Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40378 | |
Entity Registrant Name | The Honest Company, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0750205 | |
Entity Address, Address Line One | 12130 Millennium Drive | |
Entity Address, Address Line Two | #500 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90094 | |
City Area Code | 888 | |
Local Phone Number | 862-8818 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | HNST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 95,469,322 | |
Entity Central Index Key | 0001530979 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 23,103 | $ 9,517 |
Short-term investments | 0 | 5,650 |
Accounts receivable, net | 38,203 | 42,334 |
Inventories | 79,507 | 115,664 |
Prepaid expenses and other current assets | 8,770 | 15,982 |
Total current assets | 149,583 | 189,147 |
Operating lease right-of-use asset | 25,266 | 29,947 |
Property and equipment, net | 13,883 | 14,327 |
Goodwill | 2,230 | 2,230 |
Intangible assets, net | 327 | 370 |
Other assets | 4,249 | 4,578 |
Total assets | 195,538 | 240,599 |
Current liabilities | ||
Accounts payable | 18,491 | 24,755 |
Accrued expenses | 31,164 | 38,010 |
Deferred revenue | 1,861 | 815 |
Total current liabilities | 51,516 | 63,580 |
Long term liabilities | ||
Operating lease liabilities, net of current portion | 23,791 | 29,842 |
Other long-term liabilities | 222 | 817 |
Total liabilities | 75,529 | 94,239 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at September 30, 2023 and December 31, 2022, none issued or outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value, 1,000,000,000 and 150,000,000 shares authorized at September 30, 2023 and December 31, 2022, respectively; 95,562,477 and 92,907,351 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 9 | 9 |
Additional paid-in capital | 600,211 | 586,213 |
Accumulated deficit | (480,211) | (439,830) |
Accumulated other comprehensive loss | 0 | (32) |
Total stockholders’ equity | 120,009 | 146,360 |
Total liabilities and stockholders’ equity | $ 195,538 | $ 240,599 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Stockholders’ equity | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 150,000,000 |
Common stock issued (in shares) | 95,562,477 | 92,907,351 |
Common stock outstanding (in shares) | 95,562,477 | 92,907,351 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 86,169 | $ 84,580 | $ 254,101 | $ 231,792 |
Cost of revenue | 58,964 | 58,963 | 183,796 | 161,984 |
Gross profit | 27,205 | 25,617 | 70,305 | 69,808 |
Operating expenses | ||||
Selling, general and administrative | 24,146 | 23,491 | 74,995 | 63,068 |
Marketing | 9,110 | 12,140 | 28,605 | 38,121 |
Restructuring | 357 | 0 | 2,104 | 0 |
Research and development | 1,584 | 1,725 | 4,638 | 5,643 |
Total operating expenses | 35,197 | 37,356 | 110,342 | 106,832 |
Operating loss | (7,992) | (11,739) | (40,037) | (37,024) |
Interest and other income (expense), net | (71) | (29) | (269) | 657 |
Loss before provision for income taxes | (8,063) | (11,768) | (40,306) | (36,367) |
Income tax provision | 35 | 20 | 75 | 60 |
Net loss | $ (8,098) | $ (11,788) | $ (40,381) | $ (36,427) |
Net loss per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ (0.09) | $ (0.13) | $ (0.43) | $ (0.40) |
Diluted (in dollars per share) | $ (0.09) | $ (0.13) | $ (0.43) | $ (0.40) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | ||||
Basic (in shares) | 95,179,604 | 92,460,987 | 94,137,244 | 92,020,423 |
Diluted (in shares) | 95,179,604 | 92,460,987 | 94,137,244 | 92,020,423 |
Other comprehensive income (loss) | ||||
Unrealized gain (loss) on short-term investments, net of taxes | $ 0 | $ 37 | $ 33 | $ (42) |
Comprehensive loss | $ (8,098) | $ (11,751) | $ (40,348) | $ (36,469) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 91,512,140 | ||||||
Beginning balance at Dec. 31, 2021 | $ 179,106 | $ 845 | $ 9 | $ 570,794 | $ (391,656) | $ 845 | $ (41) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (14,626) | (14,626) | |||||
Other comprehensive income (loss) | (77) | (77) | |||||
Stock options exercised (in shares) | 21,556 | ||||||
Stock options exercised | 113 | 113 | |||||
Stock-based compensation | 3,548 | 3,548 | |||||
Vested restricted stock units (in shares) | 42,125 | ||||||
Common stock withheld for tax obligation and net settlement (in shares) | (3,611) | ||||||
Common stock withheld for tax obligation and net settlement | (20) | (20) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 91,572,210 | ||||||
Ending balance at Mar. 31, 2022 | 168,889 | $ 9 | 574,435 | (405,437) | (118) | ||
Beginning balance at Dec. 31, 2021 | 179,106 | $ 845 | $ 9 | 570,794 | (391,656) | $ 845 | (41) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (36,427) | ||||||
Other comprehensive income (loss) | (42) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 92,590,227 | ||||||
Ending balance at Sep. 30, 2022 | 155,085 | $ 9 | 582,396 | (427,237) | (83) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 91,572,210 | ||||||
Beginning balance at Mar. 31, 2022 | 168,889 | $ 9 | 574,435 | (405,437) | (118) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (10,012) | (10,012) | |||||
Other comprehensive income (loss) | (2) | (2) | |||||
Stock options exercised (in shares) | 22,000 | ||||||
Stock options exercised | 9 | 9 | |||||
Stock-based compensation | 3,912 | 3,912 | |||||
Vested restricted stock units (in shares) | 761,394 | ||||||
Shares issued under employee stock purchase plan (in shares) | 58,111 | ||||||
Shares issued under employee stock purchase plan | 157 | 157 | |||||
Common stock withheld for tax obligation and net settlement (in shares) | (4,439) | ||||||
Common stock withheld for tax obligation and net settlement | (17) | (17) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 92,409,276 | ||||||
Ending balance at Jun. 30, 2022 | 162,936 | $ 9 | 578,496 | (415,449) | (120) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 92,409,276 | ||||||
Net loss | (11,788) | (11,788) | |||||
Other comprehensive income (loss) | 37 | 37 | |||||
Stock-based compensation | 3,900 | 3,900 | |||||
Vested restricted stock units (in shares) | 180,951 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 92,590,227 | ||||||
Ending balance at Sep. 30, 2022 | 155,085 | $ 9 | 582,396 | (427,237) | (83) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 92,590,227 | ||||||
Beginning balance (in shares) | 92,907,351 | ||||||
Beginning balance at Dec. 31, 2022 | 146,360 | $ 9 | 586,213 | (439,830) | (32) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (18,867) | (18,867) | |||||
Other comprehensive income (loss) | 19 | 19 | |||||
Stock-based compensation | 3,772 | 3,772 | |||||
Vested restricted stock units (in shares) | 549,484 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 93,456,835 | ||||||
Ending balance at Mar. 31, 2023 | 131,284 | $ 9 | 589,985 | (458,697) | (13) | ||
Beginning balance at Dec. 31, 2022 | 146,360 | $ 9 | 586,213 | (439,830) | (32) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (40,381) | ||||||
Other comprehensive income (loss) | $ 33 | ||||||
Stock options exercised (in shares) | 2,300 | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 95,562,477 | ||||||
Ending balance at Sep. 30, 2023 | $ 120,009 | $ 9 | 600,211 | (480,211) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 93,456,835 | ||||||
Beginning balance at Mar. 31, 2023 | 131,284 | $ 9 | 589,985 | (458,697) | (13) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (13,416) | (13,416) | |||||
Other comprehensive income (loss) | 13 | 13 | |||||
Stock options exercised (in shares) | 2,300 | ||||||
Stock options exercised | 4 | 4 | |||||
Stock-based compensation | 6,413 | 6,413 | |||||
Vested restricted stock units (in shares) | 1,532,507 | ||||||
Shares issued under employee stock purchase plan (in shares) | 68,884 | ||||||
Shares issued under employee stock purchase plan | 102 | 102 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 95,060,526 | ||||||
Ending balance at Jun. 30, 2023 | 124,400 | $ 9 | 596,504 | (472,113) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 95,060,526 | ||||||
Net loss | (8,098) | (8,098) | |||||
Other comprehensive income (loss) | 0 | ||||||
Stock-based compensation | 3,707 | 3,707 | |||||
Vested restricted stock units (in shares) | 501,951 | ||||||
Vested restricted stock | 0 | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 95,562,477 | ||||||
Ending balance at Sep. 30, 2023 | $ 120,009 | $ 9 | $ 600,211 | $ (480,211) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 95,562,477 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (40,381) | $ (36,427) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,021 | 2,025 |
Stock-based compensation | 13,892 | 11,360 |
Other | 4,680 | 4,805 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 4,132 | (7,087) |
Inventories | 36,158 | (24,609) |
Prepaid expenses and other assets | 7,498 | (3,228) |
Accounts payable, accrued expenses and other long-term liabilities | (13,875) | 7,604 |
Deferred revenue | 1,046 | 49 |
Operating lease liabilities | (5,740) | (5,161) |
