Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35980 | |
Entity Registrant Name | NANOSTRING TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-0094687 | |
Entity Address, Address Line One | 530 Fairview Avenue North | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98109 | |
City Area Code | 206 | |
Local Phone Number | 378-6266 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | NSTG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,333,751 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001401708 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 121,408 | $ 112,250 |
Restricted Cash and Cash Equivalents, Current | 625 | 898 |
Short-term investments | 33,236 | 84,282 |
Accounts receivable, net | 34,867 | 31,506 |
Inventory, net | 46,711 | 43,273 |
Prepaid expenses and other | 15,011 | 14,565 |
Total current assets | 251,858 | 286,774 |
Property and equipment, net | 47,729 | 44,457 |
Operating lease right-of-use assets | 16,484 | 17,581 |
Other assets | 4,344 | 4,600 |
Total assets | 320,415 | 353,412 |
Current liabilities: | ||
Accounts payable | 20,486 | 16,619 |
Accrued liabilities | 6,181 | 7,884 |
Accrued compensation and other employee benefits | 12,604 | 17,494 |
Customer deposits | 1,741 | 1,757 |
Deferred revenue, current portion | 11,646 | 9,588 |
Operating lease liabilities, current portion | 5,333 | 5,518 |
Total current liabilities | 57,991 | 58,860 |
Deferred revenue, net of current portion | 4,600 | 3,754 |
Long-term debt, net | 227,001 | 226,622 |
Operating lease liabilities, net of current portion | 17,203 | 18,362 |
Total liabilities | 306,795 | 307,598 |
Commitment and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 15,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.0001 par value, 150,000 shares authorized; 47,328 and 46,719 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 5 | 5 |
Additional paid-in capital | 864,204 | 855,694 |
Accumulated other comprehensive loss | (55) | (589) |
Accumulated deficit | (850,534) | (809,296) |
Total stockholders’ equity | 13,620 | 45,814 |
Total liabilities and stockholders’ equity | $ 320,415 | $ 353,412 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 47,328,000 | 46,719,000 |
Common stock, shares outstanding (in shares) | 47,328,000 | 46,719,000 |
Restricted Cash and Cash Equivalents, Current | $ 625 | $ 898 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Revenue | $ 35,805 | $ 31,080 |
Costs and expenses: | ||
Cost of product revenue | 22,871 | 14,778 |
Research and development | 16,118 | 17,417 |
Selling, general and administrative | 37,366 | 36,355 |
Total costs and expenses | 76,355 | 68,550 |
Loss from operations | (40,550) | (37,470) |
Other income (expense): | ||
Interest income | 1,285 | 151 |
Interest expense | (1,891) | (1,883) |
Other income (expense), net | (7) | (217) |
Total other expense, net | (613) | (1,949) |
Net loss before provision for income tax | (41,163) | (39,419) |
Provision for income tax | (75) | (81) |
Net loss | $ (41,238) | $ (39,500) |
Net loss per share - basic (in dollars per share) | $ (0.88) | $ (0.86) |
Net loss per share - diluted (in dollars per share) | $ (0.88) | $ (0.86) |
Weighted average shares used in computing basic net loss per share (in shares) | 46,936 | 45,998 |
Weighted average shares used in computing diluted net loss per share (in shares) | 46,936 | 45,998 |
Total product revenue | ||
Revenue: | ||
Revenue | $ 31,146 | $ 26,571 |
Costs and expenses: | ||
Cost of product revenue | 17,605 | 11,472 |
Service and other revenue | ||
Revenue: | ||
Revenue | 4,659 | 4,509 |
Costs and expenses: | ||
Cost of product revenue | $ 5,266 | $ 3,306 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (41,238) | $ (39,500) |
Change in unrealized gain (loss) on available-for-sale debt securities | 534 | (974) |
Comprehensive loss | $ (40,704) | $ (40,474) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Deficit Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Other Comprehensive Loss | Accumulated Deficit |
Balance at beginning (in shares) at Dec. 31, 2021 | 45,729 | ||||
Balance at beginning at Dec. 31, 2021 | $ 176,962 | $ 5 | $ 827,028 | $ (318) | $ (649,753) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for stock options and restricted stock units (in shares) | 624 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 1,035 | $ 0 | 1,035 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1,502 | 1,502 | |||
Common stock issued for employee stock purchase plan (in shares) | 49 | ||||
Tax withholdings related to net share settlements of restricted stock units | (1,505) | (1,505) | |||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | 7,785 | ||||
Stock-based compensation | 7,785 | ||||
Net loss | (39,500) | (39,500) | |||
Other comprehensive loss | (974) | (974) | |||
Balance at end (in shares) at Mar. 31, 2022 | 46,402 | ||||
Balance at end at Mar. 31, 2022 | $ 145,305 | $ 5 | 835,845 | (1,292) | (689,253) |
Balance at beginning (in shares) at Dec. 31, 2022 | 46,719 | ||||
Balance at beginning at Dec. 31, 2022 | $ 45,814 | $ 5 | 855,694 | (589) | (809,296) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued for stock options and restricted stock units (in shares) | 437 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 20 | $ 0 | 20 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1,354 | 1,354 | |||
Common stock issued for employee stock purchase plan (in shares) | 172 | ||||
Tax withholdings related to net share settlements of restricted stock units | (490) | (490) | |||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | 7,626 | ||||
Stock-based compensation | 7,626 | ||||
Net loss | (41,238) | (41,238) | |||
Other comprehensive loss | 534 | 534 | |||
Balance at end (in shares) at Mar. 31, 2023 | 47,328 | ||||
Balance at end at Mar. 31, 2023 | $ 13,620 | $ 5 | $ 864,204 | $ (55) | $ (850,534) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net loss | $ (41,238) | $ (39,500) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 7,626 | 7,667 |
Depreciation and amortization | 3,536 | 1,543 |
Amortization of deferred financing costs | 379 | 367 |
Amortization of premium on short-term investments, net | 103 | 606 |
Non-cash operating lease cost | 1,107 | 950 |
Allowance for inventory obsolescence and accounts receivable credit loss | 2,171 | 610 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,489) | 9,425 |
Inventory | (5,564) | (4,054) |
Prepaid expenses and other assets | (263) | (3,050) |
Accounts payable | 3,209 | 3,924 |
Accrued liabilities | (82) | (3,372) |
Accrued compensation and other employee benefits | (4,917) | (5,130) |
Customer deposits | (16) | (16) |
Deferred revenue and other liabilities | 2,974 | 945 |
Operating lease liabilities | (1,285) | (1,168) |
Net cash used in operating activities | (35,749) | (30,253) |
Investing activities | ||
Purchases of property and equipment | (4,982) | (3,002) |
Purchase of internal-use software assets | (2,696) | (2,167) |
Payments to Acquire Intangible Assets | 0 | (750) |
Proceeds from maturity of short-term investments | 51,476 | 37,424 |
Purchases of short-term investments | 0 | (10,800) |
Net cash provided by investing activities | 43,798 | 20,705 |
Financing activities | ||
Tax withholdings related to net share settlements of restricted stock units | (490) | (1,504) |
Proceeds from issuance of common stock for employee stock purchase plan | 1,354 | 1,502 |
Proceeds from exercise of stock options | 20 | 1,035 |
Repayment of finance lease obligations | (70) | (73) |
Net cash provided by financing activities | 814 | 960 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 22 | (23) |
Net increase (decrease) in cash, restricted and cash equivalents | 8,885 | (8,611) |
Cash, restricted cash and cash equivalents | ||
Beginning of period | 113,148 | 107,068 |
End of period | 122,033 | 98,457 |
Supplemental disclosures | ||
Cash and cash equivalents | 121,408 | 98,457 |
Restricted Cash and Cash Equivalents, Current | $ 625 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of the BusinessNanoString Technologies, Inc. (the “Company”) was incorporated in the state of Delaware on June 20, 2003. The Company’s headquarters is located in Seattle, Washington. The Company’s proprietary chemistries enable the direct detection, identification, and quantification of individual target molecules in biological samples by attaching unique molecular reporters to each target molecule of interest. The Company currently markets and sells its proprietary technologies, consisting of (i) its spatial biology platforms, including GeoMx Digital Spatial Profiler, or “GeoMx DSP” or “GeoMx”, CosMx Spatial Molecular Imager or “CosMx SMI” or “CosMx”, and AtoMx Spatial Informatics Platform, or “AtoMx SIP” or “AtoMx”, a cloud-based informatics portal currently for use with CosMx, and (ii) its nCounter Analysis System for multi-plex bulk gene expression analysis. The GeoMx, CosMx and nCounter product platforms include instruments, related consumables, software and services, have the versatility to detect both RNA and protein expression and are able to generate reliable and reproduceable data in a variety of biological sample types. |
Concentration of Risks
Concentration of Risks | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risks | 5. Concentration of Risks Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments, and accounts receivable. Cash is invested in accordance with the Company’s investment policy, which includes guidelines intended to minimize and diversify credit risk. Most of the Company’s investments are not federally insured and the Company holds cash deposits above the limits for federal insurance. The Company has credit risk related to the collectability of its accounts receivable. The Company performs initial and ongoing evaluations of its customers’ credit history or financial position and generally extends credit on account without collateral. Additionally, the Company evaluates collectability risk over the life of its receivables in order to establish an appropriate reserve for certain receivables that may become uncollectible in future periods. The Company has not experienced significant credit losses to date. During the three months ended March 31, 2023 and 2022, the Company had no customers that individually represented more than 10% of total revenue. The Company had no customers that represented more than 10% of total accounts receivable as of March 31, 2023 or December 31, 2022. The Company is also subject to supply chain risks related to the outsourcing of the manufacturing and production of its instruments to sole suppliers. Although there are a limited number of manufacturers for instruments of this type, the Company believes that other suppliers could provide similar products on comparable terms. Similarly, the Company sources certain raw materials used in the manufacture of consumables from sole suppliers. A change in or loss of suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect operating results. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Short-term Investments Short-term investments consisted of available-for-sale and equity securities as follows (in thousands): Type of securities as of March 31, 2023 Amortized Gross Gross Fair value Corporate debt securities $ 15,291 $ 1 $ (30) $ 15,262 Government-related debt securities 18,001 — (27) 17,974 Total available-for-sale debt securities $ 33,292 $ 1 $ (57) $ 33,236 Type of securities as of December 31, 2022 Amortized Gross Gross Fair value Corporate debt securities $ 62,862 $ — $ (359) $ 62,503 Government-related debt securities 22,009 — (230) 21,779 Total available-for-sale debt securities $ 84,871 $ — $ (589) $ 84,282 The fair values of available-for-sale debt securities by contractual maturity were as follows (in thousands): March 31, 2023 December 31, 2022 Maturing in one year or less $ 33,236 $ 81,004 Maturing in one to three years — 3,278 Total available-for-sale debt securities $ 33,236 $ 84,282 The Company has both the intent and ability to sell its available-for-sale debt securities maturing greater than one year within 12 months from the balance sheet date and, accordingly, has classified these securities as current in the condensed consolidated balance sheets. The following table summarizes investments that have been in a continuous unrealized loss position as of March 31, 2023 (in thousands). Less than 12 months 12 months or greater Total Fair Value Gross unrealized losses Fair Value Gross unrealized losses Fair Value Gross unrealized losses Corporate debt securities $ 8,474 $ (28) $ 3,498 $ (2) $ 11,972 $ (30) Government-related debt securities — — 17,974 (27) 17,974 (27) Total $ 8,474 $ (28) $ 21,472 $ (29) $ 29,946 $ (57) The Company invests in securities that are rated investment grade or better. The unrealized losses on available-for-sale debt securities as of March 31, 2023 were caused primarily by interest rate increases. The Company reviews the individual securities in its portfolio for impairment when events indicate the fair value of the investments may be below the carrying value. The Company reviews the individual securities in its portfolio for indications that unrealized losses are credit related and require an allowance to be recorded at the present value of the future expected cash flows. The Company determined unrealized losses were not for credit losses and therefore did not record an allowance related to its available-for-sale debt investments for the three month period ended March 31, 2023. The Company did not record any impairment charges related to its available-for-sale debt investments for the three month period ended March 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. 10x Genomics On May 6, 2021, 10x Genomics, Inc. and Prognosys Biosciences, Inc. (“Prognosys”) filed a complaint, and on May 19, 2021, an amended complaint, and on May 4, 2022, a second amended complaint, against the Company in the U.S. District Court for the District of Delaware. The complaint, as amended, alleges that certain of the Company’s products, services and components sold by the Company for use in connection with its GeoMx DSP system (the “Identified GeoMx Products”) infringe seven patents owned by Prognosys: (a) U.S. Patent No. 10,472,669, “Spatially encoded biological assays,” (b) U.S. Patent No. 10,961,566, “Spatially encoded biological assays,” (c) U.S. Patent No. 10,983,113, “Spatially encoded biological assays,” (d) U.S. Patent No. 10,996,219, “Spatially encoded biological assays,” (e) U.S. Patent No. 11,001,878, “Spatially encoded biological assays,” (f) U.S. Patent No. 11,008,607, “Spatially encoded biological assays,” and (g) U.S. Patent No. 11,293,917, “Systems for analyzing target biological molecules via sample imaging and delivery of probes to substrate well” (the “Asserted Prognosys Patents”). The complaint seeks, among other relief, injunctive relief and unspecified damages (including treble damages and attorneys’ fees) in relation to the Company’s making, using, selling, offering to sell, exporting and/or importing in the United States the Identified GeoMx Products, as well as the alleged infringement by others of the Asserted Prognosys Patents through their use of the Identified GeoMx Products. The Company has evaluated the plaintiffs’ claims and does not believe that its activities infringe any patent rights held by the plaintiffs. On November 17, 2021, the Court granted the Company’s motion to dismiss the plaintiffs’ claims of pre-suit indirect infringement and willful infringement with leave to amend the complaint. Discovery is in progress. A claim construction hearing was held on February 17, 2023. A trial is scheduled for November 2023. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this case. On February 28, 2022, 10x Genomics, Inc. and President and Fellows of Harvard College (“Harvard”) filed a complaint, on May 12, 2022, an amended complaint, and on March 1, 2023, a second amended complaint, against the Company in the U.S. District Court for the District of Delaware (the “U.S. 10x CosMx Case”). The complaint, as amended, alleges that certain of the Company’s products, services and components sold by it for use in connection with its CosMx SMI system (the “Identified CosMx Products”) infringe six patents owned by Harvard: (a) U.S. Patent No. 10,227,639, “Compositions and Methods for Analyte Detection,” (b) U.S. Patent No. 11,021,737, “Compositions and Methods for Analyte Detection,” (c) U.S. Patent No. 11,293,051, “Compositions and Methods for Analyte Detection”, (d) U.S. Patent No. 11,293,052, “Compositions and Methods for Analyte Detection,” (e) U.S. Patent No. 11,293,054, “Compositions and Methods for Analyte Detection,” and (f) U.S. Patent No. 11,542,554, “Method and Apparatus for Volumetric Imaging”. The complaint seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company’s making, using, selling, offering to sell, exporting and/or importing in the United States the Identified CosMx Products. The Company has evaluated the plaintiffs’ claims and does not believe that its activities infringe any patent rights held by the plaintiffs. On May 1, 2023, the Company filed a motion to amend its answer, affirmative defenses, and counterclaims to the plaintiffs’ second amended complaint to assert the affirmative defense of unclean hands and new counterclaims for an antitrust violation under Section 2 of the Sherman Act, various state law violations, and breach of contract. Discovery is in progress. A claim construction hearing is scheduled for December 2023 and a trial is scheduled for September 2024. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this case. On August 16, 2022, the Company filed counterclaims in this action alleging that 10x Genomics’ Visium Spatial Gene Expression system and related products and services infringe the Company’s U.S. Patent No. 11,377,689, “Chemical Compositions and Uses Thereof.” On January 24, 2023, these counterclaims were consolidated with the claims of a separate patent infringement case that the Company filed against 10x Genomics on October 20, 2022, as discussed below. On May 9, 2022, the Company was notified of a complaint, dated March 4, 2022, naming the Company and its wholly-owned subsidiary, NanoString Technologies Germany GmbH, which 10x Genomics, Inc. filed in the Munich Regional Court I in Germany, alleging that the Company’s CosMx SMI system and associated products and services infringe European Patent No. 2794928B1 (“EP 2794928B1”), which is owned by Harvard. The complaint seeks, among other relief, injunctive relief and damages in relation to the Company’s selling and offering to sell its CosMx SMI system and associated products and services in Germany. The Company has evaluated the claims and does not believe that its activities infringe any patent rights held by 10x or Harvard. A hearing in this proceeding took place in Munich on March 23, 2023 and a ruling is expected in May 2023. The Company intends to vigorously defend itself in this litigation. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this case. On July 29, 2022, the Company, through its German subsidiary, filed a nullity action with the German Federal Patent Court in Munich requesting a judgment that EP 2794928B1, as in effect for Germany, be declared invalid and be revoked in its entirety. On February 10, 2023, the German Federal Patent Court issued a preliminary and non-binding opinion in this nullity action finding that the subject matter of the asserted independent claim 1 of EP 2794928B1 potentially lacked novelty and potentially lacked an inventive step over prior art. The preliminary opinion further addressed Harvard’s seven patent claim limitation requests, referred to as auxiliary requests, which 10x and Harvard seek to have applied in the event that claim 1 of EP 2794928B1, as granted, proves not to be protectable. The preliminary opinion stated that the claim limitations in Auxiliary Request 1 could potentially be used to defend EP 2794928B1 over the cited prior art. The preliminary opinion further stated that Harvard would potentially not be able to use Auxiliary Requests 2 through 7 to establish patentability over the prior art. A hearing before the German Federal Patent Court is scheduled for May 2024 and a decision in the nullity action is expected following the hearing. On October 20, 2022, the Company filed suit against 10x Genomics, Inc. in the U.S. District Court for the District of Delaware alleging that 10x Genomics’ Visium Spatial Gene Expression system and related products and services infringe the Company’s U.S. Patent No. 11,473,142, “Chemical Compositions and Uses Thereof.” On January 24, 2023, the Company’s counterclaims from the U.S. 10x CosMx Case with respect to U.S. Patent No. 11,377,689 were consolidated with the claims in this action. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to 10x Genomics’ making, using, selling, offering to sell, exporting and/or importing in the United States the Visium Spatial Gene Expression system and related products and services. Discovery is in progress. A trial in this consolidated case is scheduled for December 2024. Contingencies Other than the pending litigations with 10x Genomics and its co-plaintiffs, the Company is not engaged in any material legal proceedings. The Company is involved in other legal proceedings from time to time arising in the normal course of business. Additionally, the Company operates in various states and local jurisdictions for which sales, occupation, or franchise taxes may be payable to certain taxing authorities. Management believes that the outcome of these proceedings and any |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited 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 results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Given the global economic climate, certain estimates are becoming more challenging, and actual results could differ materially from those estimates. The results of the Company’s operations for the three month period ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year or for any other period. Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration expected to be received in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control. The Company generates the majority of its revenue from sales of its proprietary GeoMx DSP, CosMx SMI and nCounter Analysis systems, and related consumables. Services consist of instrument service contracts for maintenance, repair and other support related to customer owned instruments, and also certain service fees for assay processing and data analysis and reporting. Leases The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes, and financing leases for equipment. Operating and financing lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Operating lease right-of-use assets are reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. Capitalized Internal Use Software Costs The Company capitalizes certain development costs incurred in connection with software development for internal-use software platforms used in operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized internal use software development costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software platforms and are included in depreciation and amortization within operating expenses in the consolidated statements of operations. Unamortized capitalized internal-use software development costs were $12.6 million and $11.8 million as of March 31, 2023 and December 31, 2022, respectively. Amortization of capitalized internal-use software costs was $1.1 million for the three months ended March 31, 2023. Capitalized costs associated with the implementation of hosted third-party cloud computing arrangements are recorded as part of current and long-term other assets. Maintenance and training costs are expensed as incurred on a straight-line basis over the term of the related hosting arrangement. Costs are recorded within the consolidated statements of operations based on functional use of the software. Unamortized capitalized software implementation costs were $1.7 million and $1.9 million as of March 31, 2023 and December 31, 2022, respectively. Amortization of capitalized software implementation costs of hosted third-party cloud computing arrangements was $0.2 million for both the three months ended March 31, 2023 and 2022. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company operates as a single reportable segment. The Company has one sales force that sells the Company’s spatial biology and its nCounter Analysis systems and the consumables and services related to these platforms. Disaggregated Revenues The following table of total revenue is based on the geographic location of end users or distributors who purchase products and services. For sales to distributors, their geographic location may be different from the geographic location of the ultimate end customer. For collaboration agreements, revenues are derived from partners located primarily in the United States. Americas consists of the United States, Canada, Mexico, and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia, India, and Australia. The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended March 31, 2023 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 6,019 $ 4,122 $ 1,229 $ 11,370 Consumables 12,747 5,372 1,657 19,776 Total product revenue 18,766 9,494 2,886 31,146 Service and other revenue 3,246 1,022 391 4,659 Total revenue $ 22,012 $ 10,516 $ 3,277 $ 35,805 Three Months Ended March 31, 2022 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 5,698 $ 1,746 $ 1,659 $ 9,103 Consumables 12,275 4,006 1,187 17,468 Total product revenue 17,973 5,752 2,846 26,571 Service and other revenue 3,288 998 223 4,509 Total revenue $ 21,261 $ 6,750 $ 3,069 $ 31,080 Total revenue in the United States was $21.3 million and $20.4 million, for the three month periods ended March 31, 2023 and 2022, respectively. The Company’s assets are primarily located in the United States and therefore are not allocated to any specific geographic region. Contract balances and remaining performance obligations Contract liabilities are comprised of the current and long-term portions of deferred revenue of $16.0 million and $13.0 million as of March 31, 2023 and December 31, 2022, respectively, and customer deposits of $1.7 million and $1.8 million as of March 31, 2023 and December 31, 2022, respectively, included within the condensed consolidated balance sheets. Total contract liabilities increased by $3.0 million as of March 31, 2023 as a result of additional deferred revenue of $6.7 million associated primarily with new or extended service contracts partially offset by the recognition of previously deferred revenue and customer deposits of $3.7 million for the completion of certain performance obligations during the period. The Company recorded contract assets of $1.5 million and $1.1 million as of March 31, 2023 and December 31, 2022, related to revenues recognized, but not yet invoiced to customers. The Company’s contractual payment terms for its contracts with customers approximates 40 days on average. As of March 31, 2023, unsatisfied or partially unsatisfied performance obligations related to undelivered products and service contracts were $17.7 million and are expected to be completed over the term of the related contract or as products are delivered. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per ShareNet loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Convertible notes, outstanding options to purchase common stock, restricted stock units and common stock warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. The following shares were excluded from the computation of basic and diluted net loss per share for the periods presented (in thousands): Three Months Ended 2023 2022 Options to purchase common stock 1,728 1,945 Restricted stock units 2,563 1,232 Common stock warrants 471 471 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt can be determined based on the estimated or actual bid prices of the Convertible Senior Notes in an over-the-counter market, which are classified as a Level 2 financial instrument. The Company’s investments by level within the fair value hierarchy were as follows (in thousands): Fair value measurement using: Type of securities as of March 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 110,444 $ — $ — $ 110,444 Short-term investments: Corporate debt securities — 15,262 — 15,262 U.S. Government-related debt securities — 17,974 — 17,974 Total $ 110,444 $ 33,236 $ — $ 143,680 Fair value measurement using: Type of securities as of December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 104,294 $ — $ — $ 104,294 Short-term investments: Corporate debt securities — 62,503 — 62,503 U.S. Government-related debt securities — 21,779 — 21,779 Total $ 104,294 $ 84,282 $ — $ 188,576 In March 2020, the Company issued $230.0 million of Convertible Notes as described in more detail in Note 9. Long-term Debt, Net. As of March 31, 2023, the fair value of the Convertible Notes was $184.0 million. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory, net of related reserves, consisted of the following as of the date indicated (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 12,825 $ 11,013 Intermediate manufactured components 14,596 14,715 Finished goods 19,290 17,545 Total inventory, net $ 46,711 $ 43,273 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt, Net In March 2020, the Company issued $230.0 million in aggregate principal amount of its Convertible Notes in a private offering. The Convertible Notes are governed by an indenture dated March 9, 2020 between the Company and U.S. Bank, National Association, as trustee. The Company received net proceeds from the offering of $222.6 million. The Convertible Notes bear interest at a rate of 2.625% per year, payable semi-annually in arrears on March 1st and September 1st. The Convertible Notes may bear additional interest under specified circumstances relating to the Company’s failure to comply with its reporting obligations under, or if the Convertible Notes are not freely tradeable as required by, the indenture governing the Convertible Notes. Upon conversion, the Convertible Notes will be convertible into cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. The Convertible Notes are general unsecured senior obligations and will mature on March 1, 2025, unless earlier repurchased, redeemed or converted, subject to satisfaction of certain conditions and during the periods described below. The initial conversion rate for the Convertible Notes is 20.9161 shares of common stock, par value $0.0001 per share, per $1,000 principal amount of Convertible Notes (which is equivalent to an initial conversion price of approximately $47.81 per share). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that may occur prior to the maturity date or if the Company issues a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such corporate event or in connection with such redemption, as the case may be, in certain circumstances. The Company was not allowed to redeem the Convertible Notes prior to March 5, 2023, and no sinking fund is provided for the Convertible Notes. On or after March 5, 2023, the Company may redeem for cash all or any portion of the Convertible Notes, at its option, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. The Convertible Notes do not contain any financial or operating covenants or any restrictions on the issuance of other indebtedness or the issuance or repurchase of securities by the Company. The Convertible Notes indenture contains customary events of default, including that upon certain events of default, 100% of the principal and accrued and unpaid interest on the Convertible Notes will automatically become due and payable. The debt issuance costs of $7.4 million are amortized to interest expense using the effective interest method over five years, the contractual term of the Convertible Notes, with an effective interest rate of 3.3%. The Company monitors the provision of the Convertible Notes that allow for certain conversion rights at each quarterly reporting date in order to determine whether the Convertible Notes are convertible or subject to an event triggering potential redemption during the prescribed measurement periods. As of the date of this report, none of the outstanding convertible notes had been redeemed by the Company. Based on the closing price of our common stock of $9.90 on the last trading day of the quarter, the if-converted values of the Convertible Notes did not exceed the remaining principal balance as of March 31, 2023. All future principal payments related to the Convertible Notes are due in March 2025. The outstanding balances of the Company’s Convertible Notes and previously outstanding term loan consisted of the following (in thousands): March 31, 2023 December 31, 2022 Outstanding principal of Convertible Note $ 230,000 $ 230,000 Less: unamortized issuance costs (2,999) (3,378) Long-term debt, net $ 227,001 $ 226,622 The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands): Three Months Ended March 31, 2023 2022 Contractual interest expense $ 1,509 $ 1,509 Amortization of issuance costs 379 367 Total interest expense $ 1,888 $ 1,876 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for annual financial statements. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for unaudited condensed consolidated financial information. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited 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 results of its operations as of and for the periods presented. Unless indicated otherwise, all amounts presented in financial tables are presented in thousands, except for per share and par value amounts. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Given the global economic climate, certain estimates are becoming more challenging, and actual results could differ materially from those estimates. The results of the Company’s operations for the three month period ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year or for any other period. |
Revenue Recognition | The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration expected to be received in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has transferred control of a product or service to the customer, meaning the customer has the ability to use and obtain the benefit of the product or service. The Company recognizes revenue for satisfied performance obligations only when there are no uncertainties regarding payment terms or transfer of control.The Company generates the majority of its revenue from sales of its proprietary GeoMx DSP, CosMx SMI and nCounter Analysis systems, and related consumables. Services consist of instrument service contracts for maintenance, repair and other support related to customer owned instruments, and also certain service fees for assay processing and data analysis and reporting. |
Leases | The Company determines if an arrangement is a lease at inception of a contract. The Company’s leasing portfolio is comprised of operating leases primarily for general office, manufacturing, and research and development purposes, and financing leases for equipment. Operating and financing lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Operating lease right-of-use assets are reduced by lease incentives included in the agreement. As the existing leases do not contain an implicit interest rate, the Company estimates its incremental borrowing rate based on information available at commencement date in determining the present value of future payments. The Company includes options to extend the lease in the lease liability and right-of-use asset when it is reasonably certain that the option will be exercised. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are amortized within operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. For our short-term leases, we recognize lease payments as an expense on a straight-line basis over the lease term. |
Net Loss Per Share | Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Convertible notes, outstanding options to purchase common stock, restricted stock units and common stock warrants have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. Accordingly, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. |
Fair Value Measurements | The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Quoted prices in active markets for identical assets and liabilities. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The recorded amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other, accounts payable and accrued liabilities, approximate fair value due to their relatively short-term maturities. The recorded amount of the Company’s long-term debt can be determined based on the estimated or actual bid prices of the Convertible Senior Notes in an over-the-counter market, which are classified as a Level 2 financial instrument. |
Internal Use Software, Policy | The Company capitalizes certain development costs incurred in connection with software development for internal-use software platforms used in operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once software has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized internal use software development costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software platforms and are included in depreciation and amortization within operating expenses in the consolidated statements of operations. Unamortized capitalized internal-use software development costs were $12.6 million and $11.8 million as of March 31, 2023 and December 31, 2022, respectively. Amortization of capitalized internal-use software costs was $1.1 million for the three months ended March 31, 2023. Capitalized costs associated with the implementation of hosted third-party cloud computing arrangements are recorded as part of current and long-term other assets. Maintenance and training costs are expensed as incurred on a straight-line basis over the term of the related hosting arrangement. Costs are recorded within the consolidated statements of operations based on functional use of the software. Unamortized capitalized software implementation costs were $1.7 million and $1.9 million as of March 31, 2023 and December 31, 2022, respectively. Amortization of capitalized software implementation costs of hosted third-party cloud computing arrangements was $0.2 million for both the three months ended March 31, 2023 and 2022. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands): Three Months Ended March 31, 2023 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 6,019 $ 4,122 $ 1,229 $ 11,370 Consumables 12,747 5,372 1,657 19,776 Total product revenue 18,766 9,494 2,886 31,146 Service and other revenue 3,246 1,022 391 4,659 Total revenue $ 22,012 $ 10,516 $ 3,277 $ 35,805 Three Months Ended March 31, 2022 Americas Europe and Middle East Asia Pacific Total Product revenue: Instruments $ 5,698 $ 1,746 $ 1,659 $ 9,103 Consumables 12,275 4,006 1,187 17,468 Total product revenue 17,973 5,752 2,846 26,571 Service and other revenue 3,288 998 223 4,509 Total revenue $ 21,261 $ 6,750 $ 3,069 $ 31,080 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share | The following shares were excluded from the computation of basic and diluted net loss per share for the periods presented (in thousands): Three Months Ended 2023 2022 Options to purchase common stock 1,728 1,945 Restricted stock units 2,563 1,232 Common stock warrants 471 471 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | Short-term investments consisted of available-for-sale and equity securities as follows (in thousands): Type of securities as of March 31, 2023 Amortized Gross Gross Fair value Corporate debt securities $ 15,291 $ 1 $ (30) $ 15,262 Government-related debt securities 18,001 — (27) 17,974 Total available-for-sale debt securities $ 33,292 $ 1 $ (57) $ 33,236 Type of securities as of December 31, 2022 Amortized Gross Gross Fair value Corporate debt securities $ 62,862 $ — $ (359) $ 62,503 Government-related debt securities 22,009 — (230) 21,779 Total available-for-sale debt securities $ 84,871 $ — $ (589) $ 84,282 |
Fair Values of Available-for-Sale Securities by Contractual Maturity | The fair values of available-for-sale debt securities by contractual maturity were as follows (in thousands): March 31, 2023 December 31, 2022 Maturing in one year or less $ 33,236 $ 81,004 Maturing in one to three years — 3,278 Total available-for-sale debt securities $ 33,236 $ 84,282 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table summarizes investments that have been in a continuous unrealized loss position as of March 31, 2023 (in thousands). Less than 12 months 12 months or greater Total Fair Value Gross unrealized losses Fair Value Gross unrealized losses Fair Value Gross unrealized losses Corporate debt securities $ 8,474 $ (28) $ 3,498 $ (2) $ 11,972 $ (30) Government-related debt securities — — 17,974 (27) 17,974 (27) Total $ 8,474 $ (28) $ 21,472 $ (29) $ 29,946 $ (57) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Company's Available-for-Sale Securities by Level within Fair Value Hierarchy | The Company’s investments by level within the fair value hierarchy were as follows (in thousands): Fair value measurement using: Type of securities as of March 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 110,444 $ — $ — $ 110,444 Short-term investments: Corporate debt securities — 15,262 — 15,262 U.S. Government-related debt securities — 17,974 — 17,974 Total $ 110,444 $ 33,236 $ — $ 143,680 Fair value measurement using: Type of securities as of December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 104,294 $ — $ — $ 104,294 Short-term investments: Corporate debt securities — 62,503 — 62,503 U.S. Government-related debt securities — 21,779 — 21,779 Total $ 104,294 $ 84,282 $ — $ 188,576 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory, net of related reserves, consisted of the following as of the date indicated (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 12,825 $ 11,013 Intermediate manufactured components 14,596 14,715 Finished goods 19,290 17,545 Total inventory, net $ 46,711 $ 43,273 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Components of Borrowings, Including Current Portion | The outstanding balances of the Company’s Convertible Notes and previously outstanding term loan consisted of the following (in thousands): March 31, 2023 December 31, 2022 Outstanding principal of Convertible Note $ 230,000 $ 230,000 Less: unamortized issuance costs (2,999) (3,378) Long-term debt, net $ 227,001 $ 226,622 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands): Three Months Ended March 31, 2023 2022 Contractual interest expense $ 1,509 $ 1,509 Amortization of issuance costs 379 367 Total interest expense $ 1,888 $ 1,876 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Significant Accounting Policies [Line Items] | |||
Capitalized Computer Software, Net | $ 1,700,000 | $ 1,900,000 | |
Software and Software Development Costs | |||
Significant Accounting Policies [Line Items] | |||
Capitalized Computer Software, Amortization | 200,000 | $ 200,000 | |
Software Development | |||
Significant Accounting Policies [Line Items] | |||
Capitalized Computer Software, Gross | 12,600,000 | $ 11,800,000 | |
Capitalized Computer Software, Amortization | $ 1,100,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) sales_force | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number Of Sales Forces | sales_force | 1 | ||
Revenues | $ 35,805 | ||
Contract liabilities | (16,000) | $ (13,000) | |
Customer deposits | 1,741 | 1,757 | |
Increase in contract with customer liability | 3,000 | ||
Cash payments received form customers | 6,700 | ||
Performance obligation satisfied in previous period | 3,700 | ||
Contract assets | 1,500 | $ 1,100 | |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 21,300 | $ 20,400 | |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,277 | $ 3,069 | |
Total Products And Services | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation | $ 17,700 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 35,805 | $ 31,080 |
Revenue, Performance Obligation, Description of Payment Terms | 40 days | |
Revenues | $ 35,805 | |
Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,103 | |
Revenues | 11,370 | |
Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,468 | |
Revenues | 19,776 | |
Total product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 31,146 | 26,571 |
Revenues | 31,146 | |
Service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,659 | 4,509 |
Revenues | 4,659 | |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,261 | |
Revenues | 22,012 | |
Americas | Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,698 | |
Revenues | 6,019 | |
Americas | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,275 | |
Revenues | 12,747 | |
Americas | Total product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,973 | |
Revenues | 18,766 | |
Americas | Service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,288 | |
Revenues | 3,246 | |
Europe and Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,750 | |
Revenues | 10,516 | |
Europe and Middle East | Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,746 | |
Revenues | 4,122 | |
Europe and Middle East | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,006 | |
Revenues | 5,372 | |
Europe and Middle East | Total product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,752 | |
Revenues | 9,494 | |
Europe and Middle East | Service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 998 | |
Revenues | 1,022 | |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,277 | 3,069 |
Asia Pacific | Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,659 | |
Revenues | 1,229 | |
Asia Pacific | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,187 | |
Revenues | 1,657 | |
Asia Pacific | Total product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,846 | |
Revenues | 2,886 | |
Asia Pacific | Service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 223 | |
Revenues | $ 391 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Shares Underlying Outstanding Options and Warrants were Excluded from Computation of Basic and Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1,728 | 1,945 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 2,563 | 1,232 |
Common stock warrants | Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 471 | 471 |
Short-term Investments - Availa
Short-term Investments - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 33,292 | $ 84,871 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (57) | (589) |
Fair value | 33,236 | 84,282 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 15,291 | 62,862 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (30) | (359) |
Fair value | 15,262 | 62,503 |
Government-related debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 18,001 | 22,009 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (27) | (230) |
Fair value | $ 17,974 | $ 21,779 |
Short-term Investments - Fair V
Short-term Investments - Fair Values of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 33,236 | $ 81,004 |
Maturing in one to three years | 0 | 3,278 |
Total available-for-sale debt securities | $ 33,236 | $ 84,282 |
Short-term Investments - Summar
Short-term Investments - Summary of Investments in a Continuous Loss Position (Details) | Mar. 31, 2023 USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 8,474,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (28,000) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 21,472,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (29,000) |
Total, Fair value | 29,946,000 |
Total, Gross unrealized losses | (57,000) |
Corporate debt securities | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,474,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (28,000) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,498,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,000) |
Total, Fair value | 11,972,000 |
Total, Gross unrealized losses | (30,000) |
US Government Debt Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 17,974,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (27,000) |
Total, Fair value | 17,974,000 |
Total, Gross unrealized losses | $ (27,000) |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Available-for-Sale Securities by Level within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 33,236 | $ 84,282 | |
Total | 143,680 | 188,576 | |
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 15,262 | 62,503 | |
US Government Agencies Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 17,974 | 21,779 | |
Money market fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 110,444 | 104,294 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 110,444 | 104,294 | |
Level 1 | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Level 1 | US Government Agencies Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Level 1 | Money market fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 110,444 | 104,294 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 33,236 | 84,282 | |
Level 2 | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 15,262 | 62,503 | |
Level 2 | US Government Agencies Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 17,974 | 21,779 | |
Level 2 | Money market fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 0 | 0 | |
Level 3 | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Level 3 | US Government Agencies Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Level 3 | Money market fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | $ 0 | |
Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt fair value | $ 184,000 | ||
Senior Notes | Convertible Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument face amount | $ 230,000 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12,825 | $ 11,013 |
Intermediate manufactured components | 14,596 | 14,715 |
Finished goods | 19,290 | 17,545 |
Inventory, net | $ 46,711 | $ 43,273 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020 USD ($) $ / shares | Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 $ / shares | Jun. 30, 2022 | |
Line of Credit Facility [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Share price (in usd per share) | $ / shares | $ 9.90 | ||||
Convertible Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | $ 7,400 | ||||
Debt term | 5 years | ||||
Effective interest rate | 3.30% | ||||
Interest Expense, Debt | $ 1,888 | 1,876 | |||
Contractual interest expense | 1,509 | 1,509 | |||
Amortization of issuance costs | $ 379 | $ 367 | |||
Senior Notes | Convertible Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument face amount | $ 230,000 | ||||
Proceeds from issuance of debt | $ 222,600 | ||||
Debt instrument stated rate | 2.625% | ||||
Conversion ratio | 20.9161 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Conversion price | $ / shares | $ 47.81 |
Long-term Debt - Components of
Long-term Debt - Components of Borrowings, Including Current Portion (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, net of discounts | $ 227,001 | $ 226,622 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Unamortized debt discounts | (2,999) | (3,378) |
Long-term debt, net of discounts | 227,001 | 226,622 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Of Convertible Debt | $ 230,000 | $ 230,000 |
Long-term Debt - Schedule of In
Long-term Debt - Schedule of Interest (Details) - Convertible Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,509 | $ 1,509 |
Amortization of issuance costs | 379 | 367 |
Total interest expense | $ 1,888 | $ 1,876 |