Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | TransMedics Group, Inc. | |
Entity Central Index Key | 0001756262 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 28,093,949 | |
Entity File Number | 001-38891 | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 83-2181531 | |
Entity Address, Address Line One | 200 Minuteman Road | |
Entity Address, City or Town | Andover | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01810 | |
City Area Code | 978 | |
Local Phone Number | 552-0900 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | TMDX | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 30,386 | $ 25,580 |
Marketable securities | 27,697 | 66,872 |
Accounts receivable | 12,979 | 5,934 |
Inventory | 17,468 | 14,859 |
Prepaid expenses and other current assets | 6,583 | 5,460 |
Total current assets | 95,113 | 118,705 |
Property and equipment, net | 16,177 | 9,841 |
Restricted cash | 500 | 500 |
Operating lease right-of-use assets | 5,495 | 5,847 |
Total assets | 117,285 | 134,893 |
Current liabilities: | ||
Accounts payable | 5,711 | 6,651 |
Accrued expenses and other current liabilities | 15,420 | 16,337 |
Deferred revenue | 238 | 250 |
Operating lease liabilities | 1,372 | |
Total current liabilities | 22,741 | 23,238 |
Long-term debt, net of discount and current portion | 35,475 | 35,197 |
Operating lease liabilities, net of current portion | 8,150 | 8,604 |
Total liabilities | 66,366 | 67,039 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, no par value; 25,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, no par value; 150,000,000 shares authorized; 28,023,295 shares and 27,791,615 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 515,756 | 510,488 |
Accumulated other comprehensive loss | (306) | (188) |
Accumulated deficit | (464,531) | (442,446) |
Total stockholders' equity | 50,919 | 67,854 |
Total liabilities and stockholders' equity | $ 117,285 | $ 134,893 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred Stock, No Par Value | ||
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, No Par Value | ||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 28,023,295 | 27,791,615 |
Common Stock, Shares, Outstanding | 28,023,295 | 27,791,615 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Net revenue | [1] | $ 20,521 | $ 8,171 | $ 36,401 | $ 15,224 |
Cost of revenue | 6,171 | 2,582 | 9,947 | 4,824 | |
Gross profit | 14,350 | 5,589 | 26,454 | 10,400 | |
Operating expenses: | |||||
Research, development and clinical trials | 6,714 | 6,295 | 14,248 | 10,827 | |
Selling, general and administrative | 17,381 | 9,162 | 31,320 | 15,948 | |
Total operating expenses | 24,095 | 15,457 | 45,568 | 26,775 | |
Loss from operations | (9,745) | (9,868) | (19,114) | (16,375) | |
Other income (expense): | |||||
Interest expense | (972) | (965) | (1,932) | (1,917) | |
Other income (expense), net | (784) | 171 | (1,011) | (283) | |
Total other expense, net | (1,756) | (794) | (2,943) | (2,200) | |
Loss before income taxes | (11,501) | (10,662) | (22,057) | (18,575) | |
Provision for income taxes | (22) | (6) | (28) | (10) | |
Net loss | $ (11,523) | $ (10,668) | $ (22,085) | $ (18,585) | |
Net loss per share attributable to common stockholders, basic | $ (0.41) | $ (0.39) | $ (0.79) | $ (0.68) | |
Net loss per share attributable to common stockholders, diluted | $ (0.41) | $ (0.39) | $ (0.79) | $ (0.68) | |
Weighted average common shares outstanding, basic | 27,983,629 | 27,620,764 | 27,967,072 | 27,495,125 | |
Weighted average common shares outstanding, diluted | 27,983,629 | 27,620,764 | 27,967,072 | 27,495,125 | |
[1] Net revenue by country is categorized based on the location of the end customer. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (11,523) | $ (10,668) | $ (22,085) | $ (18,585) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (30) | (27) | (54) | (29) |
Unrealized gains (losses) on marketable securities, net of tax of $0 | 9 | (18) | (64) | (10) |
Total other comprehensive income (loss) | (21) | (45) | (118) | (39) |
Comprehensive loss | $ (11,544) | $ (10,713) | $ (22,203) | $ (18,624) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ 103,891 | $ 502,217 | $ (95) | $ (398,231) |
Balance, Shares at Dec. 31, 2020 | 27,175,305 | |||
Issuance of common stock upon the exercise of common stock options | 372 | $ 372 | ||
Issuance of common stock upon the exercise of common stock options, Shares | 287,705 | |||
Issuance of common stock in connection with employee stock purchase plan | 211 | $ 211 | ||
Issuance of common stock in connection with employee stock purchase plan , Shares | 14,951 | |||
Stock-based compensation expense | 1,112 | $ 1,112 | ||
Foreign currency translation adjustment | (2) | (2) | ||
Unrealized gains (losses) on marketable securities | 8 | 8 | ||
Net loss | (7,917) | (7,917) | ||
Balance at Mar. 31, 2021 | 97,675 | $ 503,912 | (89) | (406,148) |
Balance, Shares at Mar. 31, 2021 | 27,477,961 | |||
Balance at Dec. 31, 2020 | 103,891 | $ 502,217 | (95) | (398,231) |
Balance, Shares at Dec. 31, 2020 | 27,175,305 | |||
Foreign currency translation adjustment | (29) | |||
Unrealized gains (losses) on marketable securities | (10) | |||
Net loss | (18,585) | |||
Balance at Jun. 30, 2021 | 88,983 | $ 505,933 | (134) | (416,816) |
Balance, Shares at Jun. 30, 2021 | 27,647,234 | |||
Balance at Dec. 31, 2020 | 103,891 | $ 502,217 | (95) | (398,231) |
Balance, Shares at Dec. 31, 2020 | 27,175,305 | |||
Net loss | (44,200) | |||
Balance at Dec. 31, 2021 | 67,854 | $ 510,488 | (188) | (442,446) |
Balance, Shares at Dec. 31, 2021 | 27,791,615 | |||
Balance at Mar. 31, 2021 | 97,675 | $ 503,912 | (89) | (406,148) |
Balance, Shares at Mar. 31, 2021 | 27,477,961 | |||
Issuance of common stock upon the exercise of common stock options | 213 | $ 213 | ||
Issuance of common stock upon the exercise of common stock options, Shares | 169,273 | |||
Stock-based compensation expense | 1,808 | $ 1,808 | ||
Foreign currency translation adjustment | (27) | (27) | ||
Unrealized gains (losses) on marketable securities | (18) | (18) | ||
Net loss | (10,668) | (10,668) | ||
Balance at Jun. 30, 2021 | 88,983 | $ 505,933 | (134) | (416,816) |
Balance, Shares at Jun. 30, 2021 | 27,647,234 | |||
Balance at Dec. 31, 2021 | 67,854 | $ 510,488 | (188) | (442,446) |
Balance, Shares at Dec. 31, 2021 | 27,791,615 | |||
Issuance of common stock upon the exercise of common stock options | 202 | $ 202 | ||
Issuance of common stock upon the exercise of common stock options, Shares | 164,503 | |||
Issuance of common stock in connection with employee stock purchase plan | 203 | $ 203 | ||
Issuance of common stock in connection with employee stock purchase plan , Shares | 12,465 | |||
Stock-based compensation expense | 2,310 | $ 2,310 | ||
Foreign currency translation adjustment | (24) | (24) | ||
Unrealized gains (losses) on marketable securities | (73) | (73) | ||
Net loss | (10,562) | (10,562) | ||
Balance at Mar. 31, 2022 | 59,910 | $ 513,203 | (285) | (453,008) |
Balance, Shares at Mar. 31, 2022 | 27,968,583 | |||
Balance at Dec. 31, 2021 | 67,854 | $ 510,488 | (188) | (442,446) |
Balance, Shares at Dec. 31, 2021 | 27,791,615 | |||
Foreign currency translation adjustment | (54) | |||
Unrealized gains (losses) on marketable securities | (64) | |||
Net loss | (22,085) | |||
Balance at Jun. 30, 2022 | 50,919 | $ 515,756 | (306) | (464,531) |
Balance, Shares at Jun. 30, 2022 | 28,023,295 | |||
Balance at Mar. 31, 2022 | 59,910 | $ 513,203 | (285) | (453,008) |
Balance, Shares at Mar. 31, 2022 | 27,968,583 | |||
Issuance of common stock upon the exercise of common stock options | 237 | $ 237 | ||
Issuance of common stock upon the exercise of common stock options, Shares | 31,592 | |||
Stock-based compensation expense | 2,316 | $ 2,316 | ||
Issuance of restricted common stock, Shares | 23,120 | |||
Foreign currency translation adjustment | (30) | (30) | ||
Unrealized gains (losses) on marketable securities | 9 | 9 | ||
Net loss | (11,523) | (11,523) | ||
Balance at Jun. 30, 2022 | $ 50,919 | $ 515,756 | $ (306) | $ (464,531) |