Net cash provided by (used in) operating activities | 9,431 | (50,669) |
Cash flows from investing activities | ||
Purchases of short-term investments | 0 | (12,782) |
Proceeds from maturities of short-term investments | 5,683 | 38,219 |
Purchases of property and equipment | (1,588) | (1,433) |
Net cash provided by investing activities | 4,095 | 24,004 |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | 0 | (37) |
Proceeds from exercise of stock options | 4 | 122 |
Proceeds from 2021 ESPP | 102 | 157 |
Payments on finance lease liabilities | (46) | (281) |
Net cash provided by (used in) financing activities | 60 | (39) |
Net increase (decrease) in cash and cash equivalents | 13,586 | (26,704) |
Cash and cash equivalents | ||
Beginning of the period | 9,517 | 50,791 |
End of the period | 23,103 | 24,087 |
Supplemental disclosures of noncash activities | ||
Capital expenditures included in accounts payable and accrued expenses | $ 25 | $ 92 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of BusinessThe Honest Company, Inc. (the “Company”) was incorporated in the State of California on July 19, 2011 and on May 23, 2012 was re-incorporated in the State of Delaware under the same name. The Company is a digitally-native consumer products company dedicated to creating clean- and sustainably-designed products spanning baby care, beauty, personal care, wellness and household care. The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. Restructuring The Company incurs restructuring costs in connection with the exiting of certain products and geographical locations, workforce reductions, and other actions. Such costs include employee termination benefits (one-time arrangements), termination of contractual obligations, non-cash asset charges, including asset impairments, and other direct incremental costs. The Company records employee termination liabilities once they are both probable and estimable for severance provided under the Company’s existing severance policy. Other costs associated with a restructuring initiative, such as consulting and professional fees, product or geographical exit costs, accelerated amortization associated with a restructuring initiative, are recognized in the period in which the liability is incurred. Accrued restructuring costs are recorded within Accrued Expenses in the condensed consolidated balance sheets. Refer to Note 14, "Restructuring" included in these condensed consolidated financial statements for more information on the Company's restructuring initiatives. Segment Reporting and Geographic Information The Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for credit losses, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of September 30, 2023 and through the date these condensed consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. For example, based on macro trends within our Household and Wellness product category, consumer demand for sanitizing and disinfecting products decreased over the past few years. As a result, the Company made a decision to exit certain elements of these products during the quarter ended March 31, 2023. Refer to Note 14, "Restructuring" included in these condensed consolidated financial statements for more information on the Company's restructuring initiatives. Cash and Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. Accounts Receivable Accounts receivable is presented as net of allowance for credit losses. The Company does not accrue interest on its trade receivables. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, and provides an allowance for credit losses, as necessary. The Company considers factors in its allowance for accounts receivable such as historical analysis, credit quality of customers, the age of the accounts receivable balances and current macroeconomic conditions that may impact on our customer's ability to pay. The allowance for credit losses was $0.9 million and $0.5 million as of September 30, 2023 and December 31, 2022, respectively. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments Credit Losses (Accounting Standard Codification 326): Measurement of Credit Losses on Financial Instruments , to amend the accounting for credit losses for certain financial instruments. This guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, FASB issued ASU No. 2019-10 which delayed the effective dates of the guidance. This guidance is effective for public business entities that |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue Revenue by sales channel: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Digital $ 40,103 $ 33,782 $ 123,648 $ 105,913 Retail 46,066 50,798 130,453 125,879 Total revenue $ 86,169 $ 84,580 $ 254,101 $ 231,792 Revenue by product category: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Diapers and Wipes $ 52,584 $ 55,222 $ 160,917 $ 150,411 Skin and Personal Care 21,221 21,992 66,748 66,534 Household and Wellness 12,364 7,366 26,436 14,847 Total revenue $ 86,169 $ 84,580 $ 254,101 $ 231,792 Non-Monetary Transactions The Company has in the past and may in the future enter into trade agreements with a vendor to exchange excess inventory for future marketing and transportation credits. The Company recognizes revenue reflecting the fair value of the marketing and transportation credits upon delivery of goods, with the corresponding short and long-term asset included in prepaid expenses and other current assets and other assets in the accompanying condensed consolidated balance sheets. The Company may use the marketing and transportation credits over four years from the date of the respective agreement, with an option to extend for another two years if agreed upon by both parties. During the nine months ended September 30, 2023, the Company did not enter into any new trade agreements. For the three and nine months ended September 30, 2023, the Company did not recognize any revenue or associated cost of revenue related to these marketing and transportation credits. For the three and nine months ended September 30, 2022, the Company recognized $1.6 million and $2.9 million, respectively, of revenue and $0.8 million and $1.6 million, respectively, of associated cost of revenue based on the timing of delivery of goods, related to these marketing and transportation credits. The Company assesses the recoverability of the marketing and transportation credits periodically. Factors considered in evaluating the recoverability include management’s history of credit usage and future plans with respect to advertising, freight and other services for which these credits can be used. Any impairment losses are charged to operations as they become determinable. During the nine months ended September 30, 2023, the Company recorded no impairment losses related to these credits and used an aggregate of $0.2 million |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | InvestmentsAs of September 30, 2023, the Company did not hold any investments in debt securities. As of December 31, 2022, all investments in debt securities were classified as available-for-sale investments. All investments were reported within current assets because the securities represent investments of cash available for current operations. As of December 31, 2022, the Company held $5.7 million of investments with contractual maturities of less than one year. As of December 31, 2022, the Company did not have any investments with contractual maturities between one and two years. Available-for-sale investments are recorded at fair value, and unrealized holding gains and losses are recorded as a component of other comprehensive income (loss). The following table summarizes the Company’s available-for-sale investments: As of December 31, 2022 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 3,216 $ — $ (24) $ 3,193 Commercial paper 582 — — 582 Certificates of deposit 1,884 — (9) 1,875 Total investments $ 5,682 $ — $ (33) $ 5,650 Realized gains and losses on investments in debt securities for the three and nine months ended September 30, 2023 and 2022 were immaterial. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 5,517 $ — $ — $ 5,517 Total cash equivalents $ 5,517 $ — $ — $ 5,517 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 9,595 $ — $ — $ 9,595 Total cash equivalents $ 9,595 $ — $ — $ 9,595 Short-term investments Corporate bonds — 3,193 — 3,193 Commercial paper — 582 — 582 Certificates of deposit — 1,875 — 1,875 Total short-term investments — 5,650 — 5,650 Total $ 9,595 $ 5,650 $ — $ 15,245 |
