Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39214 | |
Entity Registrant Name | Casper Sleep Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-3987647 | |
Entity Address, Address Line One | Three World Trade Center 175 Greenwich Street | |
Entity Address, Address Line Two | Floor 39 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10007 | |
City Area Code | 347 | |
Local Phone Number | 941-1871 | |
Title of 12(b) Security | Common Stock, $0.000001 par value per share | |
Trading Symbol | CSPR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,440,344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001598674 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 61,626 | $ 88,922 |
Restricted Cash | 0 | 3,162 |
Accounts receivable, net | 24,536 | 27,663 |
Prepaid expenses and other current assets | 12,840 | 11,026 |
Inventory, net | 46,840 | 35,531 |
Total current assets | 145,842 | 166,304 |
Property and equipment, net | 66,193 | 66,529 |
Other assets | 1,363 | 1,368 |
Total assets | 213,398 | 234,201 |
Current liabilities: | ||
Accounts payable | 48,130 | 47,612 |
Accrued expenses | 56,238 | 54,741 |
Deferred revenue | 4,109 | 7,430 |
Other current liabilities | 10,001 | 9,498 |
Total current liabilities | 118,478 | 119,281 |
Long-term Debt | 62,966 | 65,546 |
Other liabilities | 23,833 | 23,907 |
Total liabilities | 205,277 | 208,734 |
Common stock, $0.000001 par value - 170,000 and 170,000 shares authorized; 41,425 and 40,539 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 0 | 0 |
Stockholders’ equity: | ||
Additional paid-in capital | 444,063 | 440,248 |
Accumulated other comprehensive income | 53 | 34 |
Accumulated deficit | (435,995) | (414,815) |
Total stockholders’ equity | 8,121 | 25,467 |
Total liabilities and stockholders’ equity | $ 213,398 | $ 234,201 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 41,425,000 | 40,539,000 |
Common stock, shares outstanding (in shares) | 41,425,000 | 40,539,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 127,678 | $ 113,044 |
Cost of goods sold | 60,995 | 60,080 |
Gross profit | 66,683 | 52,964 |
Operating expenses | ||
Sales and marketing expenses | 40,530 | 37,474 |
General and administrative expense | 44,504 | 46,987 |
Restructuring expenses | 401 | 1,311 |
Total operating expenses | 85,435 | 85,772 |
Loss from operations | (18,752) | (32,808) |
Other (income) expense | ||
Net interest expense | 2,516 | 2,156 |
Other (income) expense, net | (107) | (514) |
Total other expenses, net | 2,409 | 1,642 |
Loss before income taxes | (21,161) | (34,450) |
Income tax expense | 19 | 16 |
Net loss | (21,180) | (34,466) |
Other comprehensive income (loss) | ||
Currency translation adjustment | 19 | 447 |
Total comprehensive loss | $ (21,161) | $ (34,019) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.52) | $ (1.23) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.52) | $ (1.23) |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 40,808,328 | 27,909,141 |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 40,808,328 | 27,909,141 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity/(Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Common StockClass A common stock | Common StockClass B common stock | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 19,212,912 | |||||||
Beginning balance at Dec. 31, 2019 | $ 319,961 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Conversion of redeemable preferred stock to common stock (in shares) | (19,212,912) | 20,485,054 | ||||||
Conversion of redeemable convertible preferred stock to common stock | $ 319,961 | $ (319,961) | $ 319,961 | |||||
Ending balances (in shares) at Mar. 31, 2020 | 0 | |||||||
Ending balance at Mar. 31, 2020 | $ 0 | |||||||
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 9,190,858 | 1,466,078 | |||||
Beginning balance at Dec. 31, 2019 | (307,094) | $ 0 | $ 0 | $ 0 | 18,097 | $ 69 | $ (325,260) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of employee stock options (in shares) | 4,332 | |||||||
Exercise of employee stock options | 47 | 47 | ||||||
Stock based compensation expense | 2,661 | 2,661 | ||||||
Other comprehensive income | 447 | 447 | ||||||
Net loss | (34,466) | (34,466) | ||||||
Initial public offering, net of issuance costs of $11.8 million (in shares) | 8,350,000 | |||||||
Initial public offering, net of issuance costs of $11.8 million | 88,206 | 88,206 | ||||||
Conversion of redeemable preferred stock to common stock (in shares) | (19,212,912) | 20,485,054 | ||||||
Conversion of redeemable convertible preferred stock to common stock | 319,961 | $ (319,961) | 319,961 | |||||
Common stock conversion (in shares) | 10,656,936 | (9,190,858) | (1,466,078) | |||||
Exercise of stock warrants (in shares) | 181,133 | |||||||
Exercise of stock warrants | 3 | 3 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 39,677,455 | 0 | 0 | |||||
Ending balance at Mar. 31, 2020 | 69,765 | $ 0 | $ 0 | $ 0 | 428,975 | 516 | (359,726) | |
Beginning balance (in shares) at Dec. 31, 2020 | 40,538,644 | 0 | 0 | |||||
Beginning balance at Dec. 31, 2020 | $ 25,467 | $ 0 | $ 0 | $ 0 | 440,248 | 34 | (414,815) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of employee stock options (in shares) | 130,925 | 130,925 | ||||||
Exercise of employee stock options | $ 29 | 29 | ||||||
Stock based compensation expense | 3,786 | 3,786 | ||||||
Issuance of Common Stock pursuant to the 2020 Equity Plan (in shares) | 755,623 | |||||||
Other comprehensive income | 19 | 19 | ||||||
Net loss | (21,180) | (21,180) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 41,425,192 | |||||||
Ending balance at Mar. 31, 2021 | $ 8,121 | $ 444,063 | $ 53 | $ (435,995) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity/(Deficit) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs | $ 11.8 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows used in operating activities: | |||
Net loss | $ (21,180) | $ (34,466) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | [1] | 3,823 | 4,129 |
Stock based compensation expense | 3,786 | 2,661 | |
Other | 768 | 423 | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 3,127 | 10,637 | |
Prepaid expenses and other current assets | (1,815) | 110 | |
Inventory, net | (11,914) | 486 | |
Other assets | (1) | 95 | |
Accounts payable | 913 | 7,113 | |
Accrued expenses | 1,497 | (17,771) | |
Deferred revenue | (3,322) | (5,842) | |
Other liabilities | 692 | (643) | |
Net cash used in operating activities | (23,626) | (33,068) | |
Cash flows used in investing activities: | |||
Purchases of property and equipment | [2] | (3,881) | (7,090) |
Net cash used in investing activities | (3,881) | (7,090) | |
Cash flows (used in) provided by financing activities: | |||
Exercise of stock options and warrants | 29 | 50 | |
Proceeds from equity issuance | 0 | 88,206 | |
Repayment on borrowings | (3,000) | 0 | |
Net cash (used in) provided by financing activities | (2,971) | 88,256 | |
Effect of exchange rate changes | 20 | 447 | |
Net change in cash, cash equivalents, and restricted cash | (30,458) | 48,545 | |
Cash, cash equivalents, and restricted cash at beginning of period | 92,084 | 67,578 | |
Cash, cash equivalents, and restricted cash at end of the period | 61,626 | 116,123 | |
Supplemental disclosure of cash paid for: | |||
Interest paid | (1,554) | (1,180) | |
Supplemental schedule of noncash financing activity: | |||
Reclass of deferred financing costs to additional paid in capital | 0 | 5,481 | |
Deferred financing costs included in accounts payable and accrued expenses | 0 | 1,957 | |
General and administrative expenses | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 3,823 | 3,148 | |
Restructuring expenses | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 0 | 981 | |
Series Seed preferred units converted to common stock | |||
Supplemental schedule of noncash financing activity: | |||
Units converted to common stock | 0 | 1,826 | |
Series A preferred units converted to common stock | |||
Supplemental schedule of noncash financing activity: | |||
Units converted to common stock | 0 | 12,983 | |
Series B preferred units converted to common stock | |||
Supplemental schedule of noncash financing activity: | |||
Units converted to common stock | 0 | 54,895 | |
Series C preferred units converted to common stock | |||
Supplemental schedule of noncash financing activity: | |||
Units converted to common stock | 0 | 169,098 | |
Series D preferred units converted to common stock | |||
Supplemental schedule of noncash financing activity: | |||
Units converted to common stock | 0 | 81,159 | |
Accounts payable | |||
Cash flows used in investing activities: | |||
Purchases of property and equipment | $ (391) | $ (938) | |
[1] | Depreciation and amortization for the three months ended March 31, 2021 and 2020 consists of $3,823 and $3,148 recorded in general and administrative expenses and $— and $981 recorded in restructuring expenses, respectively, on the Consolidated Statements of Operations and Comprehensive Loss. | ||
[2] | Purchases of property and equipment is net of fixed assets purchases that are included in accounts payable amounting to $391 and $938 at March 31, 2021 and 2020, respectively. |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Casper Sleep Inc. and its subsidiaries (the “Company” or “Casper”) design and sell premium sleep products including mattresses, pillows, sheets, and other sleep-centric products. The Company’s head office is located at 175 Greenwich Street, 3 World Trade Center, New York, NY, and the Company has additional office locations in San Francisco, CA , as well as retail locations and pop-up stores throughout the United States (“U.S.”) and Canada. The Company comprises Casper Sleep Inc. and its wholly-owned subsidiaries, Casper Science LLC, Casper Sleep Retail LLC, and Casper Sleep Limited (“Casper UK Holdco”). Casper UK Holdco wholly-owns Casper Sleep GmbH, Casper Sleep (UK) Limited, and Casper Sleep SAS. |
Initial Public Offering