Balance, Shares at Jun. 30, 2022 | 28,023,295 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (22,085) | $ (18,585) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 1,302 | 896 |
Stock-based compensation expense | 4,626 | 2,920 |
Non-cash interest expense and end of term accretion expense | 278 | 264 |
Non-cash lease expense | 352 | |
Net amortization of premiums on marketable securities | 369 | 767 |
Unrealized foreign currency transaction losses | 1,034 | 314 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,131) | 560 |
Inventory | (4,153) | (1,894) |
Prepaid expenses and other current assets | (1,153) | (1,209) |
Accounts payable | (1,615) | 938 |
Accrued expenses and other current liabilities | (242) | 1,990 |
Deferred revenue | 219 | |
Operating lease liabilities | 918 | |
Deferred rent | (46) | |
Net cash used in operating activities | (27,500) | (12,866) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,213) | (273) |
Purchases of marketable securities | (9,508) | (45,461) |
Proceeds from sales and maturities of marketable securities | 48,250 | 58,810 |
Net cash provided by investing activities | 32,529 | 13,076 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of stock options | 439 | 585 |
Proceeds from issuance of common stock in connection with employee stock purchase plan | 203 | 211 |
Net cash provided by financing activities | 642 | 796 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (865) | (273) |
Net increase in cash, cash equivalents and restricted cash | 4,806 | 733 |
Cash, cash equivalents and restricted cash, beginning of period | 26,080 | 25,081 |
Cash, cash equivalents and restricted cash, end of period | 30,886 | 25,814 |
Supplemental disclosure of non-cash investing activities: | ||
Transfers of inventory to property and equipment | 1,350 | 765 |
Purchases of property and equipment included in accounts payable and accrued expenses | 1,327 | 70 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 30,386 | 25,314 |
Restricted cash | 500 | 500 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 30,886 | $ 25,814 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation TransMedics Group, Inc. (“TransMedics Group” and, together with its consolidated subsidiaries, the “Company”) was incorporated in the Commonwealth of Massachusetts in October 2018. TransMedics, Inc. (“TransMedics”), an operating company and wholly owned subsidiary of TransMedics Group, was incorporated in the State of Delaware in August 1998. The Company is a commercial-stage medical technology company transforming organ transplant therapy for end-stage organ failure patients across multiple disease states. The Company developed the Organ Care System (“OCS”) to replace a decades-old standard of care. The OCS represents a paradigm shift that transforms organ preservation for transplantation from a static state to a dynamic environment that enables new capabilities, including organ optimization and assessment. The Company’s OCS technology replicates many aspects of the organ’s natural living and functioning environment outside of the human body. The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has incurred recurring losses since inception, including net losses of $22.1 million for the six months ended June 30, 2022 and $44.2 million for the year ended December 31, 2021. As of June 30, 2022, the Company had an accumulated deficit of $464.5 million. The Company expects to continue to generate operating losses in the foreseeable future. The Company believes that its existing cash, cash equivalents, and marketable securities of $58.1 million as of June 30, 2022 in addition to the net proceeds from its debt financing in July 2022 (see Note 13), will be sufficient to fund its operations, capital expenditures, and debt service payments for at least the next 12 months following the filing of this Quarterly Report on Form 10-Q. The Company may need to seek additional funding through equity financings, debt financings or strategic alliances. The Company may not be able to obtain financing on acceptable terms, or at all, and the terms of any financing may adversely affect the holdings or the rights of the Company’s shareholders. If the Company is unable to obtain funding, the Company will be required to delay, reduce or eliminate some or all of its research and development programs, product expansion or commercialization efforts, or the Company may be unable to continue operations. The Company is subject to risks and uncertainties common to companies in the medical device industry and of similar size, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, uncertainty of market acceptance of products, and the need to obtain additional financing to fund operations. Potential risks and uncertainties also include, without limitation, uncertainties regarding the duration and magnitude of the impact of the COVID-19 pandemic on the Company’s business and the economy generally. Products currently under development will require additional research and development efforts, including additional clinical testing and regulatory approval, prior to commercialization. These efforts require additional capital, adequate personnel, infrastructure and extensive compliance-reporting capabilities. The Company’s research and development may not be successfully completed, adequate protection for the Company’s technology may not be obtained, the Company may not obtain necessary government regulatory approval on its expected timeline or at all, and approved products may not prove commercially viable. The Company operates in an environment of rapid change in technology and competition. The impact of the COVID-19 pandemic has been and may continue to be extensive in many aspects of society, which has resulted in and may continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Impacts to the Company’s business as a result of COVID-19 have included the temporary disruption of transplant procedures at many of the organ transplant centers that purchase OCS products; customer delays or reductions in customer capital expenditures and operating budgets and the related impact on its product sales; disruptions to the Company’s manufacturing operations and supply chain caused by facility closures, reductions in operating hours, staggered shifts and other social distancing efforts; labor shortages; decreased productivity and unavailability of materials or components; delays of reviews and approvals by the Food and Drug Administration (“FDA”) and other health authorities; delays in the Company’s clinical trial enrollment; limitations on its employees’ and customers’ ability to travel, and delays in product installations, trainings or shipments to and from other affected countries and within the United States. In response to the pandemic, healthcare providers have, and may need to further, reallocate resources, such as physicians, staff, hospital beds and intensive care unit facilities, and these actions significantly delay the provision of other medical care such as organ transplantation and reduce the number of transplant procedures that are performed, which negatively impacts the Company’s revenue and cash flows. While the Company maintains an inventory of finished products and raw materials used in its OCS products, a prolonged pandemic could lead to shortages in the raw materials necessary to manufacture its products. The COVID-19 pandemic also has impacted operations at the FDA and other health authorities, resulting in delays of reviews and approvals. The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited interim financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of June 30, 2022 and results of operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021 have been made. The Company’s results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, the valuation of inventory and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of COVID-19 within its financial statements and there may be changes to those estimates in future periods. Risk of Concentrations of Credit, Significant Customers and Significant Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As of June 30, 2022 and December 31, 2021, the