Credit Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities In January 2023, the Company entered into a first lien credit agreement (the “2023 Credit Facility”), with JPMorgan Chase Bank, N.A., as administrative agent and lender, and the other lenders party thereto, which provides for a $35.0 million revolving credit facility that matures on April 30, 2026. The 2023 Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $15.0 million at any time outstanding. Availability of the 2023 Credit Facility is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of the Company’s accounts receivable and inventory as reduced by an availability block and certain reserves, if any. The 2023 Credit Facility includes an uncommitted accordion feature that allows for increases in the revolving commitment to as much as an additional $35.0 million, for up to $70.0 million in potential revolving commitment. The 2023 Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee based on the average daily undrawn portion of the 2023 Credit Facility. The Company recognizes the commitment fee as incurred in interest and other income (expense), net in the condensed consolidated statements of comprehensive loss. For the three and nine months ended September 30, 2023, the commitment fee incurred was immaterial. As of September 30, 2023, there were $3.9 million outstanding letters of credit and $19.2 million available to be drawn upon. The interest rate applicable to the 2023 Credit Facility is, at the Company’s option, either (a) the Adjusted Term SOFR rate (subject to a 0.00% floor), plus a margin ranging from 1.50% to 2.25% or (b) the CB floating rate, (i) plus a margin of 0.25% or (ii) minus a margin ranging from 0.25% to 0.50%. The margin is based upon the Company’s fixed charge coverage ratio. The CB floating rate is the higher of (a) the Wall Street Journal prime rate and (b) 2.50%. The 2023 Credit Facility will terminate and borrowings thereunder, if any, would be due in full on April 30, 2026. Debt under the 2023 Credit Facility is guaranteed by substantially all of the Company’s material domestic subsidiaries and is secured by substantially all of the Company’s and such subsidiaries’ assets. The 2023 Credit Facility contains covenants that restrict, among other things, the Company's ability to sell assets, make investments and acquisitions, grant liens, change the Company’s lines of business, pay dividends and make certain other restricted payments. The Company is subject to certain affirmative and negative covenants including the requirement that it maintains a minimum total fixed charge coverage ratio during the periods set forth in the 2023 Credit Facility. Failure to do so, unless waived by the lenders under the 2023 Credit Facility pursuant to its terms, as amended, would result in an event of default under the 2023 Credit Facility. As of September 30, 2023, the Company is in compliance with all covenants under the 2023 Credit Facility. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: September 30, 2023 December 31, 2022 (In thousands) Payroll and payroll related expenses (1) $ 6,245 $ 6,790 Accrued inventory purchases 7,545 17,050 Accrued returns 273 318 Accrued rent (2) 7,999 7,688 Accrued restructuring (3) 384 — Other accrued expenses 8,718 6,164 Total accrued expenses $ 31,164 $ 38,010 ____________________ (1) Includes $1.7 million and $4.3 million of executive transition related expense as of September 30, 2023 and December 31, 2022, respectively. (2) Represents short-term operating lease liabilities. Refer to Note 13, "Leases" included in these condensed consolidated financial statements for more information on leases. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is subject to various claims and contingencies which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount or range of the loss can be reasonably estimated, the Company records a liability for the loss and discloses the possible loss in the consolidated financial statements. Legal costs are expensed as incurred. On September 23, 2020, the Center for Advanced Public Awareness (“CAPA”) served a 60-Day Notice of Violation on the Company, alleging that the Company violated California’s Health and Safety Code (“Prop 65”) because of the amount of lead in the Company’s Diaper Rash Cream and seeking statutory penalties and product warnings available under Prop 65. On October 22, 2021, CAPA filed a complaint in California Superior Court in the County of San Francisco (the “Court”) for the alleged Prop 65 violations contained in its 60-Day Notice of Violation. The Company filed its answer and notice of related cases against Prestige Consumer Healthcare, Inc., Burt's Bees, Inc., and Hain Celestial Group, Inc. on January 7, 2022 and has stipulated to relate these cases and transfer them to the Court's Complex Division. The Company intends to vigorously defend itself in this matter. The matter’s outcome and materiality are uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in this matter. On September 15, 2021, Cody Dixon filed a putative class action complaint in the U.S. District Court for the Central District of California alleging federal securities law violations by the Company, certain current officers and directors, and certain underwriters in connection with the Company’s IPO. A second putative class action complaint containing similar allegations against the Company and certain current officers and directors was filed by Stephen Gambino on October 8, 2021 in the U.S. District Court for the Central District of California. These related complaints have been transferred to the same court and a Lead Plaintiff has been appointed in the matter, and a putative consolidated class action complaint was filed by the Lead Plaintiff on February 21, 2022. Defendants’ motion to dismiss the putative consolidated class action complaint was filed on March 14, 2022. On July 18, 2022, the Company's motion to dismiss was granted in part and denied in part. On May 1, 2023, the Lead Plaintiff’s motion for class certification in the consolidated class action was granted in part and denied in part, with the U.S. District Court for the Central District of California limiting the certified class to only those persons and entities that purchased or otherwise acquired the Company’s publicly traded common stock pursuant and traceable to the Company’s IPO offering documents prior to August 19, 2021, as well as all persons and entities that acquired ownership of a trading account, retirement account, or any other similar investment account or portfolio containing the Company’s publicly traded common stock that was purchased or otherwise acquired pursuant and traceable to the IPO offering documents prior to August 19, 2021, and were damaged thereby. On August 14, 2023 the Lead Plaintiff filed an amended consolidated class action complaint naming as additional defendants Catterton Management Company L.L.C., L Catterton VIII, L.P., L. Catterton VIII Offshore, L.P., THC Shared Abacus, LP, Catterton Managing Partner VIII, L.L.C., and C8 Management, L.L.C. On October 16, 2023 those additional defendants filed a motion to dismiss the Second Amended Complaint with respect to the claims against them, and that motion is scheduled for a hearing on December 18, 2023. A derivative complaint was filed by Hayato Ono on behalf of the Company on November 29, 2021 in the U.S. District Court for the Central District of California, alleging breach of fiduciary duties, unjust enrichment, waste, gross mismanagement, and federal securities law violations by the Company’s directors and certain officers. On December 17, 2021, a second derivative complaint containing similar allegations against the Company’s directors and certain officers was filed by Mike Wang in the U.S. District Court for the Central District of California. These two federal derivative cases have been transferred to the same judge who is presiding over the securities class action complaints. A third derivative complaint was filed by Leah Bisch and Raluca Corobana in California Superior Court for the County of Los Angeles on January 3, 2022 with similar allegations. A fourth derivative complaint was filed by David Butler in the U.S. District Court for the District of Delaware on October 19, 2022 with similar allegations. Each of these federal and state court derivative cases have been stayed pending the outcome of a motion for summary judgment in the securities class action. These matters are in the preliminary stages of litigation with uncertain outcomes at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in these matters. On August 10, 2022, Catrice Sida and Kris Yerby filed a putative class action complaint in the U.S. District Court for the Northern District of California alleging violations of California’s Unfair Competition Law, False Advertising Law, Consumers Legal Remedies Act, breach of warranty, and unjust enrichment related to plant-based claims on certain of the Company’s wipes products and seeking declaratory relief, injunctive relief, monetary damages, punitive damages and statutory penalties, and attorneys’ fees and costs. The Company filed its motion to dismiss on October 17, 2022. On December 6, 2022, the Company's motion to dismiss was denied. The Company’s motion to stay pending the Ninth Circuit Court of Appeals’ review of the Central District of California’s decision in Whiteside v. Kimberly-Clark Corp., No. 5:22-cv-1988 JGB (SPx), 2023 WL 4328175 (C.D. Cal. June 1, 2023) was denied on September 5, 2023. The Company believes this complaint is without merit and intends to vigorously defend itself in this matter. The matter is in the preliminary stages of litigation and its outcome is uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the range of loss in this matter. As of September 30, 2023 and December 31, 2022, the Company was not subject to any other currently pending legal matters or claims that based on its current evaluation are expected to have a material adverse effect on its financial position, results of operations, or cash flows should such matters be resolved unfavorably. Indemnifications In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnifications may survive termination of the underlying agreement and the maximum potential number of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential number of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never been involved in litigation in connection with these indemnification arrangements. As of September 30, 2023 and December 31, 2022, the Company has not accrued a liability for these guarantees as the likelihood of incurring a payment obligation, if any, in connection with these guarantees is not probable or reasonably estimable due to the unique facts and circumstances involved. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationStock Options The following table summarizes the stock option activity: Number of Options Weighted Average Exercise Price Outstanding at December 31, 2022 14,888,007 $ 5.24 Granted — $ — Exercised (2,300) $ 1.70 Forfeited/Cancelled (1,550,149) $ 5.16 Outstanding at September 30, 2023 13,335,558 $ 5.25 During the three months ended September 30, 2023, the Company extended the post-termination exercise period for each outstanding stock option held by certain former executives such that the post-termination exercise period will end on the earlier of (i) the original expiration date of the stock option, or (ii) the date that is the 3-year anniversary of certain former executives no longer providing services to the Company. There were no changes to the exercise price or other terms of these stock options, and these stock options were already fully vested prior to the modification. As a result of this modification, we recognized incremental stock-based compensation expense of $0.5 million for the three and nine months ended September 30, 2023. 2021 Equity Incentive Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. All equity-based awards granted on or after the effectiveness of the 2021 Plan are granted under the 2021 Plan. The 2021 Plan provides for grants of incentive stock options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) awards, performance awards and other forms of awards to the Company’s employees, directors and consultants and any of its affiliates’ employees and consultants. Initially, the maximum number of shares of the Company’s common stock that may be issued under its 2021 Plan will not exceed 25,025,580 shares of the Company’s common stock. In addition, the number of shares of the Company’s common stock reserved for issuance under its 2021 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to (1) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year, or (2) a lesser number of shares determined by the Company’s board of directors prior to the date of the increase. On January 1, 2023, 3,713,026 additional shares were reserved for issuance pursuant to this provision. The maximum number of shares of the Company’s common stock that may be issued on the exercise of ISOs under its 2021 Plan is 75,100,000 shares. The following table summarizes the RSU activity: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2022 452,951 4,165,403 $ 3.44 $ 8.09 Transfer from Employee to Non-Employee Director (1) 1,147,566 (1,147,566) $ 9.02 $ 9.02 Granted 882,862 6,295,701 $ 1.74 $ 1.82 Vested (2) (1,358,421) (1,225,521) $ 5.89 $ 6.35 Forfeited (388,147) (1,430,377) $ 10.51 $ 5.62 Unvested RSUs at September 30, 2023 736,811 6,657,640 $ 1.85 $ 2.85 _____________ (1) Relates to former Chief Executive Officer ("CEO") RSUs that were reclassified to non-employee director shares for disclosure purposes. The former CEO was not re-nominated for election by the Board in connection with the annual stockholder meeting in May 2023. (2) Includes accelerated vesting of certain former executives' outstanding RSUs, including the former CEO and CFO. As such, the Company recognized the related stock-based compensation expense during the three and nine months ended September 30, 2023. As of September 30, 2023, there was $16.7 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.9 years. 2021 Employee Stock Purchase Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The Company authorized the issuance of 1,175,000 shares of common stock under the 2021 ESPP. In addition, the number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031 by the lesser of (i) 1% of the total number of shares of common stock outstanding on December 31 of the immediately preceding year; and (ii) 3,525,000 shares, except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). On January 1, 2023, 928,256 additional shares were reserved for issuance pursuant to this provision. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute (in the form of payroll deductions or otherwise to the extent permitted by the administrator) an amount established by the administrator from time to time in its discretion to purchase common stock at a discounted price per share. Under the 2021 ESPP, eligible employees are granted the right to purchase shares of common stock at the lower of 85% of the fair value at the time of grant or 85% of the fair value at the time of exercise. The right to purchase shares of common stock is granted in May and November of each year for an offering period of approximately six months. For the three and nine months ended September 30, 2023, 68,962 shares were purchased under the 2021 ESPP. As of September 30, 2023, the Company had 2,814,479 remaining authorized shares available for purchase. The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the nine months ended September 30, 2023 Expected life of options (in years) 0.50 Expected stock price volatility 86.19% Risk free interest rate 5.36% Expected dividend yield —% Weighted average grant-date fair value per share $0.67 2023 Inducement Plan In March 2023, the Company's Compensation Committee adopted the 2023 Inducement Plan (the “Inducement Plan”). The Inducement Plan reserved 4,000,000 shares of the Company’s common stock for issuance under the Inducement Plan to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. Stock-Based Compensation Expense Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Selling, general and administrative (1) $ 3,608 $ 3,852 $ 13,648 $ 10,929 Research and development 99 48 244 431 Total stock-based compensation expense $ 3,707 $ 3,900 $ 13,892 $ 11,360 __________________ (1) The Company extended the post-termination stock option exercise period for certain former executives, resulting in stock-based compensation expense of $0.5 million during the three months ended September 30, 2023. Additionally, the Company modified certain former executives' RSUs to accelerate vesting, including $0.5 million and $3.1 million during the three and nine months ended September 30, 2023. |
Net Income (Loss) per Share Att
Net Income (Loss) per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share Attributable to Common Stockholders | Net Income (Loss) per Share Attributable to Common StockholdersThe Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires net income be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. In periods where the Company has net losses, losses are not allocated to participating securities as they are not required to fund the losses. The Company considers its redeemable convertible preferred stock to be participating securities as preferred stockholders have rights to participate in dividends with the common stockholders. Basic net income (loss) attributable to common stockholders per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding. The Company computes diluted net income per share under a two-class method where income is reallocated between common stock, potential common stock and participating securities. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock options using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: For the three months ended September 30, For the nine months ended September 30, (In thousands, except for share and per share values) 2023 2022 2023 2022 Numerator: Net loss $ (8,098) $ (11,788) $ (40,381) $ (36,427) Net loss attributable to common stockholders - basic and diluted $ (8,098) $ (11,788) $ (40,381) $ (36,427) Denominator: Weighted average shares of common stock outstanding - basic 95,179,604 92,460,987 94,137,244 92,020,423 Weighted average shares of common stock outstanding - diluted 95,179,604 92,460,987 94,137,244 92,020,423 Net loss per share, attributable to common shareholders: Basic and diluted $ (0.09) $ (0.13) $ (0.43) $ (0.40) The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Stock options to purchase common stock 13,335,558 15,015,298 13,335,558 15,015,298 Unvested restricted stock units 7,394,451 4,835,801 7,394,451 4,835,801 Employee stock purchase plan 68,962 68,497 68,962 68,497 Total 20,798,971 19,919,596 20,798,971 19,919,596 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate of 21% primarily as a result of a valuation allowance against net deferred tax assets, stock-based compensation, state taxes, nondeductible executive compensation and other permanent differences. The Company has evaluated the available positive and negative evidence supporting the realization of its gross deferred tax assets, including cumulative losses, and the amount and timing of future taxable income, and has determined it is more likely than not that the assets will not be realized. Accordingly, the Company has recorded a full valuation allowance against the U.S. federal and state deferred tax assets as of each balance sheet date presented. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “Act”), which contains provisions that became effective on January 1, 2023, including a 15% corporate minimum tax and a 1% excise tax on stock buybacks. While the Company is still evaluating the impact of the Act, the Company does not currently expect any material changes on its consolidated financial position, results of operations and cash flows. During the three and nine months ended September 30, 2023 and 2022, the Company has not recorded any uncertain tax positions and has not recognized interest or penalties in the condensed consolidated statements of comprehensive loss. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In April 2020, the Company engaged Summit House Studios LLC, a third-party consultant, to provide digital ad production services. Summit House Studios LLC is owned by a major shareholder of the Company. Based on services provided, the Company incurred immaterial advertising costs for this related party during the three and nine months ended September 30, 2023 and 2022, which was reported as marketing expense in the Company’s condensed consolidated statements of comprehensive loss.In May 2022, the Company engaged Vault Co., a third-party consultant, to develop and deliver an ongoing brand tracker for the Company. Vault Co. is owned by a major shareholder of the Company. Based on services provided, the Company incurred immaterial advertising costs for this related party during the three and nine months ended September 30, 2023 and 2022, which is reported as marketing expense in the Company’s consolidated statements of comprehensive loss. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one The components of lease expense were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Finance lease expense: Amortization $ 12 $ 62 $ 42 $ 241 Interest on lease liabilities — 1 — 7 Operating lease expense: Operating lease expense (1) 1,792 1,795 5,376 5,362 Sublease income (501) (501) (1,503) (1,504) Total lease expense, net $ 1,303 $ 1,357 $ 3,915 $ 4,106 ______________________ (1) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities. Based on the nature of the Right-of-Use ("ROU") asset, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive loss. The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands): Assets Financial Statement Line Item September 30, 2023 Finance lease assets Property and equipment, net $ 28 Operating lease assets Operating lease right-of-use asset 25,266 Total lease assets $ 25,294 Liabilities Current Finance lease liabilities Accrued expenses $ 32 Operating lease liabilities Accrued expenses 7,999 Non-current Finance lease liabilities Other long-term liabilities 3 Operating lease liabilities Operating lease liabilities, net of current portion 23,791 Total lease liabilities $ 31,825 Supplemental information related to the Company’s leases for the nine months ended September 30, 2023 was as follows: Weighted-average remaining lease term (in years) Finance leases 0.9 Operating leases 3.8 Weighted-average discount rate Finance leases 3.00 % Operating leases 2.29 % Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $ 1 Operating cash flows used in operating leases $ 5,740 Finance cash flows used in finance leases $ 46 |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one The components of lease expense were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Finance lease expense: Amortization $ 12 $ 62 $ 42 $ 241 Interest on lease liabilities — 1 — 7 Operating lease expense: Operating lease expense (1) 1,792 1,795 5,376 5,362 Sublease income (501) (501) (1,503) (1,504) Total lease expense, net $ 1,303 $ 1,357 $ 3,915 $ 4,106 ______________________ (1) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities. Based on the nature of the Right-of-Use ("ROU") asset, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive loss. The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands): Assets Financial Statement Line Item September 30, 2023 Finance lease assets Property and equipment, net $ 28 Operating lease assets Operating lease right-of-use asset 25,266 Total lease assets $ 25,294 Liabilities Current Finance lease liabilities Accrued expenses $ 32 Operating lease liabilities Accrued expenses 7,999 Non-current Finance lease liabilities Other long-term liabilities 3 Operating lease liabilities Operating lease liabilities, net of current portion 23,791 Total lease liabilities $ 31,825 Supplemental information related to the Company’s leases for the nine months ended September 30, 2023 was as follows: Weighted-average remaining lease term (in years) Finance leases 0.9 Operating leases 3.8 Weighted-average discount rate Finance leases 3.00 % Operating leases 2.29 % Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $ 1 Operating cash flows used in operating leases $ 5,740 Finance cash flows used in finance leases $ 46 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Transformation Initiative In the first quarter of 2023, the Company began executing a broad-based Transformation Initiative designed to build the Honest brand and drive growth in higher-margin areas of the portfolio, strengthen the Company’s cost structure, drive focus on the most productive areas of our business, deliver greater impact from brand-building investments, and improve executional excellence across the enterprise. Restructuring costs are one of the elements of the Transformation Initiative and are included in restructuring on the condensed consolidated statements of comprehensive loss: • Employee-Related Costs – Employee-related costs are primarily comprised of severance and other post-employment benefit costs, calculated based on salary levels, prior service and other statutory minimum benefits, if applicable. • Asset-Related Costs – Asset-related costs consist of accelerated amortization related to visual merchandise in an international retail store taken out of service prior to its existing useful life as a direct result of the restructuring initiatives, as well as asset impairments related to technology taken out of service. • Contract Terminations – Costs related to contract terminations include continuing payments to a third party after the Company has ceased benefiting from the rights conveyed in the contract, or a payment made to terminate a contract prior to its expiration. Other costs associated with the Transformation Initiative are comprised of the following: • Sales Returns and Cost of Revenue – Product returns, chargebacks and markdowns are recorded as a reduction to revenue and inventory write-offs, write-downs or destruction costs as a direct result of the restructuring initiatives to exit certain products or geographic locations are recorded as a component of cost of revenue on the condensed consolidated statements of comprehensive loss when estimable and reasonably assured. • Other Costs – The Company incurred other costs related to the restructuring initiatives, which are included in selling, general and administrative expense on the condensed consolidated statements of comprehensive loss and primarily include the following: ▪ Donation expenses related to inventory reserves, including tariffs, and ▪ Consulting and other professional services. Costs associated with the Transformation Initiative for the three and nine months ended September 30, 2023 were as follows (in thousands): For the three months ended September 30, 2023 For the nine months ended September 30, 2023 Net Revenue (1) $ (117) $ 339 Cost of Revenue 586 3,873 Restructuring Costs (2) 357 2,104 Other Costs (3) 1,365 4,207 Total $ 2,191 $ 10,523 ______________ (1) Relates to estimated product markdowns and true-up of prior quarter estimates. (2) Refer to the table below for further details of operating expenses included in restructuring costs. (3) Refer to description above for types of operating expenses included in Other Costs. Restructuring Costs Employee-Related Costs Asset-Related Costs Contract Terminations Total Three months ended September 30, 2023 $ 285 $ 72 $ — $ 357 Cumulative through September 30, 2023 $ 1,041 $ 193 $ 870 $ 2,104 Changes in accrued expenses as of September 30, 2023 relating to the Transformation Initiative were: Restructuring Costs Employee-Related Costs (1) Asset-Related Costs Contract Terminations Inventory Reserves Total Balance at December 31, 2022 $ — $ — $ — $ — $ — Charges (adjustments) 1,041 — 479 5,198 6,718 Cash payments (661) — (116) — (777) Non-cash asset write-offs — — — (1,788) (1,788) Balance at September 30, 2023 $ 380 $ — $ 363 $ 3,410 $ 4,153 ___________ (1) Included in accrued expenses as of September 30, 2023. Refer to Note 7, "Accrued Expenses" included elsewhere in these condensed consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events [TBU] |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. |
