Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38701 | |
Entity Registrant Name | SI-BONE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2216351 | |
Entity Address, Address Line One | 471 El Camino Real | |
Entity Address, Address Line Two | Suite 101 | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95050 | |
City Area Code | 408 | |
Local Phone Number | 207-0700 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | SIBN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,913,049 | |
Entity Central Index Key | 0001459839 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 27,329 | $ 63,419 |
Short-term investments | 103,402 | 83,560 |
Accounts receivable, net of allowance for doubtful accounts of $258 and $264, respectively | 12,682 | 14,246 |
Inventory | 14,705 | 11,498 |
Prepaid expenses and other current assets | 3,143 | 3,143 |
Total current assets | 161,261 | 175,866 |
Property and equipment, net | 10,276 | 8,992 |
Operating lease right-of-use assets | 4,917 | 5,248 |
Other non-current assets | 395 | 400 |
TOTAL ASSETS | 176,849 | 190,506 |
Current liabilities: | ||
Accounts payable | 4,998 | 3,198 |
Accrued liabilities and other | 9,169 | 12,353 |
Operating lease liabilities, current portion | 1,286 | 1,339 |
Total current liabilities | 15,453 | 16,890 |
Long-term borrowings | 35,024 | 34,973 |
Operating lease liabilities, net of current portion | 3,889 | 4,166 |
Other long-term liabilities | 45 | 57 |
TOTAL LIABILITIES | 54,411 | 56,086 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 33,872,363 and 33,674,085 shares issued and outstanding, respectively | 3 | 3 |
Additional paid-in capital | 435,590 | 429,914 |
Accumulated other comprehensive income | 104 | 352 |
Accumulated deficit | (313,259) | (295,849) |
TOTAL STOCKHOLDERS’ EQUITY | 122,438 | 134,420 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 176,849 | $ 190,506 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 258 | $ 264 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 33,872,363 | 33,674,085 |
Common stock outstanding (in shares) | 33,872,363 | 33,674,085 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 22,439 | $ 20,442 |
Cost of goods sold | 2,983 | 2,200 |
Gross profit | 19,456 | 18,242 |
Operating expenses: | ||
Sales and marketing | 25,605 | 20,922 |
Research and development | 3,580 | 2,955 |
General and administrative | 7,139 | 5,940 |
Total operating expenses | 36,324 | 29,817 |
Loss from operations | (16,868) | (11,575) |
Interest and other income (expense), net: | ||
Interest income | 73 | 61 |
Interest expense | (561) | (1,064) |
Other income (expense), net | (54) | 336 |
Net loss | (17,410) | (12,242) |
Other comprehensive income (loss): | ||
Changes in foreign currency translation | 0 | (115) |
Unrealized gain (loss) on marketable securities | (248) | 21 |
Comprehensive loss | $ (17,658) | $ (12,336) |
Net loss per share, basic (in usd per share) | $ (0.52) | $ (0.37) |
Net loss per share, diluted (in usd per share) | $ (0.52) | $ (0.37) |
Weighted-average number of common shares used to compute basic net loss per share (in shares) | 33,792,326 | 32,691,578 |
Weighted-average number of common shares used to compute diluted net loss per share (in shares) | 33,792,326 | 32,691,578 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Stockholders' equity, beginning of period (in shares) at Dec. 31, 2020 | 32,583,220 | ||||
Stockholders' equity, beginning of period at Dec. 31, 2020 | $ 169,363 | $ 3 | $ 408,113 | $ 524 | $ (239,277) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of shares withheld (in shares) | 93,975 | ||||
Issuance of common stock upon exercise of stock options, net of shares withheld | 601 | 601 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 131,339 | ||||
Stock-based compensation | 4,030 | 4,030 | |||
Vesting of early exercised stock options | 9 | 9 | |||
Foreign currency translation | (115) | (115) | |||
Net unrealized gain (loss) on marketable securities | 21 | 21 | |||
Net loss | (12,242) | (12,242) | |||
Stockholders' equity, end of period (in shares) at Mar. 31, 2021 | 32,808,534 | ||||
Stockholders' equity, end of period at Mar. 31, 2021 | 161,667 | $ 3 | 412,753 | 430 | (251,519) |
Stockholders' equity, beginning of period (in shares) at Dec. 31, 2021 | 33,674,085 | ||||
Stockholders' equity, beginning of period at Dec. 31, 2021 | $ 134,420 | $ 3 | 429,914 | 352 | (295,849) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of shares withheld (in shares) | 34,798 | 34,798 | |||
Issuance of common stock upon exercise of stock options, net of shares withheld | $ 169 | 169 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 163,480 | ||||
Stock-based compensation | 5,507 | 5,507 | |||
Foreign currency translation | 0 | ||||
Net unrealized gain (loss) on marketable securities | (248) | (248) | |||
Net loss | (17,410) | (17,410) | |||
Stockholders' equity, end of period (in shares) at Mar. 31, 2022 | 33,872,363 | ||||
Stockholders' equity, end of period at Mar. 31, 2022 | $ 122,438 | $ 3 | $ 435,590 | $ 104 | $ (313,259) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (17,410) | $ (12,242) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 5,507 | 4,030 |
Depreciation and amortization | 713 | 340 |
Accretion of discount on marketable securities | 244 | 331 |
Amortization of debt issuance costs | 51 | 88 |
Loss on sale and disposal of property and equipment | 31 | 104 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,603 | 581 |
Inventory | (3,178) | (1,725) |
Prepaid expenses and other assets | 12 | 20 |
Accounts payable | 2,086 | 1,059 |
Accrued liabilities and other | (3,171) | (1,945) |
Net cash used in operating activities | (13,512) | (9,359) |
Cash flows from investing activities | ||
Maturities of marketable securities | 25,000 | 33,200 |
Purchases of marketable securities | (45,334) | (38,346) |
Purchases of property and equipment | (2,274) | (1,976) |
Net cash used in investing activities | (22,608) | (7,122) |
Cash flows from financing activities | ||
Proceeds from the exercise of stock options | 169 | 601 |
Net cash provided by financing activities | 169 | 601 |
Effect of exchange rate changes on cash and cash equivalents | (139) | (337) |
Net decrease in cash and cash equivalents | (36,090) | (16,217) |
Cash and cash equivalents at | ||
Beginning of period | 63,419 | 53,581 |
End of period | 27,329 | 37,364 |
Supplemental disclosure of non-cash information | ||
Vesting of early exercised stock options | 0 | 9 |
Unpaid purchases of property and equipment | $ 241 | $ 1,195 |
The Company and Nature of Busin
The Company and Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Nature of Business | The Company and Nature of Business SI-BONE, Inc. (the “Company”) was incorporated in the state of Delaware on March 18, 2008 and is headquartered in Santa Clara, California. The Company is a medical device company that has pioneered a proprietary minimally invasive surgical implant system to fuse the sacroiliac joint for treatment of musculoskeletal disorders of the sacropelvic anatomy. The Company introduced its first generation iFuse implant in 2009 in the U.S., in 2010 in certain countries in the European Union, and in 2015 in certain countries in the rest of the world. In the first quarter of 2020, the Company received $63.0 million of net proceeds from its first follow-on public offering of 4,300,000 shares of the Company's common stock, of which 2,490,053 shares were offered and sold by the Company, and the exercise of underwriter's option to purchase from the Company an additional 645,000 shares of the Company's common stock, at a public offering price of $21.50 per share. The total public offering costs incurred in connection with the follow-on offering were allocated based on the gross proceeds received by the Company and the selling stockholders on a pro-rated basis. Public offering cost of $0.4 million allocated to selling of shares by the Company was charged against the gross proceeds received from the follow-on offering. Public offering costs of $0.2 million allocated to selling of shares by the selling stockholders was recognized as transaction costs within general and administrative expenses on the consolidated statements of operations in the year ended December 31, 2020. In October 2020, the Company received $71.6 million of net proceeds from its second follow-on public offering of shares of the Company's common stock, of which 3,000,000 shares were offered and sold by the Company, and the exercise of underwriter's option to