatory and operational efficiencies, as well as to establish consistent operations with all other international markets where it conducts business. During the year ended December 31, 2023, the Company began transitioning transactions with customers in India to the distributor. As of the initiation of this transition and through the year ended December 31, 2023, the Company recognized $ 202 in product revenue, $ 103 in cost of product sales, and $ 184 in selling, general and administrative expenses associated with its Indian operations. There were no amounts due from, or due to, the distributor at December 31, 2023. Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that are in development. Research and development expenses include employee compensation, including stock-based compensation, supplies, consulting, prototypes, testing, materials, travel expenses, and depreciation. Research and development expenses for the year ended December 31, 2022 included $ 3.4 million of ALLY System inventory costs. Following the Company's receipt of 510(k) clearance for the ALLY System from the FDA in June 2022, all ALLY System inventory costs were capitalized to inventory. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs includes design and production costs, including website development, written media campaigns, and other items. Advertising costs of $ 617 and $ 465 were expensed during the years ended December 31, 2023 and 2022 , respectively. Income Taxes The Company is subject to U.S. federal, state, and local corporate income taxes at the entity level. The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws in the year in which such laws are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision. Under Sections 382 and 383 of the Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of tax deductions related to its assets and attributes that may be used in future years. During the second quarter of 2023, the Company experienced a change in control event resulting from the Securities Purchase Agreement (the “SPA”), triggering the application of Section 382. The Company computed and applied limitations of tax deductions in the income tax provision computation for the year ended December 31, 2023, however, these limitations do not have a material impact on the financial statements. 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. Leases The Company accounts for leasing arrangements in accordance with ASC Topic 842. The Company determines if an arrangement is a lease or contains an embedded lease at inception if it contains the right to control the use of an identified asset under a leasing arrangement with an initial term greater than 12 months. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Policy Elections and Practical Expedients Taken The Company has lease arrangements with lease and non-lease components, which are accounted for separately. For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For short term leases, defined as leases with a lease term of 12 months or less, the Company elected to not recognize an associated lease liability and right of use (“ROU”) asset. Lease payments for short term leases are expensed on a straight-line basis over the lease term. The Company has a policy to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee. Lessee Arrangements Lessee operating right of use assets are included in Other assets in the Company’s balance sheet. Lessee operating lease liabilities are included in Operating lease liabilities and Long-term operating lease liabilities in the Company’s balance sheet. The Company does not have lessee financing leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date, including the lease term and the Company’s credit risk, in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis as operating expense in the statements of operations over the lease term. For lease arrangements with lease and non-lease components where the Company is the lessee, the Company separately accounts for lease and non-lease components, which consists primarily of common area maintenance services. Non-lease components are expensed as incurred. Lessor Arrangements The Company leases equipment to customers under operating leases. Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Lease elements generally include a system, while non-lease elements generally include extended warranty services, PIDs and procedure licenses. The stand-alone selling prices for the extended warranty services, PIDs and procedure licenses are determined based on the prices at which the Company separately sells such products and services. The system stand-alone selling prices are determined using the expected cost plus a margin approach. Allocation of the transaction price is determined at the inception of the lease arrangement. The Company’s leases primarily consist of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and consumables used with the leased equipment. Non-lease components are accounted for under ASC 606 . For additional information regarding ASC 606, see Note 3, Revenue from Contracts with Customers. Some leases include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term. A new contract is generated if a customer intends to continue using the equipment under the initial term and the new contract term is not included in the initial lease term. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following criteria at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term, (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system, (3) whether the lease term is for the major part of the remaining economic life of the leased system, (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise, and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. If any of these criteria are met, the lease is classified as a sales-type lease. If none of these criteria are met the lease is classified as an operating lease. For the years ended December 31, 2023 and 2022, the Company does not have any sales-type leases. For operating leases, rental income is recognized on a straight-line basis over the lease term as lease revenue. The cost of customer-leased equipment is recorded within equipment under lease, net in the balance sheets and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in cost of lease in the statements of operations. Some of the Company’s operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement, subject to a new contract. The purchase price does not qualify as a bargain purchase option. The Company manages its risk on its investment in the equipment through pricing and the term of the leases. Lessees do not provide residual value guarantees on leased equipment. Equipment returned to the Company may be leased or sold to other customers. Initial direct costs, recorded in prepaid and other current assets, are deferred and recognized over the lease term. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation , (“ASC 718”). Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. Stock-based compensation expense is recognized using a straight-line attribution method over the requisit |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 United States $ 25,262 $ 18,776 South Korea 257 2,180 Europe 5,585 4,409 Asia (excluding South Korea) 3,836 3,576 Other 776 502 Total 1 $ 35,716 $ 29,443 1 The table above does not include lease revenue of $ 6,448 and $ 5,915 for the years ended December 31, 2023 and 2022, respectively. Refer to Note 6, Leases . Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers: As of December 31, Classification 2023 2022 Accounts receivable, current Accounts receivable, net $ 4,001 $ 6,040 Notes receivable, current Notes receivable, net $ 323 $ 200 Notes receivable, long-term Notes and other receivables, long-term, net $ 1,279 $ 442 Contract asset, current Prepaid and other current assets $ 982 $ 332 Deferred revenue, current Deferred revenue $ 1,349 $ 768 Deferred revenue, non-current Other long-term liabilities $ 350 $ 17 Contract liability, long-term Other long-term liabilities $ 220 $ 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 $ 47 Change in provision for credit losses 26 Write-offs ( 17 ) Accounts receivable, allowance for credit losses as of 56 Change in provision for credit losses 6 Write-offs — Accounts receivable, allowance for credit losses as of $ 62 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 5.8 % to 7.8 %. The Company recorded interest income on notes receivable during the years ended December 31, 2023 and 2022 of $ 85 and $ 17 in other income, net in the statements of operations. The following table summarizes the activity in the allowance for notes receivable: Amount Notes receivable, allowance for credit losses as of $ 63 Change in provision for credit losses 10 Write-offs ( 60 ) Notes receivable, allowance for credit losses as of 13 Change in provision for credit losses 20 Write-offs — Notes receivable, allowance for credit losses as of $ 33 Maturities of notes receivables, net under extended payment terms with a significant financing component as of December 31, 2023 are as follows: Fiscal Year Amount 2024 432 2025 432 2026 432 2027 386 2028 185 Thereafter 14 Total undiscounted cash flows 1,881 Present value of notes receivable 1,635 Difference between undiscounted and discounted $ 246 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 balance sheets. The following table provides information about contract assets from contracts with customers: Amount Contract assets at December 31, 2021 $ — Contract assets recognized 355 Payments received ( 23 ) Contract assets at December 31, 2022 332 Contract assets recognized 1,630 Payments received ( 806 ) Write-offs due to contract modifications ( 174 ) Contract assets at December 31, 2023 $ 982 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 deferred revenue is included in other long-term liabilities in the Company’s balance sheets. The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2021 $ 970 Billings not yet recognized as revenue 822 Beginning contract liabilities recognized as revenue ( 857 ) Contract liabilities at December 31, 2022 935 Billings not yet recognized as revenue 1,847 Beginning contract liabilities recognized as revenue ( 863 ) Contract liabilities at December 31, 2023 $ 1,919 Transaction Price Allocated to Future Performance Obligations At December 31, 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 $ 23,679 . The Company expects to satisfy its remaining performance obligations over the next six years, with $ 8,374 to be satisfied in the next twelve months , $ 5,947 to be satisfied in the next two years , $ 4,203 to be satisfied in the next three years , $ 3,235 to be satisfied in the next four years , and $ 1,920 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. Costs to Obtain Contracts The following table provides information about the costs to obtain contracts associated with contracts with customers for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Beginning balance $ 4 $ 43 Additions 611 350 Amortization ( 580 ) ( 389 ) Ending balance $ 35 $ 4 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 4. Fair Value of Financial Instruments 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. The Company classifies money market funds, U.S. treasury bills, and certificates of deposit as Level 1 within the fair value hierarchy as the fair value is based on quoted prices. The Company classifies its warrant derivative liabilities as Level 3 within the fair value hierarchy as the Company estimates 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, refer to Note 10, Warrant Liabilities . The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of December 31, 2023: December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 11,171 $ — $ — $ 11,171 U.S. treasury bills 5,942 — — 5,942 Certificates of deposit 983 — — 983 Total assets $ 18,096 $ — $ — $ 18,096 Liabilities Warrant derivative liabilities $ — $ — $ 8,457 $ 8,457 Total liabilities $ — $ — $ 8,457 $ 8,457 There were no assets or liabilities measured at fair value as of December 31, 2022. There were no transfers between fair value hierarchy levels during the years ended December 31, 2023. The fair value of the Company's financial assets that are measured at fair value on a recurring basis as of December 31, 2023 are as follows: December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 11,171 $ — $ — $ 11,171 U.S. treasury bills 2,989 1 — 2,990 Short-term investments U.S. treasury bills 2,952 — — 2,952 Certificates of deposit 490 1 — 491 Long-term investments Certificates of deposit 490 2 — 492 Total $ 18,092 $ 4 $ — $ 18,096 The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the year ended December 31, 2023 is set forth below: Fair Value at Fair Value at Change in December 31, May 18, 2023 Fair Value 2023 Series A Warrant $ 2,971 $ 1,491 $ 4,462 Series B Warrant 2,634 1,361 3,995 Total warrant liabilities $ 5,605 $ 2,852 $ 8,457 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventory balances were as follows: As of December 31, 2023 2022 Finished Goods $ 4,936 $ 4,002 Work-in-process 2,395 797 Raw Materials 8,358 6,941 Total $ 15,689 $ 11,740 Write downs of inventories to net realizable value amounted to $ 66 and $ 50 for the years ended December 31, 2023 and 2022 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 6. Leases Lessee Arrangements The Company has an operating lease for a corporate office. In August 2020, the Company amended the lease to extend through November 30, 2027 commencing on September 1, 2020. The lease amendment constitutes a modification as it extends the original lease term, which requires evaluation of the remeasurement of the lease liability and corresponding right-of-use-asset. The reassessment resulted in continuing to classify the lease as an operating lease and remeasurement of the lease liability on the basis of the extended lease term and the incremental borrowing rate at the effective date of modification of 10 %. The Company’s operating lease has a remaining lease term of 3.9 years as of December 31, 2023 , and contains an option to extend the lease for five years . The Company also has an operating lease for office equipment. The components of lease expense are as follows: Year Ended December 31, 2023 2022 Operating lease cost $ 589 $ 579 Short-term lease cost 49 37 Total lease cost $ 638 $ 616 Supplemental cash flow information related to leases, including the lease modification, is as follows: Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement Operating cash flows from operating leases $ 560 $ 537 Right-of-use-assets obtained in exchange for lease Operating leases $ 46 $ — The following table presents the lease balances within the balance sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases: As of December 31, Operating Leases Classification 2023 2022 Operating lease ROU assets Other assets $ 2,141 $ 2,630 Operating lease liabilities, current Operating lease liabilities $ 559 $ 531 Operating lease liabilities, long-term Long-term operating lease liabilities 1,750 2,272 Total operating lease liabilities $ 2,309 $ 2,803 Weighted-average remaining lease term 3.9 years 4.9 years Weighted-average discount rate 10.00 % 10.00 % Maturities of operating lease liabilities as of December 31, 2023 are as follows: Fiscal Year Amount 2024 575 2025 591 2026 607 2027 571 2028 3 Total operating lease payments 2,347 Less: imputed interest ( 38 ) Total operating lease liabilities $ 2,309 Lessor Arrangements The Company has operating leases for LENSAR Laser Systems and ALLY Systems, which occur primarily in the United States. The Company’s leases have remaining lease terms of less than one year to five years . Lease revenue for the years ended December 31, 2023 and 2022 was as follows: Year ended December 31, 2023 2022 Lease revenue $ 6,448 $ 5,915 Equipment under lease is as follows: As of December 31, 2023 2022 Equipment under lease $ 16,969 $ 14,771 Less accumulated depreciation ( 9,510 ) ( 8,455 ) Equipment under lease, net $ 7,459 $ 6,316 Depreciation expense on equipment under lease amounted to $ 2,052 and $ 1,916 for the years ended December 31, 2023 and 2022, respectively. Maturities of operating lease payments as of December 31, 2023 are as follows: Fiscal Year Amount 2024 1,179 2025 517 2026 167 2027 52 2028 17 Total undiscounted cash flows $ 1,932 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7. Property and Equipment The following table provides details of property and equipment, net: As of December 31, 2023 2022 Leasehold improvements $ 112 $ 112 Manufacturing equipment 987 1,001 Computer and office equipment 97 102 System and laser 1,295 1,204 Software 293 240 Furniture and fixtures 50 50 Transportation equipment 38 38 Total 2,872 2,747 Less accumulated depreciation ( 2,381 ) ( 2,239 ) Construction in progress 188 55 Property and equipment, net $ 679 $ 563 Depreciation expense on property and equipment amounted to $ 366 and $ 342 for the years ended December 31, 2023 and 2022 , respectively. The Company recognizes molds and tools that suppliers use in producing certain products under a long-term supply arrangement in construction in progress while the molds are under construction. When the molds are completed, they are transferred to property and equipment. The assets capitalized amounted to $ 0 and $ 61 as of December 31, 2023 and 2022 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8. Intangible Assets The components of intangible assets were as follows: As of December 31, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ ( 2,360 ) $ 1,932 $ 4,292 $ ( 2,028 ) $ 2,264 Acquired technology 1,3,4 13,900 ( 4,807 ) 9,093 13,900 ( 4,042 ) 9,858 Acquired trademarks 1 570 ( 570 ) — 570 ( 570 ) — $ 18,762 $ ( 7,737 ) $ 11,025 $ 18,762 $ ( 6,640 ) $ 12,122 1 Certain intangible assets were established upon PDL BioPharma, Inc.’s (“PDL”) 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 The Company 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 The Company 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, the Company 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, which were contingent upon regulatory approval and commercialization of the ALLY System. The intangible assets will be amortized on a straight-line basis over a period of 15 years. Amortization expense for the years ended December 31, 2023 and 2022 was $ 1,097 and $ 1,148 , respectively. Based on the intangible assets recorded at December 31, 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 2024 1,125 2025 1,234 2026 1,224 2027 1,215 2028 1,008 Thereafter 5,219 Total remaining estimated amortization expense $ 11,025 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Note 9. Accrued Liabilities Accrued liabilities consist of the following: As of December 31, 2023 2022 Compensation $ 3,974 $ 3,348 Professional services 419 437 Customer advances 34 171 Warranty 324 120 Accrued offering costs 188 — Other 778 624 Total $ 5,717 $ 4,700 |
Warrant Liabilities
Warrant Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrant Liabilities | Note 10. 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 12, 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 statements 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 December 31, 2023 and May 18, 2023: December 31, 2023 May 18, 2023 Risk-free interest rate 3.8 % 3.7 % Expected term (years) 4.4 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 | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Purchase Obligation The Company is a party to various supply agreements for the manufacture and supply of certain components. The supply agreements commit the Company to a minimum purchase obligation of approximately $ 6,453 over the next 12 months. The Company expects to meet these requirements. Royalty and Milestone Payments In connection with the acquisition of certain intellectual property, the Company paid $ 2,400 in milestone payments during the year ended December 31, 2022. The milestone payments were contingent upon regulatory clearance and commercialization of the ALLY System. In addition, the Company acquired certain intellectual property, which would result in additional 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 year ended December 31, 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. On December 12, 2023, the Court appointed Ryan Schaper and Christopher P. Bolster as Lead Plaintiffs. On December 22, 2023, the parties filed a joint stipulation providing that Lead Plaintiffs’ will file a second amended complaint or designate the Verified Amended Class Action Complaint as operative on or before January 12, 2024. On January 12, 2024, Lead Plaintiffs filed a Verified Second Amended Class Action Complaint. Defendants filed a motion to dismiss on February 26, 2024. The parties will complete briefings in May 2024. 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. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Convertible Preferred Stock [Abstract] | |
Redeemable Convertible Preferred Stock | Note 12. Redeemable Convertible Preferred Stock Series A Redeemable Convertible Preferred Stock In May 2023, the Company entered into the SPA with 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 10, 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 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 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 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 | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Note 13. 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 years ended December 31, 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 year ended December 31, 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 year ended December 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 14. 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 December 31, 2023 the Company has reserved 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, 2021 1,082 Authorized 549 Granted/Awarded ( 678 ) Cancelled 49 Balance at December 31, 2022 1,002 Authorized 555 Granted/Awarded ( 1,380 ) Cancelled 117 Balance at December 31, 2023 294 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, 2021 653 $ 7.57 9.3 $ — Options granted 592 $ 6.19 Options exercised — $ — Options cancelled ( 43 ) $ 6.88 Outstanding at December 31, 2022 1,202 $ 6.91 8.7 $ — Options granted 834 $ 2.98 Options exercised — $ — Options cancelled ( 62 ) $ 5.01 Outstanding at December 31, 2023 1,974 $ 5.31 8.0 $ 429 Vested and expected to vest at December 31, 2023 1,974 $ 5.31 8.0 $ 429 Vested and exercisable at December 31, 2023 960 $ 6.48 7.2 $ 42 The weighted average grant date fair value of options granted during the years ended December 31, 2023 and 2022 was $ 1.94 and $ 3.90 , respectively. The total fair value of options vested during the years ended December 31, 2023 and 2022 was approximately $ 2,264 and $ 2,501 , respectively. Total unrecognized compensation expense of $ 2,412 related to stock options will be recognized over a weighted average period of 2.1 years. The following table summarizes information about stock options outstanding and vested as of December 31, 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 $ 2.15 - $ 3.10 361 9.0 $ 2.66 — $ — $ 3.23 436 9.1 $ 3.23 149 $ 3.23 $ 3.27 - $ 5.95 32 8.6 $ 5.42 10 $ 5.78 $ 6.04 415 8.0 $ 6.04 199 $ 6.04 $ 6.07 - $ 8.62 730 6.7 $ 7.44 602 $ 7.45 1,974 8.0 $ 5.31 960 $ 6.48 The Company estimated the fair value of stock-options using the Black-Scholes option pricing model. The fair value of employee and non-employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee and non-employee stock options was estimated using the following assumptions for the years ended December 31, 2023 and 2022: Year Ended December 31, Year Ended December 31, 2023 2022 Risk-free interest rate 3.5 - 4.7 % 1.5 - 4.2 % Expected term (years) 6 6 Expected volatility 57 - 70 % 70 % Dividends 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 Weighted- Non-vested at December 31, 2021 1,332 $ 10.29 Granted — $ — Vested ( 704 ) $ 10.29 Cancelled ( 6 ) $ 10.81 Non-vested at December 31, 2022 622 $ 10.29 Granted — $ — Vested ( 616 ) $ 10.29 Cancelled ( 6 ) $ 10.81 Non-vested at December 31, 2023 — $ — The total fair value of restricted stock awards vested during the years ended December 31, 2023 and 2022 was $ 6,342 and $ 7,240 , respectively. Restricted Stock Units Restricted stock units granted to employees and non-employees generally vest over one to four years in regular 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 Weighted- Non-vested at December 31, 2021 — $ — Granted 86 $ 6.33 Vested — $ — Cancelled — $ — Non-vested at December 31, 2022 86 $ 6.33 Granted 546 $ 2.73 Vested ( 113 ) $ 4.14 Cancelled ( 36 ) $ 2.65 Non-vested at December 31, 2023 483 $ 3.04 The total fair value of restricted stock units vested during the year ended December 31, 2023 was $ 466 . At December 31, 2023 there was approximately $ 885 of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.2 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 and will be increased 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 December 31, 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 Code. As of December 31, 