Restructuring | Restructuring The Company incurs restructuring costs in connection with the exiting of certain products and geographical locations, workforce reductions, and other actions. Such costs include employee termination benefits (one-time arrangements), termination of contractual obligations, non-cash asset charges, including asset impairments, and other direct incremental costs. The Company records employee termination liabilities once they are both probable and estimable for severance provided under the Company’s existing severance policy. Other costs associated with a restructuring initiative, such as consulting and professional fees, product or geographical exit costs, accelerated amortization associated with a restructuring initiative, are recognized in the period in which the liability is incurred. Accrued restructuring costs are recorded within Accrued Expenses in the condensed consolidated balance sheets. |
Segment Reporting and Geographic Information | Segment Reporting and Geographic InformationThe Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for credit losses, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. |
Accounts Receivable | Accounts ReceivableAccounts receivable is presented as net of allowance for credit losses. The Company does not accrue interest on its trade receivables. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, and provides an allowance for credit losses, as necessary. The Company considers factors in its allowance for accounts receivable such as historical analysis, credit quality of customers, the age of the accounts receivable balances and current macroeconomic conditions that may impact on our customer's ability to pay. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments Credit Losses (Accounting Standard Codification 326): Measurement of Credit Losses on Financial Instruments , to amend the accounting for credit losses for certain financial instruments. This guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, FASB issued ASU No. 2019-10 which delayed the effective dates of the guidance. This guidance is effective for public business entities that |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue by sales channel: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Digital $ 40,103 $ 33,782 $ 123,648 $ 105,913 Retail 46,066 50,798 130,453 125,879 Total revenue $ 86,169 $ 84,580 $ 254,101 $ 231,792 Revenue by product category: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Diapers and Wipes $ 52,584 $ 55,222 $ 160,917 $ 150,411 Skin and Personal Care 21,221 21,992 66,748 66,534 Household and Wellness 12,364 7,366 26,436 14,847 Total revenue $ 86,169 $ 84,580 $ 254,101 $ 231,792 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Investments | The following table summarizes the Company’s available-for-sale investments: As of December 31, 2022 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 3,216 $ — $ (24) $ 3,193 Commercial paper 582 — — 582 Certificates of deposit 1,884 — (9) 1,875 Total investments $ 5,682 $ — $ (33) $ 5,650 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 5,517 $ — $ — $ 5,517 Total cash equivalents $ 5,517 $ — $ — $ 5,517 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 9,595 $ — $ — $ 9,595 Total cash equivalents $ 9,595 $ — $ — $ 9,595 Short-term investments Corporate bonds — 3,193 — 3,193 Commercial paper — 582 — 582 Certificates of deposit — 1,875 — 1,875 Total short-term investments — 5,650 — 5,650 Total $ 9,595 $ 5,650 $ — $ 15,245 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: September 30, 2023 December 31, 2022 (In thousands) Payroll and payroll related expenses (1) $ 6,245 $ 6,790 Accrued inventory purchases 7,545 17,050 Accrued returns 273 318 Accrued rent (2) 7,999 7,688 Accrued restructuring (3) 384 — Other accrued expenses 8,718 6,164 Total accrued expenses $ 31,164 $ 38,010 ____________________ (1) Includes $1.7 million and $4.3 million of executive transition related expense as of September 30, 2023 and December 31, 2022, respectively. (2) Represents short-term operating lease liabilities. Refer to Note 13, "Leases" included in these condensed consolidated financial statements for more information on leases. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the stock option activity: Number of Options Weighted Average Exercise Price Outstanding at December 31, 2022 14,888,007 $ 5.24 Granted — $ — Exercised (2,300) $ 1.70 Forfeited/Cancelled (1,550,149) $ 5.16 Outstanding at September 30, 2023 13,335,558 $ 5.25 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the RSU activity: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2022 452,951 4,165,403 $ 3.44 $ 8.09 Transfer from Employee to Non-Employee Director (1) 1,147,566 (1,147,566) $ 9.02 $ 9.02 Granted 882,862 6,295,701 $ 1.74 $ 1.82 Vested (2) (1,358,421) (1,225,521) $ 5.89 $ 6.35 Forfeited (388,147) (1,430,377) $ 10.51 $ 5.62 Unvested RSUs at September 30, 2023 736,811 6,657,640 $ 1.85 $ 2.85 _____________ (1) Relates to former Chief Executive Officer ("CEO") RSUs that were reclassified to non-employee director shares for disclosure purposes. The former CEO was not re-nominated for election by the Board in connection with the annual stockholder meeting in May 2023. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the nine months ended September 30, 2023 Expected life of options (in years) 0.50 Expected stock price volatility 86.19% Risk free interest rate 5.36% Expected dividend yield —% Weighted average grant-date fair value per share $0.67 |
Stock-based Compensation Expense | Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 (In thousands) Selling, general and administrative (1) $ 3,608 $ 3,852 $ 13,648 $ 10,929 Research and development 99 48 244 431 Total stock-based compensation expense $ 3,707 $ 3,900 $ 13,892 $ 11,360 __________________ (1) The Company extended the post-termination stock option exercise period for certain former executives, resulting in stock-based compensation expense of $0.5 million during the three months ended September 30, 2023. Additionally, the Company modified certain former executives' RSUs to accelerate vesting, including $0.5 million and $3.1 million during the three and nine months ended September 30, 2023. |
Net Income (Loss) per Share A_2
Net Income (Loss) per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: For the three months ended September 30, For the nine months ended September 30, (In thousands, except for share and per share values) 2023 2022 2023 2022 Numerator: Net loss $ (8,098) $ (11,788) $ (40,381) $ (36,427) Net loss attributable to common stockholders - basic and diluted $ (8,098) $ (11,788) $ (40,381) $ (36,427) Denominator: Weighted average shares of common stock outstanding - basic 95,179,604 92,460,987 94,137,244 92,020,423 Weighted average shares of common stock outstanding - diluted 95,179,604 92,460,987 94,137,244 92,020,423 Net loss per share, attributable to common shareholders: Basic and diluted $ (0.09) $ (0.13) $ (0.43) $ (0.40) |
Schedule of Potentially Dilutive Shares | The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Stock options to purchase common stock 13,335,558 15,015,298 13,335,558 15,015,298 Unvested restricted stock units 7,394,451 4,835,801 7,394,451 4,835,801 Employee stock purchase plan 68,962 68,497 68,962 68,497 Total 20,798,971 19,919,596 20,798,971 19,919,596 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows (in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Finance lease expense: Amortization $ 12 $ 62 $ 42 $ 241 Interest on lease liabilities — 1 — 7 Operating lease expense: Operating lease expense (1) 1,792 1,795 5,376 5,362 Sublease income (501) (501) (1,503) (1,504) Total lease expense, net $ 1,303 $ 1,357 $ 3,915 $ 4,106 ______________________ |