Company had no allowance for credit losses. Significant customers are those that accounted for 10% or more of the Company’s net revenue or accounts receivable. For the three months ended June 30, 2022, one customer accounted for % of net revenue. For the six months ended June 30, 2022, one customer accounted for 17% of net revenue. For the three months ended June 30, 2021, no customer accounted for 10% or more of net revenue. For the six months ended June 30, 2021, one customer accounted for 10% of net revenue. As of June 30, 2022, two customers accounted for 13% and 11% of accounts receivable, respectively. As of December 31, 2021, two customers accounted for 21% and 15% of accounts receivable, respectively. Certain of the components and subassemblies included in the Company’s products are obtained from a sole source, a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents and marketable securities are carried at fair value, determined according to the fair value hierarchy described above (see Note 4). The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. The carrying value of the Company’s long-term debt approximates its fair value (a level 2 measurement) at each balance sheet date due to its variable interest rate, which approximates a market interest rate. Segment Information The Company manages its operations as a single Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards. For periods in which the Company reports a net loss, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net loss attributable to common stockholders for each of the three and six months ended June 30, 2022 and 2021. The Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated above because including them would have had an anti-dilutive effect: As of June 30, 2022 2021 Warrants to purchase common stock 64,440 64,440 Options to purchase common stock 3,476,064 2,708,303 Employee stock purchase plan 17,678 12,898 Restricted stock awards 23,120 — 3,581,302 2,785,641 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities Marketable securities by security type consisted of the following (in thousands): June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Losses Fair Value U.S. Treasury securities (due within one year) $ 24,797 $ — $ (97 ) $ — $ 24,700 U.S. government agency bonds (due within one year) 3,000 — (3 ) — 2,997 $ 27,797 $ — $ (100 ) $ — $ 27,697 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Losses Fair Value U.S. Treasury securities (due within one year) $ 63,907 $ — $ (33 ) $ — $ 63,874 U.S. government agency bonds (due within one year) 3,001 — (3 ) — 2,998 $ 66,908 $ — $ (36 ) $ — $ 66,872 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 4. Fair Value of Financial Assets and Liabilities The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements at June 30, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 15,903 $ — $ — $ 15,903 Marketable securities: U.S. Treasury securities — 24,700 — 24,700 U.S. government agency bonds — 2,997 — 2,997 $ 15,903 $ 27,697 $ — $ 43,600 Fair Value Measurements at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 11,169 $ — $ — $ 11,169 Marketable securities: U.S. Treasury securities — 63,874 — 63,874 U.S. government agency bonds — 2,998 — 2,998 $ 11,169 $ 66,872 $ — $ 78,041 Money market funds were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. U.S. Treasury securities and U.S. government agency bonds were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following (in thousands): June 30, 2022 December 31, 2021 Raw materials $ 8,974 $ 7,274 Work-in-process 1,685 1,932 Finished goods 6,809 5,653 $ 17,468 $ 14,859 During the six months ended June 30, 2022 and 2021, the Company made non-cash transfers of OCS Consoles from inventory to property and equipment (OCS Consoles loaned to customers) of $1.4 million and $0.8 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Accrued research, development and clinical trials expenses $ 4,200 $ 4,567 Accrued payroll and related expenses 5,327 5,173 Accrued professional fees 936 1,973 Accrued other 4,957 4,624 $ 15,420 $ 16,337 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt TransMedics has a credit agreement (the “Credit Agreement”) with OrbiMed Royalty Opportunities II, LP (“OrbiMed”), entered into in June 2018, pursuant to which TransMedics borrowed $35.0 million. Long-term debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Principal amount of long-term debt $ 35,000 $ 35,000 Less: Current portion of long-term debt — — Long-term debt, net of current portion 35,000 35,000 Debt discount, net of accretion (344 ) (511 ) Accrued end-of-term payment 819 708 Long-term debt, net of discount and current portion $ 35,475 $ 35,197 On July 25, 2022, the Company entered into a credit agreement with Canadian Imperial Bank of Commerce (“CIBC”) for total borrowings of $60.0 million (the “CIBC Credit Agreement”) (see Note 13). A portion of the proceeds were used to repay the outstanding principal, accrued interest and end-of-term payment of the Credit Agreement with OrbiMed totaling $36.3 million. In connection with the repayment of the outstanding borrowings under the Credit Agreement with the proceeds from the CIBC Credit Agreement and the related repayment provisions under the CIBC Credit Agreement, the Company has classified $35.5 million of long-term debt, net of discount and current portion outstanding as of June 30, 2022 under the Credit Agreement as a long-term liability. Prior to repayment, borrowings under the Credit Agreement bore interest at an annual rate equal to the London Interbank Offered Rate (“LIBOR”), subject to a minimum of 1.0% and a maximum of 4.0%, plus 8.5% (the “Applicable Margin”), subject in the aggregate to a maximum interest rate of 11.5%. In addition, borrowings under the Credit Agreement bore paid-in-kind (“PIK”) interest at an annual rate equal to the amount by which LIBOR plus the Applicable Margin exceeded 11.5%, but not to exceed 12.5%. The PIK interest was added to the principal amount of the borrowings outstanding at the end of each quarter until the repayment of the borrowings in July 2022. Borrowings under the Credit Agreement were repayable in quarterly interest-only payments until the maturity date, at which time all principal and accrued interest was due and payable. At its option, the company could prepay outstanding borrowings under the Credit Agreement. The Company was required to make a final payment in an amount equal to 3.0% of the principal amount of any prepayment or repayment. The final payment and debt discount amounts were being accreted to interest expense over the term of the Credit Agreement using the effective interest method. All obligations under the Credit Agreement were guaranteed by the Company and each of its material subsidiaries. All obligations of the Company and each guarantor were secured by substantially all of the Company’s and each guarantor’s assets, including their intellectual property, subject to certain exceptions, including a perfected security interest in substantially all tangible and intangible assets of the Company and each guarantor. Under the Credit Agreement, the Company agreed to certain affirmative and negative covenants to which it was subject until repayment. The financial covenants included maintaining a minimum liquidity amount of $3.0 million; the requirement, on an annual basis, to deliver to OrbiMed annual audited financial statements with an unqualified audit opinion from the Company’s independent registered public accounting firm; and restrictions on the Company’s activities, including limitations on dispositions, mergers or acquisitions; encumbering its intellectual property; incurring indebtedness or liens; paying dividends; making certain investments; and engaging in certain other business transactions. As of June 30, 2022, the Company was in compliance with the financial covenants under the Credit Agreement. The obligations under the Credit Agreement were subject to acceleration upon the occurrence of specified events of default, including payment default, change in control, bankruptcy, insolvency, certain defaults under other