2023 , 304 shares of common stock have been issued to employees participating in the 2020 ESPP and 147 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 statements of operations: Year Ended December 31, 2023 2022 Revenue—product $ 10 $ — Cost of revenue—product 289 219 Cost of revenue—service 168 126 Selling, general and administrative expenses 4,495 5,648 Research and development expenses 577 618 Total $ 5,539 $ 6,611 Total unrecognized stock-based compensation expense is expected to be amortized as follows: Fiscal Year Amount 2024 $ 2,069 2025 1,006 2026 215 2027 7 2028 — Thereafter — Total unrecognized stock-based compensation expense $ 3,297 The amounts included in this table are based on restricted stock units and stock options outstanding at December 31, 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2023 2022 United States $ ( 14,383 ) $ ( 19,914 ) Foreign — — Total $ ( 14,383 ) $ ( 19,914 ) The provision for income taxes for the years ended December 31, 2023 and 2022 consisted of the following: Year Ended December 31, 2023 2022 Current income tax expense (benefit) Federal $ — $ — State — — Foreign — — Total current — — Deferred income tax (benefit) Federal — — State — — Foreign — — Total deferred — — Total provision $ — $ — A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statements of operations is as follows: Year Ended December 31, 2023 2022 Tax at U.S. statutory rate on income before income $ ( 3,020 ) $ ( 4,182 ) Change in valuation allowance 1,540 3,317 State taxes ( 376 ) ( 369 ) Section 162(m) 248 363 Stock-based compensation 191 170 Deferred adjustment 773 706 Warrant expense 599 — Other 45 ( 5 ) Total $ — $ — Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards, and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The significant components of the Company’s net deferred tax assets and liabilities are as follows: Year Ended December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 1,836 $ 5,855 Net operating loss carryforwards - Section 382 limited 6,195 — Intangible assets 5,530 5,866 Capitalization of research and experimentation expenses 3,211 2,533 Stock-based compensation 727 1,150 Fixed assets 165 272 Other 1,257 658 Total deferred tax assets 18,921 16,334 Valuation allowance ( 17,871 ) ( 16,331 ) Total deferred tax assets, net of valuation allowance 1,050 3 Deferred tax liabilities: Section 481(a) adjustment ( 670 ) — Other ( 380 ) ( 3 ) Total deferred tax liabilities ( 1,050 ) ( 3 ) Net deferred tax assets $ — $ — The deferred tax assets associated with net operating losses included in the table above for the years ended December 31, 2023 and 2022 reflect the net operating losses the Company expects to generate on its federal and state income tax returns. As of December 31, 2023 and 2022 , the Company maintained federal net operating loss carryforwards of $ 32,452 and $ 23,935 , respectively. As of December 31, 2023 and 2022 , the Company also maintained state net operating loss carryforwards of $ 22,612 and $ 18,724 , respectively. The federal net operating losses generated during years ended December 31, 2023 and 2022 (and not Section 382 limited; see below) may only be utilized to offset 80% of taxable income annually and may be carried forward indefinitely. The state net operating loss carryforwards generated will begin expiring in the year 2028, if not utilized. Certain of our federal and state tax attributes are subject to change of ownership limitations provided by the Internal Revenue Code and similar state provisions. In general, if the Company experiences a greater than 50 percentage point aggregate change in ownership over a 3-year period (a “Section 382 ownership change”), utilization of its pre-change NOL and credit carryforwards are subject to an annual limitation. The Company experienced such a change as a result of the SPA. The Company completed a Section 382 study through December 31, 2023 and determined that a Section 382 ownership change occurred on May 18, 2023. At the time, the Company was in a net unrealized built-in loss position (“NUBIL”). The amount of pre-change NOL carryforwards which may be subject to this limitation are $ 25,741 . As of December 31, 2023, the Company determined that it continued to be more likely than not that certain deferred tax assets would not be realized in the near future and maintained a $ 17,871 valuation allowance against deferred tax assets. The net change in total valuation allowance between the years ended December 31, 2023 and 2022, was an increase of $ 1,540 . The Company’s determination was based on its review and analysis of all the available evidence as of the balance sheet date, both positive and negative. The uncertainty provisions of ASC 740 also require the Company to recognize the impact of a tax position in its financial statements only if the technical merits of that position indicate that the position is more likely than not of being sustained upon audit. During the years ended December 31, 2023 and 2022, the Company did not record a reserve for uncertain tax positions. The Company’s income tax returns for periods separate from the consolidation with PDL are subject to examination by U.S. federal, state and local tax authorities for tax years 2020 forward. The Company's separate state and local tax returns are generally not subject to examination by authorities for tax years prior to 2017; however, as we utilize our net operating losses, prior years can be subject to examination from 2012 forward. The Company is not currently under examination in any significant tax jurisdictions. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $ 0 as of December 31, 2023 and 2022. The 2017 Tax Cuts and Jobs Act requires taxpayers to capitalize research and experimental (“R&E”) expenditures effective for taxable years beginning after December 31, 2021. R&E expenditures attributable to U.S.-based research must be amortized over a period of 5 years and R&E expenditures attributable to research conducted outside of the U.S. must be amortized over a period of 15 years. As noted above, there is pending legislation that would allow for full deductibility of these expenditures. The Company does not believe that this has a material impact on its financial statements. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 16. Net Loss per Share The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted net loss per share calculations: Year Ended December 31, 2023 2022 Net loss attributable to common stockholders $ ( 14,383 ) $ ( 19,914 ) Weighted average number of shares of common stock 10,971 10,159 Basic and diluted net loss per share $ ( 1.31 ) $ ( 1.96 ) The Company’s basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. As the Company has reported a net loss for all periods presented, basic and diluted net loss per share attributable to common stockholders are the same for those periods. The Company excluded the following amounts of equity securities from its net loss per diluted share calculations for the periods presented because their effect was anti-dilutive: Year Ended December 31, 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — Series A Warrants and Series B Warrants 4,367 — Restricted stock awards and units 483 708 Outstanding stock options 1,974 1,202 The anti-dilutive weighted-average shares excluded from the net loss per share diluted shares calculations were: Year Ended December 31, 2023 2022 Series A Redeemable Convertible Preferred Stock 3,002 — Series A Warrants 165 — Restricted stock awards and units 720 929 Outstanding stock options 1,808 1,149 Total 5,695 2,078 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the 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 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. |
Segments | Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented on an entity-wide basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As of December 31, 2023 and 2022 , 95 % and 92 % of long-lived assets were in the United States, respectively. Revenue is attributed to a geographic region based on the location of the customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market funds and U.S. Treasury bills that are stated at fair value, based on quoted market prices. |
Investments | Investments Investments consist of money market funds, U.S. treasury bills and certificates of deposit. The Company’s investments are classified as available-for-sale and carried at estimated fair values and reported in cash equivalents, short-term investments, and long-term investments. Management determines the appropriate classification of the investments at the time they are purchased and evaluates the appropriateness of such classifications at each balance sheet date. Investments with contractual maturities greater than 12 months are considered long-term investments. Changes in unrealized gains or losses of investments are recorded in other comprehensive income on the statements of operations. The Company regularly reviews its investments for declines in estimated fair value below amortized cost. The factors considered in determining whether a credit loss exists include the creditworthiness of the security issuers, the number of investments in an unrealized loss position, the severity and duration of the unrealized losses, and whether it is more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. The cost of investments sold is based on the specific identification method. In circumstances when an unrealized loss is determined to be credit-related, or when the Company intends to sell or is more likely than not required to sell a security before it recovers its amortized cost basis, the difference between the fair value and the amortized cost of the security is recognized within other income, net in the statements of operations, and an allowance for credit loss is recorded on the balance sheets. In circumstances when the decline in fair value is non-credit related, the difference is reported in accumulated other comprehensive loss, net of tax as a separate component of stockholders’ equity. |
Concentration of Credit Risk, Credit Losses, and Other Risks and Uncertainties | Concentration of Credit Risk, Credit Losses, and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents, and investments. The primary objectives for the Company’s investment portfolio are the preservation of capital and the maintenance of liquidity. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents and investments and issuers of investments. The Company manages its credit risk by holding its cash, cash equivalents and investments in large financial institutions within the U.S. In addition, the Company’s investment policy limits investments to certain types of instruments such as money market funds, debt securities issued by the U.S. government and its agencies, corporate debt securities, commercial paper as well as asset-backed securities, and places restrictions on the credit ratings, maturities and concentration by type and issuer. Furthermore, the Company limits the amount of credit exposure in any one financial instrument. The Company has not experienced any losses on its deposits of cash, cash equivalents and investments. |
Accounts Receivable | Accounts Receivable The Company had $ 95 and $ 69 for allowance for credit losses as of December 31, 2023 and 2022 , respectively. The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends, changes in customer payment patterns, and possible impact of current conditions and reasonable forecasts not already reflected in historical loss information when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely, and the Company ceases collection efforts. |
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 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. |
Inventory | Inventory Inventory, which consists of raw materials, work-in-process and finished goods, is stated at the lower of cost or net realizable value. The Company determines cost using standard costs which approximates actual costs determined on the first-in, first-out basis. Inventory levels are analyzed periodically and written down to their net realizable value if they have become obsolete, have a cost basis in excess of expected net realizable value or are in excess of expected requirements. The Company analyzes current and future product demand relative to the remaining product shelf life to identify potential excess inventory. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classifies inventory as current on the balance sheets when the Company expects inventory to be consumed for commercial use within the next twelve months. |