Assets and Liabilities, Lessee | The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands): Assets Financial Statement Line Item September 30, 2023 Finance lease assets Property and equipment, net $ 28 Operating lease assets Operating lease right-of-use asset 25,266 Total lease assets $ 25,294 Liabilities Current Finance lease liabilities Accrued expenses $ 32 Operating lease liabilities Accrued expenses 7,999 Non-current Finance lease liabilities Other long-term liabilities 3 Operating lease liabilities Operating lease liabilities, net of current portion 23,791 Total lease liabilities $ 31,825 Supplemental information related to the Company’s leases for the nine months ended September 30, 2023 was as follows: Weighted-average remaining lease term (in years) Finance leases 0.9 Operating leases 3.8 Weighted-average discount rate Finance leases 3.00 % Operating leases 2.29 % Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows used in finance leases $ 1 Operating cash flows used in operating leases $ 5,740 Finance cash flows used in finance leases $ 46 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Costs associated with the Transformation Initiative for the three and nine months ended September 30, 2023 were as follows (in thousands): For the three months ended September 30, 2023 For the nine months ended September 30, 2023 Net Revenue (1) $ (117) $ 339 Cost of Revenue 586 3,873 Restructuring Costs (2) 357 2,104 Other Costs (3) 1,365 4,207 Total $ 2,191 $ 10,523 ______________ (1) Relates to estimated product markdowns and true-up of prior quarter estimates. (2) Refer to the table below for further details of operating expenses included in restructuring costs. (3) Refer to description above for types of operating expenses included in Other Costs. Restructuring Costs Employee-Related Costs Asset-Related Costs Contract Terminations Total Three months ended September 30, 2023 $ 285 $ 72 $ — $ 357 Cumulative through September 30, 2023 $ 1,041 $ 193 $ 870 $ 2,104 |
Schedule of Restructuring Reserve by Type of Cost | Changes in accrued expenses as of September 30, 2023 relating to the Transformation Initiative were: Restructuring Costs Employee-Related Costs (1) Asset-Related Costs Contract Terminations Inventory Reserves Total Balance at December 31, 2022 $ — $ — $ — $ — $ — Charges (adjustments) 1,041 — 479 5,198 6,718 Cash payments (661) — (116) — (777) Non-cash asset write-offs — — — (1,788) (1,788) Balance at September 30, 2023 $ 380 $ — $ 363 $ 3,410 $ 4,153 ___________ |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 1 | |
Allowance for doubtful accounts | $ | $ 0.9 | $ 0.5 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 86,169 | $ 84,580 | $ 254,101 | $ 231,792 |
Diapers and Wipes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 52,584 | 55,222 | 160,917 | 150,411 |
Skin and Personal Care | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,221 | 21,992 | 66,748 | 66,534 |
Household and Wellness | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,364 | 7,366 | 26,436 | 14,847 |
Digital | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 40,103 | 33,782 | 123,648 | 105,913 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 46,066 | $ 50,798 | $ 130,453 | $ 125,879 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 86,169,000 | $ 84,580,000 | $ 254,101,000 | $ 231,792,000 |
Cost of revenue | 58,964,000 | 58,963,000 | $ 183,796,000 | 161,984,000 |
Trade Agreements | ||||
Disaggregation of Revenue [Line Items] | ||||
Marketing credits, usage period | 4 years | |||
Marketing credits, option to extend | 2 years | |||
Revenue | $ 0 | 1,600,000 | 2,900,000 | |
Cost of revenue | $ 800,000 | $ 0 | $ 1,600,000 | |
Impairment | 0 | |||
Transportation credit used | $ 200,000 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments with contractual maturities of less than one year | $ 0 | $ 5,700,000 |
Investments with contractual maturities between one and two years | $ 0 |
Investments - Available-for-Sal
Investments - Available-for-Sale Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 5,682 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (33) | |
Total Estimated Fair Value | $ 0 | 5,650 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 3,216 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (24) | |
Total Estimated Fair Value | 3,193 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 582 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total Estimated Fair Value | 582 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 1,884 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (9) | |
Total Estimated Fair Value | $ 1,875 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 5,650 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,517 | 9,595 |
Short-term investments | 5,650 | |
Total | 15,245 | |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,517 | 9,595 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,517 | 9,595 |
Short-term investments | 0 | |
Total | 9,595 | |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,517 | 9,595 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 5,650 | |
Total | 5,650 | |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,193 | |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 582 | |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,875 | |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | |
Total | 0 | |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Credit Facilities (Details)
Credit Facilities (Details) - 2023 Credit Facility - USD ($) | 1 Months Ended | |
Jan. 31, 2023 | Sep. 30, 2023 | |
Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum issuance of letters of credit | $ 35,000,000 | |
Line of credit facility, accordion feature, increase limit | 35,000,000 | |
Line of credit facility, accordion feature, higher borrowing capacity | $ 70,000,000 | |
Letters of credit outstanding | $ 3,900,000 | |
Letters of credit available to be drawn | $ 19,200,000 | |
Secured overnight financing rate floor | 0% | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Line of Credit | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate plus (minus) | 1.50% | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Line of Credit | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate plus (minus) | 2.25% | |
Revolving Credit Facility | Prime Rate | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate plus (minus) | 0.25% | |
Revolving Credit Facility | Prime Rate | Line of Credit | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate plus (minus) | (0.25%) | |
Revolving Credit Facility | Prime Rate | Line of Credit | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate plus (minus) | (0.50%) | |
Revolving Credit Facility | CB floating rate | ||
Line of Credit Facility [Line Items] | ||
Interest rate base | 2.50% | |
Letter of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum issuance of letters of credit | $ 15,000,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Payables and Accruals [Line Items] | ||
Payroll and payroll related expenses | $ 6,245 | $ 6,790 |
Accrued inventory purchases | 7,545 | 17,050 |
Accrued returns | 273 | 318 |
Accrued rent | 7,999 | 7,688 |
Accrued restructuring | 384 | 0 |
Other accrued expenses | 8,718 | 6,164 |
Total accrued expenses | 31,164 | 38,010 |
Chief Executive Officer | ||
Schedule of Payables and Accruals [Line Items] | ||
Payroll and payroll related expenses | $ 1,700 | $ 4,300 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Options | |
Options outstanding, beginning balance (in shares) | shares | 14,888,007 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (2,300) |
Forfeited/Cancelled (in shares) | shares | (1,550,149) |
Options outstanding, ending balance (in shares) | shares | 13,335,558 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 5.24 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 1.70 |
Forfeited/cancelled (in dollars per share) | $ / shares | 5.16 |
Ending balance (in dollars per share) | $ / shares | $ 5.25 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity Narrative (Details) - Share-Based Payment Arrangement, Option - Certain Former Executives - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation anniversary period | 3 years | |
Fair value of awards on day of modification | $ 0.5 | $ 0.5 |
Stock-Based Compensation - 2021
Stock-Based Compensation - 2021 Equity Incentive Plan (Details) - 2021 Equity Incentive Plan - shares | 1 Months Ended | |
Apr. 30, 2021 | Jan. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares that may be issued (in shares) | 25,025,580 | |
Period to increase available shares for issuance | 10 years | |
Percentage of total number of shares outstanding | 4% | |
Number of common stock authorized to be issued (in shares) | 3,713,026 | |
Incentive Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares that may be issued (in shares) | 75,100,000 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Awards (Details) - Unvested restricted stock units | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Non-Employee Directors | |
Number of Shares | |
Unvested RSUs, beginning balance (in shares) | shares | 452,951 |
Transfer from Employee to Non-Employee Director (in shares) | shares | 1,147,566 |
Granted (in shares) | shares | 882,862 |
Vested (in shares) | shares | (1,358,421) |
Forfeited (in shares) | shares | (388,147) |
Unvested RSUs, ending balance (in shares) | shares | 736,811 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested RSUs, beginning balance (in dollars per share) | $ / shares | $ 3.44 |
Transfer from Employee to Non-Employee Director (in dollars per share) | $ / shares | 9.02 |
Granted (in dollars per share) | $ / shares | 1.74 |
Vested (in dollars per share) | $ / shares | 5.89 |
Forfeited (in dollars per share) | $ / shares | 10.51 |
Unvested RSUs, ending balance (in dollars per share) | $ / shares | $ 1.85 |
Directors, Officers and Employees | |
Number of Shares | |
Unvested RSUs, beginning balance (in shares) | shares | 4,165,403 |