Initial Public Offering | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Initial Public Offering | Initial Public OfferingOn February 10, 2020, the Company completed the initial public offering (the “IPO”) of its common stock pursuant to a Registration Statement on Form S-1. In the IPO, the Company sold an aggregate of 8,350,000 shares of common stock at a public offering price of $12.00 per share. Upon consummation of the offering on February 10, 2020, the Company received net proceeds of approximately $88,000, after deducting underwriting discounts and commissions of $6,500 and offering expenses of $5,700. Upon the completion of the IPO, all outstanding shares of the Company's convertible preferred stock and Class A and Class B common stock were converted into common stock.Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (a) Common Stock On February 10, 2020, in connection with our IPO, all Class A common stock and Class B common stock were converted into common stock with a par value of $0.000001, per share and we issued and sold 8,350,000 shares of our common stock at a price to the public of $12.00 per share resulting in net proceeds to us of approximately $88,000 after deducting the underwriting discount of approximately $6,500 and offering expenses of approximately $5,700. As of March 31, 2021 , the company had 170,000,000 shares of authorized common stock. Each holder of the Company's common stock is entitled to one vote per share on all matters to be voted upon by the stockholders. There are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Company's board of Directors out of legally available funds. If there is a liquidation, dissolution or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. (b) Convertible Preferred Stock |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe Company presents its financial statements on a consolidated basis of all its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. All figures expressed, except share and per share amounts, are represented in U.S. dollars in thousands. |
Use of Estimates
Use of Estimates | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use Of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the valuation of deferred income tax assets, deferred revenue, the valuation of stock-based compensation and warrants, the product returns reserve, the inventory obsolescence reserve and accounts receivable allowance for doubtful accounts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of less than three months when purchased to be cash equivalents. (b) Restricted Cash Restricted cash represents cash balances held in segregated accounts used for collateralizing letters of credit with its bank. During the three months ended March 31, 2021, these letters of credits were closed and the associated restrictions on cash were relieved. (c) Accounts Receivable, net At March 31, 2021 and December 31, 2020, accounts receivable, net was composed primarily of amounts due from retail partners, from financial institutions related to credit card sales and other receivables. Accounts receivable is recorded net of an allowance for uncollectible balances related to chargebacks or disputes raised by retail partners. The allowance is recognized in an amount equal to anticipated future uncollectible receivables. Management estimates the allowance for doubtful accounts based on delinquencies, trends and historical experience. (d) Inventory, net Inventory primarily consist of merchandise purchased for sale, as well as costs to deliver merchandise to Casper’s logistics providers and retail stores. The Company’s inventory is stated at cost using standard costing. The Company performs an analysis to determine whether it is appropriate or not to maintain a reserve for excess and obsolete inventory. The reserve is based on historical experience related to the disposal of identified inventory, specifically through sales to retail partners, clearance sales and, ultimately, the expected recoverable value. The value of older inventory can be impacted by new product launches, which can make certain older items obsolete. A lower of cost or market assessment is performed on inventory and reserves established when the net realizable value exceeds the historic cost. Most of Casper’s inventory is just-in-time and most products have been recently introduced and in existence for less than two years. The Company performs a review of all on hand inventory to determine if any items are deemed obsolete based on specific facts and circumstances. Storage costs, indirect administrative overhead and certain selling costs related to inventories are expensed in the period incurred. Inventory consists of the following: March 31, 2021 December 31, 2020 Raw materials $ 155 $ 386 Finished goods 38,303 31,575 Inventory in transit 8,382 3,570 Total inventory 46,840 35,531 Raw materials consist of replacement parts and components used in the creation of products. Finished goods is comprised of completed goods including mattresses, pillows, sheets, dog beds, glow lights and furniture. Inventory in transit is either purchased inventory coming from outside the United States or inventory being transferred between warehouses or from warehouse to retail location. The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. (e) Revenue Recognition Revenue transactions associated with the sale of goods and services comprise a single performance obligation, which consists of the sale of products to customers either to the Company’s retail partners or through its direct-to-consumer (“DTC”) channel. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from retail partnership transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time of delivery for e-commerce transactions. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances. Casper determines these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates. The duration of contractual arrangements with our customers is typically less than one year. Payment terms with retail partners vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for DTC transactions. We have elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as costs of goods sold at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold. Revenue is comprised of global sales through our DTC channels and our retail partnerships, and reflects the impact of product returns as well as discounts for certain sales programs and promotions. Promotions are occasionally offered, primarily in the form of discounts, and are recorded as a reduction of gross revenue at the date of revenue recognition. We typically accept sales returns during a 30 or 100-night trial period, depending on the product, with our mattresses having a 100-night trial period. A sales return accrual is estimated based on historical return rates and is then adjusted for any current trends as appropriate. Returns are netted against the sales allowance reserve for the period. Sales are recognized as deferred revenue at the point of sale and are recognized as revenue upon the delivery to the consumer. Revenue through our DTC channels is recognized upon in-store or home delivery to the consumer, as applicable, and retail partnership revenue is recognized upon the transfer of control, on a per contract basis. Disaggregated Revenue Data The following table disaggregates our net sales by geography and channel for the periods indicated: Three Months Ended March 31, 2021 2020 North America Region $ 127,678 $ 106,359 EU Region — 6,685 Total $ 127,678 $ 113,044 Direct to Consumer $ 93,240 $ 90,304 Retail Partnerships 34,438 22,740 Total $ 127,678 $ 113,044 (f) Cost of Goods Sold Cost of goods sold consists of costs of purchased merchandise, including freight, duty, vendor rebates, and nonrefundable taxes incurred in delivering goods and services to customers and distribution centers, packaging and component costs, warehousing and fulfillment costs, damages, and excess and obsolete inventory write-downs. (g) Sales and Marketing expenses Sales and marketing expenses consist primarily of advertising and marketing promotions of the Company’s produ cts as well as sponsorship costs, consulting and contractor expenses. Advertising and other promotional costs are expensed as incurred. (h) General and Administrative expenses General and administrative expenses consist of personnel-related costs for our retail stores, retail operations, finance, legal, human resources, and IT functions, as well as litigation expenses, credit card fees, professional services, rent and operating costs associated with our retail stores, depreciation and amortization, and other administrative expenses. Research and development expenses are included within general and administrative and consist primarily of personnel-related expenses, consulting and contractor expenses, tooling, test equipment, and prototype materials. (i) Restructuring expenses Restructuring expenses consist of costs associated with implementing strategic changes in the companies' business structure including reductions in work force and exiting of certain lines of business or geographies. During 2020, in response to the COVID-19 pandemic, the Company announced a number of restructuring actions focused on cost savings and renewed focus on commercial operations in North America. Restructuring expenses for the three months ended March 31, 2021 relate to costs associated with certain severance and other employee separation costs. Restructuring expenses for the three months ended March 31, 2020 relate to costs associated with restructuring our retail operations and organizational structure, including severance, contract termination costs and other exit activities. Costs associated with these actions amounted to $401 and $1,311 for the three months ended March 31, 2021 and 2020, respectively. A summary of the charges recorded in connection with these actions during the periods presented: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 EU Closure US Total EU Closure US Total Severance and benefits $ — $ 537 $ 537 $ — $ 10 $ 10 Contract termination — — — 320 320 Asset impairments — — — — 981 981 Other expenses (148) 12 (136) — — — Total $ (148) $ 549 $ 401 $ — $ 1,311 $ 1,311 The Company's accrued liabilities for the restructuring expenses at March 31, 2021 was $1,802, which is presented i n accrued expenses in the consolidated balance sheets. Accrued restructuring balance as at December 31, 2020 $ 1,644 Charges accrued during the three month period ended March 31, 2021 401 Payments made during the three month period ended March 31, 2021 (243) Accrued Restructuring balance as at March 31, 2021 $ 1,802 (j) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid media placement for media campaigns that have not yet run, prepaid rent and office related expenses, and other prepaid expenses. In addition, the Company had tenant allowance receivable of $3,705 an d $5,120 as of March 31, 2021 and December 31, 2020 , respectively. (k) Stock-Based Compensation Compensation cost for all stock-based awards, including options to purchase stock and restricted stock units (“RSUs”) is measured at fair value on the date of grant and recognized over the service period. The fair value of stock options is estimated on the date of grant using a Black-Scholes model. The fair value of RSUs awarded is estimated on the date of grant based on the fair value of our common stock. Compensation cost is recognized on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures. (l) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures, computers, technology hardware, and machinery and equipment range from 3 to 5 years. The Company’s purchased software is amortized over 7 years. Leasehold improvements are depreciated over the shorter of their useful life or the related lease term (without consideration of option renewal terms). Property and equipment consist of the following: March 31, 2021 December 31, 2020 Leasehold improvements $ 55,400 $ 53,404 Furniture and fixtures 25,883 24,294 Construction in progress 5,739 6,021 Computer Equipment 5,110 4,984 Computer software 2,407 2,405 Machinery and Equipment 910 853 Property and equipment 95,449 91,961 Less: accumulated depreciation (29,256) (25,432) Property and equipment, net $ 66,193 $ 66,529 Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined using various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. During the three months ended March 31, 2020, the Company recorded an impairment charge related to restructuring actions of $981 as a result of permanently closing three outlet stores, abandoning selected product development activities resulting in impairment of related production assets, and exiting our European operations. This expense is presented within restructuring expenses on the consolidated statement of operations and comprehensive loss. See Note 5(i), Restructuring expenses for additional details. (m) Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized within the provision for (benefit from) income taxes on the consolidated statement of operations and comprehensive loss in the period that includes the enactment date. The Company reduces deferred tax assets, by a valuation allowance if it is more likely than not that the Company will not realize some or all of the deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including taxable income in prior carryback years (if carryback is permitted under the relevant tax law), the timing of the reversal of existing taxable temporary differences, tax planning strategies, and projected future taxable income. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions within the provision for (benefit from) income taxes in the consolidated statement of operations and comprehensive loss. (n) Deferred Rent Rental payments under operating leases are expensed on a straight-line basis after consideration of rent holidays, tenant allowances, step rent provisions and escalation clauses. Differences between rental expense (recognized from the date of possession) and actual rental payments are recorded as deferred rent. Deferred rent is presented in other liabilities. See Note 5(q), Other Liabilities for additional information on deferred rent. (o) Intangibles The Company’s intangible assets consist of patents and domain names stated at cost. Intangibles are presented in other assets in the consolidated balance sheets. (p) Other Current Liabilities Other current liabilities consist of the following: March 31, 2021 December 31, 2020 Product return reserve $ 6,672 $ 7,112 Other Taxes 2,446 1,501 Other 883 885 Total Other Current Liabilities $ 10,001 $ 9,498 (q) Other Liabilities Other liabilities consist of the following: March 31, 2021 December 31, 2020 Tenant Allowance $ 12,847 $ 13,006 Deferred Rent 8,894 8,737 Contract Liability 2,000 2,125 Other 92 39 Total Other Liabilities $ 23,833 $ 23,907 See Note 7, Debt for additional details. (r) Basic and Diluted Loss per Common Share The Company accounts for net income (loss) per common share using the treasury stock method. Basic net income (loss) per common share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted net income (loss) per common share reflects the weighted-average number of common shares outstanding during the period used in the basic net income (loss) computation plus dilutive common stock equivalents. The computation of diluted net income (loss) per common share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on net income (loss) per common share. (s) Foreign Currency The functional currency of the Company's international operating subsidiaries is the local currency. The Company translates the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates for the annual period are derived from month-end spot rates for revenue, costs and expenses. The Company records translation gains and losses in accumulated other comprehensive loss as a component of stockholders' equity. Foreign currency transaction gains and losses are included in net loss for the period. (t) Convertible Preferred Stock On February 10, 2020, upon the closing of the Company's IPO, all outstanding shares of convertible preferred stock were automatically converted into an aggregate of 20,485,054 shares of common stock. (u) S egment Information During the three months ended March 31, 2021 and 2020, t he Company operated in one operating segment within the United States, Canada and Europe, providing sleep products to consumers through various sales channels. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer. The role of the CODM is to make decisions about allocating resources and assessing performance. The Company's business operates in one operating segment as all of the Company's sales channels are complementary and are analyzed in an identical way, with the CODM evaluating the Company's financial information, resources and performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value. Such instruments are classified as Level 1 and are included in cash, cash equivalents, and restricted cash on the consolidated balance sheets. At March 31, 2021, the Company's valuation of outstanding warrants was measured using a Black-Scholes option pricing model and considered Level 2 inputs. See Note 14, Warrants for further discussion of the Company's outstanding warrants and assumptions utilized. The following summarizes assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2021 and December 31, 2020: Fair Value Cash, Cash Equivalents, and Restricted Cash March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Assets Cash $ 61,626 $ 74,013 $ 61,626 $ 74,013 Level 1: Money market funds — 18,071 — 18,071 Cash, cash equivalents and restricted cash 61,626 92,084 61,626 92,084 Liabilities Level 2: Preferred stock warrant liabilities (53) — — — Total $ 61,573 $ 92,084 $ 61,626 $ 92,084 As of March 31, 2021 and December 31, 2020 , the Company had money market accounts of $— and $18,071, respectively. The money market accounts are presented at fair market value based on quoted market prices and are classified within Level 1. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Facility On April 27, 2016, Casper Sleep Inc. and Casper Science LLC entered into a loan and security agreement with Pacific Western Bank (as amended, the “Senior Secured Facility” or “Prior Credit Facility”) for a $15,000 revolving credit line. The line was ultimately amended to a borrowing base of $25,000 and an extended the maturity date of 90 days from September 1, 2020. During the year ended December 31, 2020 , the line was refinanced by entering into the Revolving Credit Facility, as defined and described herein. Revolving Credit Facility On November 10, 2020, Company refinanced its secured revolving facility with Pacific Western Bank by entering into a credit agreement (the “Credit Agreement”) by and among the Company, Casper Science LLC and Casper Sleep Retail LLC (collectively, the “Loan Parties”), and Wells Fargo Bank, National Association (“Wells Fargo”) providing for a senior secured asset-based revolving credit facility of up to $30,000 (the "Loan Cap"), with an uncommitted accordion of an additional $15,000 (the “Revolving Credit Facility”). The Credit Agreement provides that up to $10,000 of the Revolving Credit Facility is available for issuances of letters of credit, and up to $5,000 is available for swingline loans. The Company has the option to increase the total commitment under the Revolving Credit Facility from $30,000 to $45,000, subject to certain conditions, including obtaining commitments from one or more lenders. The Company intends to use the proceeds of the Revolving Credit Facility (a) to finance the acquisition of working capital assets of the Company, including the purchase of inventory and equipment, in each case in the ordinary course of business, (b) to finance capital expenditures of the Company, (c) for general corporate purposes of the Loan Parties, (d) to pay fees and expenses in connection with the transactions contemplated by the Credit Agreement, (e) the repayment in full of amounts outstanding under the Prior Credit Facility and (e) for other lawful corporate purposes. The Prior Credit Facility was terminated upon repayment in full of the amounts outstanding thereunder. The Revolving Credit Facility matures on the earlier of November 10, 2023 and 91 days prior to the earliest maturity date of any borrowing under the Amended Subordinated Facility (as defined below). Borrowings under the Revolving Credit Facility will be subject to an applicable margin of (i) when average daily availability is greater than or equal to 50% of the Loan Cap, 2.50% for LIBOR loans or 1.50% for base rate loans, as well as a letter of credit fee of 2.50%, and (ii) when Average Daily Availability is less than 50% of the Loan Cap, 2.75% for LIBOR loans or 1.75% for base rate loans, as well as a letter of credit fee of 2.75%, in each case subject to adjustments on the first day of each fiscal quarter commencing on January 1, 2021. The Revolving Credit Facility is secured by substantially all assets of the Loan Parties, including intellectual property, subject to customary exceptions. The Revolving Credit Facility contains customary covenants that limit, absent lender approval, the ability of the Company to, among other things, pay cash dividends, incur debt, create liens and encumbrances, redeem or repurchase stock, enter into certain transactions, repay certain indebtedness, make investments or dispose of assets. The financial covenant requires that the Loan Cap minus the total outstanding be no less than the greater of (i) 10.0% of the Loan Cap and (ii) $3,000. The Credit Agreement contains customary events of default including, among other things, failure to pay obligations when due, initiation of bankruptcy or insolvency proceedings, defaults on certain other indebtedness, change of control, incurrence of certain material judgments that are not stayed, satisfied, bonded or discharged within 45 days, certain events related to the Employee Retirement Income Security Act of 1974, invalidity of the credit documents, and violation of affirmative and negative covenants or breach of representations and warranties set forth in the Credit Agreement. Upon an event of default, the lenders may, subject to various customary cure rights and grace periods, require the immediate payment of all amounts outstanding and foreclose on collateral. Casper was in compliance with all terms and covenants in the Revolving Credit Facility as of March 31, 2021. The Company drew down $16,000 of the Revolving Credit Facility on November 10, 2020. The outstanding balance of the Revolving Line was $13,000 as of March 31, 2021 at an interest rate of 3.50%. During the three months ended March 31, 2021, interest expense incurred on the Revolving Line and the Prior Credit Facility that it replaced was $362. Amended Subordinated Facility In connection with the secured growth capital loan facility agreement (the "Subordinated Facility") with TriplePoint Venture Growth BDC Corp., as lender and collateral agent, and TriplePoint Capital LLC, as lender (or, together with TriplePoint Venture Growth BDC Corp., "TriplePoint"), on March 1, 2019, we entered into two warrant agreements with TriplePoint Venture Growth BDC Corp. and TriplePoint Capital LLC for 19,201 shares of Series D preferred stock and 12,801 shares of Series D preferred stock, respectively, at an exercise price per share of $31.24715. TriplePoint’s right under the warrant agreements to purchase the Series D preferred stock will be available for seven years from March 1, 2019, subject to certain exercise conditions. In the event these warrant agreements are exercised, TriplePoint will have the right to purchase under the warrant agreements the common stock into which each share of the Series D preferred stock is convertible at the time of such exercise. Borrowings under the Subordinated Facility accrued interest at the prime rate (which, as defined in the Subordinated Facility, shall be as published in the Wall Street Journal with a floor of 5.25%) plus an applicable margin set forth in the table of terms. The table of terms sets forth 18 options that range on term, amortization, interest rate and other features that can range from an annual interest rate of the prime rate plus 0.0% margin for a three month interest only term and up to a prime plus 7.25% margin for a 48 month interest only term. End of term payments ranged from 0.25% of each advance for a three-month term up to 8.25% for each advance with a 48 month repayment option. The Subordinated Facility also had a 1.25% one-time facility fee for the committed amount, which is initially $50,000. There was a 1.5% prepayment penalty in the event that the loan is prepaid within the first 18 months with no prepayment penalty thereafter. The Subordinated Facility contained certain affirmative and negative covenants, including, among others, restrictions on liens, indebtedness, mergers or acquisitions, investments, dividends or distributions, fundamental changes and affiliate transactions. On November 10, 2020, the Company, Casper Science LLC and Casper Sleep Retail LLC entered into an amendment to the agreement governing the Subordinated Facility with TriplePoint Venture Growth BDC Corp., as lender and collateral agent, and TriplePoint Capital LLC, as lender (the “Amended Subordinated Facility”), to, among other things, permit the incurrence of the Revolving Credit Facility. On August 9, 2019, Casper drew down a $25,000 forty-eight month interest only loan with an interest rate of prime plus 7.25%. The end of term payment is 7.50% of the drawn down amount. As of March 31, 2021, the loan was $25,000. During the three months ended March 31, 2021, interest expense incurred on the loan was $937. On November 1, 2019, Casper drew down a $25,000 thirty-six month interest only loan with an interest rate of prime plus 6.0%. The end of term payment is 6.25% of the drawn down amount. As of March 31, 2021, the outstanding balance under the loan was $25,000 and interest expense incurred on the loan was $882 . As of March 31, 2021, the Company was in compliance with all covenants under the Amended Subordinated Facility. See Note 14, Warrants for additional information on warrants issued in conjunction with the Subordinated Facility. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost amounted to $3,786 and $2,661 for the three months ended March 31, 2021 and 2020, respectively. These amounts include stock-based compensation to employees and non-employees, and is included within general and administrative expense. The total number of stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”) vested during the three months ended March 31, 2021 was 1,506,304 at a total fair value of $10,906. During the three months ended March 31, 2021, the Company extended the term of certain fully vested stock options for certain employees resulting in the immediate recognition of incremental stock-based compensation expense of $171. During the three months ended March 31, 2021, the Company granted 167,692 stock options. During the three months ended March 31, 2021, options to purchase 130,925 shares of common stock were exercised. The intrinsic value, which is the difference between the market value of the stock and the exercise price of the stock options, of those options exercised was $1,131. As of March 31, 2021, the total unrecognized stock-based compensation expense related to stock options was $11,759. The Company expects to recognize this expense over the remaining weighted-average period of approximately 2.16 years. Restricted Stock Units and Performance Stock Units In February 2020 and in connection with the IPO, the Company's Board of Directors adopted the Company's 2020 Equity Incentive Plan, which became effective upon the filing of the associated Form S-8 on February 11, 2020. During the three months ended March 31, 2021, the Company granted 1,356,734 restricted stock units (“RSUs”), and 401,464 PSUs,, of which 241,297 units were forfeited. During the three months ended March 31, 2020, the Company granted 1,738,528 RSUs, and 259,616 performance stock units (“PSUs”), of which 3,650 units were forfeited. The fair value of the units granted was equal to the average stock price on the grant date. Total stock-based compensation expense related to RSUs and PSUs of $2,048 and $607 was recognized for the three months ended March 31, 2021 and 2020, respectively, and is included within general and administrative expense. The Company expects to recognize the expense for RSUs over the vesting period of four years for new hire grants and annual awards issued in 2021, three years for RSUs issued in 2020, and 1 year for director grants. The PSUs earned will vest within two years from the grant date based on the Company's performance. During the three months ended March 31, 2021 and 2020 , the Company recognized expense related to PSUs of $302 and $—, respectively. As of March 31, 2021 the total unrecognized stock-based compensation expense related to RSUs and PSUs was $19,860 and $2,736, respectively. As of March 31, 2021 t he Company expects to recognize this expense over the remaining weighted-average period of approximately 3.03 years. The following table summarizes the activity related to the Company's RSUs and PSUs: Restricted Stock Units and Performance Stock Units Outstanding shares Aggregate Intrinsic Value Weighted Average Grant Date Fair Value Balance as of January 1, 2021 2,236,235 $ 8.16 Granted 1,758,198 $ 8.29 Vested and converted to shares (755,623) $5,471 $ 8.70 Forfeited (241,297) $ 8.59 Balance as of March 31, 2021 2,997,513 $ 8.07 |
Significant Risks and Uncertain
Significant Risks and Uncertainties Including Business and Credit Concentrations | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | Significant Risks and Uncertainties Including Business and Credit Concentrations Risks and Uncertainties In December 2019, the COVID-19 disease caused by the novel coronavirus was reported in the media, and in January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. On March 11, 2020, the WHO characterized COVID-19 as a pandemic. The broader implications of the COVID-19 pandemic on the Company’s results of operations and overall financial performance remain uncertain. The Company has experienced and may continue to experience constrained supply or slowed customer demand that could materially adversely impact the Company’s business, results of operations and overall financial performance in future periods. As there remains a high degree of uncertainty around the impacts of the COVID-19 pandemic, the Company addresses and evaluates the impacts frequently. As the situation surrounding the COVID-19 pandemic remains fluid, we have been and may be required in the future to close or limit service offerings in certain of our retail stores in response to guidance from applicable government and public health officials, which we expect will adversely affect our revenue. At this stage of the Company's development, the ability to generate positive operating cash flows is a risk. The Company has incurred a net loss from operations and net operating cash outflows for the three months ended March 31, 2021, the years 2020 and 2019 and since inception and has an accumulated deficit. As a result, the Company continues to rely upon investors who contributed cash to cover the Company's current operating expenses and obligations and has the ability to draw down on the line of credit. The Company's success will depend in part on its ability to continue to attract new customers, retain existing customers, and curate and market its products. There can be no assurance that the Company will be able to achieve any or all of these success factors. The Company estimates that it will have adequate liquidity to fund operations through May 14, 2022. In the future, if the Company is unable to attain positive cash flow from operations it will need to raise adequate financing or issue additional debt to maintain its current level of operations and growth. Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash, cash equivalents and restricted cash and accounts receivable, net. The Company places its cash investments with high-credit quality financial institutions. A significant portion of the Company’s accounts receivable, net is with its credit card processors and retail partnerships. The Company believes no significant credit risk exists with respect to these financial instruments. Concentrations As of March 31, 2021, three customers comprised 49%, 17% and 13% of the Company's accounts receivable, net balance. As of December 31, 2020, two customers comprised 58% and 15% of the Company’s accounts receivable, net balance. Revenue within North America and Europe was approximately $127,678 and $—, respectively, for the three months ended March 31, 2021. Revenue within North America and Europe was approximately $106,359 and $6,685, f or the three months ended March 31, 2020. One customer accounted for 13% of the Company’s revenue for the three months ended March 31, 2021. One customer accounted for 11% of the Company’s revenue for the three months ended March 31, 2020. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases were $5,387 and $5,635 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, future minimum lease payments under non-cancelable operating leases consisted of the following: 2021 (remaining nine months) $ 15,914 2022 21,477 2023 21,386 2024 17,657 2025 14,270 Thereafter 71,664 Total minimum lease payments $ 162,368 The Company maintains leases for its office spaces and retail locations in each location as described in Note 1, Description of Business. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The Company’s effective tax rate, which is calculated by dividing each period’s income tax provision by pretax income, was 0.08% and 0.05% for the three months ended March 31, 2021 and 2020, respectively. The effective tax rates for the periods ended March 31, 2021 generally differ from the U.S. federal statutory tax rate primarily due to a full valuation allowance related to the Company’s U.S. deferred tax assets. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company has operations and taxable presence in multiple jurisdictions in the U.S. and outside of the U.S. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions around the world. The Company currently considers U.S. federal and state to be major tax jurisdictions. Future Changes in Unrecognized Tax Benefits The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, the Company does not anticipate that the balance of gross unrecognized tax benefits, excluding interest and penalties, will change significantly during the next twelve months. However, changes in the occurrence, expected outcomes, and timing of such events could cause the Company's current estimate to change materially in the future. |