Intangible Assets | Intangible Assets Intangible assets with finite useful lives consist primarily of acquired product rights, acquired technology, and customer relationships. Acquired product rights and acquired technology are amortized on a straight-line basis over their estimated useful lives of 15 to 20 years . 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. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The Company did no t record any impairment of its intangible assets for the years ended December 31, 2023 and 2022 . |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Research and development equipment 3 - 8 years Manufacturing equipment 3 - 5 years Computer and office equipment 3 years Transportation equipment 3 - 5 years Furniture and fixtures 7 years Software 3 years |
Equipment Under Lease | Equipment Under Lease Equipment under lease is related to systems which are leased to customers instead of sold. Equipment under operating lease is stated at cost less accumulated depreciation and is classified as Equipment under lease, net on the balance sheets. Depreciation is computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years . |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Policy Elections and Practical Expedients Taken The Company applies the following policy elections: Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue. Shipping and handling costs for the years ended December 31, 2023 and 2022 were $ 198 and $ 157 , respectively. General Revenue is recognized from the sale of products and services when the Company transfers control of such promised products and services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied. The Company principally derives its revenue from the sale and lease of systems and the sale of other related products and services, including PIDs, procedure licenses, and extended warranty service agreements. Most customers are on pre-paid or 30 -day payment terms, depending on the product purchased. Typically, returns are not allowed. Judgment is required to determine the level of interdependency between the system and the sale of other related products and services. For bundled packages, which include the sale or lease of a system and provision of other products and services, the Company accounts for individual products and services separately if they are distinct—i.e., if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The system, training and installation services are one performance obligation. The other products and services, including PIDs, procedure licenses, and extended warranty services, which are either sold together with the system or on a standalone basis, are all accounted for as separate performance obligations. The transaction price of bundled packages is allocated to each performance obligation on a relative standalone selling price basis. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, the Company estimates the selling price using available observable information. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer, as described below. Product Revenue . The Company recognizes revenue for the sale of the following products at a point in time: Equipment . The Company’s LENSAR Laser System and ALLY System sales are recognized as Product revenue when the Company transfers control of the system. This usually occurs after the customer signs a contract, the Company installs the system, and the Company performs the requisite training for use of the system for direct customers. System sales to distributors are recognized as revenue upon shipment as they do not require training and installation. PID and Procedure Licenses . The systems require both a PID and a procedure license to perform each procedure. The Company recognizes Product revenue for PIDs when the Company transfers control of the PID. The Company recognizes Product revenue for procedure licenses at the point in time when control of the procedure license is transferred to the customer. A procedure license represents a one-time right to utilize the system surgical application in connection with a surgery procedure. For the sale of PIDs and procedure licenses, the Company may offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transfers to the customer, the Company estimates the average per unit price, net of discounts. Service Revenue . The Company offers an extended warranty that provides additional maintenance services beyond the standard limited warranty. The Company recognizes Service revenue from the sale of extended warranties over the warranty period on a ratable basis as the Company stands ready to provide services as needed. Customers have the option of renewing the warranty period, which is considered a new and separate contract. Lease Revenue . For system operating leases, the Company recognizes lease revenue over the length of the lease in accordance with ASC Topic 842, Leases , (“ASC 842”). For additional information regarding accounting for leases, see the Leases section within this footnote below and Note 6, Leases . Contract Costs The Company offers a variety of commission plans to the Company’s salesforce. Certain compensation under these plans is earned by sales representatives solely as a result of obtaining a customer contract. These are considered incremental costs of obtaining a contract and are eligible for capitalization under ASC Topic 340-40, Other Assets and Deferred Costs – Contracts with Customers , to the extent they are recoverable. Incremental costs of obtaining a contract are deferred over the period the related revenue is recognized and the Company has elected not to defer costs related to goods or services to be delivered over a period that is one year or less. Significant Financing Component The Company provides extended payment terms to certain customers that represent a significant financing component. The Company adjusts the amount of promised consideration for the time value of money using its discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. Limited Warranty Obligations The Company offers limited warranties on the Company’s products which provide the customer assurance that the product will function as the parties intended because it complies with agreed-upon specifications; therefore, these assurance-type warranties are not treated as a separate revenue performance obligation and are accounted for as guarantees under U.S. GAAP. The Company regularly reviews its warranty liability and updates these balances based on historical warranty cost trends. |
Concentrations of Customers | Concentrations of Customers For the year ended December 31, 2023, one customer accounted for 10 % of the Company’s revenue and no customers accounted for 10 % or more of the Company’s accounts receivable, net as of December 31, 2023. For the year ended December 31, 2022, one customer accounted for 10 % of the Company’s revenue and no customers accounted for 10% or more of the Company’s accounts receivable, net as of December 31, 2022. |
Related Parties | Related Parties The Company follows ASC 850, Related Party Disclosures , for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which the Company may deal if one party to a transaction controls, or can significantly influence, the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Transactions involving related parties cannot be presumed to be conducted on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. In May 2023, the Company completed the Private Placement with NR-GRI Partners, LP (“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 10, Warrant Liabilities , and Note 12, Redeemable Convertible Preferred Stock , for more details related to the Private Placement. The Company entered into an international distribution agreement with a company owned by a current employee in India. The Company established the distributor relationship to gain regulatory and operational efficiencies, as well as to establish consistent operations with all other international markets where it conducts business. During the year ended December 31, 2023, the Company began transitioning transactions with customers in India to the distributor. As of the initiation of this transition and through the year ended December 31, 2023, the Company recognized $ 202 in product revenue, $ 103 in cost of product sales, and $ 184 in selling, general and administrative expenses associated with its Indian operations. There were no amounts due from, or due to, the distributor at December 31, 2023. |
Research and Development | Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of engineering, product development, clinical studies to develop and support the Company’s products, regulatory expenses, and other costs associated with products and technologies that are in development. Research and development expenses include employee compensation, including stock-based compensation, supplies, consulting, prototypes, testing, materials, travel expenses, and depreciation. Research and development expenses for the year ended December 31, 2022 included $ 3.4 million of ALLY System inventory costs. Following the Company's receipt of 510(k) clearance for the ALLY System from the FDA in June 2022, all ALLY System inventory costs were capitalized to inventory. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising costs includes design and production costs, including website development, written media campaigns, and other items. Advertising costs of $ 617 and $ 465 were expensed during the years ended December 31, 2023 and 2022 , respectively. |
Income Taxes | Income Taxes The Company is subject to U.S. federal, state, and local corporate income taxes at the entity level. The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws in the year in which such laws are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision. Under Sections 382 and 383 of the Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of tax deductions related to its assets and attributes that may be used in future years. During the second quarter of 2023, the Company experienced a change in control event resulting from the Securities Purchase Agreement (the “SPA”), triggering the application of Section 382. The Company computed and applied limitations of tax deductions in the income tax provision computation for the year ended December 31, 2023, however, these limitations do not have a material impact on the financial statements. 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. |
Lessee Arrangements | Leases The Company accounts for leasing arrangements in accordance with ASC Topic 842. The Company determines if an arrangement is a lease or contains an embedded lease at inception if it contains the right to control the use of an identified asset under a leasing arrangement with an initial term greater than 12 months. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Policy Elections and Practical Expedients Taken The Company has lease arrangements with lease and non-lease components, which are accounted for separately. For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For short term leases, defined as leases with a lease term of 12 months or less, the Company elected to not recognize an associated lease liability and right of use (“ROU”) asset. Lease payments for short term leases are expensed on a straight-line basis over the lease term. The Company has a policy to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee. Lessee Arrangements Lessee operating right of use assets are included in Other assets in the Company’s balance sheet. Lessee operating lease liabilities are included in Operating lease liabilities and Long-term operating lease liabilities in the Company’s balance sheet. The Company does not have lessee financing leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date, including the lease term and the Company’s credit risk, in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis as operating expense in the statements of operations over the lease term. For lease arrangements with lease and non-lease components where the Company is the lessee, the Company separately accounts for lease and non-lease components, which consists primarily of common area maintenance services. Non-lease components are expensed as incurred. |
Lessor Arrangements | Lessor Arrangements The Company leases equipment to customers under operating leases. Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Lease elements generally include a system, while non-lease elements generally include extended warranty services, PIDs and procedure licenses. The stand-alone selling prices for the extended warranty services, PIDs and procedure licenses are determined based on the prices at which the Company separately sells such products and services. The system stand-alone selling prices are determined using the expected cost plus a margin approach. Allocation of the transaction price is determined at the inception of the lease arrangement. The Company’s leases primarily consist of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and consumables used with the leased equipment. Non-lease components are accounted for under ASC 606 . For additional information regarding ASC 606, see Note 3, Revenue from Contracts with Customers. Some leases include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term. A new contract is generated if a customer intends to continue using the equipment under the initial term and the new contract term is not included in the initial lease term. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following criteria at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term, (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system, (3) whether the lease term is for the major part of the remaining economic life of the leased system, (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise, and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. If any of these criteria are met, the lease is classified as a sales-type lease. If none of these criteria are met the lease is classified as an operating lease. For the years ended December 31, 2023 and 2022, the Company does not have any sales-type leases. For operating leases, rental income is recognized on a straight-line basis over the lease term as lease revenue. The cost of customer-leased equipment is recorded within equipment under lease, net in the balance sheets and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in cost of lease in the statements of operations. Some of the Company’s operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement, subject to a new contract. The purchase price does not qualify as a bargain purchase option. The Company manages its risk on its investment in the equipment through pricing and the term of the leases. Lessees do not provide residual value guarantees on leased equipment. Equipment returned to the Company may be leased or sold to other customers. Initial direct costs, recorded in prepaid and other current assets, are deferred and recognized over the lease term. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation , (“ASC 718”). Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. Stock-based compensation expense is recognized using a straight-line attribution method over the requisite service period, except for portions of awards subject to performance conditions, which will be recognized ratably over the service period for each separate performance vesting tranche once it is probable the performance condition will be met. The Company made accounting policy elections to account for modifications to the requisite service period using the bifurcated approach and to account for forfeitures as they occur. |
Earnings (Loss) per Share | Earnings (Loss) per Share 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. |
Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires enhanced disclosures about segment expenses on an annual and interim basis. This standard is effective for the Company’s annual financial statements for the year ending December 31, 2024 and for interim periods beginning in 2025. The Company is currently evaluating the impact of this standard on the financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures , which requires (1) disclosure of specific categories in the rate reconciliation and (2) additional information for reconciling items that meet a quantitative threshold. Additionally, the amendment requires disclosure of certain disaggregated information about income taxes paid, income from continuing operations before income tax expense (benefit) and income tax expense (benefit). The standard is effective for the Company’s annual financial statements for the year ending December 31, 2025. The Company is currently evaluating the impact of this standard on the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation is Computed using Straight-Line Method over Useful Lives | Property and equipment is stated at cost less accumulated depreciation. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives: Leasehold improvements Lesser of useful life or term of lease Research and development equipment 3 - 8 years Manufacturing equipment 3 - 5 years Computer and office equipment 3 years Transportation equipment 3 - 5 years Furniture and fixtures 7 years Software 3 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 United States $ 25,262 $ 18,776 South Korea 257 2,180 Europe 5,585 4,409 Asia (excluding South Korea) 3,836 3,576 Other 776 502 Total 1 $ 35,716 $ 29,443 1 The table above does not include lease revenue of $ 6,448 and $ 5,915 for the years ended December 31, 2023 and 2022, respectively. Refer to Note 6, 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: As of December 31, Classification 2023 2022 Accounts receivable, current Accounts receivable, net $ 4,001 $ 6,040 Notes receivable, current Notes receivable, net $ 323 $ 200 Notes receivable, long-term Notes and other receivables, long-term, net $ 1,279 $ 442 Contract asset, current Prepaid and other current assets $ 982 $ 332 Deferred revenue, current Deferred revenue $ 1,349 $ 768 Deferred revenue, non-current Other long-term liabilities $ 350 $ 17 Contract liability, long-term Other long-term liabilities $ 220 $ 150 The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2021 $ 970 Billings not yet recognized as revenue 822 Beginning contract liabilities recognized as revenue ( 857 ) Contract liabilities at December 31, 2022 935 Billings not yet recognized as revenue 1,847 Beginning contract liabilities recognized as revenue ( 863 ) Contract liabilities at December 31, 2023 $ 1,919 |
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 $ 47 Change in provision for credit losses 26 Write-offs ( 17 ) Accounts receivable, allowance for credit losses as of 56 Change in provision for credit losses 6 Write-offs — Accounts receivable, allowance for credit losses as of $ 62 |
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 $ 63 Change in provision for credit losses 10 Write-offs ( 60 ) Notes receivable, allowance for credit losses as of 13 Change in provision for credit losses 20 Write-offs — Notes receivable, allowance for credit losses as of $ 33 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | The following table provides information about receivables and contract liabilities from contracts with customers: As of December 31, Classification 2023 2022 Accounts receivable, current Accounts receivable, net $ 4,001 $ 6,040 Notes receivable, current Notes receivable, net $ 323 $ 200 Notes receivable, long-term Notes and other receivables, long-term, net $ 1,279 $ 442 Contract asset, current Prepaid and other current assets $ 982 $ 332 Deferred revenue, current Deferred revenue $ 1,349 $ 768 Deferred revenue, non-current Other long-term liabilities $ 350 $ 17 Contract liability, long-term Other long-term liabilities $ 220 $ 150 The following table provides information about contract liabilities from contracts with customers: Amount Contract liabilities as of December 31, 2021 $ 970 Billings not yet recognized as revenue 822 Beginning contract liabilities recognized as revenue ( 857 ) Contract liabilities at December 31, 2022 935 Billings not yet recognized as revenue 1,847 Beginning contract liabilities recognized as revenue ( 863 ) Contract liabilities at December 31, 2023 $ 1,919 |
Summary of Maturities of Notes Receivables Net Under Extended Payment Terms | Maturities of notes receivables, net under extended payment terms with a significant financing component as of December 31, 2023 are as follows: Fiscal Year Amount 2024 432 2025 432 2026 432 2027 386 2028 185 Thereafter 14 Total undiscounted cash flows 1,881 Present value of notes receivable 1,635 Difference between undiscounted and discounted $ 246 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 balance sheets. The following table provides information about contract assets from contracts with customers: Amount Contract assets at December 31, 2021 $ — Contract assets recognized 355 Payments received ( 23 ) Contract assets at December 31, 2022 332 Contract assets recognized 1,630 Payments received ( 806 ) Write-offs due to contract modifications ( 174 ) Contract assets at December 31, 2023 $ 982 |
Summary of Costs to Obtain Customer Contracts | The following table provides information about the costs to obtain contracts associated with contracts with customers for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Beginning balance $ 4 $ 43 Additions 611 350 Amortization ( 580 ) ( 389 ) Ending balance $ 35 $ 4 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured 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 December 31, 2023: December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 11,171 $ — $ — $ 11,171 U.S. treasury bills 5,942 — — 5,942 Certificates of deposit 983 — — 983 Total assets $ 18,096 $ — $ — $ 18,096 Liabilities Warrant derivative liabilities $ — $ — $ 8,457 $ 8,457 Total liabilities $ — $ — $ 8,457 $ 8,457 |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The fair value of the Company's financial assets that are measured at fair value on a recurring basis as of December 31, 2023 are as follows: December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 11,171 $ — $ — $ 11,171 U.S. treasury bills 2,989 1 — 2,990 Short-term investments U.S. treasury bills 2,952 — — 2,952 Certificates of deposit 490 1 — 491 Long-term investments Certificates of deposit 490 2 — 492 Total $ 18,092 $ 4 $ — $ 18,096 |
Summary of Changes In The 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 year ended December 31, 2023 is set forth below: Fair Value at Fair Value at Change in December 31, May 18, 2023 Fair Value 2023 Series A Warrant $ 2,971 $ 1,491 $ 4,462 Series B Warrant 2,634 1,361 3,995 Total warrant liabilities $ 5,605 $ 2,852 $ 8,457 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory balances were as follows: As of December 31, 2023 2022 Finished Goods $ 4,936 $ 4,002 Work-in-process 2,395 797 Raw Materials 8,358 6,941 Total $ 15,689 $ 11,740 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows: Year Ended December 31, 2023 2022 Operating lease cost $ 589 $ 579 Short-term lease cost 49 37 Total lease cost $ 638 $ 616 |
Summary of Supplemental Cash Flow Information Related to Company Leases Including Lease Modification | Supplemental cash flow information related to leases, including the lease modification, is as follows: Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement Operating cash flows from operating leases $ 560 $ 537 Right-of-use-assets obtained in exchange for lease Operating leases $ 46 $ — |
Summary of Operating Lease liabilities | The following table presents the lease balances within the balance sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases: As of December 31, Operating Leases Classification 2023 2022 Operating lease ROU assets Other assets $ 2,141 $ 2,630 Operating lease liabilities, current Operating lease liabilities $ 559 $ 531 Operating lease liabilities, long-term Long-term operating lease liabilities 1,750 2,272 Total operating lease liabilities $ 2,309 $ 2,803 Weighted-average remaining lease term 3.9 years 4.9 years Weighted-average discount rate 10.00 % 10.00 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2023 are as follows: Fiscal Year Amount 2024 575 2025 591 2026 607 2027 571 2028 3 Total operating lease payments 2,347 Less: imputed interest ( 38 ) Total operating lease liabilities $ 2,309 |
Schedule of Lease Revenue | Lease revenue for the years ended December 31, 2023 and 2022 was as follows: Year ended December 31, 2023 2022 Lease revenue $ 6,448 $ 5,915 |
Schedule of Equipment Under Lease | Equipment under lease is as follows: As of December 31, 2023 2022 Equipment under lease $ 16,969 $ 14,771 Less accumulated depreciation ( 9,510 ) ( 8,455 ) Equipment under lease, net $ 7,459 $ 6,316 |
Maturities of Operating Lease Payments | Maturities of operating lease payments as of December 31, 2023 are as follows: Fiscal Year Amount 2024 1,179 2025 517 2026 167 2027 52 2028 17 Total undiscounted cash flows $ 1,932 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table provides details of property and equipment, net: As of December 31, 2023 2022 Leasehold improvements $ 112 $ 112 Manufacturing equipment 987 1,001 Computer and office equipment 97 102 System and laser 1,295 1,204 Software 293 240 Furniture and fixtures 50 50 Transportation equipment 38 38 Total 2,872 2,747 Less accumulated depreciation ( 2,381 ) ( 2,239 ) Construction in progress 188 55 Property and equipment, net $ 679 $ 563 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The components of intangible assets were as follows: As of December 31, 2023 As of December 31, 2022 Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Customer relationships 1,2 $ 4,292 $ ( 2,360 ) $ 1,932 $ 4,292 $ ( 2,028 ) $ 2,264 Acquired technology 1,3,4 13,900 ( 4,807 ) 9,093 13,900 ( 4,042 ) 9,858 Acquired trademarks 1 570 ( 570 ) — 570 ( 570 ) — $ 18,762 $ ( 7,737 ) $ 11,025 $ 18,762 $ ( 6,640 ) $ 12,122 1 Certain intangible assets were established upon PDL BioPharma, Inc.’s (“PDL”) 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 The Company 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 The Company 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, the Company 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, which were contingent upon regulatory approval and commercialization of the ALLY System. 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 December 31, 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 2024 1,125 2025 1,234 2026 1,224 2027 1,215 2028 1,008 Thereafter 5,219 Total remaining estimated amortization expense $ 11,025 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: As of December 31, 2023 2022 Compensation $ 3,974 $ 3,348 Professional services 419 437 Customer advances 34 171 Warranty 324 120 Accrued offering costs 188 — Other 778 624 Total $ 5,717 $ 4,700 |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 and May 18, 2023: December 31, 2023 May 18, 2023 Risk-free interest rate 3.8 % 3.7 % Expected term (years) 4.4 5.0 Expected volatility 55 % 55 % Dividends 0.0 % 0.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
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, 2021 1,082 Authorized 549 Granted/Awarded ( 678 ) Cancelled 49 Balance at December 31, 2022 1,002 Authorized 555 Granted/Awarded ( 1,380 ) Cancelled 117 Balance at December 31, 2023 294 |
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, 2021 653 $ 7.57 9.3 $ — Options granted 592 $ 6.19 Options exercised — $ — Options cancelled ( 43 ) $ 6.88 Outstanding at December 31, 2022 1,202 $ 6.91 8.7 $ — Options granted 834 $ 2.98 Options exercised — $ — Options cancelled ( 62 ) $ 5.01 Outstanding at December 31, 2023 1,974 $ 5.31 8.0 $ 429 Vested and expected to vest at December 31, 2023 1,974 $ 5.31 8.0 $ 429 Vested and exercisable at December 31, 2023 960 $ 6.48 7.2 $ 42 |
Summary of Stock Options Outstanding and Vested | The following table summarizes information about stock options outstanding and vested as of December 31, 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 $ 2.15 - $ 3.10 361 9.0 $ 2.66 — $ — $ 3.23 436 9.1 $ 3.23 149 $ 3.23 $ 3.27 - $ 5.95 32 8.6 $ 5.42 10 $ 5.78 $ 6.04 415 8.0 $ 6.04 199 $ 6.04 $ 6.07 - $ 8.62 730 6.7 $ 7.44 602 $ 7.45 1,974 8.0 $ 5.31 960 $ 6.48 |
Summary of Fair Value of Employee and Non-Employee Stock Options was Estimated Using Assumptions | The fair value of employee and non-employee stock options was estimated using the following assumptions for the years ended December 31, 2023 and 2022: Year Ended December 31, Year Ended December 31, 2023 2022 Risk-free interest rate 3.5 - 4.7 % 1.5 - 4.2 % Expected term (years) 6 6 Expected volatility 57 - 70 % 70 % Dividends 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 statements of operations: Year Ended December 31, 2023 2022 Revenue—product $ 10 $ — Cost of revenue—product 289 219 Cost of revenue—service 168 126 Selling, general and administrative expenses 4,495 5,648 Research and development expenses 577 618 Total $ 5,539 $ 6,611 |
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 2024 $ 2,069 2025 1,006 2026 215 2027 7 2028 — Thereafter — Total unrecognized stock-based compensation expense $ 3,297 |
Restricted Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | Restricted stock award activity under the 2020 Plan is set forth below: Restricted Stock Awards Outstanding Number of Weighted- Non-vested at December 31, 2021 1,332 $ 10.29 Granted — $ — Vested ( 704 ) $ 10.29 Cancelled ( 6 ) $ 10.81 Non-vested at December 31, 2022 622 $ 10.29 Granted — $ — Vested ( 616 ) $ 10.29 Cancelled ( 6 ) $ 10.81 Non-vested at December 31, 2023 — $ — |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | Restricted stock unit activity under the 2020 Plan is set forth below: Restricted Stock Units Outstanding Number of Weighted- Non-vested at December 31, 2021 — $ — Granted 86 $ 6.33 Vested — $ — Cancelled — $ — Non-vested at December 31, 2022 86 $ 6.33 Granted 546 $ 2.73 Vested ( 113 ) $ 4.14 Cancelled ( 36 ) $ 2.65 Non-vested at December 31, 2023 483 $ 3.04 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2023 2022 United States $ ( 14,383 ) $ ( 19,914 ) Foreign — — Total $ ( 14,383 ) $ ( 19,914 ) |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2023 and 2022 consisted of the following: Year Ended December 31, 2023 2022 Current income tax expense (benefit) Federal $ — $ — State — — Foreign — — Total current — — Deferred income tax (benefit) Federal — — State — — Foreign — — Total deferred — — Total provision $ — $ — |
Schedule of Reconciliation of Income Tax Provision Computed using U.S. Statutory Federal Income Tax Rate | A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision included in the statements of operations is as follows: Year Ended December 31, 2023 2022 Tax at U.S. statutory rate on income before income $ ( 3,020 ) $ ( 4,182 ) Change in valuation allowance 1,540 3,317 State taxes ( 376 ) ( 369 ) Section 162(m) 248 363 Stock-based compensation 191 170 Deferred adjustment 773 706 Warrant expense 599 — Other 45 ( 5 ) Total $ — $ — |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The significant components of the Company’s net deferred tax assets and liabilities are as follows: Year Ended December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 1,836 $ 5,855 Net operating loss carryforwards - Section 382 limited 6,195 — Intangible assets 5,530 5,866 Capitalization of research and experimentation expenses 3,211 2,533 Stock-based compensation 727 1,150 Fixed assets 165 272 Other 1,257 658 Total deferred tax assets 18,921 16,334 Valuation allowance ( 17,871 ) ( 16,331 ) Total deferred tax assets, net of valuation allowance 1,050 3 Deferred tax liabilities: Section 481(a) adjustment ( 670 ) — Other ( 380 ) ( 3 ) Total deferred tax liabilities ( 1,050 ) ( 3 ) Net deferred tax assets $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share | The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted net loss per share calculations: Year Ended December 31, 2023 2022 Net loss attributable to common stockholders $ ( 14,383 ) $ ( 19,914 ) Weighted average number of shares of common stock 10,971 10,159 Basic and diluted net loss per share $ ( 1.31 ) $ ( 1.96 ) |
Schedule of Antidilutive Securities Excluded From Calculation of Diluted Loss Per Share | The Company excluded the following amounts of equity securities from its net loss per diluted share calculations for the periods presented because their effect was anti-dilutive: Year Ended December 31, 2023 2022 Series A Redeemable Convertible Preferred Stock 7,940 — Series A Warrants and Series B Warrants 4,367 — Restricted stock awards and units 483 708 Outstanding stock options 1,974 1,202 |
Schedule of Anti-Dilutive Weighted Average Shares Excluded From Net Loss Per Share Diluted Shares Calculation | The anti-dilutive weighted-average shares excluded from the net loss per share diluted shares calculations were: Year Ended December 31, 2023 2022 Series A Redeemable Convertible Preferred Stock 3,002 — Series A Warrants 165 — Restricted stock awards and units 720 929 Outstanding stock options 1,808 1,149 Total 5,695 2,078 |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Overview And Basis Of Presentation [Line Items] | ||
Accumulated deficit | $ (111,891) | $ (97,508) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Segment Customer | Dec. 31, 2022 USD ($) Customer | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segments | Segment | 1 | |
Number of reportable segments | Segment | 1 | |
Long-lived assets in United States | 95% | 92% |
Allowance for credit losses | $ 95,000 | $ 69,000 |
Acquired intangible assets weighted average amortization period | 15 years | |
Impairment of intangible assets | $ 0 | 0 |
Accounts receivables payment terms | 30 days | |
Research and development expenses | $ 6,139,000 | 11,814,000 |
Product and service revenue | 35,716,000 | 29,443,000 |
Selling, general and administrative expenses | 26,100,000 | 27,170,000 |
Advertising cost | 617,000 | 465,000 |
Operating lease right-of-use assets | 2,141,000 | 2,630,000 |
Long-term operating lease liabilities | $ 1,750,000 | 2,272,000 |
Research and Development Expenses | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Inventory costs | $ 3,400,000 | |
Customer Concentration Risk | Revenue Benchmark | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of customers | Customer | 1 | 1 |
Customer Concentration Risk | Revenue Benchmark | Customer One | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Customer Concentration Risk | Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of customers | Customer | 0 | 0 |
Customer Concentration Risk | Accounts Receivable | Customer | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 10% | |
Shipping and Handling | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cost of revenue | $ 198,000 | $ 157,000 |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating leases, estimated useful life | 5 years | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating leases, estimated useful life | 10 years | |
Maximum | Accounting Standards Update 2016-02 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating leases, estimated useful life | 12 months | |
International Distribution Agreement | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cost of revenue | $ 103,000 | |
Product and service revenue | 202,000 | |
Selling, general and administrative expenses | $ 184,000 | |
Acquired Product Rights and Technology | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Acquired intangible assets weighted average amortization period | 15 years | |
Acquired Product Rights and Technology | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Acquired intangible assets weighted average amortization period | 20 years | |
Customer Relationships | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Acquired intangible assets weighted average amortization period | 10 years | |
Customer Relationships | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets estimated useful life | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Depreciation is Computed using Straight-Line Method over Useful Lives (Details) | Dec. 31, 2023 |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeTermOfLeaseMember |
Research and Development Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Research and Development Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 8 years |
Manufacturing Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Manufacturing Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Transportation Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Transportation Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 7 years |
Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | $ 35,716 | $ 29,443 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 25,262 | 18,776 |
South Korea | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 257 | 2,180 |
Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 5,585 | 4,409 |
Asia (Excluding South Korea) | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | 3,836 | 3,576 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Product and service revenue | $ 776 | $ 502 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue From Contracts With Customers [Line Items] | ||
Lease revenue | $ 6,448 | $ 5,915 |
Accounts receivables payment terms | 30 days | |
Interest income on notes receivable | $ 85 | $ 17 |
Revenue remaining performance obligation amount | $ 23,679 | |
Minimum | ||
Revenue From Contracts With Customers [Line Items] | ||
Notes receivable interest rate | 5.80% | |
Maximum | ||
Revenue From Contracts With Customers [Line Items] | ||
Notes receivable interest rate | 7.80% |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, current | $ 4,001 | $ 6,040 |
Notes receivable, current | 323 | 200 |
Notes receivable, long-term | 1,279 | 442 |
Contract liability, current | 1,349 | 768 |
Deferred revenue, current | 1,349 | 768 |
Notes and Other Receivables, Long-Term, Net | ||
Schedule Of Contract Balances [Line Items] | ||
Notes receivable, long-term | 1,279 | 442 |
Prepaid and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract asset, current | 982 | 332 |
Other Long-Term Liabilities | ||
Schedule Of Contract Balances [Line Items] | ||
Deferred revenue, non-current | 350 | 17 |
Contract liability, non-current | $ 220 | $ 150 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Summary of Allowance for Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | $ 56 | $ 47 |
Change in provision for credit losses | 6 | 26 |
Write-offs | (17) | |
Ending balance | $ 62 | $ 56 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers - Summary of Allowance for Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 13 | $ 63 |
Change in provision for credit losses | 20 | 10 |
Write-offs | 0 | (60) |
Ending balance | $ 33 | $ 13 |
Revenue From Contracts With C_8
Revenue From Contracts With Customers - Summary of Maturities of Notes Receivables Net Under Extended Payment Terms (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
2024 | $ 432 |
2025 | 432 |
2026 | 432 |
2027 | 386 |
2028 | 185 |
Thereafter | 14 |
Total undiscounted cash flows | 1,881 |
Present value of notes receivable | 1,635 |
Difference between undiscounted and discounted cash flows | $ 246 |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Schedule of Information About Contract Assets from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning Balance | $ 332 | |
Contract assets recognized | 1,630 | $ 355 |
Payments received | (806) | (23) |
Write-off due to contract modification | (174) | |
Ending Balance | $ 982 | $ 332 |
Revenue From Contracts With _10
Revenue From Contracts With Customers - Schedule of Information About Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 935 | $ 970 |
Billings not yet recognized as revenue | 1,847 | 822 |
Beginning contract liabilities recognized as revenue | (863) | (857) |
Ending balance | $ 1,919 | $ 935 |
Revenue From Contracts With _11
Revenue From Contracts With Customers - Additional Information (Details 1) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation amount | $ 23,679 |
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 | $ 8,374 |
Revenue remaining performance obligation expected timing of satisfaction period | 12 months |
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 | $ 5,947 |
Revenue remaining performance obligation expected timing of satisfaction period | 2 years |
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 | $ 4,203 |
Revenue remaining performance obligation expected timing of satisfaction period | 3 years |
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 | $ 3,235 |
Revenue remaining performance obligation expected timing of satisfaction period | 4 years |
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 | $ 1,920 |
Revenue remaining performance obligation expected timing of satisfaction period |
Revenue From Contracts With _12
Revenue From Contracts With Customers - Summary of Costs to Obtain Customer Contracts (Details) - Cost to Obtain Customer Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Capitalized Contract Cost [Line Items] | ||
Beginning balance | $ 4 | $ 43 |
Additions | 611 | 350 |
Amortization | (580) | (389) |
Ending balance | $ 35 | $ 4 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets | $ 18,096,000 | $ 0 |
Liabilities | ||
Warrant derivative liabilities | 8,457,000 | |
Total liabilities | 8,457,000 | $ 0 |
Money market funds | ||
Assets | ||
Total assets | 11,171,000 | |
U.S. treasury bills | ||
Assets | ||
Total assets | 5,942,000 | |
Certificates of deposit | ||
Assets | ||
Total assets | 983,000 | |
Level 1 | ||
Assets | ||
Total assets | 18,096,000 | |
Level 1 | Money market funds | ||
Assets | ||
Total assets | 11,171,000 | |
Level 1 | U.S. treasury bills | ||
Assets | ||
Total assets | 5,942,000 | |
Level 1 | Certificates of deposit | ||
Assets | ||
Total assets | 983,000 | |
Level 3 | ||
Liabilities | ||
Warrant derivative liabilities | 8,457,000 | |
Total liabilities | $ 8,457,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - Recurring $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | $ 18,092 |
Unrealized Gains | 4 |
Fair Value | 18,096 |
Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | 11,171 |
Fair Value | 11,171 |
U.S. treasury bills | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | 2,989 |
Unrealized Gains | 1 |
Fair Value | 2,990 |
U.S. treasury bills | Short term investments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | 2,952 |
Fair Value | 2,952 |
Certificates of deposit | Short term investments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | 490 |
Unrealized Gains | 1 |
Fair Value | 491 |
Certificates of deposit | Long term investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Amortized Cost | 490 |
Unrealized Gains | 2 |
Fair Value | $ 492 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Additional Information) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Assets measured at fair value | $ 18,096,000 | $ 0 |
Liabilities measured at fair value | 8,457,000 | $ 0 |
Fair value transfers between levels | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Changes In The Fair Value of Warrant Liabilities (Details) - Level 3 $ in Thousands | 7 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value Beginning Balance | $ 5,605 |
Change in Fair Value | 2,852 |
Fair Value Ending Balance | 8,457 |
Series A Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value Beginning Balance | 2,971 |
Change in Fair Value | 1,491 |
Fair Value Ending Balance | 4,462 |
Series B Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value Beginning Balance | 2,634 |
Change in Fair Value | 1,361 |
Fair Value Ending Balance | $ 3,995 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished Goods | $ 4,936 | $ 4,002 |
Work-in-process | 2,395 | 797 |
Raw Materials | 8,358 | 6,941 |
Total | $ 15,689 | $ 11,740 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory, Net [Abstract] | ||
Write downs of inventories to net realizable value | $ 66 | $ 50 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee and Lessor Lease Description [Line Items] | ||
Lease expiration date | Nov. 30, 2027 | |
Incremental borrowing rate | 10% | |
Lessee, operating leases, remaining lease terms | 3 years 10 months 24 days | |
Lessee, operating lease, renewal term | 5 years | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Depreciation expense on equipment under lease | $ 2,052 | $ 1,916 |
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 | 5 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 589 | $ 579 |
Short-term lease cost | 49 | 37 |
Total lease cost | $ 638 | $ 616 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Company Leases Including Lease Modification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 560 | $ 537 |
Right-of-use-assets obtained in exchange for lease obligations: | ||
Operating leases | $ 46 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 2,141 | $ 2,630 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease liabilities, current | $ 559 | $ 531 |
Operating lease liabilities, long-term | 1,750 | 2,272 |
Total operating lease liabilities | $ 2,309 | $ 2,803 |
Weighted-average remaining lease term | 3 years 10 months 24 days | 4 years 10 months 24 days |
Weighted-average discount rate | 10% | 10% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 575 | |
2025 | 591 | |
2026 | 607 | |
2027 | 571 | |
2028 | 3 | |
Total operating lease payments | 2,347 | |
Less: imputed interest | (38) | |
Total operating lease liabilities | $ 2,309 | $ 2,803 |
Leases - Schedule of Lease Reve
Leases - Schedule of Lease Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease revenue | $ 6,448 | $ 5,915 |
Leases - Schedule of Equipment
Leases - Schedule of Equipment Under Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Equipment under lease | $ 16,969 | $ 14,771 |
Less accumulated depreciation | (9,510) | (8,455) |
Equipment under lease, net | $ 7,459 | $ 6,316 |
Leases - Maturities of Operat_2
Leases - Maturities of Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,179 |
2025 | 517 |
2026 | 167 |
2027 | 52 |
2028 | 17 |
Total undiscounted cash flows | $ 1,932 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 2,872 | $ 2,747 |
Less accumulated depreciation | (2,381) | (2,239) |
Property and equipment, net | 679 | 563 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 112 | 112 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 987 | 1,001 |
Computer and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 97 | 102 |
System and Laser | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 1,295 | 1,204 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 293 | 240 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 50 | 50 |
Transportation Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 38 | 38 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Construction in progress | $ 188 | $ 55 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 2,418 | $ 2,258 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Assets capitalized amount | 0 | 61 |
Property and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 366 | $ 342 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,762 | $ 18,762 |
Accumulated Amortization | (7,737) | (6,640) |
Net Carrying Amount | 11,025 | 12,122 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,292 | 4,292 |
Accumulated Amortization | (2,360) | (2,028) |
Net Carrying Amount | 1,932 | 2,264 |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,900 | 13,900 |
Accumulated Amortization | (4,807) | (4,042) |
Net Carrying Amount | 9,093 | 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2019 | Dec. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | |||
Acquired intangible assets weighted average amortization period | 15 years | ||
Contingent milestone payments | $ 2,400 | ||
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,097 | $ 1,148 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Impairment of Underlying Assets, Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2024 | $ 1,125 | |
2025 | 1,234 | |
2026 | 1,224 | |
2027 | 1,215 | |
2028 | 1,008 | |
Thereafter | 5,219 | |
Net Carrying Amount | $ 11,025 | $ 12,122 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Compensation | $ 3,974 | $ 3,348 |
Professional services | 419 | 437 |
Customer advances | 34 | 171 |
Warranty | 324 | 120 |
Accrued offering costs | 188 | |
Other | 778 | 624 |
Total | $ 5,717 | $ 4,700 |
Warrant Liabilities - Additiona
Warrant Liabilities - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
May 31, 2023 | Dec. 31, 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) | 12 Months Ended | |
May 18, 2023 | Dec. 31, 2023 | |
Class of Warrant or Right [Line Items] | ||
Risk-free interest rate | 3.70% | 3.80% |
Expected term (years) | 5 years | 4 years 4 months 24 days |
Expected volatility | 55% | 55% |
Dividends | 0% | 0% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Contingent milestone payments | $ 2,400 | |
Additional royalty payments rate | 3% | |
Reduction of selling, general and administrative expenses | $ 1,368 | |
Supply Agreement | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Purchase obligation | $ 6,453 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | Dec. 31, 2023 | |
Convertible Preferred Stock [line Items] | ||
Offering costs | $ 901,000 | |
Series A Redeemable Convertible Preferred Stock | ||
Convertible Preferred Stock [line Items] | ||
Offering costs | 648,000 | |
General and administrative expenses | ||
Convertible Preferred Stock [line Items] | ||
Offering costs | $ 253,000 | |
Securities Purchase Agreement | Series A Redeemable Convertible Preferred Stock | ||
Convertible Preferred 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 | ||
Convertible Preferred Stock [line Items] | ||
Sale of ownership percentage | 50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Apr. 08, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||
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 | |
Maximum value of common and preferred stock and other securities issuable | $ 100,000,000 | ||
ATM offerings | |||
Class of Stock [Line Items] | |||
Sales of shares of common stock | 0 | 2 | |
Weighted average sales price | $ 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 | 1 Months Ended | 12 Months Ended | ||
Jul. 09, 2020 | Sep. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted | $ 1.94 | $ 3.9 | ||
Total fair value of options vested | $ 2,264 | $ 2,501 | ||
Total unrecognized compensation expense | $ 2,412 | |||
Total unrecognized compensation expense, weighted-average period of recognition | 2 years 1 month 6 days | |||
Dividends | 0% | 0% | ||
Common stock, shares authorized | 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 | 147,000 | |||
Percentage of outstanding shares of common stock | 1% | |||
Exercise price of option on fair value (as a percent) | 85% | |||
Common stock, shares authorized | 340,000 | 451,000 | ||
Shares of common stock have been issued to employees | 304,000 | |||
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] | ||||
Vesting period | 3 years | |||
Total fair value of restricted stock awards vested | $ 6,342 | $ 7,240 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation expense, weighted-average period of recognition | 1 year 2 months 12 days | |||
Total fair value of restricted stock awards vested | $ 466 | |||
Total unrecognized compensation expense | $ 885 | |||
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 | ||
Percentage of outstanding shares of common stock | 5% | |||
Weighted-average grant date fair value | $ 2.73 | |||
Number of stock awards granted | 546,000 | |||
2020 Incentive Award Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-average grant date fair value | $ 6.33 | |||
Number of stock awards granted | 86,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Shares Available for Issuance Under 2020 Plan (Details) - 2020 Incentive Award Plan - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Balance | 1,002,000 | 1,082,000 |
Authorized | 555,000 | 549,000 |
Granted/Awarded | (1,380,000) | (678,000) |
Cancelled | 117,000 | 49,000 |
Balance | 294,000 | 1,002,000 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Option Award Activity (Details) - 2020 Incentive Award Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding at beginning of period, Number of shares | 1,202,000 | 653,000 | |
Options granted, Number of Shares | 834,000 | 592,000 | |
Options cancelled, Number of Shares | (62,000) | (43,000) | |
Outstanding at end of period, Number of shares | 1,974,000 | 1,202,000 | 653,000 |
Vested and expected to vest at December 31, 2023, Number of Shares | 1,974,000 | ||
Vested and exercisable at December 31, 2023, Number of Shares | 960,000 | ||
Outstanding at beginning of period, Weighted Average Exercise Price | $ 6.91 | $ 7.57 | |
Options granted, Weighted Average Exercise Price | 2.98 | 6.19 | |
Options cancelled, Weighted Average Exercise Price | 5.01 | 6.88 | |
Outstanding at end of period, Weighted Average Exercise Price | 5.31 | $ 6.91 | $ 7.57 |
Vested and expected to vest at December 31, 2023, Weighted Average Exercise Price | 5.31 | ||
Vested and exercisable at December 31, 2023, Weighted Average Exercise Price | $ 6.48 | ||
Outstanding at end of period, Weighted Average Remaining Contractual Term (in Years) | 8 years | 8 years 8 months 12 days | 9 years 3 months 18 days |
Vested and expected to vest at December 31, 2023, Weighted Average Remaining Contractual Term (in Years) | 8 years | ||
Vested and exercisable at December 31, 2023, Weighted Average Remaining Contractual Term (in Years) | 7 years 2 months 12 days | ||
Outstanding at December 31, 2023, Aggregate Intrinsic Value | $ 429 | ||
Vested and expected to vest at December 31, 2023, Aggregate Intrinsic Value | 429 | ||
Vested and exercisable at December 31, 2023, Aggregate Intrinsic Value | $ 42 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Options Outstanding And Vested (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 1,974,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 8 years |
Options outstanding, Weighted average exercise price | $ 5.31 |
Options vested, Number Exercisable | shares | 960,000 |
Options vested, Weighted average exercise price | $ 6.48 |
Exercise Price $2.15 - $3.10 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Number | shares | 361,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 9 years |
Options outstanding, Weighted average exercise price | $ 2.66 |
Exercise Price $2.15 - $3.10 | Stock Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Exercise price range (lower) | 2.15 |
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 | 436,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 9 years 1 month 6 days |
Options outstanding, Weighted average exercise price | $ 3.23 |
Options vested, Number Exercisable | shares | 149,000 |
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 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 5.42 |
Options vested, Number Exercisable | shares | 10,000 |
Options vested, Weighted average exercise price | $ 5.78 |
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 | 415,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 8 years |
Options outstanding, Weighted average exercise price | $ 6.04 |
Options vested, Number Exercisable | shares | 199,000 |
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 | 730,000 |
Options outstanding, Weighted average remaining contractual term (in years) | 6 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ 7.44 |
Options vested, Number Exercisable | shares | 602,000 |
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) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate, minimum | 3.50% | 1.50% |
Risk-free interest rate, maximum | 4.70% | 4.20% |
Expected term (years) | 6 years | 6 years |
Expected volatility | 70% | |
Expected volatility, minimum | 57% | |
Expected volatility, maximum | 70% | |
Dividends | 0% | 0% |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - 2020 Incentive Award Plan - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Number of Units | 546 | |
Vested, Number of Units | (113) | |
Cancelled, Number of Units | (36) | |
Non-vested at end of the period, Number of Units | 483 | |
Granted, Weighted-average grant-date fair value per share | $ 2.73 | |
Vested, Weighted-average grant-date fair value per share | 4.14 | |
Cancelled, Weighted-average grant-date fair value per share | 2.65 | |
Non-vested at ending of year, Weighted-average grant-date fair value per share | $ 3.04 | |
Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested at beginning of year, Number of Units | 622 | 1,332 |
Vested, Number of Units | (616) | (704) |
Cancelled, Number of Units | (6) | (6) |
Non-vested at end of the period, Number of Units | 622 | |
Non-vested at beginning of year, Weighted-average grant-date fair value per share | $ 10.29 | $ 10.29 |
Vested, Weighted-average grant-date fair value per share | 10.29 | 10.29 |
Cancelled, Weighted-average grant-date fair value per share | $ 10.81 | 10.81 |
Non-vested at ending of year, Weighted-average grant-date fair value per share | $ 10.29 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - 2020 Incentive Award Plan - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, Number of Units | 546 | |
Non-vested at end of the period, Number of Units | 483 | |
Granted, Weighted-average grant-date fair value per share | $ 2.73 | |
Non-vested at ending of year, Weighted-average grant-date fair value per share | $ 3.04 | |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested at beginning of year, Number of Units | 86 | |
Granted, Number of Units | 86 | |
Non-vested at end of the period, Number of Units | 86 | |
Non-vested at beginning of year, Weighted-average grant-date fair value per share | $ 6.33 | |
Granted, Weighted-average grant-date fair value per share | $ 6.33 | |
Non-vested at ending of year, Weighted-average grant-date fair value per share | $ 6.33 |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 5,539 | $ 6,611 |
Sales | Product | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 10 | |
Cost of Sales | Product | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 289 | 219 |
Cost of Sales | Service | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 168 | 126 |
Selling, General and Administrative Expenses | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4,495 | 5,648 |
Research and Development Expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 577 | $ 618 |
Stock-Based Compensation - Su_8
Stock-Based Compensation - Summary of Unrecognized Stock-based Compensation Expense Expected to be Amortized (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
2024 | $ 2,069 |
2025 | 1,006 |
2026 | 215 |
2027 | 7 |
Total unrecognized stock-based compensation expense | $ 3,297 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (14,383) | $ (19,914) |
Total | $ (14,383) | $ (19,914) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Provision Computed using U.S. Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax at U.S. statutory rate on income before income taxes | $ (3,020) | $ (4,182) |
Change in valuation allowance | 1,540 | 3,317 |
State taxes | (376) | (369) |
Section 162(m) | 248 | 363 |
Stock-based compensation | 191 | 170 |
Deferred adjustment | 773 | 706 |
Warrant expense | 599 | |
Other | $ 45 | $ (5) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,836 | $ 5,855 |
Net operating loss carryforwards - Section 382 limited | 6,195 | |
Intangible assets | 5,530 | 5,866 |
Capitalization of research and experimentation expenses | 3,211 | 2,533 |
Stock-based compensation | 727 | 1,150 |
Fixed assets | 165 | 272 |
Other | 1,257 | 658 |
Total deferred tax assets | 18,921 | 16,334 |
Valuation allowance | (17,871) | (16,331) |
Total deferred tax assets, net of valuation allowance | 1,050 | 3 |
Deferred tax liabilities: | ||
Section 481(a) adjustment | (670) | |
Other | (380) | (3) |
Total deferred tax liabilities | $ (1,050) | $ (3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Amount of pre-change NOL carryforwards | $ 25,741,000 | |
Valuation allowance against deferred tax assets | 17,871,000 | $ 16,331,000 |
Increase in deferred tax assets valuation allowance | 1,540,000 | 1,540,000 |
Accrued interest and penalties associated with unrecognized tax benefits | $ 0 | 0 |
United States | ||
Income Taxes [Line Items] | ||
Amortization period | 5 years | |
Non-US | ||
Income Taxes [Line Items] | ||
Amortization period | 15 years | |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 32,452,000 | 23,935,000 |
Operating loss carryforwards, limitations on use | The federal net operating losses generated during years ended December 31, 2023 and 2022 (and not Section 382 limited; see below) may only be utilized to offset 80% of taxable income annually and may be carried forward indefinitely. The state net operating loss carryforwards generated will begin expiring in the year 2028, if not utilized. | |
State | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 22,612,000 | $ 18,724,000 |
Net Loss per Share - Reconcilia
Net Loss per Share - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders | $ (14,383) | $ (19,914) |
Weighted average number of shares of common stock basic | 10,971 | 10,159 |
Weighted average number of shares of common stock diluted | 10,971 | 10,159 |
Basic net loss per share | $ (1.31) | $ (1.96) |
Diluted net loss per share | $ (1.31) | $ (1.96) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Antidilutive Securities Excluded From Calculation of Diluted Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Series A Redeemable Convertible Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 7,940 | |
Series A Warrants and Series B Warrants | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 4,367 | |
Restricted Stock Awards and Units | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 483 | 708 |
Outstanding Stock Options | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Shares excluded from the calculation of net loss per diluted share | 1,974 | 1,202 |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Anti-Dilutive Weighted Average Shares Excluded From Net Loss Per Share Diluted Shares Calculation (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 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 | 5,695 | 2,078 |
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 | |
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 | 3,002 | |
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 | 165 | |
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 | 483 | 708 |
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 | 720 | 929 |
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 | 1,974 | 1,202 |
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 | 1,808 | 1,149 |