Transfer from Employee to Non-Employee Director (in shares) | shares | (1,147,566) |
Granted (in shares) | shares | 6,295,701 |
Vested (in shares) | shares | (1,225,521) |
Forfeited (in shares) | shares | (1,430,377) |
Unvested RSUs, ending balance (in shares) | shares | 6,657,640 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested RSUs, beginning balance (in dollars per share) | $ / shares | $ 8.09 |
Transfer from Employee to Non-Employee Director (in dollars per share) | $ / shares | 9.02 |
Granted (in dollars per share) | $ / shares | 1.82 |
Vested (in dollars per share) | $ / shares | 6.35 |
Forfeited (in dollars per share) | $ / shares | 5.62 |
Unvested RSUs, ending balance (in dollars per share) | $ / shares | $ 2.85 |
Stock-Based Compensation - RS_2
Stock-Based Compensation - RSU Awards Narrative (Details) - Unvested restricted stock units $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 16.7 |
Period for recognition | 2 years 10 months 24 days |
Stock-Based Compensation - 20_2
Stock-Based Compensation - 2021 Employee Stock Purchase Plan (Details) - shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2023 | Jan. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Offering period | 6 months | |||
Employee stock purchase plan | 2021 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common stock authorized to be issued (in shares) | 1,175,000 | 928,256 | ||
Period to increase available shares for issuance | 10 years | |||
Percentage of total number of shares outstanding | 1% | |||
Additional shares authorized (in shares) | 3,525,000 | |||
Purchase price of common stock in percent | 85% | |||
Shares issued through ESPP (in shares) | 68,962 | 68,962 | ||
Number of shares available for purchase (in shares) | 2,814,479 | 2,814,479 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Options | 9 Months Ended |
Sep. 30, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of options (in years) | 6 months |
Expected stock price volatility | 86.19% |
Risk free interest rate | 5.36% |
Expected dividend yield | 0% |
Weighted average grant-date fair value per share (in dollars per share) | $ 0.67 |
Stock-Based Compensation - 2023
Stock-Based Compensation - 2023 Inducement Plan (Details) | Mar. 31, 2023 shares |
2023 Inducement Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of common stock authorized to be issued (in shares) | 4,000,000 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 3,707 | $ 3,900 | $ 13,892 | $ 11,360 |
Unvested restricted stock units | Certain Former Executives | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, accelerated cost | 500 | 3,100 | ||
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 3,608 | 3,852 | 13,648 | 10,929 |
Selling, general and administrative | Certain Former Executives | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 500 | |||
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 99 | $ 48 | $ 244 | $ 431 |
Net Income (Loss) per Share A_3
Net Income (Loss) per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net loss | $ (8,098) | $ (13,416) | $ (18,867) | $ (11,788) | $ (10,012) | $ (14,626) | $ (40,381) | $ (36,427) |
Net loss attributable to common stockholders - basic | (8,098) | (11,788) | (40,381) | (36,427) | ||||
Net loss attributable to common stockholders - diluted | $ (8,098) | $ (11,788) | $ (40,381) | $ (36,427) | ||||
Denominator: | ||||||||
Weighted average shares of common stock outstanding - basic (in shares) | 95,179,604 | 92,460,987 | 94,137,244 | 92,020,423 | ||||
Weighted average shares of common stock outstanding - diluted (in shares) | 95,179,604 | 92,460,987 | 94,137,244 | 92,020,423 | ||||
Net loss per share, attributable to common shareholders: | ||||||||
Basic (in dollars per share) | $ (0.09) | $ (0.13) | $ (0.43) | $ (0.40) | ||||
Diluted (in dollars per share) | $ (0.09) | $ (0.13) | $ (0.43) | $ (0.40) |
Net Income (Loss) per Share A_4
Net Income (Loss) per Share Attributable to Common Stockholders - Potentially Dilutive Shares Excluded From Computation of Diluted Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,798,971 | 19,919,596 | 20,798,971 | 19,919,596 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 13,335,558 | 15,015,298 | 13,335,558 | 15,015,298 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,394,451 | 4,835,801 | 7,394,451 | 4,835,801 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 68,962 | 68,497 | 68,962 | 68,497 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | $ 0 |
Interest and penalties expense | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |
Non-cash ROU assets obtained in exchange for finance lease liabilities | $ 0 |
Non-cash ROU assets obtained in exchange for operating lease liabilities | $ 0 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 1 year |
Lessee, finance lease, remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 6 years |
Lessee, finance lease, remaining lease term | 6 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Amortization | $ 12 | $ 62 | $ 42 | $ 241 |
Interest on lease liabilities | 0 | 1 | 0 | 7 |
Operating lease expense | 1,792 | 1,795 | 5,376 | 5,362 |
Sublease income | (501) | (501) | (1,503) | (1,504) |
Total lease expense, net | $ 1,303 | $ 1,357 | $ 3,915 | $ 4,106 |
Leases - Summary of Assets and
Leases - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Assets | |||
Finance lease, right-of-use asset, statement of financial position | Property and equipment, net | ||
Finance lease assets | $ 28 | ||
Operating lease assets | 25,266 | $ 29,947 | |
Total lease assets | $ 25,294 | ||
Current | |||
Finance lease, liability, current, statement of financial position | Accrued Liabilities, Current | ||
Finance lease liabilities | $ 32 | ||
Operating lease, liability, current, statement of financial position | Accrued Liabilities, Current | ||
Operating lease liabilities | $ 7,999 | 7,688 | |
Non-current | |||
Finance lease, liability, noncurrent, statement of financial position | Other long-term liabilities | ||
Finance lease liabilities | $ 3 | ||
Operating lease liabilities | 23,791 | $ 29,842 | |
Total lease liabilities | $ 31,825 | ||
Weighted-average remaining lease term (in years) | |||
Finance leases | 10 months 24 days | ||
Operating leases | 3 years 9 months 18 days | ||
Weighted-average discount rate | |||
Finance leases | 3% | ||
Operating leases | 2.29% | ||
Cash paid for amounts included in the measurement of lease liabilities (in thousands) | |||
Operating cash flows used in finance leases | $ 1 | ||
Operating cash flows used in operating leases | 5,740 | ||
Finance cash flows used in finance leases | $ 46 | $ 281 |
Restructuring - Schedule of Cos
Restructuring - Schedule of Costs Associated with the Transformation Initiative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 357 | $ 0 | $ 2,104 | $ 0 |
Transformation Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 2,191 | 10,523 | ||
Transformation Initiative | Net Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | (117) | 339 | ||
Transformation Initiative | Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 586 | 3,873 | ||
Transformation Initiative | Restructuring Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 357 | 2,104 | ||
Transformation Initiative | Restructuring Costs | Employee-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 285 | 1,041 | ||
Transformation Initiative | Restructuring Costs | Asset-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 72 | 193 | ||
Transformation Initiative | Restructuring Costs | Contract Terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 0 | 870 | ||
Transformation Initiative | Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 1,365 | $ 4,207 |
Restructuring - Please update t
Restructuring - Please update to "Schedule of Changes in Accrued Expenses Relating to Transformation Initiative (Details) - Transformation Initiative $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2022 | $ 0 |
Charges (adjustments) | 6,718 |
Cash payments | (777) |
Non-cash asset write-offs | (1,788) |
Balance at September 30, 2023 | 4,153 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2022 | 0 |
Charges (adjustments) | 1,041 |
Cash payments | (661) |
Non-cash asset write-offs | 0 |
Balance at September 30, 2023 | 380 |
Asset-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2022 | 0 |
Charges (adjustments) | 0 |
Cash payments | 0 |
Non-cash asset write-offs | 0 |
Balance at September 30, 2023 | 0 |
Contract Terminations | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2022 | 0 |
Charges (adjustments) | 479 |
Cash payments | (116) |
Non-cash asset write-offs | 0 |
Balance at September 30, 2023 | 363 |
Inventory Reserves | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2022 | 0 |
Charges (adjustments) | 5,198 |
Cash payments | 0 |
Non-cash asset write-offs | (1,788) |
Balance at September 30, 2023 | $ 3,410 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Employee Severance and Contract Terminations | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve | $ 0.4 |
Uncategorized Items - hnst-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |