Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Mohawk Group Holdings, Inc. | |
Entity Central Index Key | 0001757715 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 17,763,994 | |
Entity File Number | 001-38937 | |
Entity Tax Identification Number | 83-1739858 | |
Entity Address, Address Line One | 37 East 18th Street | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 347 | |
Local Phone Number | 676-1681 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock, $0.0001 par value per share | |
Trading Symbol(s) | MWK | |
Name of each exchange on which registered | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 14,050 | $ 30,353 |
Accounts receivable—net | 4,164 | 1,059 |
Inventory | 44,256 | 36,212 |
Prepaid and other current assets | 4,857 | 5,395 |
Total current assets | 67,327 | 73,019 |
PROPERTY AND EQUIPMENT—net | 162 | 175 |
GOODWILL AND OTHER INTANGIBLES—net | 1,040 | 1,055 |
OTHER NON-CURRENT ASSETS | 175 | 175 |
TOTAL ASSETS | 68,704 | 74,424 |
CURRENT LIABILITIES: | ||
Credit facility | 23,855 | 21,657 |
Accounts payable | 21,690 | 21,064 |
Term loan | 4,500 | 3,000 |
Accrued and other current liabilities | 6,570 | 7,505 |
Total current liabilities | 56,615 | 53,226 |
OTHER LIABILITIES | 4 | |
TERM LOANS | 9,094 | 10,467 |
Total liabilities | 65,709 | 63,697 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $0.0001 per share—500,000,000 shares authorized and 17,736,649 shares outstanding at December 31, 2019; 500,000,000 shares authorized and 17,763,994 shares outstanding at March 31, 2020 | 2 | 2 |
Additional paid-in capital | 147,777 | 140,477 |
Accumulated deficit | (144,839) | (129,809) |
Accumulated other comprehensive income | 55 | 57 |
Total stockholders’ equity | 2,995 | 10,727 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 68,704 | $ 74,424 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 17,763,994 | 17,736,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
NET REVENUE | $ 25,628 | $ 17,846 |
COST OF GOODS SOLD | 15,330 | 11,175 |
GROSS PROFIT | 10,298 | 6,671 |
OPERATING EXPENSES: | ||
Sales and distribution | 13,910 | 9,274 |
Research and development | 2,281 | 1,163 |
General and administrative | 8,003 | 3,366 |
TOTAL OPERATING EXPENSES: | 24,194 | 13,803 |
OPERATING LOSS | (13,896) | (7,132) |
INTEREST EXPENSE—net | 1,109 | 1,212 |
OTHER EXPENSE—net | 25 | 45 |
LOSS BEFORE INCOME TAXES | (15,030) | (8,389) |
NET LOSS | $ (15,030) | $ (8,389) |
Net loss per share, basic and diluted | $ (0.99) | $ (0.73) |
Weighted-average number of shares outstanding, basic and diluted | 15,193,647 | 11,534,190 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
NET LOSS | $ (15,030) | $ (8,389) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustments | (2) | 25 |
Other comprehensive income (loss) | (2) | 25 |
COMPREHENSIVE LOSS | $ (15,032) | $ (8,364) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Common StockMarch 20, 2019 | Common StockMarch 2020 | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) |
Beginning balance at Dec. 31, 2018 | $ 5,369 | $ 1 | $ 76,348 | $ (71,020) | $ 40 | ||
Beginning balance, shares at Dec. 31, 2018 | 11,534,190 | ||||||
Net loss | (8,389) | (8,389) | |||||
Issuance of restricted common stock, shares | 2,406,618 | ||||||
Stock-based compensation | 1,500 | 1,500 | |||||
Other comprehensive income (loss) | 25 | 25 | |||||
Ending balance at Mar. 31, 2019 | (1,495) | $ 1 | 77,848 | (79,409) | 65 | ||
Ending balance, shares at Mar. 31, 2019 | 13,940,808 | ||||||
Beginning balance at Dec. 31, 2019 | 10,727 | $ 2 | 140,477 | (129,809) | 57 | ||
Beginning balance, shares at Dec. 31, 2019 | 17,736,649 | ||||||
Net loss | (15,030) | (15,030) | |||||
Issuance of restricted common stock, shares | 439,145 | 439,145 | |||||
Forfeiture of 371,320 shares of restricted common stock, shares | (371,320) | ||||||
Stock-based compensation | 7,439 | 7,439 | |||||
Shares of restricted common stock retired in connection with vesting | (139) | (139) | |||||
Shares of restricted common stock retired in connection with vesting, shares | (40,480) | ||||||
Other comprehensive income (loss) | (2) | (2) | |||||
Ending balance at Mar. 31, 2020 | $ 2,995 | $ 2 | $ 147,777 | $ (144,839) | $ 55 | ||
Ending balance, shares at Mar. 31, 2020 | 17,763,994 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - Common Stock - shares | Mar. 20, 2019 | Mar. 31, 2020 |
Issuance of restricted common stock, shares | 2,406,618 | 439,145 |
Restricted common stock, forfeitures | 371,320 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (15,030) | $ (8,389) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 41 | 55 |
Provision for sales returns | 84 | (38) |
Amortization of deferred financing costs and debt discounts | 304 | 305 |
Stock-based compensation | 7,439 | 1,500 |
Other | 33 | 57 |
Changes in assets and liabilities: | ||
Accounts receivable | (3,140) | (585) |
Inventory | (8,044) | (3,331) |
Prepaid and other current assets | 540 | 200 |
Accounts payable, accrued and other liabilities | 682 | (1,697) |
Cash used in operating activities | (17,091) | (11,923) |
INVESTING ACTIVITIES: | ||
Purchase of fixed assets | (18) | (13) |
Proceeds on sale of fixed assets | 3 | |
Cash used in investing activities | (18) | (10) |
FINANCING ACTIVITIES: | ||
Taxes paid related to net settlement upon vesting of restricted common stock | (112) | |
Borrowings from Mid Cap credit facility | 17,435 | 19,184 |
Repayments from Mid Cap credit facility | (15,414) | (13,664) |
Deferred offering costs | (139) | (44) |
Insurance obligation payments | (965) | |
Capital lease obligation payments | (2) | (14) |
Cash provided by financing activities | 803 | 4,627 |
EFFECT OF EXCHANGE RATE ON CASH | 3 | 1 |
NET CHANGE IN CASH AND RESTRICTED CASH FOR PERIOD | (16,303) | (7,305) |
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD | 30,789 | 20,708 |
CASH AND RESTRICTED CASH AT END OF PERIOD | 14,486 | 13,403 |
RECONCILIATION OF CASH AND RESTRICTED CASH | ||
CASH | 14,050 | 12,974 |
RESTRICTED CASH—Prepaid and other assets | 307 | 300 |
RESTRICTED CASH—Other non-current assets | 129 | 129 |
CASH AND RESTRICTED CASH AT END OF PERIOD | 14,486 | 13,403 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | $ 759 | 628 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Debt issuance costs not paid | 22 | |