purchase from the Company an additional 478,507 shares of the Company's common stock, at a public offering price of $22.00 per share. In addition to the shares sold by the Company in this second follow-on offering, the selling stockholder sold 190,053 shares of the Company's common stock previously held by the selling stockholder at a price to the public of $22.00 per share. The Company did not receive any proceeds from the sale by the selling stockholder. Risks and Uncertainties The Company is subject to continuing risk and uncertainties as a result of the COVID-19 pandemic, and is closely monitoring the impact of the pandemic on all aspects of its business, including the impacts on its customers, patients that would benefit from procedures involving the Company's products, employees, suppliers, vendors, business partners and distribution channels. Economies worldwide continue to be negatively impacted by the COVID-19 pandemic, in particular with recurrent mutations of the virus, despite advances in vaccines, and the Company anticipates these disruptions will continue. While the Company has not experienced material disruptions to its supply chain to date, certain of its third-party suppliers have faced delays, product shortages and rising costs resulting from disruptions in the global supply chain, primarily related to the instruments. As a result, the Company is continuing to work closely with its manufacturing partners and suppliers, as well as determining alternative sourcing strategies to enable the Company to source key components and maintain appropriate inventory levels to meet customer demand. As such the Company's future results of operations and liquidity could be adversely impacted by a variety of factors related to the COVID-19 pandemic, including those discussed in the section entitled "Risk Factors" in this report. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations remains uncertain. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments that are necessary for a fair statement of the Company’s consolidated financial information. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period or for any other future year. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes thereto for the year ended December 31, 2021 contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates and management judgments reflected in the condensed consolidated financial statements primarily includes the fair value of performance-based restricted stock unit awards. Estimates are based on historical experience, where applicable and other assumptions believed to be reasonable by the management. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no material changes to these accounting policies, except for the accounting policy related to performance-based restricted stock unit awards noted below that was added to the Company’s significant accounting policies in the first quarter of 2022. Performance-Based Restricted Stock Unit Award s The Company grants restricted stock unit awards subject to market and service vesting conditions to certain executive officers. This type of grant consists of the right to receive shares of common stock, subject to achievement of time-based criteria and certain market performance-related goals over a specified period, as established by the Compensation Committee of our Board of Directors. For these awards that are subject to market performance, the fair value is determined based on the number of shares granted and a Monte Carlo valuation model, which incorporates the probability of the achievement of the market-related performance goals as part of the grant date fair value. If such performance goals are not ultimately met, the expense is not reversed. Stock-based compensation expense is recognized ratably over the requisite service period. Segments The Company's chief operating decision makers are the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). The CEO and the CFO review financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure . The Company derives substantially all of its revenue from sales to customers in the U.S. Revenue by geography is based on billing address of the customer. International revenue accounted for less than 10% of the total revenue during the periods presented. Long-lived assets held outside the U.S. are immaterial. Following table summarizes the Company's revenue by geography: Three Months Ended March 31, 2022 2021 (in thousands) United States $ 20,367 $ 18,770 International 2,072 1,672 $ 22,439 $ 20,442 Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which requires the lessee to recognize a lease right-of-use asset and a lease liability for operating leases, initially measured at the present value of lease payments, in its consolidated balance sheet. In the fourth quarter of 2021, the Company adopted ASU 2016-02 using the modified retrospective method with the effective date of January 1, 2021. As a result, the Company has retrospectively changed its previously issued condensed consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 as presented in its March 31, 2021 Quarterly Report on Form 10-Q to reflect the adoption of Topic 842 on January 1, 2021. The condensed consolidated financial statements for the three months ended March 31, 2021 presented herein differ from the Company’s condensed consolidated financial statements included in its March 31, 2021 Quarterly Report on Form 10-Q, as those financial statements were prepared using the former accounting standard referred to as ASC Topic 840, Leases. The following table summarizes the effect of the adoption of Topic 842 on the condensed consolidated balance sheet as of January 1, 2021: As Previously Reported Impact of Topic 842 Adoption As Adjusted (in thousands) ASSETS Operating lease right-of-use assets $ — $ 3,507 $ 3,507 LIABILITIES AND STOCKHOLDERS’ EQUITY Operating lease liabilities, current portion — 852 852 Operating lease liabilities, net of current portion — 2,933 2,933 Accrued liabilities and other 10,199 (345) 9,854 Accumulated deficit (239,277) 68 (239,209) The adoption of Topic 842 did not have any other material impact on the condensed consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by removing the beneficial conversion and cash conversion accounting models for convertible instruments and removes certain settlement conditions that are required for contracts to qualify for equity classification. This new standard also simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method for convertible instruments and requires that the effect of potential share settlement be included in diluted earnings per share calculations when an instrument may be settled in cash or shares. The new standard requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity’s financial statements, and information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity’s future cash flows related to those instruments. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021. The new standard went effective on January 1, 2022, and it did not impact the Company's consolidated financial statements and related disclosures. In May 2021, the FASB issued ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815- 40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ("ASU 2021-04") which clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows: i) for a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged; ii) for all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The new standard went effective on January 1, 2022, and it did not impact the Company's consolidated financial statements and related disclosures. Recently Accounting Standards Not Yet Effective In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors. In addition, ASU 2022-02 also requires that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of applying this guidance on its consolidated financial statements and related disclosures. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities All of the Company's marketable securities were available-for-sale and were classified based on their maturities. Marketable securities with remaining maturities at the date of purchase of three months or less are classified as cash equivalents. Short-term investments are securities that original maturity or remaining maturity is greater than three months and not more than twelve months. Long-term investments are securities for which the original maturity or remaining maturity is greater than twelve months. The table below summarizes the marketable securities: March 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 16,778 $ — $ — $ 16,778 U.S. treasury securities 5,000 — — 5,000 Cash equivalents 21,778 — — 21,778 U.S. treasury securities 57,286 — (168) 57,118 Corporate bonds 27,414 — (116) 27,298 Commercial paper 18,986 — — 18,986 Short-term investments 103,686 — (284) 103,402 Total marketable securities $ 125,464 $ — $ (284) $ 125,180 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 57,829 $ — $ — $ 57,829 Cash equivalents 57,829 — — 57,829 U.S. treasury securities 28,064 — (16) 28,048 Corporate bonds 31,558 4 (23) 31,539 Commercial paper 23,973 — — 23,973 Short-term investments 83,595 4 (39) 83,560 Total marketable securities $ 141,424 $ 4 $ (39) $ 141,389 The amortized cost of the Company's available-for-sale securities approximates their fair value. Unrealized losses are generally due to interest rate fluctuations, as opposed to credit quality. However, the Company reviews individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses. During the three months ended March 31, 2022 and 2021, unrealized gains and losses from the investments were not material and were not the result of a decline in credit quality. As a result, the Company did not recognize any credit losses related to its investments and that all unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income (loss) on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. The Company elected to present accrued interest receivable separately from short-term and long-term investments on its condensed consolidated balance sheets. Accrued interest receivable was $0.3 million as of March 31, 2022, and was recorded in prepaid expenses and other current assets. The Company also elected to exclude accrued interest receivable from the estimation of expected credit losses on its marketable securities and reverse accrued interest receivable through interest income (expense) when amounts are determined to be uncollectible. The Company did not write off any accrued interest receivable as of March 31, 2022 or December 31, 2021. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities and market interest rates, if applicable. The carrying value of the Company’s long-term debt also approximates fair value based on management’s estimation that a current interest rate would not differ materially from the stated rate. There were no other financial assets and liabilities that require fair value hierarchy measurements and disclosures for the periods presented. The table below summarizes the fair value of the Company’s marketable securities measured at fair value on a recurring basis based on the three-tier fair value hierarchy: March 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 16,778 $ — $ — $ 16,778 U.S. treasury securities 62,118 — — 62,118 Corporate bonds — 27,298 — 27,298 Commercial paper — 18,986 — 18,986 Total marketable securities $ 78,896 $ 46,284 $ — $ 125,180 December 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 57,829 $ — $ — $ 57,829 U.S. treasury securities 28,048 — — 28,048 Corporate bonds — 31,539 — 31,539 Commercial paper — 23,973 — 23,973 Total marketable securities $ 85,877 $ 55,512 $ — $ 141,389 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventory As of March 31, 2022, inventory consisted of finished goods of $13.9 million and work-in-progress of $0.8 million. As of December 31, 2021, inventory consisted of finished goods. Property and Equipment, net: March 31, 2022 December 31, 2021 (in thousands) Machinery and equipment $ 11,209 $ 10,573 Construction in progress 3,844 3,657 Computer and office equipment 924 916 Leasehold improvements 1,630 503 Furniture and fixtures 309 309 17,916 15,958 Less: Accumulated depreciation and amortization (7,640) (6,966) $ 10,276 $ 8,992 As of March 31, 2022, construction in progress pertains to cost of individual components of a custom instrument set used for surgical placement of the Company's products that have not yet been placed into service of $3.8 million. Depreciation expense was $0.7 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. Accrued Liabilities and Other : March 31, 2022 December 31, 2021 (in thousands) Accrued compensation and related expenses $ 7,250 $ 10,055 Accrued professional services 497 995 Others 1,422 1,303 $ 9,169 $ 12,353 Accounts Receivable and Allowance for Credit Losses: The movement in the allowance for credit losses was as follows: March 31, 2022 December 31, 2021 (in thousands) Balance at beginning of year $ 264 $ 263 Provision — 14 Write-offs (6) (13) Balance at end of year $ 258 $ 264 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has a non-cancelable operating lease for an office building space, located in Santa Clara, California which expires in May 2025 and a building used for research and development and warehouse space in Santa Clara, California which expires in October 2026. The Company also has non-cancelable operating leases for its office building spaces in Gallarate, Italy and Knaresborough, United Kingdom, which expire in August 2027 and December 2025, respectively. Further, the Company also leases vehicles under operating lease arrangements for certain of its personnel in Europe which expire at various times throughout 2022 to 2027. Supplemental information related to lease expense and valuation of the lease assets and lease liabilities are as follows: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (in thousands) (in thousands) Operating lease expense $ 409 $ 282 Variable lease expense 104 42 Total lease expense $ 513 $ 324 Cash paid for amounts included in the measurement of operating lease liabilities $ 408 $ 285 Leased assets obtained in exchange for new operating lease liabilities $ — $ 37 March 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 3.76 3.98 Weighted average discount rate 5.75% 5.75% Future minimum lease payments under non-cancelable operating leases as of March 31, 2022 was as follows: Year Ending December 31, (in thousands) Remainder of 2022 $ 1,213 2023 1,544 2024 1,491 2025 990 2026 531 Thereafter 10 Total operating lease payments 5,779 Less: imputed interest (604) Total operating lease liabilities $ 5,175 As of March 31, 2022, the Company had no operating lease liabilities that had not commenced. Purchase Commitments and Obligations The Company has certain purchase commitments related to its inventory management with certain manufacturing suppliers wherein the Company is required to purchase the amounts forecasted in a blanket purchase order. The contractual obligations represent future cash commitments and liabilities under agreements with third parties and exclude orders for goods and services entered into in the normal course of business that are not enforceable or legally binding. These outstanding commitments amounted to $0.6 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. Legal Contingencies |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Term Loan The following table summarizes the outstanding borrowings from the term loan as of periods presented: March 31, 2022 December 31, 2021 (in thousands) Principal outstanding and final fee $ 35,700 $ 35,700 Less: Unamortized debt issuance costs (93) (100) Unaccreted value of final fee (583) (627) Outstanding debt, net of debt issuance costs and unaccreted value of final fee $ 35,024 $ 34,973 Classified as: Long-term borrowings $ 35,024 $ 34,973 In May 29, 2020, the Company entered into a term loan with Solar Capital Partners (“Solar”). Pursuant to the Loan and Security Agreement, Solar provided an aggregate principal amount of $40.0 million term loan (the “Solar Term Loan”). The Solar Term Loan bore interest at a rate per annum equal to 9.40% plus London Interbank Offered Rate (“LIBOR”), payable monthly in arrears. LIBOR means the greater of (i) 0.33% or (ii) one-month LIBOR (or a comparable replacement rate to be determined by the collateral agent if the LIBOR is no longer available), which rate shall reset monthly. The Solar Term Loan included an interest-only period of 36 months through June 2023, and then repaid in equal monthly principal payments plus interest through June 1, 2025. The Company was also obligated to pay a final fee equal to $1.0 million or 2.5% of the aggregate principal amount of the Solar Term Loan, which was fully earned by Solar on the effective date of the Loan and Security Agreement with Solar. With respect to the Solar Term Loan, this final fee was due and payable on the earliest of (i) the maturity date, (ii) the acceleration of the loan