material debt, certain events with respect to governmental approvals (if such events could cause a material adverse change in the Company’s business), failure to comply with certain covenants, including the minimum liquidity and unqualified audit opinion covenants, and a material adverse change in the Company’s business, operations or other financial condition. Upon the occurrence of an event of default and until such event of default was no longer continuing, the Applicable Margin would increase by 4.0% per annum. If an event of default (other than certain events of bankruptcy or insolvency) occurred and was continuing, OrbiMed may have declared all or any portion of the outstanding principal amount of the borrowings plus accrued and unpaid interest to be due and payable. Upon the occurrence of certain events of bankruptcy or insolvency, all of the outstanding principal amount of the borrowings plus accrued and unpaid interest would have automatically bec ame due and payable. In addition, the Company may have been required to prepay outstanding borrowings, subject to certain exceptions, with portions of net cash proceeds of certain asset sales and certain casualty and condemnation events. As of June 30, 2022, the interest rate applicable to borrowings under the Credit Agreement was 9.5%. During the six months ended June 30, 2022, the weighted average effective interest rate on outstanding borrowings under the Credit Agreement was approximately 11.2%. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation 2019 Stock Incentive Plan The Company’s 2019 Stock Incentive Plan (the “2019 Plan”) provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, unrestricted stock units, and other stock-based awards to employees, directors, and consultants of the Company and its subsidiaries. The number of shares of common stock of TransMedics Group initially available for issuance under the 2019 Plan was 3,428,571 shares, plus the number of shares underlying awards under the previously outstanding 2014 Stock Incentive Plan (the “2014 Plan”), not to exceed 1,595,189 shares, that expire or are terminated, surrendered, or cancelled without the delivery of shares, are forfeited to or repurchased by TransMedics Group or otherwise become available again for grant. Since the effectiveness of the Company’s 2019 Plan in April 2019, no future awards will be made under the 2014 Plan. Shares withheld in payment of the exercise or purchase price of an award or in satisfaction of tax withholding requirements, and the shares covered by a stock appreciation right for which any portion is settled in stock, will reduce the number of shares available for issuance under the 2019 Plan. In addition, the number of shares available for issuance under the 2019 Plan (i) will not be increased by any shares delivered under the 2019 Plan that are subsequently repurchased using proceeds directly attributable to stock option exercises and (ii) will not be reduced by any awards that are settled in cash or that expire, become unexercisable, terminate or are forfeited to or repurchased by TransMedics Group without the issuance of stock under the 2019 Plan. As of June 30, 2022, 809,496 shares of common stock were available for issuance under the 2019 Plan. 2019 Employee Stock Purchase Plan Pursuant to the Company’s 2019 Employee Stock Purchase Plan (the “2019 ESPP”), certain employees of the Company are eligible to purchase common stock of the Company at a reduced price during offering periods. The 2019 ESPP permits participants to purchase common stock using funds contributed through payroll deductions, subject to the limitations set forth in the Internal Revenue Code, at a purchase price of 85% of the lower of the closing price of the Company’s common stock on the first trading day of the offering period or the closing price on the applicable purchase date, which is the final trading day of the applicable offering period. A total of 371,142 shares of the Company’s common stock are reserved for issuance under the 2019 ESPP. During the six months ended June 30, 2022, 12,465 shares of common stock were issued under the 2019 ESPP and as of June 30, 2022, 308,131 shares of common stock remained available for issuance. 2021 Inducement Plan In August 2021, the Company’s board of directors approved the TransMedics Group, Inc. Inducement Plan (the “Inducement Plan”). Pursuant to the terms of the Inducement Plan, the Company may grant nonstatutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock unit awards and performance awards to individuals who were not previously employees or directors of the Company or individuals returning to employment after a bona fide period of non-employment with the Company. A total of 1,000,000 shares of the Company’s common stock were initially available for issuance under the Inducement Plan. As of June 30, 2022, 615,400 shares of common stock were available for issuance under the Inducement Plan. Stock Option Activity During the six months ended June 30, 2022, the Company granted options under the 2019 Plan and the Inducement Plan to its employees and directors with service-based vesting for the purchase of an aggregate of 1,040,210 shares of common stock with a weighted average grant-date fair value of $8.53 per share. Restricted Common Stock Activity During the three months ended June 30, 2022, the Company granted shares of restricted common stock. Shares of unvested restricted common stock may not be sold or transferred by the holder. If the holder’s service to the Company and its affiliates ceases for any reason, unvested shares of restricted common stock held by these individuals will immediately be forfeited for no consideration, as defined in the restricted stock agreement. During the three months ended June 30, 2022, the Company granted 23,120 shares of restricted common stock under the 2019 Plan to consultants with service-based vesting conditions and a weighted-average grant-date fair value of $ 25.95 per share. Stock-Based Compensation The Company recorded stock-based compensation expense in the following expense categories of its consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 31 $ 19 $ 56 $ 32 Research, development and clinical trials expenses 364 320 685 517 Selling, general and administrative expenses 1,921 1,469 3,885 2,371 $ 2,316 $ 1,808 $ 4,626 $ 2,920 As of June 30, 2022, total unrecognized compensation cost related to unvested share-based awards was $23.4 million, which is expected to be recognized over a weighted average period of 2.8 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Operating Leases The Company leases office, laboratory and manufacturing space under two non-cancelable Leases, License Agreement with the Department of Veterans Affairs In 2002, the Company entered into a license agreement with the Department of Veterans Affairs (the “VA”), under which the Company was granted an exclusive, worldwide license under specified patents to make, use, sell and import certain technology used in the Company’s products and a non-exclusive, worldwide license to make, use, sell and import solutions for use in or with those products. The rights under the license agreement continued until the expiration of the last to expire of the licensed patents. The majority of the licensed U.S. patents expired in 2017, and the foreign patents expired in September 2018. However, the Company requested a patent term extension for one U.S. patent covered by the VA license agreement, U.S. Patent No. 6100082 (the “’082 patent”). The Company received a Notice of Final Determination on June 27, 2022 from the United States Patent and Trademark Office (“USPTO”) finding the ‘082 patent’s term extension expired on November 6, 2021, and as a result the license has terminated. The termination of the license is not expected to have a material impact on the Company’s financial results. As consideration for the licenses granted by the VA, the Company was obligated to pay tiered royalties ranging from a low single-digit to a mid single-digit percentage on net sales of each product covered by a licensed patent (subject to a minimum aggregate royalty payment of less than $0.1 million per year during each of the first five years after the first commercial sale, after which no minimum is required). Royalties were paid by the Company on a licensed product-by-licensed product and country-by-country basis, beginning on the first commercial sale of such licensed product in such country until expiration of the last valid patent claim covering such licensed product in such country. The Company was also responsible for all costs related to the amendment, prosecution and maintenance of the licensed patent rights. As all of the licensed patents expired as of November 6, 2021, the Company no longer has an obligation to pay royalties. 401(k) Savings Plan The Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the plan may be made at the discretion of the board of directors. As of June 30, 2022 and December 31, 2021, the Company had not made any contributions to the plan. Indemnification Agreements In the ordinary course of business, the Company has agreed to defend and indemnify its customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by the end-customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or services as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and had not accrued any liabilities related to such obligations in its consolidated financial statements as of June 30, 2022 and December 31, 2021. Unconditional Purchase Commitment In January 2021, the Company entered into an unconditional $9.5 million purchase commitment, in the ordinary course of business, for goods with specified annual minimum quantities to be purchased through December 2029. The contract is not cancellable without penalty. The remaining purchase commitment as of June 30, 2022 was $8.0 million. Legal Proceedings The Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings. |
Segment Reporting and Geographi
Segment Reporting and Geographic Data | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Data | 10. Segment Reporting and Geographic Data The Company has determined that it operates in one segment (see Note 2). See Note 11 for revenue by country. Long-lived assets by geography are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Long-lived assets by country(1): United States $ 15,515 $ 9,085 All other countries 662 756 Total long-lived assets $ 16,177 $ 9,841 ( 1 ) The Company’s only long-lived assets consist of property and equipment, net of depreciation, which are categorized based on their location of domicile. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 11. Revenue The Company has determined that the payments made to the customer for reimbursement of clinical trial materials and customer’s costs incurred to execute specific clinical trial protocols related to the Company’s OCS products do not provide the Company with a distinct good or service transferred by the customer, and therefore such payments are recorded as a reduction of revenue from the customer in the Company’s consolidated statements of operations. Reductions of revenue related to such payments made to customers for reimbursements are recognized when the Company recognizes the revenue for the sale of its OCS disposable sets. The reconciliation of gross revenue to net revenue for these certain payments is shown below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gross revenue from sales to customers $ 20,521 $ 8,667 $ 36,401 $ 16,304 Less: clinical trial payments reducing revenue — 496 — 1,080 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 The Company determined that payments made to customers to obtain information related to post-approval studies or existing standard-of-care protocols (i.e., unrelated to the Company’s OCS products) meet the criteria to be classified as a cost because the Company receives a distinct good or service transferred by the customer separate from the customer’s purchase of the Company’s OCS products and the consideration paid to the customer represents the fair value of the distinct good or service received. As a result, such payments made to the customers are recorded as operating expenses. The Company recorded payments made to customers related to post-approval studies and for documentation related to existing standard-of-care protocols of $0.2 million and $0.5 million for the three and six months ended June 30, 2022, respectively, as operating expenses. The Company recorded payments made to customers related to post-approval studies and for documentation related to existing standard-of-care protocols of $0.7 million and $1.2 million, respectively, for the three and six months ended June 30, 2021, respectively, as operating expenses. Disaggregated Revenue The Company disaggregates revenue from contracts with customers by product type and geographical area as it believes this presentation best depicts how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors, as shown below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net revenue by OCS product: OCS Lung net revenue $ 2,839 $ 3,572 $ 5,137 $ 6,002 OCS Heart net revenue 8,064 4,599 13,777 8,780 OCS Liver net revenue 9,618 — 17,487 442 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net revenue by country(1): United States $ 18,138 $ 5,758 $ 31,699 $ 11,515 All other countries 2,383 2,413 4,702 3,709 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 (1) Net revenue by country is categorized based on the location of the end customer. When a customer order includes disposable sets and organ retrieval or OCS organ management services, the Company has determined that the disposable sets and services constitute separate performance obligations and recognizes revenue as the disposable sets and services are delivered to the customer. Net revenue during the three and six months ended June 30, 2022 included service revenue comprising approximately 13% and less than 10%, respectively, of net revenue relating to organ retrieval and OCS organ management services sold under the National OCS Program, the Company’s turnkey solution to provide outsourced organ retrieval and OCS organ management. Contract Assets and Liabilities The Company recognizes a receivable at the point in time at which it has an unconditional right to payment. Such receivables are not contract assets. Contract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is not just subject to the passage of time. The Company had no contract assets as of June 30, 2022 and December 31, 2021. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has determined that its only contract liabilities are deferred revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. The Company generally satisfies performance obligations within one year of the contract inception date. As of June 30, 2022, the Company’s wholly- or partially unsatisfied performance obligations totaled $1.7 million and are expected to be completed within the next year. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions Employment of Dr. Amira Hassanein Dr. Amira Hassanein, who serves as Product Director for the Company’s OCS Lung program, is the sister of Dr. Waleed Hassanein, the Company’s President and Chief Executive Officer and a member of the Company’s board of directors. The Company paid Dr. Amira Hassanein approximately $0.1 million and $0.2 million in total compensation for the three and six months ended June 30, 2022, respectively, and $0.1 million and $0.2 million in total compensation for the three and six months ended June 30, 2021, respectively, for her services as an employee. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Canadian Imperial Bank of Commerce Credit Agreement On July 25, 2022, the Company entered into a credit agreement with CIBC pursuant to which CIBC made a term loan commitment of $60.0 million available to the Company. The entire term loan was drawn on July 25, 2022. The term loan under the CIBC Credit Agreement bears interest at an annual rate equal to either, at the Company’s option, (i) the secured overnight financing rate for an interest period selected by the Company, subject to a minimum of 1.5%, plus 2.0% or (ii) 1.0% plus the higher of a) the prime rate subject to a minimum of 4.0% or b) the Federal Funds Effective Rate plus 0.5%. Borrowings under the CIBC Credit Agreement are payable in monthly interest-only payments for the first 24 months, and then payable in equal monthly principal payments plus accrued interest until the maturity date of the CIBC Credit Agreement in July 2027. If certain revenue milestones are met after the first 24 months, the Company may extend the interest-only repayment period by one additional year. At its option, the Company may prepay borrowings outstanding under the CIBC Credit Agreement, subject to a prepayment fee of 2.0% of outstanding borrowings if paid prior to 12 months after the closing date, and 1.0% if paid after 12 months but prior to 24 months after the closing date. The obligations under the CIBC Credit Agreement are guaranteed by the Company’s material wholly-owned subsidiaries and are secured by substantially all of the assets of the Company and the guarantors. Repayment of OrbiMed Credit Agreement On July 25, 2022, the Company repaid all amounts due under the Credit Agreement with OrbiMed of $36.3 million, including $35.0 million of principal repayments, using proceeds from the borrowings under the CIBC Credit Agreement. The Credit Agreement was terminated on July 25, 2022 and all security interests securing obligations under the Credit Agreement were released. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited interim financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of June 30, 2022 and results of operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021 have been made. The Company’s results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, the valuation of inventory and the valuation of stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of COVID-19 within its financial statements and there may be changes to those estimates in future periods. |
Risk of Concentrations of Credit, Significant Customers and Significant Suppliers | Risk of Concentrations of Credit, Significant Customers and Significant Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As of June 30, 2022 and December 31, 2021, the Company had no allowance for credit losses. Significant customers are those that accounted for 10% or more of the Company’s net revenue or accounts receivable. For the three months ended June 30, 2022, one customer accounted for % of net revenue. For the six months ended June 30, 2022, one customer accounted for 17% of net revenue. For the three months ended June 30, 2021, no customer accounted for 10% or more of net revenue. For the six months ended June 30, 2021, one customer accounted for 10% of net revenue. As of June 30, 2022, two customers accounted for 13% and 11% of accounts receivable, respectively. As of December 31, 2021, two customers accounted for 21% and 15% of accounts receivable, respectively. Certain of the components and subassemblies included in the Company’s products are obtained from a sole source, a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents and marketable securities are carried at fair value, determined according to the fair value hierarchy described above (see Note 4). The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. The carrying value of the Company’s long-term debt approximates its fair value (a level 2 measurement) at each balance sheet date due to its variable interest rate, which approximates a market interest rate. |
Segment Information | Segment Information The Company manages its operations as a single |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards. For periods in which the Company reports a net loss, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net loss attributable to common stockholders for each of the three and six months ended June 30, 2022 and 2021. The Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated above because including them would have had an anti-dilutive effect: As of June 30, 2022 2021 Warrants to purchase common stock 64,440 64,440 Options to purchase common stock 3,476,064 2,708,303 Employee stock purchase plan 17,678 12,898 Restricted stock awards 23,120 — 3,581,302 2,785,641 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated above because including them would have had an anti-dilutive effect: As of June 30, 2022 2021 Warrants to purchase common stock 64,440 64,440 Options to purchase common stock 3,476,064 2,708,303 Employee stock purchase plan 17,678 12,898 Restricted stock awards 23,120 — 3,581,302 2,785,641 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Components of Marketable Securities by Security Type | Marketable securities by security type consisted of the following (in thousands): June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Losses Fair Value U.S. Treasury securities (due within one year) $ 24,797 $ — $ (97 ) $ — $ 24,700 U.S. government agency bonds (due within one year) 3,000 — (3 ) — 2,997 $ 27,797 $ — $ (100 ) $ — $ 27,697 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Losses Fair Value U.S. Treasury securities (due within one year) $ 63,907 $ — $ (33 ) $ — $ 63,874 U.S. government agency bonds (due within one year) 3,001 — (3 ) — 2,998 $ 66,908 $ — $ (36 ) $ — $ 66,872 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements at June 30, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 15,903 $ — $ — $ 15,903 Marketable securities: U.S. Treasury securities — 24,700 — 24,700 U.S. government agency bonds — 2,997 — 2,997 $ 15,903 $ 27,697 $ — $ 43,600 Fair Value Measurements at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 11,169 $ — $ — $ 11,169 Marketable securities: U.S. Treasury securities — 63,874 — 63,874 U.S. government agency bonds — 2,998 — 2,998 $ 11,169 $ 66,872 $ — $ 78,041 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventory consisted of the following (in thousands): June 30, 2022 December 31, 2021 Raw materials $ 8,974 $ 7,274 Work-in-process 1,685 1,932 Finished goods 6,809 5,653 $ 17,468 $ 14,859 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Accrued research, development and clinical trials expenses $ 4,200 $ 4,567 Accrued payroll and related expenses 5,327 5,173 Accrued professional fees 936 1,973 Accrued other 4,957 4,624 $ 15,420 $ 16,337 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Principal amount of long-term debt $ 35,000 $ 35,000 Less: Current portion of long-term debt — — Long-term debt, net of current portion 35,000 35,000 Debt discount, net of accretion (344 ) (511 ) Accrued end-of-term payment 819 708 Long-term debt, net of discount and current portion $ 35,475 $ 35,197 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense | The Company recorded stock-based compensation expense in the following expense categories of its consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 31 $ 19 $ 56 $ 32 Research, development and clinical trials expenses 364 320 685 517 Selling, general and administrative expenses 1,921 1,469 3,885 2,371 $ 2,316 $ 1,808 $ 4,626 $ 2,920 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Data (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Long-lived assets by geographical area | See Note 11 for revenue by country. Long-lived assets by geography are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Long-lived assets by country(1): United States $ 15,515 $ 9,085 All other countries 662 756 Total long-lived assets $ 16,177 $ 9,841 ( 1 ) The Company’s only long-lived assets consist of property and equipment, net of depreciation, which are categorized based on their location of domicile. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Recognized Revenue Net of Payments | The reconciliation of gross revenue to net revenue for these certain payments is shown below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gross revenue from sales to customers $ 20,521 $ 8,667 $ 36,401 $ 16,304 Less: clinical trial payments reducing revenue — 496 — 1,080 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 |
Schedule of Net Revenue by OCS Product and Country | The Company disaggregates revenue from contracts with customers by product type and geographical area as it believes this presentation best depicts how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors, as shown below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net revenue by OCS product: OCS Lung net revenue $ 2,839 $ 3,572 $ 5,137 $ 6,002 OCS Heart net revenue 8,064 4,599 13,777 8,780 OCS Liver net revenue 9,618 — 17,487 442 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net revenue by country(1): United States $ 18,138 $ 5,758 $ 31,699 $ 11,515 All other countries 2,383 2,413 4,702 3,709 Total net revenue $ 20,521 $ 8,171 $ 36,401 $ 15,224 (1) Net revenue by country is categorized based on the location of the end customer. |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||||||
Net loss | $ 11,523 | $ 10,562 | $ 10,668 | $ 7,917 | $ 22,085 | $ 18,585 | $ 44,200 |
Accumulated deficit | 464,531 | 464,531 | $ 442,446 | ||||
Cash equivalents and marketable securities | $ 58,100 | $ 58,100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) Segment | Jun. 30, 2021 | Dec. 31, 2021 USD ($) | |
Allowance for credit losses | $ | $ 0 | $ 0 | $ 0 | |
Number of operating segments | Segment | 1 | |||
Customer Concentration Risk | Revenue Benchmark | Significant Customer Benchmark [Member] | Minimum [Member] | ||||
Concentration risk percentage | 10% | |||
Customer Concentration Risk | Revenue Benchmark | Customer One [Member] | ||||
Concentration risk percentage | 17% | 17% | 10% | |
Customer Concentration Risk | Accounts Receivable | Significant Customer Benchmark [Member] | Minimum [Member] | ||||
Concentration risk percentage | 10% | |||
Customer Concentration Risk | Accounts Receivable | Customer One [Member] | ||||
Concentration risk percentage | 13% | 21% | ||
Customer Concentration Risk | Accounts Receivable | Customer Two [Member] | ||||
Concentration risk percentage | 11% | 15% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Detail) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 3,581,302 | 2,785,641 |
Warrants to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 64,440 | 64,440 |
Options to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 3,476,064 | 2,708,303 |
Employee stock purchase plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 17,678 | 12,898 |
Restricted stock awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 23,120 |
Marketable Securities - Compone
Marketable Securities - Components of Marketable Securities by Security Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable Securities, Amortized Cost | $ 27,797 | $ 66,908 |
Marketable Securities, Gross Unrealized Losses | (100) | (36) |
Marketable Securities, Fair Value | 27,697 | 66,872 |
U.S. Treasury Securities (due within one year) [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 24,797 | 63,907 |
Marketable Securities, Gross Unrealized Losses | (97) | (33) |
Marketable Securities, Fair Value | 24,700 | 63,874 |
U.S. Government Agency Bonds (due within one year) [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 3,000 | 3,001 |
Marketable Securities, Gross Unrealized Losses | (3) | (3) |
Marketable Securities, Fair Value | $ 2,997 | $ 2,998 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Marketable securities: | ||
Marketable securities | $ 27,697 | $ 66,872 |
Cash equivalents and marketable securities | 43,600 | 78,041 |
U.S. Treasury Securities [Member] | ||
Marketable securities: | ||
Marketable securities | 24,700 | 63,874 |
U.S. Government Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | 2,997 | 2,998 |
Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash equivalents | 15,903 | 11,169 |
Level 1 [Member] | ||
Marketable securities: | ||
Cash equivalents and marketable securities | 15,903 | 11,169 |
Level 1 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash equivalents | 15,903 | 11,169 |
Level 2 [Member] | ||
Marketable securities: | ||
Cash equivalents and marketable securities | 27,697 | 66,872 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Marketable securities: | ||
Marketable securities | 24,700 | 63,874 |
Level 2 [Member] | U.S. Government Agency Bonds [Member] | ||
Marketable securities: | ||
Marketable securities | $ 2,997 | $ 2,998 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Current (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,974 | $ 7,274 |
Work-in-process | 1,685 | 1,932 |
Finished goods | 6,809 | 5,653 |
Inventory, net | $ 17,468 | $ 14,859 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | ||
Inventory transfer to property plant and equipment | $ 1,350 | $ 765 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Accrued research, development and clinical trials expenses | $ 4,200 | $ 4,567 |
Accrued payroll and related expenses | 5,327 | 5,173 |
Accrued professional fees | 936 | 1,973 |
Accrued other | 4,957 | 4,624 |
Accrued expenses and other liabilities current | $ 15,420 | $ 16,337 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jul. 25, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 29, 2018 | |
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 35,000,000 | $ 35,000,000 | ||
Long-term debt, net of discount and current portion | $ 35,475,000 | $ 35,197,000 | ||
Orbi Med [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 35,000,000 | |||
Description of variable rate basis | London Interbank Offered Rate (“LIBOR”), subject to a minimum of 1.0% and a maximum of 4.0% | |||
Basis spread on variable rate | 8.50% | |||
Interest rate effective percentage | 9.50% | |||
Final payment | 3% | |||
Description of covenants | The financial covenants included maintaining a minimum liquidity amount of $3.0 million; the requirement, on an annual basis, to deliver to OrbiMed annual audited financial statements with an unqualified audit opinion from the Company’s independent registered public accounting firm; and restrictions on the Company’s activities, including limitations on dispositions, mergers or acquisitions; encumbering its intellectual property; incurring indebtedness or liens; paying dividends; making certain investments; and engaging in certain other business transactions. | |||
Minimum liquidity covenant amount | $ 3,000,000 | |||
Average effective interest rate | 11.20% | |||
Orbi Med [Member] | In Event Of Default [Member] | ||||
Debt Instrument [Line Items] | ||||
Increasing applicable margin | 4% | |||
Orbi Med [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Paid in kind interest threshold | 11.50% | |||
Orbi Med [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate effective percentage | 11.50% | |||
Paid in kind interest threshold | 12.50% | |||
Orbi Med [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR rate | 1% | |||
Orbi Med [Member] | London Interbank Offered Rate (LIBOR) | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR rate | 4% | |||
Orbi Med [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity month and year | 2022-07 | |||
Orbi Med [Member] | Credit Agreement [Member] | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayment of outstanding principal, accrued interest and end-of-term payment | $ 36,300,000 | |||
Canadian Imperial Bank of Commerce [Member] | Credit Agreement [Member] | Subsequent Event | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings from long term debt | $ 60,000,000 | |||
Debt instrument, maturity month and year | 2027-07 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Principal amount of long-term debt | $ 35,000 | $ 35,000 |
Long-term debt, net of current portion | 35,000 | 35,000 |
Debt discount, net of accretion | (344) | (511) |
Accrued end-of-term payment | 819 | 708 |
Long-term debt, net of discount and current portion | $ 35,475 | $ 35,197 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 15, 2019 | Jun. 30, 2022 | Jun. 30, 2022 | Aug. 31, 2021 | |
Unrecognized compensation cost related to unvested employee and director stock-based awards | $ 23.4 | $ 23.4 | ||
Weighted average period for unrecognized compensation cost | 2 years 9 months 18 days | |||
2019 Stock Plan [Member] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 3,428,571 | |||
Share based compensation arrangement by share based payment award number of shares available for grant | 809,496 | 809,496 | ||
2019 Stock Plan [Member] | From 2014 Plan [Member] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 1,595,189 | |||
2019 Stock Plan [Member] | Restricted stock awards [Member] | Common Stock | Consultants [Member] | ||||
Shares granted | 23,120 | |||
Share-based compensation arrangement by share-based payment award, grants in period, weighted average grant date fair value | $ 25.95 | |||
2019 Employee Stock Purchase Plan [Member] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 371,142 | 371,142 | ||
Share based compensation arrangement by share based payment award number of shares available for grant | 308,131 | 308,131 | ||
Purchase price of common stock, percent | 85% | |||
Number of shares issued | 12,465 | |||
2021 Inducement Plan [Member] | Common Stock | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 1,000,000 | |||
Share based compensation arrangement by share based payment award number of shares available for grant | 615,400 | 615,400 | ||
2019 Plan and 2021 Inducement Plan [Member] | Common Stock | Employees and Directors [Member] | ||||
Options granted | 1,040,210 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 8.53 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allocated Share-based Compensation Expense | $ 2,316 | $ 1,808 | $ 4,626 | $ 2,920 |
Cost of revenue [Member] | ||||
Allocated Share-based Compensation Expense | 31 | 19 | 56 | 32 |
Research, development and clinical trials expenses [Member] | ||||
Allocated Share-based Compensation Expense | 364 | 320 | 685 | 517 |
Selling, general and administrative expenses [Member] | ||||
Allocated Share-based Compensation Expense | $ 1,921 | $ 1,469 | $ 3,885 | $ 2,371 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jan. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Defined contribution plan, contribution amount | $ 0 | $ 0 | |
Recorded unconditional purchase commitment, minimum quantity required | $ 9.5 | ||
Recorded unconditional purchase commitment, maturity year and month | 2029-12 | ||
Remaining purchase commitment | 8 | ||
Maximum [Member] | |||
Guaranteed minimum annual royalty payment | $ 0.1 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Data - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Data - Geographic Areas Long Lived Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||
Long-lived assets | [1] | $ 16,177 | $ 9,841 |
United States [Member] | |||
Geographic Areas, Long-Lived Assets [Abstract] | |||
Long-lived assets | [1] | 15,515 | 9,085 |
All Other Countries [Member] | |||
Geographic Areas, Long-Lived Assets [Abstract] | |||
Long-lived assets | [1] | $ 662 | $ 756 |
[1]The Company’s only long-lived assets consist of property and equipment, net of depreciation, which are categorized based on their location of domicile |
Revenue - Schedule of Recognize
Revenue - Schedule of Recognized Revenue Net of Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenue From Contract With Customer [Abstract] | |||||
Gross revenue from sales to customers | $ 20,521 | $ 8,667 | $ 36,401 | $ 16,304 | |
Less: clinical trial payments reducing revenue | 496 | 1,080 | |||
Total net revenue | [1] | $ 20,521 | $ 8,171 | $ 36,401 | $ 15,224 |
[1] Net revenue by country is categorized based on the location of the end customer. |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue Recognition [Line Items] | |||||
Research development and clinical trials expenses | $ 200,000 | $ 700,000 | $ 500,000 | $ 1,200,000 | |
Contract assets | 0 | 0 | $ 0 | ||
Performance obligations totaled | $ 1,700,000 | $ 1,700,000 | |||
Revenue performance obligation description of timing | The Company generally satisfies performance obligations within one year of the contract inception date. | ||||
Revenue Benchmark [Member] | National OCS Program [Member] | Product Concentration Risk [Member] | |||||
Revenue Recognition [Line Items] | |||||
Concentration risk percentage | 13% | ||||
Revenue Benchmark [Member] | Maximum [Member] | National OCS Program [Member] | Product Concentration Risk [Member] | |||||
Revenue Recognition [Line Items] | |||||
Concentration risk percentage | 10% |
Revenue - Schedule of Net Reven
Revenue - Schedule of Net Revenue by OCS Product and Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | [1] | $ 20,521 | $ 8,171 | $ 36,401 | $ 15,224 |
United States [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | [1] | 18,138 | 5,758 | 31,699 | 11,515 |
All Other Countries [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | [1] | 2,383 | 2,413 | 4,702 | 3,709 |
OCS Lung net revenue [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | 2,839 | 3,572 | 5,137 | 6,002 | |
OCS Heart net revenue [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | 8,064 | $ 4,599 | 13,777 | 8,780 | |
OCS Liver net revenue [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net revenue | $ 9,618 | $ 17,487 | $ 442 | ||
[1] Net revenue by country is categorized based on the location of the end customer. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Compensation expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jul. 25, 2022 | Jun. 30, 2022 | |
Orbi Med [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 8.50% | |
Credit Agreement [Member] | Orbi Med [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, maturity month and year | 2022-07 | |
Subsequent Event | Credit Agreement [Member] | Canadian Imperial Bank of Commerce [Member] | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $ 60,000,000 | |
Debt instrument, loan amount drawn date | Jul. 25, 2022 | |
Debt instrument, maturity month and year | 2027-07 | |
Debt instrument, frequency of periodic payment | monthly | |
Interest-only payment period | 24 months | |
Interest-only payment, additional extension period | 1 year | |
Debt instrument, payment terms | Borrowings under the CIBC Credit Agreement are payable in monthly interest-only payments for the first 24 months, and then payable in equal monthly principal payments plus accrued interest until the maturity date of the CIBC Credit Agreement in July 2027. If certain revenue milestones are met after the first 24 months, the Company may extend the interest-only repayment period by one additional year. | |
Subsequent Event | Credit Agreement [Member] | Canadian Imperial Bank of Commerce [Member] | Interest Rate Option Two | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, interest rate | 1% | |
Subsequent Event | Credit Agreement [Member] | Canadian Imperial Bank of Commerce [Member] | Prior to 12 Months After Closing Date [Member] | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, prepayment fee | 2% | |
Subsequent Event | Credit Agreement [Member] | Canadian Imperial Bank of Commerce [Member] | Prior to 24 Months After Closing Date [Member] | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, prepayment fee | 1% | |
Subsequent Event | Credit Agreement [Member] | Orbi Med [Member] | ||
Subsequent Event [Line Items] | ||
Repayment of outstanding principal, accrued interest and end-of-term payment | $ 36,300,000 | |
Principal repayments | $ 35,000,000 | |
Debt instruments termination date | Jul. 25, 2022 | |
Subsequent Event | Credit Agreement [Member] | Term Secured Overnight Financing Rate [Member] | Canadian Imperial Bank of Commerce [Member] | Interest Rate Option One [Member] | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 2% | |
Subsequent Event | Credit Agreement [Member] | Term Secured Overnight Financing Rate [Member] | Minimum [Member] | Canadian Imperial Bank of Commerce [Member] | Interest Rate Option One [Member] | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, interest rate | 1.50% | |
Subsequent Event | Credit Agreement [Member] | Amount Over Federal Funds Effective Rate [Member] | Minimum [Member] | Canadian Imperial Bank of Commerce [Member] | Interest Rate Option Two | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Subsequent Event | Credit Agreement [Member] | Prime Rate | Minimum [Member] | Canadian Imperial Bank of Commerce [Member] | Interest Rate Option Two | Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 4% |