Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INTERNATIONAL STEM CELL CORPORATION | |
Entity Central Index Key | 0001355790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-51891 | |
Entity Tax Identification Number | 20-4494098 | |
Entity Address, Address Line One | 5950 Priestly Drive | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92008 | |
City Area Code | 760 | |
Local Phone Number | 940-6383 | |
Entity Common Stock, Shares Outstanding | 8,004,389 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 505,000 | $ 689,000 |
Accounts receivable, net | 668,000 | 403,000 |
Inventory, net | 1,139,000 | 917,000 |
Prepaid expenses and other current assets | 174,000 | 174,000 |
Total current assets | 2,486,000 | 2,183,000 |
Non-current inventory | 365,000 | 371,000 |
Property and equipment, net | 419,000 | 534,000 |
Intangible assets, net | 962,000 | 1,262,000 |
Right-of-use assets | 659,000 | 874,000 |
Deposits and other assets | 46,000 | 63,000 |
Total assets | 4,937,000 | 5,287,000 |
Current liabilities: | ||
Accounts payable | 611,000 | 360,000 |
Accrued liabilities | 284,000 | 386,000 |
Operating lease liabilities, current | 292,000 | 346,000 |
Advances | 250,000 | 250,000 |
Related party note payable | 2,912,000 | |
Paycheck Protection Program loan, current | 141,000 | |
Total current liabilities | 4,349,000 | 1,483,000 |
Related party note payable | 2,475,000 | |
Paycheck Protection Program loan, net of current portion | 517,000 | |
Operating lease liabilities, net of current portion | 645,000 | 845,000 |
Total liabilities | 4,994,000 | 5,320,000 |
Commitments and contingencies (Note 8) | ||
Stockholders' Deficit: | ||
Common stock, $0.001 par value; 120,000,000 shares authorized; 8,004,389 and 7,539,089 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 8,000 | 8,000 |
Additional paid-in capital | 105,293,000 | 104,769,000 |
Accumulated deficit | (109,663,000) | (109,115,000) |
Total stockholders' deficit | (4,357,000) | (4,333,000) |
Total liabilities, redeemable convertible preferred stock and stockholders' deficit | 4,937,000 | 5,287,000 |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Current liabilities: | ||
Series D redeemable convertible preferred stock, $0.001 par value; 50 shares authorized; 43 shares issued and outstanding; liquidation preference of $4,300 at September 30, 2021 and December 31, 2020 | 4,300,000 | 4,300,000 |
Nonredeemable Convertible Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Non-redeemable convertible preferred stock, $0.001 par value; 10,004,310 and 10,006,310 shares authorized, 5,254,310 and 5,255,124 shares issued and outstanding, liquidation preference of $9,763 and $10,565 at September 30, 2021 and December 31, 2020, respectively | $ 5,000 | $ 5,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Non-redeemable convertible preferred stock, par value | $ 0.001 | |
Non-redeemable convertible preferred stock, shares authorized | 20,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 8,004,389 | 7,539,089 |
Common stock, shares outstanding | 8,004,389 | 7,539,089 |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Temporary equity, par value | $ 0.001 | $ 0.001 |
Temporary equity, shares authorized | 50 | 50 |
Temporary equity, shares issued | 43 | 43 |
Temporary equity, shares outstanding | 43 | 43 |
Temporary equity, liquidation preference | $ 4,300 | $ 4,300 |
Nonredeemable Convertible Preferred Stock [Member] | ||
Non-redeemable convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Non-redeemable convertible preferred stock, shares authorized | 10,004,310 | 10,006,310 |
Non-redeemable convertible preferred stock, shares issued | 5,254,310 | 5,255,124 |
Non-redeemable convertible preferred stock, shares outstanding | 5,254,310 | 5,255,124 |
Liquidation preference | $ 9,763 | $ 10,565 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Total revenues | $ 1,842 | $ 1,481 | $ 5,333 | $ 5,652 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Operating expenses: | ||||
Cost of sales | $ 814 | $ 563 | $ 2,200 | $ 2,138 |
Research and development | 165 | 255 | 492 | 758 |
Selling and marketing | 352 | 403 | 1,049 | 1,347 |
General and administrative | 1,134 | 1,058 | 3,190 | 3,494 |
Total operating expenses | 2,465 | 2,279 | 6,931 | 7,737 |
Loss from operations | (623) | (798) | (1,598) | (2,085) |
Other income (expense): | ||||
Gain on forgiveness of debt | 476 | 1,137 | ||
Change in fair value of warrant liability | 282 | 167 | ||
Interest expense | (18) | (28) | (87) | (85) |
Total other income (expense), net | 458 | 254 | 1,050 | 82 |
Net loss | $ (165) | $ (544) | $ (548) | $ (2,003) |
Net loss per common share, basic and diluted | $ (0.02) | $ (0.07) | $ (0.07) | $ (0.27) |
Weighted-average common shares used to compute net loss per share, basic and diluted | 8,004 | 7,539 | 7,772 | 7,539 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Series D Redeemable Convertible Preferred Stock [Member] | Non-redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2019 | $ (2,888) | $ 5 | $ 8 | $ 103,490 | $ (106,391) | |
Beginning balance at Dec. 31, 2019 | $ 4,300 | |||||
Beginning balance, shares at Dec. 31, 2019 | 5,255 | 7,539 | ||||
Stock-based compensation | 418 | 418 | ||||
Net income (loss) | (373) | (373) | ||||
Ending balance at Mar. 31, 2020 | (2,843) | $ 5 | $ 8 | 103,908 | (106,764) | |
Ending balance at Mar. 31, 2020 | 4,300 | |||||
Ending balance, shares at Mar. 31, 2020 | 5,255 | 7,539 | ||||
Beginning balance at Dec. 31, 2019 | (2,888) | $ 5 | $ 8 | 103,490 | (106,391) | |
Beginning balance at Dec. 31, 2019 | 4,300 | |||||
Beginning balance, shares at Dec. 31, 2019 | 5,255 | 7,539 | ||||
Net income (loss) | (2,003) | |||||
Ending balance at Sep. 30, 2020 | (3,876) | $ 5 | $ 8 | 104,505 | (108,394) | |
Ending balance at Sep. 30, 2020 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2020 | 5,255 | 7,539 | ||||
Beginning balance at Mar. 31, 2020 | (2,843) | $ 5 | $ 8 | 103,908 | (106,764) | |
Beginning balance at Mar. 31, 2020 | 4,300 | |||||
Beginning balance, shares at Mar. 31, 2020 | 5,255 | 7,539 | ||||
Stock-based compensation | 324 | 324 | ||||
Net income (loss) | (1,086) | (1,086) | ||||
Ending balance at Jun. 30, 2020 | (3,605) | $ 5 | $ 8 | 104,232 | (107,850) | |
Ending balance at Jun. 30, 2020 | 4,300 | |||||
Ending balance, shares at Jun. 30, 2020 | 5,255 | 7,539 | ||||
Stock-based compensation | 273 | 273 | ||||
Net income (loss) | (544) | (544) | ||||
Ending balance at Sep. 30, 2020 | (3,876) | $ 5 | $ 8 | 104,505 | (108,394) | |
Ending balance at Sep. 30, 2020 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2020 | 5,255 | 7,539 | ||||
Beginning balance at Dec. 31, 2020 | (4,333) | $ 5 | $ 8 | 104,769 | (109,115) | |
Beginning balance at Dec. 31, 2020 | 4,300 | |||||
Beginning balance, shares at Dec. 31, 2020 | 5,255 | 7,539 | ||||
Stock-based compensation | 234 | 234 | ||||
Net income (loss) | (599) | (599) | ||||
Ending balance at Mar. 31, 2021 | (4,698) | $ 5 | $ 8 | 105,003 | (109,714) | |
Ending balance at Mar. 31, 2021 | 4,300 | |||||
Ending balance, shares at Mar. 31, 2021 | 5,255 | 7,539 | ||||
Beginning balance at Dec. 31, 2020 | (4,333) | $ 5 | $ 8 | 104,769 | (109,115) | |
Beginning balance at Dec. 31, 2020 | 4,300 | |||||
Beginning balance, shares at Dec. 31, 2020 | 5,255 | 7,539 | ||||
Net income (loss) | (548) | |||||
Ending balance at Sep. 30, 2021 | (4,357) | $ 5 | $ 8 | 105,293 | (109,663) | |
Ending balance at Sep. 30, 2021 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2021 | 5,254 | 8,004 | ||||
Beginning balance at Mar. 31, 2021 | (4,698) | $ 5 | $ 8 | 105,003 | (109,714) | |
Beginning balance at Mar. 31, 2021 | 4,300 | |||||
Beginning balance, shares at Mar. 31, 2021 | 5,255 | 7,539 | ||||
Conversion of series I-1 preferred stock, shares | (1) | 465 | ||||
Stock-based compensation | 172 | 172 | ||||
Net income (loss) | 216 | 216 | ||||
Ending balance at Jun. 30, 2021 | (4,310) | $ 5 | $ 8 | 105,175 | (109,498) | |
Ending balance at Jun. 30, 2021 | 4,300 | |||||
Ending balance, shares at Jun. 30, 2021 | 5,254 | 8,004 | ||||
Stock-based compensation | 118 | 118 | ||||
Net income (loss) | (165) | (165) | ||||
Ending balance at Sep. 30, 2021 | $ (4,357) | $ 5 | $ 8 | $ 105,293 | $ (109,663) | |
Ending balance at Sep. 30, 2021 | $ 4,300 | |||||
Ending balance, shares at Sep. 30, 2021 | 5,254 | 8,004 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (548,000) | $ (2,003,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 195,000 | 192,000 |
Operating lease expense | 215,000 | 199,000 |
Impairment of intangible assets | 250,000 | 65,000 |
Loss on disposal of property and equipment | 4,000 | |
Stock-based compensation | 524,000 | 1,015,000 |
Gain on forgiveness of debt | (1,137,000) | |
Interest expense on related party note payable | 87,000 | 78,000 |
Change in fair value of warrant liability | (167,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (265,000) | 1,006,000 |
Inventory, net | (216,000) | 284,000 |
Prepaid expenses and other current assets | 48,000 | |
Deposits and other assets | 17,000 | 26,000 |
Accounts payable | 251,000 | (263,000) |
Accrued liabilities | (104,000) | (272,000) |
Operating lease liabilities | (254,000) | (238,000) |
Net cash used in operating activities | (981,000) | (30,000) |
Cash flows from investing activities | ||
Purchases of property and equipment | (13,000) | (24,000) |
Payments for patent licenses | (14,000) | (58,000) |
Net cash used in investing activities | (27,000) | (82,000) |
Cash flows from financing activities | ||
Proceeds from Paycheck Protection Program loans | 474,000 | 654,000 |
Proceeds from note payable from a related party | 350,000 | |
Net cash provided by financing activities | 824,000 | 654,000 |
Net increase (decrease) in cash | (184,000) | 542,000 |
Cash, beginning of period | 689,000 | 484,000 |
Cash, end of period | 505,000 | 1,026,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 5,000 | 4,000 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Gain on forgiveness of debt | 1,137,000 | |
Right-of-use asset obtained in exchange for operating lease liability | 421,000 | |
Patent license costs included in accrued liabilities | $ 7,000 | $ 6,000 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded on the OTCQX under the symbol “ISCO”. The Company is primarily a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC (“LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 200 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. (“LSC”) – for the anti-aging market, develops, manufactures and markets a category of anti-aging skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. (“Cyto Therapeutics”) – performs research and development (“R&D”) for the therapeutic market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. COVID-19 Pandemic The COVID-19 pandemic has caused business disruptions in the Company’s business globally. The Company’s condensed consolidated financial statements reflect judgments and estimates that could change in the future as a result of the COVID-19 pandemic. For the nine months ended September 30, 2021, the Company experienced a year-over-year decline in product sales. In response, the Company has reduced its capital spending and, where possible, operating expenses while facilitating ongoing safe and reliable operations. As of the date of this report, the Company expects the COVID-19 pandemic will continue to adversely impact its business, financial condition, liquidity, and future results of operations. The full extent to which the COVID-19 pandemic will impact the Company remains uncertain and ultimately will be dictated by the length and severity of the pandemic, as well as the economic recovery and federal, state and local government actions taken in response. The Company is continuing to monitor the impact of COVID-19 on the Company’s operations, workforce, suppliers, customers and industry. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on March 30, 2021. Liquidity and Going Concern The Company had an accumulated deficit of approximately $109.7 million as of September 30, 2021 and has, on an annual basis, incurred net losses and negative operating cash flows since inception. The Company has had no revenue from research and development of its therapeutic product candidates. Unless the Company obtains additional financing, the Company does not have sufficient cash on hand to sustain operations at least through one year after the issuance date of these condensed consolidated financial statements. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. For the foreseeable future, the Company’s ability to continue its operations is dependent upon its ability to obtain additional financing. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional funding from sources, including through debt and/or equity financing, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; • the number and type of product candidates that the Company decides to pursue; • demand from the Company’s largest original equipment manufacturer customers; and • the development of major public health concerns, including COVID-19 or other pandemics arising globally, and the current and future impact that such concerns may have on the Company’s operations and funding requirements. As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced volatility and disruptions, including inconsistent liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. As the pandemic continues and restrictions remain in place or new restrictions are imposed, it may make any additional debt and/or equity financing more difficult, more costly and more dilutive. In addition, debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. If additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. Furthermore, if sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. The Company’s failure to raise capital or enter into applicable arrangements when needed would have a negative impact on its financial condition. Principles of Consolidation and Foreign Currency Transactions The condensed consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company and its subsidiaries, including its wholly-owned Australian subsidiary, Cyto Therapeutics, is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the respective balance sheet dates. Revenue and expenses are translated at the average rate in effect on the date of the transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in general and administrative expense in the accompanying condensed consolidated statements of operations and were not material for the periods presented. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and the fair value of stock option grants using the Black-Scholes option valuation model. Actual results could differ from those estimates. Segments The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market, and; LSC – anti-aging market. Inventory Inventory is accounted for using the average cost and first-in, first-out (“FIFO”) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for other LCT products. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. LCT’s inventory has a long product life cycle, does not have a shelf life when frozen, and future demand is uncertain. As such, at each reporting period, the Company estimates its reserve for allowance and obsolescence using historical sales data and inventory turnover rates. The establishment of a reserve for excess and obsolete inventory establishes a new cost basis in the inventory. If the Company is able to sell such inventory, any related reserves would be reduced in the period of sale. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the accompanying condensed consolidated balance sheets. Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company recorded an allowance for doubtful accounts of $3,000 and $12,000 as of September 30, 2021 and December 31, 2020, respectively. Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), whereby BioTime paid an advance of $250,000 to LCT to produce, make, and distribute certain products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2021, no revenues were realized and attributable to BioTime under this agreement. Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. Costs related to leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Amortization begins once the patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the useful life of the underlying patent, which is generally 15 years, or when the intangible asset is rejected or abandoned. All amortization expense related to intangible assets is included in general and administrative expense in the accompanying condensed consolidated statements of operations. Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in circumstances (“triggering event”) indicate that the carrying value of an asset or group of assets may not be recovered. If a triggering event is determined to have occurred, the carrying value of an asset or group of assets is compared to the future undiscounted cash flows expected to be generated by the asset or group of assets. If the carrying value exceeds the undiscounted cash flows of the asset or group of assets, then impairment exists . Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 191 $ 93 $ 284 19 % $ 542 $ 422 $ 964 22 % Media 1,124 123 1,247 81 % 3,036 451 3,487 78 % Total $ 1,315 $ 216 $ 1,531 100 % $ 3,578 $ 873 $ 4,451 100 % Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 224 72 % $ 211 68 % $ 635 72 % $ 733 66 % Professional 87 28 % 100 32 % 247 28 % 384 34 % Total $ 311 100 % $ 311 100 % $ 882 100 % $ 1,117 100 % T he Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical market and anti-aging market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are primarily to spas, salons and other skincare providers. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the performance obligation(s) within the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time (i.e., upon delivery of the product). For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligation(s). The Company elects to account for shipping and handling costs as activities to fulfill the promise to transfer the goods to a customer. As a result, no consideration is allocated to shipping and handling costs. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue (i.e., the transaction price) is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the consideration it expects to be entitled to after transferring control of those goods or services to a customer. From time to time, the Company offers sales promotions on its products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur and is updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after a performance obligation is satisfied. As of September 30, 2021 and December 31, 2020 Practical Expedients The Company has elected the practical expedient to not determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and anti-aging product markets once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes consideration from the determined transaction price. Allowance for Sales Returns The Company’s anti-aging products have a 30-day product return guarantee; however, the Company determined that there is a low probability that returns will occur based on its historical rate of returns. Historically, returns have not been significant and are recognized as a reduction to current period revenue. As of September 30, 2021 and December 31, 2020 , the Company recorded no allowance for sales returns. Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products, as well as related direct materials, general laboratory supplies and an allocation of overhead. Certain of the Company’s licensed technology agreements may require the Company to pay royalties based on the future sale of the Company’s products. Such royalties will be recorded as a component of cost of sales when incurred. Additionally, milestone payments or the amortization of license fees related to developed technologies used in the Company’s products will be included as a component of cost of sales to the extent that such payments become due in the future. Research and Development Costs Research and development costs, which are expensed as incurred, primarily consist of salaries and benefits associated with research and development personnel, overhead and occupancy costs, contract services costs and amortization of license costs for technology used in research and development with alternative future uses , offset by the research and development tax credit provided by the Australian Taxation Office for qualified expenditures. Stock-Based Compensation The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of forfeitures which are recognized as incurred, over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. Fair Value of Financial Instruments The Company believes that the carrying value of its cash, accounts receivables, accounts payable, accrued liabilities and related party note payable as of September 30, 2021 and December 31, 2020 approximate their fair values because of the short-term nature of those instruments. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of September 30, 2021, the Company had no financial assets or liabilities measured at fair value on a recurring basis. As of December 31, 2020, the Company had outstanding a warrant liability which was measured at fair value on a recurring basis. The fair value of the warrant liability was calculated using the Monte-Carlo simulation model, which required the use of certain estimates. As of December 31, 2020, the fair value of the warrant liability was estimated to be zero. Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted 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 common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Potentially dilutive common stock equivalents are comprised of stock options, common stock warrants and convertible preferred stock. For the three and nine months ended September 30, 2021 and 2020, there was no difference in the number of shares used to calculate basic and diluted shares outstanding. For the three and nine months ended September 30, 2021 and 2020, the following common stock options, common stock warrants and convertible preferred stock were not included in the diluted net loss per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options outstanding 5,451,787 4,711,130 4,742,051 4,729,829 Common stock warrants outstanding — 3,948,569 — 3,949,521 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,209,835 3,675,135 3,444,130 3,675,135 Total 11,118,765 14,791,977 10,643,324 14,811,628 Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive loss other than net loss from operations for the three and nine months ended September 30, 2021 and 2020. Customer Concentrations During the nine months ended September 30, 2021 and 2020, one customer accounted for approximately 38% and 43%, respectively, of consolidated revenues. As of September 30, 2021 and December 31, 2020, the customer accounted for approximately 48% and 55%, respectively, of accounts receivable, net. No other single customer accounted for more than 10% of revenues for the periods then ended for any segment. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. Inventory The components of inventory are as follows (in thousands): September 30, December 31, 2021 2020 Raw materials $ 573 $ 427 Work in process 407 481 Finished goods 1,061 991 2,041 1,899 Less: allowance for inventory excess and obsolescence (537 ) (611 ) Total current and non-current inventory, net $ 1,504 $ 1,288 Inventory, net $ 1,139 $ 917 Non-current inventory 365 371 Total current and non-current inventory, net $ 1,504 $ 1,288 During the nine months ended September 30, 2021, the Company disposed of obsolete inventory in the amount of $45,000. The inventory had been fully reserved for and the write-off had no impact on the Company’s consolidated statements of operations for the periods presented. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consist of the following (in thousands): September 30, December 31, 2021 2020 Machinery and equipment $ 1,661 $ 1,661 Computer equipment and software 243 241 Office equipment 230 230 Leasehold improvements 1,312 1,303 Construction in progress 1 3 3,447 3,438 Less: accumulated depreciation and amortization (3,028 ) (2,904 ) Property and equipment, net $ 419 $ 534 Depreciation and amortization expense for the three months ended September 30, 2021 and 2020 was $41,000 and $42,000, respectively. Depreciation and amortization expense for the nine months ended September 30, 2021 and 2020 was $124,000. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets Intangible Assets consists of the following (in thousands): September 30, December 31, 2021 2020 Patents $ 1,270 $ 2,286 Less: accumulated amortization (383 ) (1,099 ) 887 1,187 Indefinite life logos and trademarks 75 75 Intangible assets, net $ 962 $ 1,262 Amortization expense for the three months ended September 30, 2021 and 2020 was $24,000 and $23,000, respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 was $71,000 and $68,000, respectively. Impairment charges for the nine months ended September 30, 2021 and 2020 was $250,000 and $65,000, respectively. The impairment charges, measured on a cost basis, related to abandonment of certain internally generated and licensed intellectual property in the Company’s therapeutic market segment that was determined by management to have no future economic benefit. |
Paycheck Protection Program Loa
Paycheck Protection Program Loan | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Program Loan | 5. Paycheck Protection Program Loan In May 2020, the Company received a loan of $654,000 from its lender under the Paycheck Protection Program (“First Draw Loan”). The Paycheck Protection Program (“PPP”), as amended, was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). The First Draw Loan has a two-year 24-week In March 2021, the Company received a loan of $474,000 from its lender under the PPP (“Second Draw Loan”). The Second Draw Loan has a five-year In June 2021, the Company applied for and received forgiveness of its First Draw Loan in whole from the SBA and its lender. The amount of forgiveness totaled $661,000, which consisted of unpaid principal and accrued interest. In August 2021, the Company applied for and received forgiveness of its Second Draw Loan in whole from the SBA and its lender. The amount of forgiveness totaled $476,000, which consisted of unpaid principal and accrued interest. The Company recorded the forgiveness of the First Draw Loan and Second Draw Loan as a gain in other income (expense), net, on the accompanying condensed consolidated statements of operations. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 6. Convertible Preferred Stock and Stockholders’ Deficit Non-Redeemable Convertible Preferred Stock The Company’s Series B, Series G, Series I-1 and Series I-2 non-redeemable convertible preferred stock has been classified as equity on the accompanying condensed consolidated balance sheets. During the three months ended June 30, 2021, holders of all remaining shares of the Company’s Series I-1 preferred stock converted 814 shares of issued and outstanding Series I-1 preferred stock into 465,300 shares of common stock of the Company. On June 25, 2021, the Company filed a Certificate of Elimination for the Series I-1 convertible preferred stock with the Secretary of State of the State of Delaware. The Certificate of Elimination amended the provisions of the Certificate of Incorporation of the Company to eliminate the powers, designations, preferences, privileges and other rights of the Series I-1 preferred stock. The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of September 30, 2021 consisted of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 453 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-2 4,310 4,310 4,310 — Total 10,004,310 5,254,310 $ 9,763 $ 5 The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of December 31, 2020 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 441 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,565 $ 5 Common Stock As of September 30, 2021, the Company was authorized to issue 120,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. The Company has designated 50 shares of Series D redeemable convertible preferred stock and a total of 10,004,310 shares of Series B, Series G and Series I-2 non-redeemable convertible preferred stock. Common Stock Warrants In October 2014 and March 2016, the Company issued warrants exercisable for 62,047 and 11,159,995 shares of common stock, respectively, at an exercise price of $1.75 per share to certain placement agents and existing investors in connection with financing arrangements. In April 2020 March 2021 Equity Incentive Plans The Company adopted the 2006 Equity Participation Plan (as amended the “2006 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 100,000 shares may be granted to employees, directors and consultants under this Plan. The options granted under the 2006 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. The 2006 Plan expired on November 16, 2016. Options and other equity-based awards granted prior to the expiration of the 2006 Plan will continue in effect until the option or award is exercised or terminates pursuant to its terms. No new awards may be granted under the 2006 Plan following its expiration. In April 2010, the Company adopted the 2010 Equity Participation Plan, as amended (the “2010 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 9,700,000 shares may be granted to employees, directors and consultants under the 2010 Plan. The options granted under the 2010 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. In June 2020, the Company amended the 2010 Plan to extend the term of the 2010 Plan until March 2030. No other material provisions were amended. Stock Options Transactions involving stock options issued to employees, directors and consultants under the 2006 Plan and the 2010 Plan are summarized below. Options issued have a maximum life of 10 years. The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Weighted- Average Remaining Number of Weighted- Contractual Aggregate Outstanding Average Term Intrinsic Value Options Exercise (in years) (in thousands) Outstanding at December 31, 2020 4,255,371 $ 3.41 Granted 1,761,962 $ 0.39 Forfeited or canceled (555,118 ) $ 2.12 Expired (22,042 ) $ 284.00 Outstanding at September 30, 2021 5,440,173 $ 1.43 7.55 $ 255 Vested and expected to vest at September 30, 2021 5,206,848 $ 1.48 7.45 $ 221 Exercisable at September 30, 2021 3,788,495 $ 1.86 6.67 $ 29 Stock-Based Compensation The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option valuation model. All options are amortized over the requisite service periods. For the three months ended The weighted-average assumptions used in the Black-Scholes option valuation model to determine the fair value of stock options granted for the nine months ended Nine Months Ended September 30, 2021 2020 Risk-free interest rate 0.89% 0.37% Expected stock price volatility 83.85% 88.82% Expected dividend yield 0% 0% Expected life of options (in years) 5.67 5.36 Total stock-based compensation expense for the three and nine months ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of sales $ 3 $ 21 $ 18 $ 66 Research and development 7 28 38 107 Selling and marketing 5 18 27 60 General and administrative 103 206 441 782 Total $ 118 $ 273 $ 524 $ 1,015 Unrecognized compensation expense related to stock options as of September 30, Common Stock Reserved for Future Issuance As of September 30, 2021, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 5,440,173 Common stock available for issuance under the 2010 Plan 4,094,753 Redeemable convertible preferred stock 2,457,143 Non-redeemable convertible preferred stock 3,209,835 Total 15,201,904 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions In 2011, the Company executed an operating lease for its corporate offices with S Real Estate Holdings LLC. S Real Estate Holdings LLC is owned by Dr. Russell Kern, the Company’s Executive Vice President and Chief Scientific Officer and a director and was previously owned by Dr. Andrey Semechkin, the Company’s Chief Executive Officer and Co-Chairman of the Board of Directors. The lease agreement was negotiated at arm’s length and was reviewed by the Company’s outside legal counsel. The terms of the lease were reviewed by a committee of independent directors, and the Company believes that, in total, those terms are at least as favorable to the Company as could be obtained for comparable facilities from an unaffiliated party. In March 2017, the Company signed an amendment to the lease agreement to extend the term of the lease until 2020 and include annual adjustments to the monthly lease payments. In March 2020, the Company entered into an amendment to the lease agreement. The amendment extended the term of the lease for three years (until February 2023 Between March 6, 2018 and December 17, 2019, to obtain funding for working capital purposes, the Company borrowed a total of $2.3 million from Dr. Semechkin and issued an unsecured, non-convertible promissory note in the principal amount of $2.3 million (the “Note”) to Dr. Semechkin. The outstanding principal amount under the Note accrued interest at a rate of 4.5% per annum. The outstanding principal and accrued interest on the Note was due and payable on January 15, 2021 and could be pre-paid without penalty at any time. On January 15, 2021, the Company and Dr. Semechkin modified the Note to extend the maturity date of the Note to January 15, 2022. No other terms of the Note were modified as a result of the extension. On March 5, 2021, to obtain additional funding for working capital purposes, the Company further modified the Note and issued an unsecured, non-convertible promissory note (the “New Note”) in the amount of $2.650 million to Dr. Semechkin. In exchange, Dr. Semechkin surrendered the Note and provided additional funding in the amount of $350,000 to the Company. The outstanding principal amount under the New Note accrues interest at a rate of 4.5% per annum. The outstanding principal and accrued interest on the New Note is due and payable on January 15, 2022 and may be pre-paid by the Company without penalty at any time. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company has three operating leases for real estate in California and Maryland: • Carlsbad, California – corporate offices with a term date of February 2023 and leased from a related party (see also Note 7 –Related Party Transactions); • Oceanside, California – primary research facility and laboratory space with a term date of December 2021; • Frederick, Maryland – mixed laboratory and administrative space with a term date of November 2025. The Company’s operating leases for real estate are subject to additional variable charges for common area maintenance and other variable costs, and do not include an option to extend the lease term. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of future minimum lease payments over the lease term. As of September 30, 2021, total right-of-use assets and operating lease liabilities were approximately $659,000 and $937,000, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. For the three months ended September 30, 2021 and 2020 lease expense totaled $118,000 and $117,000, respectively. For the nine months ended September 30, 2021 and 2020 lease expense totaled $355,000 and $354,000, respectively. As of September 30, 2021, the Company had no finance leases. Maturities of lease liabilities are as follows (in thousands): Years ending December 31, 2021 (remaining three months) $ 129 2022 394 2023 255 2024 233 2025 240 Thereafter — Total minimum lease payments 1,251 Less: imputed interest (314 ) Total future minimum lease payments 937 Less: operating lease liabilities, current (292 ) Operating lease liabilities, net of current portion $ 645 Licensed Patents The Company has a minimum annual license fee of $75,000 payable in two installments per year to Astellas Pharma pursuant to the amended UMass IP license agreement. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | 9. Segments The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market; LSC – anti-aging market. The Company does not measure the performance of its segments on any asset-based metrics. Therefore, segment information is presented only for operating income (loss). Revenues, expenses and operating income (loss) for the three and nine months ended September 30, 2021 and 2020 by market segment were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Biomedical market $ 1,531 $ 1,170 $ 4,451 $ 4,535 Anti-aging market 311 311 882 1,117 Total revenues 1,842 1,481 5,333 5,652 Operating expenses: Therapeutic market 958 872 2,516 2,656 Biomedical market 1,159 1,038 3,320 3,760 Anti-aging market 348 369 1,095 1,321 Total operating expenses 2,465 2,279 6,931 7,737 Operating income (loss) Therapeutic market (958 ) (872 ) (2,516 ) (2,656 ) Biomedical market 372 132 1,131 775 Anti-aging market (37 ) (58 ) (213 ) (204 ) Total operating loss $ (623 ) $ (798 ) $ (1,598 ) $ (2,085 ) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On October 26, 2021, the Company and S Real Estate Holdings, LLC (“Co-Tenant”), a related party, entered into a lease agreement with Rehco Holdings (the “Lease”) for the purpose of establishing a new corporate headquarters that combines the Company’s Carlsbad and Oceanside offices, including corporate, R&D, and manufacturing operations. The Lease premises covers approximately 7,260 square feet and will be shared with the Co-Tenant and its affiliated entities. The lease term began on November 1, 2021 and will continue for five years and two months, through December 31, 2026. The Company and Co-Tenant will pay a combined $10,890 per month in base rent, which escalates in a fixed amount over the lease term. In addition to base rent, the Company and Co-Tenant are responsible for certain costs and expenses, including insurance, maintenance costs, taxes and operating expenses. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded on the OTCQX under the symbol “ISCO”. The Company is primarily a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC (“LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 200 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. (“LSC”) – for the anti-aging market, develops, manufactures and markets a category of anti-aging skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. (“Cyto Therapeutics”) – performs research and development (“R&D”) for the therapeutic market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. |
COVID-19 Pandemic | COVID-19 Pandemic The COVID-19 pandemic has caused business disruptions in the Company’s business globally. The Company’s condensed consolidated financial statements reflect judgments and estimates that could change in the future as a result of the COVID-19 pandemic. For the nine months ended September 30, 2021, the Company experienced a year-over-year decline in product sales. In response, the Company has reduced its capital spending and, where possible, operating expenses while facilitating ongoing safe and reliable operations. As of the date of this report, the Company expects the COVID-19 pandemic will continue to adversely impact its business, financial condition, liquidity, and future results of operations. The full extent to which the COVID-19 pandemic will impact the Company remains uncertain and ultimately will be dictated by the length and severity of the pandemic, as well as the economic recovery and federal, state and local government actions taken in response. The Company is continuing to monitor the impact of COVID-19 on the Company’s operations, workforce, suppliers, customers and industry. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K filed with the SEC on March 30, 2021. |
Liquidity and Going Concern | Liquidity and Going Concern The Company had an accumulated deficit of approximately $109.7 million as of September 30, 2021 and has, on an annual basis, incurred net losses and negative operating cash flows since inception. The Company has had no revenue from research and development of its therapeutic product candidates. Unless the Company obtains additional financing, the Company does not have sufficient cash on hand to sustain operations at least through one year after the issuance date of these condensed consolidated financial statements. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. For the foreseeable future, the Company’s ability to continue its operations is dependent upon its ability to obtain additional financing. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional funding from sources, including through debt and/or equity financing, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; • the number and type of product candidates that the Company decides to pursue; • demand from the Company’s largest original equipment manufacturer customers; and • the development of major public health concerns, including COVID-19 or other pandemics arising globally, and the current and future impact that such concerns may have on the Company’s operations and funding requirements. As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced volatility and disruptions, including inconsistent liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. As the pandemic continues and restrictions remain in place or new restrictions are imposed, it may make any additional debt and/or equity financing more difficult, more costly and more dilutive. In addition, debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. If additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. Furthermore, if sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. The Company’s failure to raise capital or enter into applicable arrangements when needed would have a negative impact on its financial condition. |
Principles of Consolidation and Foreign Currency Transactions | Principles of Consolidation and Foreign Currency Transactions The condensed consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company and its subsidiaries, including its wholly-owned Australian subsidiary, Cyto Therapeutics, is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the respective balance sheet dates. Revenue and expenses are translated at the average rate in effect on the date of the transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in general and administrative expense in the accompanying condensed consolidated statements of operations and were not material for the periods presented. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and the fair value of stock option grants using the Black-Scholes option valuation model. Actual results could differ from those estimates. |
Segments | Segments The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market, and; LSC – anti-aging market. |
Inventory | Inventory Inventory is accounted for using the average cost and first-in, first-out (“FIFO”) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for other LCT products. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. LCT’s inventory has a long product life cycle, does not have a shelf life when frozen, and future demand is uncertain. As such, at each reporting period, the Company estimates its reserve for allowance and obsolescence using historical sales data and inventory turnover rates. The establishment of a reserve for excess and obsolete inventory establishes a new cost basis in the inventory. If the Company is able to sell such inventory, any related reserves would be reduced in the period of sale. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the accompanying condensed consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company recorded an allowance for doubtful accounts of $3,000 and $12,000 as of September 30, 2021 and December 31, 2020, respectively. |
Advances | Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), whereby BioTime paid an advance of $250,000 to LCT to produce, make, and distribute certain products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2021, no revenues were realized and attributable to BioTime under this agreement. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. Costs related to leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. |
Intangible Assets | Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Amortization begins once the patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the useful life of the underlying patent, which is generally 15 years, or when the intangible asset is rejected or abandoned. All amortization expense related to intangible assets is included in general and administrative expense in the accompanying condensed consolidated statements of operations. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in circumstances (“triggering event”) indicate that the carrying value of an asset or group of assets may not be recovered. If a triggering event is determined to have occurred, the carrying value of an asset or group of assets is compared to the future undiscounted cash flows expected to be generated by the asset or group of assets. If the carrying value exceeds the undiscounted cash flows of the asset or group of assets, then impairment exists . Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. |
Revenue Recognition | Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 191 $ 93 $ 284 19 % $ 542 $ 422 $ 964 22 % Media 1,124 123 1,247 81 % 3,036 451 3,487 78 % Total $ 1,315 $ 216 $ 1,531 100 % $ 3,578 $ 873 $ 4,451 100 % Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 224 72 % $ 211 68 % $ 635 72 % $ 733 66 % Professional 87 28 % 100 32 % 247 28 % 384 34 % Total $ 311 100 % $ 311 100 % $ 882 100 % $ 1,117 100 % T he Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical market and anti-aging market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are primarily to spas, salons and other skincare providers. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the performance obligation(s) within the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time (i.e., upon delivery of the product). For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligation(s). The Company elects to account for shipping and handling costs as activities to fulfill the promise to transfer the goods to a customer. As a result, no consideration is allocated to shipping and handling costs. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue (i.e., the transaction price) is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the consideration it expects to be entitled to after transferring control of those goods or services to a customer. From time to time, the Company offers sales promotions on its products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur and is updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after a performance obligation is satisfied. As of September 30, 2021 and December 31, 2020 Practical Expedients The Company has elected the practical expedient to not determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and anti-aging product markets once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes consideration from the determined transaction price. |
Allowance for Sales Returns | Allowance for Sales Returns The Company’s anti-aging products have a 30-day product return guarantee; however, the Company determined that there is a low probability that returns will occur based on its historical rate of returns. Historically, returns have not been significant and are recognized as a reduction to current period revenue. As of September 30, 2021 and December 31, 2020 , the Company recorded no allowance for sales returns. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products, as well as related direct materials, general laboratory supplies and an allocation of overhead. Certain of the Company’s licensed technology agreements may require the Company to pay royalties based on the future sale of the Company’s products. Such royalties will be recorded as a component of cost of sales when incurred. Additionally, milestone payments or the amortization of license fees related to developed technologies used in the Company’s products will be included as a component of cost of sales to the extent that such payments become due in the future. |
Research and Development Costs | Research and Development Costs Research and development costs, which are expensed as incurred, primarily consist of salaries and benefits associated with research and development personnel, overhead and occupancy costs, contract services costs and amortization of license costs for technology used in research and development with alternative future uses , offset by the research and development tax credit provided by the Australian Taxation Office for qualified expenditures. |
Stock-Based Compensation | Stock-Based Compensation The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of forfeitures which are recognized as incurred, over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company believes that the carrying value of its cash, accounts receivables, accounts payable, accrued liabilities and related party note payable as of September 30, 2021 and December 31, 2020 approximate their fair values because of the short-term nature of those instruments. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of September 30, 2021, the Company had no financial assets or liabilities measured at fair value on a recurring basis. As of December 31, 2020, the Company had outstanding a warrant liability which was measured at fair value on a recurring basis. The fair value of the warrant liability was calculated using the Monte-Carlo simulation model, which required the use of certain estimates. As of December 31, 2020, the fair value of the warrant liability was estimated to be zero. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted 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 common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Potentially dilutive common stock equivalents are comprised of stock options, common stock warrants and convertible preferred stock. For the three and nine months ended September 30, 2021 and 2020, there was no difference in the number of shares used to calculate basic and diluted shares outstanding. For the three and nine months ended September 30, 2021 and 2020, the following common stock options, common stock warrants and convertible preferred stock were not included in the diluted net loss per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options outstanding 5,451,787 4,711,130 4,742,051 4,729,829 Common stock warrants outstanding — 3,948,569 — 3,949,521 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,209,835 3,675,135 3,444,130 3,675,135 Total 11,118,765 14,791,977 10,643,324 14,811,628 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive loss other than net loss from operations for the three and nine months ended September 30, 2021 and 2020. |
Customer Concentrations | Customer Concentrations During the nine months ended September 30, 2021 and 2020, one customer accounted for approximately 38% and 43%, respectively, of consolidated revenues. As of September 30, 2021 and December 31, 2020, the customer accounted for approximately 48% and 55%, respectively, of accounts receivable, net. No other single customer accounted for more than 10% of revenues for the periods then ended for any segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Revenue Disaggregated by Segment, Product and Geography | The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 191 $ 93 $ 284 19 % $ 542 $ 422 $ 964 22 % Media 1,124 123 1,247 81 % 3,036 451 3,487 78 % Total $ 1,315 $ 216 $ 1,531 100 % $ 3,578 $ 873 $ 4,451 100 % Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 224 72 % $ 211 68 % $ 635 72 % $ 733 66 % Professional 87 28 % 100 32 % 247 28 % 384 34 % Total $ 311 100 % $ 311 100 % $ 882 100 % $ 1,117 100 % |
Summary of Antidilutive Securities not Included in Diluted Net Loss Per Share Calculation | For the three and nine months ended September 30, 2021 and 2020, the following common stock options, common stock warrants and convertible preferred stock were not included in the diluted net loss per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Options outstanding 5,451,787 4,711,130 4,742,051 4,729,829 Common stock warrants outstanding — 3,948,569 — 3,949,521 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,209,835 3,675,135 3,444,130 3,675,135 Total 11,118,765 14,791,977 10,643,324 14,811,628 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of the Components of Inventory | The components of inventory are as follows (in thousands): September 30, December 31, 2021 2020 Raw materials $ 573 $ 427 Work in process 407 481 Finished goods 1,061 991 2,041 1,899 Less: allowance for inventory excess and obsolescence (537 ) (611 ) Total current and non-current inventory, net $ 1,504 $ 1,288 Inventory, net $ 1,139 $ 917 Non-current inventory 365 371 Total current and non-current inventory, net $ 1,504 $ 1,288 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, December 31, 2021 2020 Machinery and equipment $ 1,661 $ 1,661 Computer equipment and software 243 241 Office equipment 230 230 Leasehold improvements 1,312 1,303 Construction in progress 1 3 3,447 3,438 Less: accumulated depreciation and amortization (3,028 ) (2,904 ) Property and equipment, net $ 419 $ 534 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible Assets consists of the following (in thousands): September 30, December 31, 2021 2020 Patents $ 1,270 $ 2,286 Less: accumulated amortization (383 ) (1,099 ) 887 1,187 Indefinite life logos and trademarks 75 75 Intangible assets, net $ 962 $ 1,262 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Authorized, Issued and Outstanding Shares of Non-redeemable Convertible Preferred Stock | The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of September 30, 2021 consisted of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 453 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-2 4,310 4,310 4,310 — Total 10,004,310 5,254,310 $ 9,763 $ 5 The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of December 31, 2020 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 441 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,565 $ 5 |
Summary of Changes in Options Outstanding and Related Exercise Prices for Company's Common Stock Options Issued | The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Weighted- Average Remaining Number of Weighted- Contractual Aggregate Outstanding Average Term Intrinsic Value Options Exercise (in years) (in thousands) Outstanding at December 31, 2020 4,255,371 $ 3.41 Granted 1,761,962 $ 0.39 Forfeited or canceled (555,118 ) $ 2.12 Expired (22,042 ) $ 284.00 Outstanding at September 30, 2021 5,440,173 $ 1.43 7.55 $ 255 Vested and expected to vest at September 30, 2021 5,206,848 $ 1.48 7.45 $ 221 Exercisable at September 30, 2021 3,788,495 $ 1.86 6.67 $ 29 |
Fair Value of Stock Options Grants, Weighted Average Assumptions | The weighted-average assumptions used in the Black-Scholes option valuation model to determine the fair value of stock options granted for the nine months ended Nine Months Ended September 30, 2021 2020 Risk-free interest rate 0.89% 0.37% Expected stock price volatility 83.85% 88.82% Expected dividend yield 0% 0% Expected life of options (in years) 5.67 5.36 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense for the three and nine months ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of sales $ 3 $ 21 $ 18 $ 66 Research and development 7 28 38 107 Selling and marketing 5 18 27 60 General and administrative 103 206 441 782 Total $ 118 $ 273 $ 524 $ 1,015 |
Summary of Shares of Common Stock Reserved for Future Issuance | As of September 30, 2021, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 5,440,173 Common stock available for issuance under the 2010 Plan 4,094,753 Redeemable convertible preferred stock 2,457,143 Non-redeemable convertible preferred stock 3,209,835 Total 15,201,904 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows (in thousands): Years ending December 31, 2021 (remaining three months) $ 129 2022 394 2023 255 2024 233 2025 240 Thereafter — Total minimum lease payments 1,251 Less: imputed interest (314 ) Total future minimum lease payments 937 Less: operating lease liabilities, current (292 ) Operating lease liabilities, net of current portion $ 645 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenues, Expenses and Operating Income (Loss) by Market Segment | Revenues, expenses and operating income (loss) for the three and nine months ended September 30, 2021 and 2020 by market segment were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Biomedical market $ 1,531 $ 1,170 $ 4,451 $ 4,535 Anti-aging market 311 311 882 1,117 Total revenues 1,842 1,481 5,333 5,652 Operating expenses: Therapeutic market 958 872 2,516 2,656 Biomedical market 1,159 1,038 3,320 3,760 Anti-aging market 348 369 1,095 1,321 Total operating expenses 2,465 2,279 6,931 7,737 Operating income (loss) Therapeutic market (958 ) (872 ) (2,516 ) (2,656 ) Biomedical market 372 132 1,131 775 Anti-aging market (37 ) (58 ) (213 ) (204 ) Total operating loss $ (623 ) $ (798 ) $ (1,598 ) $ (2,085 ) |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)SegmentUnitsProductCategorySalesChannelCustomer | Sep. 30, 2020USD ($)Customer | Dec. 31, 2020USD ($) | Jun. 18, 2008USD ($) | |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Accumulated deficit | $ 109,663,000 | $ 109,115,000 | ||
Number of reporting segments | Segment | 3 | |||
Number of business units | Units | 2 | |||
Allowance for doubtful accounts receivable | $ 3,000 | 12,000 | ||
Advances | 250,000 | 250,000 | $ 250,000 | |
Specified amount of revenue to be utilized for advances | $ 250,000 | |||
Revenue realized from agreement | $ 0 | |||
Intangible assets useful life | 15 years | |||
Number of revenue-generating operating segments | Segment | 2 | |||
Number of product categories | ProductCategory | 2 | |||
Number of sales channels | SalesChannel | 2 | |||
Description of payment terms | The Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical market and anti-aging market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are primarily to spas, salons and other skincare providers. | |||
Accounts receivable, net | $ 668,000 | 403,000 | ||
Write-off of accounts receivable | $ 0 | $ 0 | ||
Product return guarantee period | 30 days | |||
Allowance for sales returns | $ 0 | 0 | ||
Financial assets | 0 | |||
Financial liabilities | $ 0 | |||
Fair value of warrant liability | $ 0 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2021 | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
Customer Concentration Risk [Member] | Major customer [Member] | Accounts Receivable, Net [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 48.00% | 55.00% | ||
Biomedical Market [Member] | Customer Concentration Risk [Member] | Revenue, Segment Benchmark | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers more than ten percentage of revenue | Customer | 1 | 1 | ||
Biomedical Market [Member] | Customer Concentration Risk [Member] | Major customer [Member] | Revenue, Segment Benchmark | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 38.00% | 43.00% | ||
Minimum [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 3 years | |||
Maximum [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 5 years | |||
Sales commissions amortization period | 1 year |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue Disaggregated by Segment, Product and Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,842 | $ 1,481 | $ 5,333 | $ 5,652 |
Biomedical Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,531 | $ 1,170 | $ 4,451 | $ 4,535 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Biomedical Market [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,315 | $ 971 | $ 3,578 | $ 3,923 |
Biomedical Market [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 216 | 199 | 873 | 612 |
Biomedical Market [Member] | Cells [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 284 | $ 313 | $ 964 | $ 991 |
% of Total Revenues | 19.00% | 27.00% | 22.00% | 22.00% |
Biomedical Market [Member] | Cells [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 191 | $ 221 | $ 542 | $ 696 |
Biomedical Market [Member] | Cells [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 93 | 92 | 422 | 295 |
Biomedical Market [Member] | Media [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,247 | $ 857 | $ 3,487 | $ 3,528 |
% of Total Revenues | 81.00% | 73.00% | 78.00% | 78.00% |
Biomedical Market [Member] | Media [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,124 | $ 750 | $ 3,036 | $ 3,211 |
Biomedical Market [Member] | Media [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 123 | 107 | 451 | 317 |
Biomedical Market [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 16 | |||
Biomedical Market [Member] | Other [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 16 | |||
Anti-Aging Skincare Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 311 | $ 311 | $ 882 | $ 1,117 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Anti-Aging Skincare Market [Member] | Ecommerce [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 224 | $ 211 | $ 635 | $ 733 |
% of Total Revenues | 72.00% | 68.00% | 72.00% | 66.00% |
Anti-Aging Skincare Market [Member] | Professional [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 87 | $ 100 | $ 247 | $ 384 |
% of Total Revenues | 28.00% | 32.00% | 28.00% | 34.00% |
Description of Business, Basi_6
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Antidilutive Securities not Included in Diluted Net Loss Per Share Calculation (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 11,118,765 | 14,791,977 | 10,643,324 | 14,811,628 |
Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 5,451,787 | 4,711,130 | 4,742,051 | 4,729,829 |
Common Stock Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,948,569 | 3,949,521 | ||
Redeemable Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2,457,143 | 2,457,143 | 2,457,143 | 2,457,143 |
Nonredeemable Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,209,835 | 3,675,135 | 3,444,130 | 3,675,135 |
Inventory - Summary of the Comp
Inventory - Summary of the Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 573 | $ 427 |
Work in process | 407 | 481 |
Finished goods | 1,061 | 991 |
Total current and non-current inventory, gross | 2,041 | 1,899 |
Less: allowance for inventory excess and obsolescence | (537) | (611) |
Total current and non-current inventory, net | 1,504 | 1,288 |
Inventory, net | 1,139 | 917 |
Non-current inventory | $ 365 | $ 371 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Inventory Disclosure [Abstract] | |
Disposed of obsolete inventory | $ 45,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,447 | $ 3,438 |
Less: accumulated depreciation and amortization | (3,028) | (2,904) |
Property and equipment, net | 419 | 534 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,661 | 1,661 |
Computer Equipment and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 243 | 241 |
Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 230 | 230 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,312 | 1,303 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1 | $ 3 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 41 | $ 42 | $ 124 | $ 124 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Patents | $ 1,270 | $ 2,286 |
Less: accumulated amortization | (383) | (1,099) |
Total | 887 | 1,187 |
Indefinite life logos and trademarks | 75 | 75 |
Intangible assets, net | $ 962 | $ 1,262 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 24,000 | $ 23,000 | $ 71,000 | $ 68,000 |
Impairment charges | $ 250,000 | $ 65,000 |
Paycheck Protection Program L_2
Paycheck Protection Program Loan - Additional Information (Detail) - USD ($) | 1 Months Ended | |||
Aug. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | May 31, 2020 | |
Paycheck Protection Program Loan Disclosure [Line Items] | ||||
Proceeds from Paycheck Protection Program loan as government aid | $ 474,000 | $ 654,000 | ||
Paycheck Protection Program loan maturity period | 5 years | 2 years | ||
Paycheck Protection Program loan interest rate | 1.00% | 1.00% | ||
Paycheck Protection Program loan deferred payment period | 10 months | |||
Paycheck Protection Program loan forgiveness period | 168 days | |||
First Draw Loan [Member] | ||||
Paycheck Protection Program Loan Disclosure [Line Items] | ||||
Amount of forgiveness | $ 661,000 | |||
Second Draw Loan [Member] | ||||
Paycheck Protection Program Loan Disclosure [Line Items] | ||||
Amount of forgiveness | $ 476,000 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Deficit - Non-Redeemable Convertible Preferred Stock - Additional Information (Detail) - Series I-1 [Member] - shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||
Non-redeemable convertible preferred stock, shares issued | 814 | 814 |
Non-redeemable convertible preferred stock, shares outstanding | 814 | 814 |
Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Conversion of common stock | 465,300 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Deficit - Schedule of Authorized, Issued and Outstanding Shares of Non-redeemable Convertible Preferred Stock (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | |||
Shares Authorized | 20,000,000 | ||
Series B [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 5,000,000 | 5,000,000 | |
Shares Outstanding | 250,000 | 250,000 | |
Shares Issued | 250,000 | 250,000 | |
Liquidation Preference | $ 453 | $ 441 | |
Series G [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 5,000,000 | 5,000,000 | |
Shares Outstanding | 5,000,000 | 5,000,000 | |
Shares Issued | 5,000,000 | 5,000,000 | |
Liquidation Preference | $ 5,000 | $ 5,000 | |
Carrying Value | $ 5 | $ 5 | |
Series I-2 [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 4,310 | 4,310 | |
Shares Outstanding | 4,310 | 4,310 | |
Shares Issued | 4,310 | 4,310 | |
Liquidation Preference | $ 4,310 | $ 4,310 | |
Series B, Series G and Series I-2 Non-redeemable Convertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 10,004,310 | ||
Shares Outstanding | 5,254,310 | ||
Shares Issued | 5,254,310 | ||
Liquidation Preference | $ 9,763 | ||
Carrying Value | $ 5 | ||
Series I-1 [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 2,000 | ||
Shares Outstanding | 814 | 814 | |
Shares Issued | 814 | 814 | |
Liquidation Preference | $ 814 | ||
Series B, Series G, Series I-1 and Series I-2 Non-redeemable Convertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Shares Authorized | 10,006,310 | ||
Shares Outstanding | 5,255,124 | ||
Shares Issued | 5,255,124 | ||
Liquidation Preference | $ 10,565 | ||
Carrying Value | $ 5 |
Convertible Preferred Stock a_5
Convertible Preferred Stock and Stockholders' Deficit - Common Stock - Additional Information (Detail) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Preferred stock, shares authorized | 20,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Non-redeemable convertible preferred stock, par value | $ 0.001 | |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Redeemable convertible preferred stock shares authorized | 50 | 50 |
Series B, Series G and Series I-2 Non-redeemable Convertible Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,004,310 |
Convertible Preferred Stock a_6
Convertible Preferred Stock and Stockholders' Deficit - Common Stock Warrants - Additional Information (Detail) - $ / shares | 1 Months Ended | |||
Mar. 31, 2016 | Oct. 31, 2014 | Sep. 30, 2021 | Dec. 31, 2020 | |
Class Of Warrant Or Right [Line Items] | ||||
Warrants issued exercisable for shares of common stock | 11,159,995 | 62,047 | ||
Exercise price of warrants | $ 1.75 | $ 1.75 | ||
October 2014 [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Common stock warrants issued expiration date | Apr. 30, 2020 | |||
March 2016 [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Common stock warrants issued expiration date | Mar. 31, 2021 | |||
Common stock warrants outstanding | 3,948,569 |
Convertible Preferred Stock a_7
Convertible Preferred Stock and Stockholders' Deficit - Equity Incentive Plans - Additional Information (Detail) - shares | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2010 | Dec. 31, 2006 | |
2006 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expiry of options | 10 years | ||
Stock options expiration date | Nov. 16, 2016 | ||
Options granted to employees, directors and consultants | 0 | ||
2006 Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options that may be granted | 100,000 | ||
2010 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expiry of options | 10 years | ||
2010 Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options that may be granted | 9,700,000 |
Convertible Preferred Stock a_8
Convertible Preferred Stock and Stockholders' Deficit - Stock Options - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
2006 Plan and 2010 Plan [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expiry of options | 10 years |
Convertible Preferred Stock a_9
Convertible Preferred Stock and Stockholders' Deficit - Summary of Changes in Options Outstanding and Related Exercise Prices for Company's Common Stock Options Issued (Detail) - 2006 Plan and 2010 Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Outstanding Options, Outstanding, Beginning balance | 4,255,371 |
Number of Outstanding Options, Granted | 1,761,962 |
Number of Outstanding Options, Forfeited or canceled | (555,118) |
Number of Outstanding Options, Expired | (22,042) |
Number of Outstanding Options, Outstanding, Ending balance | 5,440,173 |
Number of Outstanding Options, Vested and expected to vest at September 30, 2021 | 5,206,848 |
Number of Outstanding Options, Exercisable at September 30, 2021 | 3,788,495 |
Weighted Average Exercise, Outstanding, Beginning balance | $ 3.41 |
Weighted Average Exercise, Granted | 0.39 |
Weighted Average Exercise, Forfeited or canceled | 2.12 |
Weighted Average Exercise, Expired | 284 |
Weighted Average Exercise, Outstanding, Ending balance | 1.43 |
Weighted Average Exercise, Vested and expected to vest at September 30, 2021 | 1.48 |
Weighted Average Exercise, Exercisable at September 30, 2021 | $ 1.86 |
Weighted Average Remaining Contractual Term (in years), Options Outstanding Ending Balance | 7 years 6 months 18 days |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest at September 30, 2021 | 7 years 5 months 12 days |
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2021 | 6 years 8 months 1 day |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ 255 |
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2021 | 221 |
Aggregate Intrinsic Value, Exercisable at September 30, 2021 | $ 29 |
Convertible Preferred Stock _10
Convertible Preferred Stock and Stockholders' Deficit - Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to stock options | $ 433,000 | $ 433,000 | |
Unrecognized compensation cost related to unvested shares expected to be recognized, weighted-average period | 1 year 9 months 18 days | ||
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted to employees, directors and consultants | 0 | 0 |
Convertible Preferred Stock _11
Convertible Preferred Stock and Stockholders' Deficit - Fair Value of Stock Options Grants, Weighted Average Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 0.89% | 0.37% |
Expected stock price volatility | 83.85% | 88.82% |
Expected dividend yield | 0.00% | 0.00% |
Expected life of options (in years) | 5 years 8 months 1 day | 5 years 4 months 9 days |
Convertible Preferred Stock _12
Convertible Preferred Stock and Stockholders' Deficit - Schedule of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 118 | $ 273 | $ 524 | $ 1,015 |
Cost of Sales [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3 | 21 | 18 | 66 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 7 | 28 | 38 | 107 |
Selling and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 5 | 18 | 27 | 60 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 103 | $ 206 | $ 441 | $ 782 |
Convertible Preferred Stock _13
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2021shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 15,201,904 |
Options Outstanding [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 5,440,173 |
2010 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 4,094,753 |
Redeemable Convertible Preferred Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 2,457,143 |
Non-Redeemable Convertible Preferred Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 3,209,835 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Mar. 05, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 17, 2019 |
Related Party Transaction [Line Items] | |||||
Expiry of lease | Dec. 31, 2026 | ||||
Related party rent expense | $ 129,000 | $ 127,000 | |||
Conversion note surrendered | $ 350,000 | ||||
Unsecured Non-convertible Promissory Note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Non-convertible promissory note, principal amount | $ 2,650,000 | ||||
Annual interest rate | 4.50% | ||||
Maturity date | Jan. 15, 2022 | ||||
Related party transaction, description | The outstanding principal and accrued interest on the New Note is due and payable on January 15, 2022 and may be pre-paid by the Company without penalty at any time | ||||
Unsecured Non-convertible Promissory Note [Member] | Chief Executive Officer and Co-Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Non-convertible promissory note, principal amount | $ 2,300,000 | ||||
Annual interest rate | 4.50% | ||||
Maturity date | Jan. 15, 2021 | ||||
S Real Estate Holding LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Extended term of lease | 3 years | ||||
Expiry of lease | Feb. 28, 2023 | ||||
Percentage of increase in monthly base rent | 2.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)LeaseInstallment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Commitments And Contingencies [Line Items] | |||||
Number of operating leases for real estate | Lease | 3 | ||||
Right-of-use assets | $ 659,000 | $ 659,000 | $ 874,000 | ||
Operating lease liabilities | 937,000 | 937,000 | |||
Lease expense | 118,000 | $ 117,000 | 355,000 | $ 354,000 | |
Finance leases | 0 | 0 | |||
Astellas Pharma [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Minimum license fee payable | $ 75,000 | $ 75,000 | |||
Number of installments per year | Installment | 2 | ||||
Carlsbad, California [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Operating leases with term date | 2023-02 | ||||
Oceanside | |||||
Commitments And Contingencies [Line Items] | |||||
Operating leases with term date | 2021-12 | ||||
Frederick, Maryland [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Operating leases with term date | 2025-11 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases Future Minimum Payments Due [Abstract] | ||
2021 (remaining three months) | $ 129,000 | |
2022 | 394,000 | |
2023 | 255,000 | |
2024 | 233,000 | |
2025 | 240,000 | |
Total minimum lease payments | 1,251,000 | |
Less: imputed interest | (314,000) | |
Total future minimum lease payments | 937,000 | |
Less: operating lease liabilities, current | (292,000) | $ (346,000) |
Operating lease liabilities, net of current portion | $ 645,000 | $ 845,000 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021SegmentUnits | |
Segment Reporting [Abstract] | |
Number of reporting segments | Segment | 3 |
Number of business units | Units | 2 |
Segments - Revenues, Expenses a
Segments - Revenues, Expenses and Operating Income (Loss) by Market Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Total revenues | $ 1,842 | $ 1,481 | $ 5,333 | $ 5,652 |
Operating expenses: | ||||
Total operating expenses | 2,465 | 2,279 | 6,931 | 7,737 |
Operating income (loss) | ||||
Total operating income (loss) | (623) | (798) | (1,598) | (2,085) |
Anti-aging Market [Member] | ||||
Revenues: | ||||
Total revenues | 311 | 311 | 882 | 1,117 |
Operating expenses: | ||||
Total operating expenses | 348 | 369 | 1,095 | 1,321 |
Operating income (loss) | ||||
Total operating income (loss) | (37) | (58) | (213) | (204) |
Therapeutic Market [Member] | ||||
Operating expenses: | ||||
Total operating expenses | 958 | 872 | 2,516 | 2,656 |
Operating income (loss) | ||||
Total operating income (loss) | (958) | (872) | (2,516) | (2,656) |
Biomedical Market [Member] | ||||
Revenues: | ||||
Total revenues | 1,531 | 1,170 | 4,451 | 4,535 |
Operating expenses: | ||||
Total operating expenses | 1,159 | 1,038 | 3,320 | 3,760 |
Operating income (loss) | ||||
Total operating income (loss) | $ 372 | $ 132 | $ 1,131 | $ 775 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Oct. 26, 2021USD ($)ft² | Sep. 30, 2021 |
Subsequent Events [Abstract] | ||
Area of lease premises | ft² | 7,260 | |
Base monthly rent | $ | $ 10,890 | |
Expiry of lease | Dec. 31, 2026 |