balance or (iii) its full prepayment, refinancing, substitution or replacement. The Company paid in full and terminated the Solar Term Loan in August 2021. The effective interest rate related to the Solar Term Loan for the three months ended March 31, 2021 was 10.6%. The outstanding debt as of March 31, 2022 and December 31, 2021 is related to a term loan pursuant to the Loan and Security Agreement dated August 12, 2021 (the “Effective Date”), entered into by the Company with Silicon Valley Bank (“SVB”). Pursuant the agreement, SVB provided an aggregate principal amount of $35.0 million to the Company (the “SVB Term Loan”). The Company used the proceeds of the SVB Term Loan to repay in full and terminate the Solar Term Loan, which was accounted for as debt extinguishment in accordance with the accounting standards. The Company recognized the unamortized debt issuance costs and unaccreted value of final fee of $1.3 million and the prepayment penalty and lender fees of $0.5 million related to Solar Term Loan as a loss on debt extinguishment. The costs and fees are reflected as interest expense in the condensed consolidated statement of operations for the three months ended March 31, 2022. The total debt issuance costs of $0.1 million associated with the SVB Term Loan were recorded in the condensed consolidated balance sheet as a direct deduction from the carrying amount of the loan, and are amortized as a component of interest expense using straight-line method over the life of the term loan. The SVB Term Loan matures (the “Maturity Date”) on either (a) August 1, 2025 or (b) August 1, 2026 dependent on the Company’s achievement of a certain financial performance milestone as of December 31, 2022, as set forth in the Loan Agreement. Interest on the SVB Term Loan is payable monthly at an annual rate set at the greater of (a) 5.75% and (b) prime rate as published in the Wall Street Journal plus 2.5%. Commencing on September 1, 2023, the Company will be required to make monthly principal amortization payments. The Company may elect to prepay the SVB Term Loan prior to the Maturity Date subject to a prepayment fee equal to 1% if the prepayment occurs prior to the second anniversary of the Effective Date and 0% if the prepayment occurs on or at any time after the second anniversary of the Effective Date. The SVB Term Loan is secured by substantially all the Company's assets other than the Company's intellectual property. The Company is also obligated to pay a final payment equal to $0.7 million or 2% of the aggregate principal amount of the SVB Term Loan, which is considered fully earned by SVB on the effective date of the Loan and Security Agreement with SVB. This final payment shall be due and payable on the earliest of (i) the Maturity Date, (ii) the full repayment of the loan, (iii) permitted prepayment and mandatory prepayment upon an acceleration as specified in the agreement or (iv) the termination of the agreement. The final payment is included within the long-term borrowings and is accreted to interest expense using straight-line method over the life of the term loan. The effective interest rate related to the SVB Term Loan was 6.3% for three months ended March 31, 2022. The table below summarizes the future principal and final fee payments under the SVB Term Loan as of March 31, 2022: Year ending December 31, (in thousands) Remainder of 2022 $ — 2023 7,292 2024 17,500 2025 10,908 2026 — Total principal and final fee payments $ 35,700 The Loan Agreement includes affirmative and negative covenants applicable to the Company and certain of its foreign subsidiaries. The affirmative covenants include, among others, covenants requiring the Company to maintain its legal existence and governmental compliance, deliver certain financial reports, and maintain insurance coverage. The negative covenants include, among others, restrictions regarding transferring collateral, pledging the Company's intellectual property to other parties, engaging in mergers or acquisitions, paying dividends or making other distributions, incurring indebtedness, transacting with affiliates, and entering into certain investments, in each case subject to certain exceptions. As of March 31, 2022, the Company was in compliance with all debt covenants. CARES Act On March 27, 2020, the U.S. federal government enacted the “Coronavirus Aid, Relief and Economic Security (CARES) Act,” which, among other things, allowed employers to defer the deposit and payment of an employer's share of social security taxes through December 31, 2020. The Company recorded a total liability of $0.5 million related to the deferral of the social security taxes that is included in the accrued liabilities and other in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Incentive Compensation Plans | Stock-Based Incentive Compensation Plans Stock Options The table below summarizes the stock option activity for the three months ended March 31, 2022: Number of Weighted- Outstanding as of December 31, 2021 2,009,513 $8.73 Exercised (34,798) 4.85 Canceled and forfeited (11,355) 14.46 Outstanding as of March 31, 2022 1,963,360 9.86 As of March 31, 2022, the unrecognized compensation cost related to stock options was $1.0 million, which is expected to be recognized over a period of approximately 0.8 years. There were no stock options granted during the three months ended March 31, 2022 and 2021. Early Exercise of Unvested Stock Options Early exercises of stock options under the Company's 2008 Stock Option Plan are subject to a right of repurchase by the Company of any unvested shares. The repurchase rights lapse over the original vesting period of the options. The Company accounts for the cash received in consideration for the early exercised options as a liability included in accrued liabilities, which is then reclassified to stockholders’ equity as the options vest. As of March 31, 2022 and December 31, 2021, the Company had no shares subject to repurchase. Restricted Stock Units Restricted stock units (“RSUs”) are share awards that entitle the holder to receive freely tradable shares of the Company’s common stock upon vesting. RSUs generally vest over two In January 2022, the Company granted performance-based restricted stock unit awards subject to market and service vesting conditions to certain executive officers under SI-BONE's 2018 Equity Incentive Plan (“PSUs”). The shares subject to the PSUs vest over a three-year performance period beginning January 1, 2022 and ending December 31, 2024. The actual number of PSUs that will vest in each measurement period will be determined by the Compensation Committee based on the Company’s total shareholder return (“TSR”) relative to the TSR of the Median Peer Companies (as defined in the award agreement). The grant date fair value of each stock award with a market condition was determined using the Monte Carlo valuation model. The table below summ arizes the assumptions used to estimate the grant date fair value of the PSUs granted: Three Months Ended March 31, 2022 Expected volatility of common stock 48.9% to 58.7% Expected volatility of peer companies 24.2% to 152.5% Correlation coefficient of peer companies (0.13) to 1.00 Risk-free interest rate 0.4% to 1.2% Dividend yield —% to 1.0% The table below summarizes RSU and PSU activity for the three months ended March 31, 2022: RSUs PSUs Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 1,566,522 $25.17 — $— Granted 1,001,111 21.99 155,596 19.50 Vested (163,480) 25.27 — — Canceled and forfeited (94,869) 23.86 — — Outstanding as of March 31, 2022 2,309,284 23.84 155,596 19.50 As of March 31, 2022, the unrecognized compensation cost related to the RSUs was $45.4 million, which is expected to be recognized over a period of approximately 3.0 years. As of March 31, 2022, the unrecognized compensation cost related to the PSUs was $2.7 million, which is expected to be recognized over a period of approximately 2.8 years. Employee Stock Purchase Plan The Company’s 2018 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees to purchase shares of the Company's common stock through payroll deductions at the price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six month offering period. The offering period generally commences in May and November. On March 26, 2020, the Company's Compensation Committee approved the amendment of the terms of future offerings under the ESPP which, among other things, increased the maximum number of shares that may be purchased on any single purchase date, provided