Accrued Expense
Accrued Expense | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expense | Accrued Expense Accrued expenses consist of the following: March 31, 2021 December 31, 2020 Marketing $ 19,532 $ 17,479 Tax fees 13,932 13,723 General trade 10,907 10,592 Other 11,867 12,947 Total Accrued Expenses $ 56,238 $ 54,741 |
Convertible Preferred Stock, Co
Convertible Preferred Stock, Common Stock, and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock, Common Stock, and Stockholders' Equity | Initial Public OfferingOn February 10, 2020, the Company completed the initial public offering (the “IPO”) of its common stock pursuant to a Registration Statement on Form S-1. In the IPO, the Company sold an aggregate of 8,350,000 shares of common stock at a public offering price of $12.00 per share. Upon consummation of the offering on February 10, 2020, the Company received net proceeds of approximately $88,000, after deducting underwriting discounts and commissions of $6,500 and offering expenses of $5,700. Upon the completion of the IPO, all outstanding shares of the Company's convertible preferred stock and Class A and Class B common stock were converted into common stock.Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (a) Common Stock On February 10, 2020, in connection with our IPO, all Class A common stock and Class B common stock were converted into common stock with a par value of $0.000001, per share and we issued and sold 8,350,000 shares of our common stock at a price to the public of $12.00 per share resulting in net proceeds to us of approximately $88,000 after deducting the underwriting discount of approximately $6,500 and offering expenses of approximately $5,700. As of March 31, 2021 , the company had 170,000,000 shares of authorized common stock. Each holder of the Company's common stock is entitled to one vote per share on all matters to be voted upon by the stockholders. There are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Company's board of Directors out of legally available funds. If there is a liquidation, dissolution or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. (b) Convertible Preferred Stock |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | WarrantsIn connection with the Subordinated Facility, as described in Note 7, Debt, on March 1, 2019, Casper entered into two warrant agreements with TriplePoint Venture Growth BDC Corp. and TriplePoint Capital LLC for 19,201 shares of Series D preferred stock and 12,801 shares of Series D preferred stock, respectively, at an exercise price per share of $31.24715, (the “TPC Warrants”). TriplePoint’s right under the warrant agreements to purchase the Series D preferred stock will be available for seven years from March 1, 2019, subject to certain exercise conditions. In the event these warrant agreements are exercised, TriplePoint will have the right to purchase under the warrant agreements the common stock into which each share of the Series D preferred stock is convertible at the time of such exercise. As of March 31, 2021, TriplePoint's right under these warrant agreements to purchase 32,002 shares of common stock were still outstanding and will be available for seven years from March 1, 2019, subject to certain exercise conditions. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on the consolidated financial statements. Measurement of Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which was further updated and clarified by the FASB through issuance of additional related ASUs. This guidance replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost based on expected credit losses. The estimate of expected credit losses requires the incorporation of historical information, current conditions, and reasonable and supportable forecasts. The standard is effective for our interim and annual financial periods beginning January 1, 2023. This standard is to be applied utilizing a modified retrospective approach. We are currently evaluating the impact of this standard on our accounts receivable, cash, cash equivalents and restricted cash, and any other financial assets measured at amortized cost and do not expect that adoption will have a material impact on our consolidated financial statements or related disclosures. Lease Guidance In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which supersedes the existing lease guidance under current U.S. GAAP. ASU 2016-02 is based on the principle that entities should recognize assets and liabilities arising from leases. The new standard does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard and leases continue to be classified as finance or operating. ASU 2016-02’s primary change is the requirement for entities to recognize a lease liability for payments and a right-of-use (“ROU”) asset representing the right to use the leased asset during the term of an operating lease arrangement. Lessees are permitted to make an accounting policy election not to recognize the asset and liability for leases with a term of 12 months or less. In addition, ASU 2016-02 expands the disclosure requirements of lease arrangements. Upon adoption, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Three months ended March 31, 2021 March 31, 2020 Numerator Historical Net loss $ (21,180) $ (34,466) Numerator for basic and diluted loss per share $ (21,180) $ (34,466) Denominator Historical denominator for basic and diluted net loss per share—weighted-average shares 40,808,328 27,909,141 Denominator for basic and diluted net loss per share 40,808,328 27,909,141 Basic and diluted loss per share $ (0.52) $ (1.23) The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the three months ended March 31, 2021 and 2020. Three months ended March 31, 2021 March 31, 2020 Warrants to purchase common stock 32,002 33,311 Stock options and RSUs 6,681,716 7,649,063 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe Company presents its financial statements on a consolidated basis of all its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. All figures expressed, except share and per share amounts, are represented in U.S. dollars in thousands. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the valuation of deferred income tax assets, deferred revenue, the valuation of stock-based compensation and warrants, the product returns reserve, the inventory obsolescence reserve and accounts receivable allowance for doubtful accounts. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash EquivalentsThe Company considers all highly liquid investments with a maturity of less than three months when purchased to be cash equivalents.Restricted Cash Restricted cash represents cash balances held in segregated accounts used for collateralizing letters of credit with its bank. During the three months ended March 31, 2021, these letters of credits were closed and the associated restrictions on cash were relieved. |
Accounts Receivable, net | Accounts Receivable, net At March 31, 2021 and December 31, 2020, accounts receivable, net was composed primarily of amounts due from retail partners, from financial institutions related to credit card sales and other receivables. Accounts receivable is recorded net of an allowance for uncollectible balances related to chargebacks or disputes raised by retail partners. The allowance is recognized in an amount equal to anticipated future uncollectible receivables. Management estimates the allowance for doubtful accounts based on delinquencies, trends and historical experience. |
Inventory, net | Inventory, netInventory primarily consist of merchandise purchased for sale, as well as costs to deliver merchandise to Casper’s logistics providers and retail stores. The Company’s inventory is stated at cost using standard costing. The Company performs an analysis to determine whether it is appropriate or not to maintain a reserve for excess and obsolete inventory. The reserve is based on historical experience related to the disposal of identified inventory, specifically through sales to retail partners, clearance sales and, ultimately, the expected recoverable value. The value of older inventory can be impacted by new product launches, which can make certain older items obsolete. A lower of cost or market assessment is performed on inventory and reserves established when the net realizable value exceeds the historic cost. Most of Casper’s inventory is just-in-time and most products have been recently introduced and in existence for less than two years. The Company performs a review of all on hand inventory to determine if any items are deemed obsolete based on specific facts and circumstances.Storage costs, indirect administrative overhead and certain selling costs related to inventories are expensed in the period incurred. Raw materials consist of replacement parts and components used in the creation of products. Finished goods is comprised of completed goods including mattresses, pillows, sheets, dog beds, glow lights and furniture. Inventory in transit is either purchased inventory coming from outside the United States or inventory being transferred between warehouses or from warehouse to retail location. |
Revenue Recognition and Cost of Goods Sold | Revenue Recognition Revenue transactions associated with the sale of goods and services comprise a single performance obligation, which consists of the sale of products to customers either to the Company’s retail partners or through its direct-to-consumer (“DTC”) channel. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from retail partnership transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time of delivery for e-commerce transactions. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances. Casper determines these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates. The duration of contractual arrangements with our customers is typically less than one year. Payment terms with retail partners vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for DTC transactions. We have elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as costs of goods sold at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold. Revenue is comprised of global sales through our DTC channels and our retail partnerships, and reflects the impact of product returns as well as discounts for certain sales programs and promotions. Promotions are occasionally offered, primarily in the form of discounts, and are recorded as a reduction of gross revenue at the date of revenue recognition. We typically accept sales returns during a 30 or 100-night trial period, depending on the product, with our mattresses having a 100-night trial period. A sales return accrual is estimated based on historical return rates and is then adjusted for any current trends as appropriate. Returns are netted against the sales allowance reserve for the period. Sales are recognized as deferred revenue at the point of sale and are recognized as revenue upon the delivery to the consumer. Revenue through our DTC channels is recognized upon in-store or home delivery to the consumer, as applicable, and retail partnership revenue is recognized upon the transfer of control, on a per contract basis. |
Sales and Marketing expenses and General and Administrative expenses | Sales and Marketing expensesSales and marketing expenses consist primarily of advertising and marketing promotions of the Company’s products as well as sponsorship costs, consulting and contractor expenses. Advertising and other promotional costs are expensed as incurred.General and Administrative expensesGeneral and administrative expenses consist of personnel-related costs for our retail stores, retail operations, finance, legal, human resources, and IT functions, as well as litigation expenses, credit card fees, professional services, rent and operating costs associated with our retail stores, depreciation and amortization, and other administrative expenses. Research and development expenses are included within general and administrative and consist primarily of personnel-related expenses, consulting and contractor expenses, tooling, test equipment, and prototype materials. |
Restructuring Expenses | Restructuring expensesRestructuring expenses consist of costs associated with implementing strategic changes in the companies' business structure including reductions in work force and exiting of certain lines of business or geographies. During 2020, in response to the COVID-19 pandemic, the Company announced a number of restructuring actions focused on cost savings and renewed focus on commercial operations in North America. Restructuring expenses for the three months ended March 31, 2021 relate to costs associated with certain severance and other employee separation costs. Restructuring expenses for the three months ended March 31, 2020 relate to costs associated with restructuring our retail operations and organizational structure, including severance, contract termination costs and other exit activities. Costs associated with these actions amounted to $401 and $1,311 for the three months ended March 31, 2021 and |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid media placement for media campaigns that have not yet run, prepaid rent and office related expenses, and other prepaid expenses. In addition, the Company had tenant allowance receivable of $3,705 an d $5,120 as of March 31, 2021 and December 31, 2020 , respectively. |
Stock-Based Compensation | Stock-Based CompensationCompensation cost for all stock-based awards, including options to purchase stock and restricted stock units (“RSUs”) is measured at fair value on the date of grant and recognized over the service period. The fair value of stock options is estimated on the date of grant using a Black-Scholes model. The fair value of RSUs awarded is estimated on the date of grant based on the fair value of our common stock. Compensation cost is recognized on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures, computers, technology hardware, and machinery and equipment range from 3 to 5 years. The Company’s purchased software is amortized over 7 years. Leasehold improvements are depreciated over the shorter of their useful life or the related lease term (without consideration of option renewal terms). |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized within the provision for (benefit from) income taxes on the consolidated statement of operations and comprehensive loss in the period that includes the enactment date. The Company reduces deferred tax assets, by a valuation allowance if it is more likely than not that the Company will not realize some or all of the deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including taxable income in prior carryback years (if carryback is permitted under the relevant tax law), the timing of the reversal of existing taxable temporary differences, tax planning strategies, and projected future taxable income. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company recognizes interest and penalties related to uncertain tax positions within the provision for (benefit from) income taxes in the consolidated statement of operations and comprehensive loss. |
Deferred Rent | Deferred RentRental payments under operating leases are expensed on a straight-line basis after consideration of rent holidays, tenant allowances, step rent provisions and escalation clauses. Differences between rental expense (recognized from the date of possession) and actual rental payments are recorded as deferred rent. Deferred rent is presented in other liabilities. |
Intangibles | IntangiblesThe Company’s intangible assets consist of patents and domain names stated at cost. Intangibles are presented in other assets in the consolidated balance sheets. |
Basic and Diluted Loss per Common Share | Basic and Diluted Loss per Common ShareThe Company accounts for net income (loss) per common share using the treasury stock method. Basic net income (loss) per common share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted net income (loss) per common share reflects the weighted-average number of common shares outstanding during the period used in the basic net income (loss) computation plus dilutive common stock equivalents. The computation of diluted net income (loss) per common share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on net income (loss) per common share. |
Foreign Currency | Foreign CurrencyThe functional currency of the Company's international operating subsidiaries is the local currency. The Company translates the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates for the annual period are derived from month-end spot rates for revenue, costs and expenses. The Company records translation gains and losses in accumulated other comprehensive loss as a component of stockholders' equity. Foreign currency transaction gains and losses are included in net loss for the period. |
Convertible Preferred Stock | Convertible Preferred StockOn February 10, 2020, upon the closing of the Company's IPO, all outstanding shares of convertible preferred stock were automatically converted into an aggregate of 20,485,054 shares of common stock. |
Segment Information | Segment Information During the three months ended March 31, 2021 and 2020, t he Company operated in one operating segment within the United States, Canada and Europe, providing sleep products to consumers through various sales channels. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer. The role of the CODM is to make decisions about allocating resources and assessing performance. The Company's business operates in one operating segment as all of the Company's sales channels are complementary and are analyzed in an identical way, with the CODM evaluating the Company's financial information, resources and performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Fair Value Measurement | The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value. Such instruments are classified as Level 1 and are included in cash, cash equivalents, and restricted cash on the consolidated balance sheets. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on the consolidated financial statements. Measurement of Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which was further updated and clarified by the FASB through issuance of additional related ASUs. This guidance replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost based on expected credit losses. The estimate of expected credit losses requires the incorporation of historical information, current conditions, and reasonable and supportable forecasts. The standard is effective for our interim and annual financial periods beginning January 1, 2023. This standard is to be applied utilizing a modified retrospective approach. We are currently evaluating the impact of this standard on our accounts receivable, cash, cash equivalents and restricted cash, and any other financial assets measured at amortized cost and do not expect that adoption will have a material impact on our consolidated financial statements or related disclosures. Lease Guidance In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which supersedes the existing lease guidance under current U.S. GAAP. ASU 2016-02 is based on the principle that entities should recognize assets and liabilities arising from leases. The new standard does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard and leases continue to be classified as finance or operating. ASU 2016-02’s primary change is the requirement for entities to recognize a lease liability for payments and a right-of-use (“ROU”) asset representing the right to use the leased asset during the term of an operating lease arrangement. Lessees are permitted to make an accounting policy election not to recognize the asset and liability for leases with a term of 12 months or less. In addition, ASU 2016-02 expands the disclosure requirements of lease arrangements. Upon adoption, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current | Inventory consists of the following: March 31, 2021 December 31, 2020 Raw materials $ 155 $ 386 Finished goods 38,303 31,575 Inventory in transit 8,382 3,570 Total inventory 46,840 35,531 |
Disaggregation of Revenue | The following table disaggregates our net sales by geography and channel for the periods indicated: Three Months Ended March 31, 2021 2020 North America Region $ 127,678 $ 106,359 EU Region — 6,685 Total $ 127,678 $ 113,044 Direct to Consumer $ 93,240 $ 90,304 Retail Partnerships 34,438 22,740 Total $ 127,678 $ 113,044 |
Restructuring and Related Costs | A summary of the charges recorded in connection with these actions during the periods presented: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 EU Closure US Total EU Closure US Total Severance and benefits $ — $ 537 $ 537 $ — $ 10 $ 10 Contract termination — — — 320 320 Asset impairments — — — — 981 981 Other expenses (148) 12 (136) — — — Total $ (148) $ 549 $ 401 $ — $ 1,311 $ 1,311 Accrued restructuring balance as at December 31, 2020 $ 1,644 Charges accrued during the three month period ended March 31, 2021 401 Payments made during the three month period ended March 31, 2021 (243) Accrued Restructuring balance as at March 31, 2021 $ 1,802 |
Schedule of Property and Equipment | Property and equipment consist of the following: March 31, 2021 December 31, 2020 Leasehold improvements $ 55,400 $ 53,404 Furniture and fixtures 25,883 24,294 Construction in progress 5,739 6,021 Computer Equipment 5,110 4,984 Computer software 2,407 2,405 Machinery and Equipment 910 853 Property and equipment 95,449 91,961 Less: accumulated depreciation (29,256) (25,432) Property and equipment, net $ 66,193 $ 66,529 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: March 31, 2021 December 31, 2020 Product return reserve $ 6,672 $ 7,112 Other Taxes 2,446 1,501 Other 883 885 Total Other Current Liabilities $ 10,001 $ 9,498 |
Other Liabilities | Other liabilities consist of the following: March 31, 2021 December 31, 2020 Tenant Allowance $ 12,847 $ 13,006 Deferred Rent 8,894 8,737 Contract Liability 2,000 2,125 Other 92 39 Total Other Liabilities $ 23,833 $ 23,907 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on a Recurring Basis | The following summarizes assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2021 and December 31, 2020: Fair Value Cash, Cash Equivalents, and Restricted Cash March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Assets Cash $ 61,626 $ 74,013 $ 61,626 $ 74,013 Level 1: Money market funds — 18,071 — 18,071 Cash, cash equivalents and restricted cash 61,626 92,084 61,626 92,084 Liabilities Level 2: Preferred stock warrant liabilities (53) — — — Total $ 61,573 $ 92,084 $ 61,626 $ 92,084 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity Related to Restricted Stock Units and Performance Stock Units | The following table summarizes the activity related to the Company's RSUs and PSUs: Restricted Stock Units and Performance Stock Units Outstanding shares Aggregate Intrinsic Value Weighted Average Grant Date Fair Value Balance as of January 1, 2021 2,236,235 $ 8.16 Granted 1,758,198 $ 8.29 Vested and converted to shares (755,623) $5,471 $ 8.70 Forfeited (241,297) $ 8.59 Balance as of March 31, 2021 2,997,513 $ 8.07 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | As of March 31, 2021, future minimum lease payments under non-cancelable operating leases consisted of the following: 2021 (remaining nine months) $ 15,914 2022 21,477 2023 21,386 2024 17,657 2025 14,270 Thereafter 71,664 Total minimum lease payments $ 162,368 |
Accrued Expense (Tables)
Accrued Expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: March 31, 2021 December 31, 2020 Marketing $ 19,532 $ 17,479 Tax fees 13,932 13,723 General trade 10,907 10,592 Other 11,867 12,947 Total Accrued Expenses $ 56,238 $ 54,741 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Three months ended March 31, 2021 March 31, 2020 Numerator Historical Net loss $ (21,180) $ (34,466) Numerator for basic and diluted loss per share $ (21,180) $ (34,466) Denominator Historical denominator for basic and diluted net loss per share—weighted-average shares 40,808,328 27,909,141 Denominator for basic and diluted net loss per share 40,808,328 27,909,141 Basic and diluted loss per share $ (0.52) $ (1.23) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the three months ended March 31, 2021 and 2020. Three months ended March 31, 2021 March 31, 2020 Warrants to purchase common stock 32,002 33,311 Stock options and RSUs 6,681,716 7,649,063 |
Initial Public Offering (Detail
Initial Public Offering (Details) $ / shares in Units, $ in Thousands | Feb. 10, 2020USD ($)$ / sharesshares |
Stockholders' Equity Note [Abstract] | |
Number of shares issued and sold (in shares) | shares | 8,350,000 |
Price of shares sold (in dollars per share) | $ / shares | $ 12 |
Net proceeds from IPO | $ 88,000 |
Underwriting discounts and commissions | 6,500 |
Offering expenses | $ 5,700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | Feb. 10, 2020shares | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($)store | Dec. 31, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Revenue, payment terms with retail partners | 30 days | |||
Accrued liability for restructuring | $ 1,802 | $ 1,644 | ||
Tenant allowance receivable | 3,705 | $ 5,120 | ||
Restructuring expenses | $ 401 | $ 1,311 | ||
Number of stores | store | 3 | |||
Conversion of stock, shares of common stock issued (in shares) | shares | 20,485,054 | |||
Number of operating segments | segment | 1 | |||
Asset impairments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructuring expenses | $ 0 | $ 981 | ||
Furniture, Fixtures, Computers, Technology Hardware, and Machinery and Equipment | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Property and equipment, useful life | 3 years | |||
Furniture, Fixtures, Computers, Technology Hardware, and Machinery and Equipment | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Property and equipment, useful life | 5 years | |||
Purchased Software | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Property and equipment, useful life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Raw materials | $ 155 | $ 386 |
Finished goods | 38,303 | 31,575 |
Inventory in transit | 8,382 | 3,570 |
Total inventory | $ 46,840 | $ 35,531 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Disaggregated Revenue Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 127,678 | $ 113,044 |
Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 93,240 | 90,304 |
Retail Partnerships | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,438 | 22,740 |
North America Region | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 127,678 | 106,359 |
EU | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 6,685 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 401 | $ 1,311 |
EU | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | (148) | 0 |
US | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 549 | 1,311 |
Severance and benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 537 | 10 |
Severance and benefits | EU | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Severance and benefits | US | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 537 | 10 |
Contract termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 320 |
Contract termination | EU | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Contract termination | US | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 320 | |
Asset impairments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 981 |
Asset impairments | EU | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Asset impairments | US | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 981 |
Other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | (136) | 0 |
Other expenses | EU | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | (148) | 0 |
Other expenses | US | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 12 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Restructuring Reserve (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring, beginning balance | $ 1,644 |
Charges accrued | 401 |
Payments made | (243) |
Accrued restructuring, ending balance | $ 1,802 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 95,449 | $ 91,961 |
Less: accumulated depreciation | (29,256) | (25,432) |
Property and equipment, net | 66,193 | 66,529 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 55,400 | 53,404 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 25,883 | 24,294 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 5,739 | 6,021 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 5,110 | 4,984 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,407 | 2,405 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 910 | $ 853 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Product return reserve | $ 6,672 | $ 7,112 |
Other Taxes | 2,446 | 1,501 |
Other | 883 | 885 |
Total Other Current Liabilities | $ 10,001 | $ 9,498 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Tenant Allowance | $ 12,847 | $ 13,006 |
Deferred Rent | 8,894 | 8,737 |
Contract Liability | 2,000 | 2,125 |
Other | 92 | 39 |
Total Other Liabilities | $ 23,833 | $ 23,907 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures - Schedule of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Estimate of Fair Value Measurement | ||
Liabilities | ||
Total | $ 61,573 | $ 92,084 |
Reported Value Measurement | ||
Liabilities | ||
Total | 61,626 | 92,084 |
Cash | Estimate of Fair Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 61,626 | 74,013 |
Cash | Reported Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 61,626 | 74,013 |
Level 1: | Estimate of Fair Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 61,626 | 92,084 |
Level 1: | Reported Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 61,626 | 92,084 |
Level 1: | Money market funds | Estimate of Fair Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 0 | 18,071 |
Level 1: | Money market funds | Reported Value Measurement | ||
Assets | ||
Cash, cash equivalents and restricted cash | 0 | 18,071 |
Level 2: | Estimate of Fair Value Measurement | ||
Liabilities | ||
Preferred stock warrant liabilities | (53) | 0 |
Level 2: | Reported Value Measurement | ||
Liabilities | ||
Preferred stock warrant liabilities | $ 0 | $ 0 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - Level 1: - Estimate of Fair Value Measurement - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 61,626 | $ 92,084 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 18,071 |
Debt -Senior Secured Facility (
Debt -Senior Secured Facility (Details) - USD ($) | Sep. 01, 2020 | Apr. 27, 2016 |
Debt Instrument [Line Items] | ||
Debt term, extension period | 90 days | |
Revolving Credit Facility | Prior Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 25,000,000 | $ 15,000,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - New Senior Secured Facility | Nov. 10, 2020USD ($) | Mar. 31, 2021USD ($) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit, amount of allowable expansion | $ 15,000,000 | |
Debt instrument, covenant, loan cap minus total outstanding, percentage of loan cap | 0.100 | |
Debt instrument, covenant, loan cap minus total outstanding | $ 3,000,000 | |
Proceeds from lines of credit | $ 16,000,000 | |
Line of credit, amount outstanding | $ 13,000,000 | |
Interest rate (percent) | 3.50% | |
Interest expense | $ 362,000 | |
Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, term (earlier of) | 91 days | |
Revolving Credit Facility | Average Daily Availability to Loan Cap Ratio, Greater than or Equal to 50% | ||
Debt Instrument [Line Items] | ||
Average daily availability to loan cap (in percentage) | 0.50 | |
Letter of credit fee (in percentage) | 0.0250 | |
Revolving Credit Facility | Average Daily Availability to Loan Cap Ratio, Greater than or Equal to 50% | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread (percent) | 2.50% | |
Revolving Credit Facility | Average Daily Availability to Loan Cap Ratio, Greater than or Equal to 50% | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread (percent) | 1.50% | |
Revolving Credit Facility | Average Daily Availability to Loan Cap, Less than 50% | ||
Debt Instrument [Line Items] | ||
Average daily availability to loan cap (in percentage) | 0.50 | |
Letter of credit fee (in percentage) | 0.0275 | |
Revolving Credit Facility | Average Daily Availability to Loan Cap, Less than 50% | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread (percent) | 2.75% | |
Revolving Credit Facility | Average Daily Availability to Loan Cap, Less than 50% | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread (percent) | 1.75% | |
Revolving Credit Facility | Maximum Borrowing Capacity, Scenario One | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 30,000,000 | |
Revolving Credit Facility | Maximum Borrowing Capacity, Scenario Two | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 45,000,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 10,000,000 | |
Swingline Loans | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 5,000,000 |
Debt - Amended Subordinated Fac
Debt - Amended Subordinated Facility (Details) | Nov. 01, 2019USD ($) | Aug. 09, 2019USD ($) | Mar. 01, 2019USD ($)agreement$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Aug. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Number of warrant agreements | agreement | 2 | |||||
Warrants, expiration period | 7 years | |||||
TPC Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Warrants issued, exercise price (in dollars per share) | $ / shares | $ 31.24715 | |||||
Triple Point Venture Growth BDC Corp. | TPC Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Warrants issued, number of shares of common stock callable (in shares) | shares | 19,201 | |||||
TriplePoint Capital LLC | TPC Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Warrants issued, number of shares of common stock callable (in shares) | shares | 12,801 | |||||
Subordinated Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, commitment fee (percent) | 1.25% | |||||
Revolving line of credit | $ 50,000,000 | |||||
Prepayment penalty, percentage | 0 | 0.015 | ||||
Subordinated Facility | Prime Rate | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (percent) | 5.25% | |||||
Three Month Interest Only Loan | Minimum | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
End of term payment rate (percent) | 0.25% | |||||
Three Month Interest Only Loan | Prime Rate | Minimum | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread (percent) | 0.00% | |||||
Thirty-six Month Interest Only Loan | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
End of term payment rate (percent) | 6.25% | |||||
Proceeds from lines of credit | $ 25,000,000 | |||||
Line of credit, amount outstanding | $ 25,000,000 | $ 25,000,000 | ||||
Interest expense | 882,000 | |||||
Thirty-six Month Interest Only Loan | Prime Rate | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread (percent) | 6.00% | |||||
Forty-eight Month Interest Only Loan | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
End of term payment rate (percent) | 7.50% | |||||
Proceeds from lines of credit | $ 25,000,000 | |||||
Line of credit, amount outstanding | 25,000,000 | $ 25,000,000 | ||||
Interest expense | $ 937,000 | |||||
Forty-eight Month Interest Only Loan | Maximum | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
End of term payment rate (percent) | 8.25% | |||||
Forty-eight Month Interest Only Loan | Prime Rate | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread (percent) | 7.25% | |||||
Forty-eight Month Interest Only Loan | Prime Rate | Maximum | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread (percent) | 7.25% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of options vested (in shares) | 1,506,304 | |
Fair value of options vested | $ 10,906 | |
Stock based compensation expense recognized upon extension of stock option terms | $ 171 | |
Stock options granted (in shares) | 167,692 | |
Exercise of employee stock options (in shares) | 130,925 | |
Stock options exercised, intrinsic value | $ 1,131 | |
Unrecognized stock based compensation expense related to stock options | $ 11,759 | |
Unrecognized stock based compensation expense, recognition period | 2 years 1 month 28 days | |
Stock based compensation expense | $ 3,786 | $ 2,661 |
Share-based Payment Arrangement, Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation cost | $ 3,786 | $ 2,661 |
Restricted Stock Units and Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock based compensation expense, recognition period | 3 years 10 days | |
Granted (in shares) | 1,758,198 | |
Restricted stock units forfeited (in shares) | 241,297 | 3,650 |
Stock based compensation expense | $ 2,048 | $ 607 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,356,734 | 1,738,528 |
Unrecognized stock based compensation expense related to RSUs | $ 19,860 | |
Restricted Stock Units (RSUs) | Award Date 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, New Hire | Award Date 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation cost | $ 302 | $ 0 |
Granted (in shares) | 401,464 | 259,616 |
Award vesting period | 2 years | |
Unrecognized stock based compensation expense related to RSUs | $ 2,736 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock (Details) - Restricted Stock Units and Performance Stock Units - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Outstanding shares | ||
Beginning balance (in shares) | 2,236,235 | |
Granted (in shares) | 1,758,198 | |
Vested and converted to shares (in shares) | (755,623) | |
Forfeited or canceled (in shares) | (241,297) | (3,650) |
Ending balance (in shares) | 2,997,513 | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, vested and converted to shares | $ 5,471 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 8.16 | |
Granted (in dollars per share) | 8.29 | |
Vested and converted to shares (in dollars per share) | 8.70 | |
Forfeited or canceled (in dollars per share) | 8.59 | |
Ending balance (in dollars per share) | $ 8.07 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties Including Business and Credit Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Revenue | $ 127,678 | $ 113,044 | |
North America Region | |||
Concentration Risk [Line Items] | |||
Revenue | 127,678 | 106,359 | |
Europe | |||
Concentration Risk [Line Items] | |||
Revenue | $ 0 | $ 6,685 | |
Accounts Receivable | Customer Concentration Risk | Top Three Customers, Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 49.00% | ||
Accounts Receivable | Customer Concentration Risk | Top Three Customers, Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Accounts Receivable | Customer Concentration Risk | Top Three Customers, Customer Three | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Accounts Receivable | Customer Concentration Risk | Top Two Customers, Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 58.00% | ||
Accounts Receivable | Customer Concentration Risk | Top Two Customers, Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Revenue | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 11.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Rental expense | $ 5,387 | $ 5,635 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining nine months) | $ 15,914 |
2022 | 21,477 |
2023 | 21,386 |
2024 | 17,657 |
2025 | 14,270 |
Thereafter | 71,664 |
Total minimum lease payments | $ 162,368 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 0.08% | 0.05% |
Accrued Expense (Details)
Accrued Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Marketing | $ 19,532 | $ 17,479 |
Tax fees | 13,932 | 13,723 |
General trade | 10,907 | 10,592 |
Other | 11,867 | 12,947 |
Total Accrued Expenses | $ 56,238 | $ 54,741 |
Convertible Preferred Stock, _2
Convertible Preferred Stock, Common Stock, and Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Feb. 10, 2020USD ($)$ / sharesshares | Mar. 31, 2021vote$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000001 | $ 0.000001 | $ 0.000001 |
Number of shares issued and sold (in shares) | shares | 8,350,000 | ||
Price of shares sold (in dollars per share) | $ / shares | $ 12 | ||
Net proceeds from IPO | $ | $ 88,000 | ||
Underwriting discounts and issuance costs | $ | 6,500 | ||
Offering expenses | $ | $ 5,700 | ||
Common stock, shares authorized (in shares) | shares | 170,000,000 | 170,000,000 | |
Common stock, votes per share | vote | 1 | ||
Conversion of stock, shares of common stock issued (in shares) | shares | 20,485,054 |
Warrants (Details)
Warrants (Details) | 3 Months Ended | ||
Mar. 31, 2021shares | Mar. 31, 2020shares | Mar. 01, 2019agreement$ / sharesshares | |
Class of Warrant or Right [Line Items] | |||
Number of warrant agreements | agreement | 2 | ||
Warrants, expiration period | 7 years | ||
Warrants to purchase common stock | |||
Class of Warrant or Right [Line Items] | |||
Purchase of preferred stock under warrant agreement (in shares) | 32,002 | 33,311 | |
TPC Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrants issued, exercise price (in dollars per share) | $ / shares | $ 31.24715 | ||
TPC Warrants | Triple Point Venture Growth BDC Corp. | |||
Class of Warrant or Right [Line Items] | |||
Warrants issued, number of shares of common stock callable (in shares) | 19,201 | ||
TPC Warrants | TriplePoint Capital LLC | |||
Class of Warrant or Right [Line Items] | |||
Warrants issued, number of shares of common stock callable (in shares) | 12,801 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator | ||
Historical Net loss | $ (21,180) | $ (34,466) |
Denominator | ||
Historical denominator for basic net loss per share—weighted-average shares (in shares) | 40,808,328 | 27,909,141 |
Historical denominator for diluted net loss per share—weighted-average shares (in shares) | 40,808,328 | 27,909,141 |
Basic loss per share (in dollars per share) | $ (0.52) | $ (1.23) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.52) | $ (1.23) |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the calculation of weighted average common shares outstanding (in shares) | 32,002 | 33,311 |
Stock options and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the calculation of weighted average common shares outstanding (in shares) | 6,681,716 | 7,649,063 |