for automatic enrollment in a new offering, and provided that the offering which commenced in May 2020 be twelve months in duration and consist of two purchase periods. The fair value of the ESPP shares is estimated using the Black-Scholes option pricing model, which is being amortized over the requisite service period. The Company did not issue any shares under ESPP during the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, total accumulated ESPP related employee payroll deductions amounted to $1.3 million and $0.3 million which were included within accrued compensation and related expenses in the condensed consolidated balance sheets. Stock-Based Compensation The table below presents the detail of stock-based compensation expense amounts included in the condensed consolidated statements of operations: Three Months Ended 2022 2021 (in thousands) Cost of goods sold $ 123 $ 174 Sales and marketing 2,594 1,899 Research and development 633 419 General and administrative 2,157 1,538 $ 5,507 $ 4,030 |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock The table below summarizes the computation of basic and diluted net loss per share: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share data) Net loss $ (17,410) $ (12,242) Weighted-average shares used to compute basic and diluted net loss per share 33,792,326 32,691,578 Net loss per share, basic and diluted $ (0.52) $ (0.37) Because the Company has reported a net loss in all periods presented, outstanding stock options, restricted stock units, shares subject to repurchase, ESPP purchase rights and common stock warrants are anti-dilutive and therefore diluted net loss per common share is the same as basic net loss per common share for the periods presented. The following anti-dilutive common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented: Three Months Ended March 31, 2022 2021 Stock options 1,963,360 2,311,932 Restricted stock units 2,309,284 1,844,125 Shares subject to repurchase — 3,889 ESPP purchase rights 61,264 101,282 Common stock warrants 118,122 118,122 4,452,030 4,379,350 |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On February 24, 2020, the Company entered into a joint development agreement (the “Development Agreement”) with SeaSpine Orthopedics Corporation (“SeaSpine”) to develop a next generation device for sacropelvic fixation. Mr. Keith Valentine, who serves as the President, Chief Executive Officer and a member of the board of directors of SeaSpine, also serves as a member of the Company's Board of Directors since August 2015. On April 27, 2021, Addendum No.1 to the Development Agreement was entered into by and between the Company and SeaSpine to extend certain obligations as described under the Development Agreement to a consultant of the Company. Pursuant to the development plan, SeaSpine shall use reasonable efforts to assist in the development of the potential product offering, including licensing certain existing intellectual property to be incorporated into such product. Under the terms of the Development Agreement, the Company agreed to make monthly payments to SeaSpine to reimburse for full time resources employed by SeaSpine responsible to conduct the development activities. For the three months ended March 31, 2022 and 2021, the Company expensed $6,225 and $10,000, respectively, of the reimbursement charges from SeaSpine. The reimbursement charges were recorded within research and development expense in the condensed consolidated statements of operations. The outstanding liability to SeaSpine as of March 31, 2022 amounted to $6,225, recorded within accounts payable in the condensed consolidated balance sheet. There was no outstanding liability to SeaSpine as of December 31, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIn determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company updates its estimate of its annual effective tax rate at the end of each quarterly period. The estimate takes into account annual forecasted income (loss) before income taxes, the geographic mix of income (loss) before income taxes and any significant permanent tax items. The Company did not have provision for income taxes for the three months ended March 31, 2022 and 2021. The Company continues to maintain a full valuation allowance against its net deferred tax assets due to the uncertainty surrounding realization of such assets. The Company accounts for the uncertainty in income taxes by utilizing a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of any uncertain tax positions that have been taken or are expected to be taken on an income tax return. There had been no changes in the estimated uncertain tax benefits recorded as of December 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information required by GAAP for complete financial statements. |
Principles of Consolidation | These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments that are necessary for a fair statement of the Company’s consolidated financial information. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period or for any other future year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates and management judgments reflected in the condensed consolidated financial statements primarily includes the fair value of performance-based restricted stock unit awards. Estimates are based on historical experience, where applicable and other assumptions believed to be reasonable by the management. Actual results could differ from those estimates. |
Performance-Based Restricted Stock Unit Awards | Performance-Based Restricted Stock Unit Award s The Company grants restricted stock unit awards subject to market and service vesting conditions to certain executive officers. This type of grant consists of the right to receive shares of common stock, subject to achievement of time-based criteria and certain market performance-related goals over a specified period, as established by the Compensation Committee of our Board of Directors. For these awards that are subject to market performance, the fair value is determined based on the number of shares granted and a Monte Carlo valuation model, which incorporates the probability of the achievement of the market-related performance goals as part of the grant date fair value. If such performance goals are not ultimately met, the expense is not reversed. Stock-based compensation expense is recognized ratably over the requisite service period. |
Segments | Segments The Company's chief operating decision makers are the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). The CEO and the CFO review financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure . |
Recently Adopted Accounting Standards and Recent Accounting Standards Not Yet Effective | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which requires the lessee to recognize a lease right-of-use asset and a lease liability for operating leases, initially measured at the present value of lease payments, in its consolidated balance sheet. In the fourth quarter of 2021, the Company adopted ASU 2016-02 using the modified retrospective method with the effective date of January 1, 2021. As a result, the Company has retrospectively changed its previously issued condensed consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 as presented in its March 31, 2021 Quarterly Report on Form 10-Q to reflect the adoption of Topic 842 on January 1, 2021. The condensed consolidated financial statements for the three months ended March 31, 2021 presented herein differ from the Company’s condensed consolidated financial statements included in its March 31, 2021 Quarterly Report on Form 10-Q, as those financial statements were prepared using the former accounting standard referred to as ASC Topic 840, Leases. The following table summarizes the effect of the adoption of Topic 842 on the condensed consolidated balance sheet as of January 1, 2021: As Previously Reported Impact of Topic 842 Adoption As Adjusted (in thousands) ASSETS Operating lease right-of-use assets $ — $ 3,507 $ 3,507 LIABILITIES AND STOCKHOLDERS’ EQUITY Operating lease liabilities, current portion — 852 852 Operating lease liabilities, net of current portion — 2,933 2,933 Accrued liabilities and other 10,199 (345) 9,854 Accumulated deficit (239,277) 68 (239,209) The adoption of Topic 842 did not have any other material impact on the condensed consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by removing the beneficial conversion and cash conversion accounting models for convertible instruments and removes certain settlement conditions that are required for contracts to qualify for equity classification. This new standard also simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method for convertible instruments and requires that the effect of potential share settlement be included in diluted earnings per share calculations when an instrument may be settled in cash or shares. The new standard requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity’s financial statements, and information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity’s future cash flows related to those instruments. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021. The new standard went effective on January 1, 2022, and it did not impact the Company's consolidated financial statements and related disclosures. In May 2021, the FASB issued ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815- 40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ("ASU 2021-04") which clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows: i) for a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged; ii) for all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The new standard went effective on January 1, 2022, and it did not impact the Company's consolidated financial statements and related disclosures. Recently Accounting Standards Not Yet Effective In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors. In addition, ASU 2022-02 also requires that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of applying this guidance on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of the effect of the adoption of Topic 842 | The following table summarizes the effect of the adoption of Topic 842 on the condensed consolidated balance sheet as of January 1, 2021: As Previously Reported Impact of Topic 842 Adoption As Adjusted (in thousands) ASSETS Operating lease right-of-use assets $ — $ 3,507 $ 3,507 LIABILITIES AND STOCKHOLDERS’ EQUITY Operating lease liabilities, current portion — 852 852 Operating lease liabilities, net of current portion — 2,933 2,933 Accrued liabilities and other 10,199 (345) 9,854 Accumulated deficit (239,277) 68 (239,209) |
Schedule of Revenue by Geography | Following table summarizes the Company's revenue by geography: Three Months Ended March 31, 2022 2021 (in thousands) United States $ 20,367 $ 18,770 International 2,072 1,672 $ 22,439 $ 20,442 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The table below summarizes the marketable securities: March 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 16,778 $ — $ — $ 16,778 U.S. treasury securities 5,000 — — 5,000 Cash equivalents 21,778 — — 21,778 U.S. treasury securities 57,286 — (168) 57,118 Corporate bonds 27,414 — (116) 27,298 Commercial paper 18,986 — — 18,986 Short-term investments 103,686 — (284) 103,402 Total marketable securities $ 125,464 $ — $ (284) $ 125,180 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Money market funds $ 57,829 $ — $ — $ 57,829 Cash equivalents 57,829 — — 57,829 U.S. treasury securities 28,064 — (16) 28,048 Corporate bonds 31,558 4 (23) 31,539 Commercial paper 23,973 — — 23,973 Short-term investments 83,595 4 (39) 83,560 Total marketable securities $ 141,424 $ 4 $ (39) $ 141,389 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Marketable Securities Measured at Fair Value on Recurring Basis | The table below summarizes the fair value of the Company’s marketable securities measured at fair value on a recurring basis based on the three-tier fair value hierarchy: March 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 16,778 $ — $ — $ 16,778 U.S. treasury securities 62,118 — — 62,118 Corporate bonds — 27,298 — 27,298 Commercial paper — 18,986 — 18,986 Total marketable securities $ 78,896 $ 46,284 $ — $ 125,180 December 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Marketable securities Money market funds $ 57,829 $ — $ — $ 57,829 U.S. treasury securities 28,048 — — 28,048 Corporate bonds — 31,539 — 31,539 Commercial paper — 23,973 — 23,973 Total marketable securities $ 85,877 $ 55,512 $ — $ 141,389 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment, Net | Property and Equipment, net: March 31, 2022 December 31, 2021 (in thousands) Machinery and equipment $ 11,209 $ 10,573 Construction in progress 3,844 3,657 Computer and office equipment 924 916 Leasehold improvements 1,630 503 Furniture and fixtures 309 309 17,916 15,958 Less: Accumulated depreciation and amortization (7,640) (6,966) $ 10,276 $ 8,992 |
Schedule of Accrued Liabilities and Other | Accrued Liabilities and Other : March 31, 2022 December 31, 2021 (in thousands) Accrued compensation and related expenses $ 7,250 $ 10,055 Accrued professional services 497 995 Others 1,422 1,303 $ 9,169 $ 12,353 |
Schedule of Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses: The movement in the allowance for credit losses was as follows: March 31, 2022 December 31, 2021 (in thousands) Balance at beginning of year $ 264 $ 263 Provision — 14 Write-offs (6) (13) Balance at end of year $ 258 $ 264 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental information related to lease expense and valuation of lease assets and lease liabilities | Supplemental information related to lease expense and valuation of the lease assets and lease liabilities are as follows: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (in thousands) (in thousands) Operating lease expense $ 409 $ 282 Variable lease expense 104 42 Total lease expense $ 513 $ 324 Cash paid for amounts included in the measurement of operating lease liabilities $ 408 $ 285 Leased assets obtained in exchange for new operating lease liabilities $ — $ 37 March 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 3.76 3.98 Weighted average discount rate 5.75% 5.75% |
Future minimum lease payments under non-cancelable operating leases | Future minimum lease payments under non-cancelable operating leases as of March 31, 2022 was as follows: Year Ending December 31, (in thousands) Remainder of 2022 $ 1,213 2023 1,544 2024 1,491 2025 990 2026 531 Thereafter 10 Total operating lease payments 5,779 Less: imputed interest (604) Total operating lease liabilities $ 5,175 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table summarizes the outstanding borrowings from the term loan as of periods presented: March 31, 2022 December 31, 2021 (in thousands) Principal outstanding and final fee $ 35,700 $ 35,700 Less: Unamortized debt issuance costs (93) (100) Unaccreted value of final fee (583) (627) Outstanding debt, net of debt issuance costs and unaccreted value of final fee $ 35,024 $ 34,973 Classified as: Long-term borrowings $ 35,024 $ 34,973 |
Schedule of Future Principal and Final Fee Payments | The table below summarizes the future principal and final fee payments under the SVB Term Loan as of March 31, 2022: Year ending December 31, (in thousands) Remainder of 2022 $ — 2023 7,292 2024 17,500 2025 10,908 2026 — Total principal and final fee payments $ 35,700 |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The table below summarizes the stock option activity for the three months ended March 31, 2022: Number of Weighted- Outstanding as of December 31, 2021 2,009,513 $8.73 Exercised (34,798) 4.85 Canceled and forfeited (11,355) 14.46 Outstanding as of March 31, 2022 1,963,360 9.86 |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The table below summarizes the assumptions used to estimate the grant date fair value of the PSUs granted: Three Months Ended March 31, 2022 Expected volatility of common stock 48.9% to 58.7% Expected volatility of peer companies 24.2% to 152.5% Correlation coefficient of peer companies (0.13) to 1.00 Risk-free interest rate 0.4% to 1.2% Dividend yield —% to 1.0% |
Schedule of Restricted Stock Unit Activity | The table below summarizes RSU and PSU activity for the three months ended March 31, 2022: RSUs PSUs Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 1,566,522 $25.17 — $— Granted 1,001,111 21.99 155,596 19.50 Vested (163,480) 25.27 — — Canceled and forfeited (94,869) 23.86 — — Outstanding as of March 31, 2022 2,309,284 23.84 155,596 19.50 |
Schedule of Performance-based Restricted Stock Unit Activity Arrangement | The table below summarizes RSU and PSU activity for the three months ended March 31, 2022: RSUs PSUs Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 1,566,522 $25.17 — $— Granted 1,001,111 21.99 155,596 19.50 Vested (163,480) 25.27 — — Canceled and forfeited (94,869) 23.86 — — Outstanding as of March 31, 2022 2,309,284 23.84 155,596 19.50 |
Schedule of Stock-Based Compensation | The table below presents the detail of stock-based compensation expense amounts included in the condensed consolidated statements of operations: Three Months Ended 2022 2021 (in thousands) Cost of goods sold $ 123 $ 174 Sales and marketing 2,594 1,899 Research and development 633 419 General and administrative 2,157 1,538 $ 5,507 $ 4,030 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share | The table below summarizes the computation of basic and diluted net loss per share: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share data) Net loss $ (17,410) $ (12,242) Weighted-average shares used to compute basic and diluted net loss per share 33,792,326 32,691,578 Net loss per share, basic and diluted $ (0.52) $ (0.37) |
Schedule of Anti-dilutive Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share | The following anti-dilutive common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented: Three Months Ended March 31, 2022 2021 Stock options 1,963,360 2,311,932 Restricted stock units 2,309,284 1,844,125 Shares subject to repurchase — 3,889 ESPP purchase rights 61,264 101,282 Common stock warrants 118,122 118,122 4,452,030 4,379,350 |
The Company and Nature of Bus_2
The Company and Nature of Business (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
First follow-on public offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Net proceeds from sale of stock | $ 63 | ||
Number of shares issued (in shares) | 2,490,053 | ||
Public offering price (in dollars per share) | $ 21.50 | ||
Allocated public offering costs | $ 0.4 | ||
First follow-on public offering and secondary offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares in transaction, including shares in secondary offering (in shares) | 4,300,000 | ||
Underwriters option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares issued (in shares) | 478,507 | 645,000 | |
Secondary offering by selling shareholders | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares issued (in shares) | 190,053 | ||
Public offering price (in dollars per share) | $ 22 | ||
Allocated public offering costs | $ 0.2 | ||
Second follow-on public offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Net proceeds from sale of stock | $ 71.6 | ||
Number of shares issued (in shares) | 3,000,000 | ||
Public offering price (in dollars per share) | $ 22 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 22,439 | $ 20,442 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 20,367 | 18,770 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,072 | $ 1,672 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Balance Sheet Updates (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 4,917 | $ 5,248 | $ 3,507 |
Operating lease liabilities, current portion | 1,286 | 1,339 | 852 |
Operating lease liabilities, net of current portion | 3,889 | 4,166 | 2,933 |
Accrued liabilities and other | 9,169 | 12,353 | 9,854 |
Accumulated deficit | $ (313,259) | $ (295,849) | (239,209) |
As Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 0 | ||
Operating lease liabilities, current portion | 0 | ||
Operating lease liabilities, net of current portion | 0 | ||
Accrued liabilities and other | 10,199 | ||
Accumulated deficit | (239,277) | ||
Impact of Topic 842 Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 3,507 | ||
Operating lease liabilities, current portion | 852 | ||
Operating lease liabilities, net of current portion | 2,933 | ||
Accrued liabilities and other | (345) | ||
Accumulated deficit | $ 68 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash equivalents | ||
Carrying Value | $ 21,778 | $ 57,829 |
Short-term investments | ||
Amortized Cost | 103,686 | 83,595 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (284) | (39) |
Aggregate Fair Value | 103,402 | 83,560 |
Total marketable securities, Amortized Cost | 125,464 | 141,424 |
Total marketable securities, Unrealized Gains | 0 | 4 |
Total marketable securities, Unrealized Losses | (284) | (39) |
Total marketable securities, Aggregate Fair Value | 125,180 | 141,389 |
Accrued interest receivable | 300 | |
Money market funds | ||
Cash equivalents | ||
Carrying Value | 16,778 | 57,829 |
U.S. treasury securities | ||
Cash equivalents | ||
Carrying Value | 5,000 | |
Short-term investments | ||
Amortized Cost | 57,286 | 28,064 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (168) | (16) |
Aggregate Fair Value | 57,118 | 28,048 |
Corporate bonds | ||
Short-term investments | ||
Amortized Cost | 27,414 | 31,558 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (116) | (23) |
Aggregate Fair Value | 27,298 | 31,539 |
Commercial paper | ||
Short-term investments | ||
Amortized Cost | 18,986 | 23,973 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | $ 18,986 | $ 23,973 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Marketable securities | ||
Marketable securities | $ 125,180 | $ 141,389 |
Money market funds | ||
Marketable securities | ||
Marketable securities | 16,778 | 57,829 |
U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 62,118 | 28,048 |
Corporate bonds | ||
Marketable securities | ||
Marketable securities | 27,298 | 31,539 |
Commercial paper | ||
Marketable securities | ||
Marketable securities | 18,986 | 23,973 |
Level 1 | ||
Marketable securities | ||
Marketable securities | 78,896 | 85,877 |
Level 1 | Money market funds | ||
Marketable securities | ||
Marketable securities | 16,778 | 57,829 |
Level 1 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 62,118 | 28,048 |
Level 1 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 1 | Commercial paper | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Marketable securities | ||
Marketable securities | 46,284 | 55,512 |
Level 2 | Money market funds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 2 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 27,298 | 31,539 |
Level 2 | Commercial paper | ||
Marketable securities | ||
Marketable securities | 18,986 | 23,973 |
Level 3 | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Money market funds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Corporate bonds | ||
Marketable securities | ||
Marketable securities | 0 | 0 |
Level 3 | Commercial paper | ||
Marketable securities | ||
Marketable securities | $ 0 | $ 0 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Inventory, finished goods, gross | $ 13,900 | ||
Inventory, work in process, gross | 800 | ||
Property and equipment, gross | 17,916 | $ 15,958 | |
Depreciation expense | 700 | $ 300 | |
Construction in progress, surgical placement instrument set | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,800 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property and Equipment, Net | ||
Property and equipment, gross | $ 17,916 | $ 15,958 |
Less: Accumulated depreciation and amortization | (7,640) | (6,966) |
Property and equipment, net | 10,276 | 8,992 |
Machinery and equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 11,209 | 10,573 |
Construction in progress | ||
Property and Equipment, Net | ||
Property and equipment, gross | 3,844 | 3,657 |
Construction in progress, surgical placement instrument set | ||
Property and Equipment, Net | ||
Property and equipment, gross | 3,800 | |
Computer and office equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 924 | 916 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Property and equipment, gross | 1,630 | 503 |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 309 | $ 309 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Other (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
Accrued Liabilities and Other | |||
Accrued compensation and related expenses | $ 7,250 | $ 10,055 | |
Accrued professional services | 497 | 995 | |
Others | 1,422 | 1,303 | |
Accrued liabilities and other | $ 9,169 | $ 12,353 | $ 9,854 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 264 | $ 263 |
Provision | 0 | 14 |
Write-offs | (6) | (13) |
Balance at end of year | $ 258 | $ 264 |
Commitment and Contingencies -
Commitment and Contingencies - Supplemental Information Related to Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 409 | $ 282 | |
Variable lease expense | 104 | 42 | |
Total lease expense | 513 | 324 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 408 | 285 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 0 | $ 37 | |
Weighted average remaining lease term (in years) | 3 years 9 months 3 days | 3 years 11 months 23 days | |
Weighted average discount rate | 5.75% | 5.75% |
Commitments and Contingencies -
Commitments and Contingencies - Aggregate Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Aggregate Future Minimum Lease Payments | |
Remainder of 2022 | $ 1,213 |
2023 | 1,544 |
2024 | 1,491 |
2025 | 990 |
2026 | 531 |
Thereafter | 10 |
Total operating lease payments | 5,779 |
Less: imputed interest | (604) |
Total operating lease liabilities | $ 5,175 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||
Purchase commitments related to inventory management and training materials | $ 600,000 | $ 1,200,000 |
Indemnification Agreement | ||
Other Commitments [Line Items] | ||
Costs to defend lawsuits or settle claims | 0 | |
Liability associated with indemnifications | $ 0 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Principal outstanding and final fee | $ 35,700 | $ 35,700 |
Less: Unamortized debt issuance costs | (93) | (100) |
Unaccreted value of final fee | (583) | (627) |
Outstanding debt, net of debt issuance costs and unaccreted value of final fee | 35,024 | 34,973 |
Long-term borrowings | $ 35,024 | $ 34,973 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Thousands | Aug. 12, 2021 | May 29, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||
Final fee | $ 583 | $ 627 | |||
Accrued liabilities and other | $ 500 | $ 500 | |||
Term loan | Solar Term Loan | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 40,000 | ||||
Fixed interest rate (percent) | 9.40% | ||||
Debt period payment, interest only period | 36 months | ||||
Final fee | $ 1,000 | ||||
Final fee as percentage of aggregate principal amount (percent) | 2.50% | ||||
Effective interest rate during the period (percent) | 6.30% | 10.60% | |||
Term loan | Solar Term Loan | Basis spread option | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.33% | ||||
Term loan | SVB Term Loan | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 35,000 | ||||
Fixed interest rate (percent) | 5.75% | ||||
Final fee | $ 700 | ||||
Final fee as percentage of aggregate principal amount (percent) | 2.00% | ||||
Unamortized debt issuance costs | $ 1,300 | ||||
Payments of prepayment penalty and lender fees | $ 500 | ||||
Debt issuance costs | $ 100 | ||||
Term loan | SVB Term Loan | Prepayment Penalty, 1-24 Months | |||||
Debt Instrument [Line Items] | |||||
Debt prepayment penalty percentage (percent) | 1.00% | ||||
Term loan | SVB Term Loan | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% |
Borrowings - Debt Maturity (Det
Borrowings - Debt Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Future principal and final fee payments | ||
Remainder of 2022 | $ 0 | |
2023 | 7,292 | |
2024 | 17,500 | |
2025 | 10,908 | |
2026 | 0 | |
Total principal and final fee payments | $ 35,700 | $ 35,700 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans - Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Outstanding, beginning of period (in shares) | shares | 2,009,513 |
Exercised (in shares) | shares | (34,798) |
Canceled and forfeited (in shares) | shares | (11,355) |
Outstanding, end of period (in shares) | shares | 1,963,360 |
Weighted-Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 8.73 |
Exercised (in dollars per share) | $ / shares | 4.85 |
Canceled and forfeited (in dollars per share) | $ / shares | 14.46 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 9.86 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2022 | May 31, 2020purchase_period | Mar. 31, 2022USD ($)shares | Mar. 31, 2021shares | Dec. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, stock options | $ | $ 1 | ||||
Stock options granted (in shares) | shares | 0 | 0 | |||
Early exercise of stock options, share subject to repurchase (in shares) | shares | 0 | 0 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, expected period for recognition (in years) | 9 months 18 days | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, expected period for recognition (in years) | 3 years | ||||
Unrecognized compensation cost | $ | $ 45.4 | ||||
Granted (in shares) | shares | 1,001,111 | ||||
Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 2 years | ||||
Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 4 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, expected period for recognition (in years) | 2 years 9 months 18 days | ||||
Unrecognized compensation cost | $ | $ 2.7 | ||||
Granted (in shares) | shares | 155,596 | ||||
2018 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock as a percent of fair market value (percent) | 85.00% | ||||
Employee stock purchase program offering period interval (in months) | 12 months | 6 months | |||
Number of purchase periods in offering interval | purchase_period | 2 | ||||
Accrued compensation and related expenses for employee payroll deductions | $ | $ 1.3 | $ 0.3 | |||
2018 ESPP | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans - Valuation Assumptions for Stock Options (Details) - Performance Shares | 3 Months Ended |
Mar. 31, 2022 | |
Black-Scholes option-pricing model assumptions | |
Expected volatility of common stock, minimum (percent) | 48.90% |
Expected volatility of common stock, maximum (percent) | 58.70% |
Expected volatility of peer companies, minimum (percent) | 24.20% |
Expected volatility of peer companies, maximum (percent) | 152.50% |
Correlation coefficient of peer companies, minimum | (13.00%) |
Correlation coefficient of peer companies, maximum | 100.00% |
Risk-free interest rate, minimum (percent) | 0.40% |
Risk-free interest rate, maximum (percent) | 1.20% |
Minimum | |
Black-Scholes option-pricing model assumptions | |
Dividend yield (percent) | 0.00% |
Maximum | |
Black-Scholes option-pricing model assumptions | |
Dividend yield (percent) | 1.00% |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans - Restricted Stock Units Activity and Performance-Based Restricted Stock Unit Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, beginning of period (in shares) | shares | 1,566,522 |
Granted (in shares) | shares | 1,001,111 |
Vested (in shares) | shares | (163,480) |
Canceled and forfeited (in shares) | shares | (94,869) |
Outstanding, end of period (in shares) | shares | 2,309,284 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 25.17 |
Granted (in dollars per share) | $ / shares | 21.99 |
Vested (in dollars per share) | $ / shares | 25.27 |
Canceled and forfeited (in dollars per share) | $ / shares | 23.86 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 23.84 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 155,596 |
Outstanding, end of period (in shares) | shares | 155,596 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 19.50 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 19.50 |
Stock-Based Incentive Compens_7
Stock-Based Incentive Compensation Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 5,507 | $ 4,030 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 123 | 174 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,594 | 1,899 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 633 | 419 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,157 | $ 1,538 |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (17,410) | $ (12,242) |
Weighted-average number of common shares used to compute basic net loss per share (in shares) | 33,792,326 | 32,691,578 |
Weighted-average number of common shares used to compute diluted net loss per share (in shares) | 33,792,326 | 32,691,578 |
Net loss per share, basic (in usd per share) | $ (0.52) | $ (0.37) |
Net loss per share, diluted (in usd per share) | $ (0.52) | $ (0.37) |
Net Loss Per Share of Common _4
Net Loss Per Share of Common Stock - Antidilutive Common Stock Equivalents Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 4,452,030 | 4,379,350 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 1,963,360 | 2,311,932 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 2,309,284 | 1,844,125 |
Shares subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 0 | 3,889 |
ESPP purchase rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 61,264 | 101,282 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from computation of diluted net loss per share (in shares) | 118,122 | 118,122 |
Related Party Transaction (Deta
Related Party Transaction (Details) - SeaSpine - Joint development agreement - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Reimbursement charges expensed | $ 6,225 | $ 10,000 | |
Outstanding liability to SeaSpine | $ 6,225 | $ 0 | |
Term of product royalty sales period (in years) | 10 years |