Horizon Term Loan | ||
FINANCING ACTIVITIES: | ||
Debt issuance costs | (769) | |
Mid Cap Credit Facility | ||
FINANCING ACTIVITIES: | ||
Debt issuance costs | $ (66) |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Mohawk Headquartered in New York, Mohawk’s offices can be found in China, Philippines, Israel, and Poland. Liquidity and Going Concern— The Company is an early-stage growth company. Accordingly, the Company endeavors to continuously invest in the launch of new products, the development of its software, and the expansion of its sales and distribution infrastructure in order to accelerate revenue growth and scale operations to support such growth. To fund these investments, the Company has historically obtained financing and raised capital since its inception with the expectation that the Company will generate profits in the future. The Company intends to continue to its strategy of investing in growth by launching new products, developing its software and expanding its sales and distribution operations for the foreseeable future. As a result of its historical investments, the Company has incurred operating losses since its inception, which includes operating losses of . The Company has raised $102.0 million in equity financing to fund its operations since inception, including the net proceeds from the Company’s initial public offering of common stock (“IPO”), through March 31, 2020. During the Company’s review of the March 31, 2020 condensed consolidated financial statements, the Company’s financial forecast for the next 12 months following the filing date of this Quarterly Report on Form 10-Q, included revenue growth, margin expansion, a reduction of certain fixed costs, an improvement in inventory management, and a reduction in operating cash deficit. In addition, management anticipated that the Company would not breach its financial covenants associated with its existing credit facility or term loan for the next twelve months. However, there is no assurance that management’s forecast would be attained or that the Company will be able to maintain its liquidity to fund operations and/or maintain compliance with its covenants without future equity investments or issuance of debt from outside sources. In the event of a breach of the Company’s financial covenants under the credit facility and/or its term loan, outstanding borrowings would become due on demand absent a waiver from the lenders. In addition, while the Company anticipates it will remain in compliance with the covenants prescribed by its existing financing arrangements (See Note 6 – Credit Facility and Term Loans), there can be no assurance that the Company’s operating forecast and cash flows for the twelve months following the issuance of the accompanying condensed consolidated financial statements, will be attained such that the Company will be able to maintain compliance with these covenants or generate sufficient liquidity to fund its ongoing operations. These negative financial conditions raise substantial doubt about the Company’s ability to continue as a going concern as of March 31, 2020. These condensed consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern and as such, include no adjustments that might be necessary in the event that the Company was unable to operate on this basis. Management plans to continue to closely monitor its operating forecast and cash flows, and may pursue additional sources of financing and/or capital to fund its operations. If the Company is unable to improve its operating results, increase its operating cash inflows, and/or obtain additional sources of financing and capital on acceptable terms (if at all), the Company may have to make significant changes to its operating plan, such as delay expenditures, reduce investments in new products, delay the development of its software, reduce its sale and distribution infrastructure, or otherwise significantly reduce the scope of its business. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. C oronavirus Pandemic On January 30, 2020, the World Health Organization (the “WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) originating in Wuhan, China and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 pandemic, including the impact associated with preventative and precautionary measures that the Company, other businesses and governments are taking, continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company, but the pandemic may materially affect the Company's financial condition, liquidity and future results of operations. The COVID-19 pandemic began to have an unfavorable impact on the Company, including its key manufacturing partners, in January 2020. Substantially all of the Company’s products are sourced and manufactured in China, including new products that it expects to launch during 2020. In addition, the Company relies upon its team in Shenzhen for a number of functions relating to product sourcing and development, among other things. The Company has a key manufacturing partner in China that re-opened its facilities as of February 10, 2020 and reached over 90% capacity early in March 2020. This key manufacturer is expected to manufacture over 30% of the Company’s inventory in 2020. Although the Company has seen an increase in its net revenue since March 2020 and through the filing date of this Quarterly Report on Form 10-Q, the future impact on the Company’s personnel, business and global operations, and on the Company’s suppliers, logistics providers, marketplaces and other business partners is uncertain and cannot be reasonably estimated at this time. Given the nature of the pandemic, it is possible that any and every aspect of the Company’s value chain could be disrupted, and such impact could have a material adverse impact on the Company’s business, financial condition, operating results and prospects. For example, the Company may be unable to launch new products, to replenish inventory for existing products, to ship into or receive inventory in its third-party warehouses, or to ship or sell products to customers, in each case on a timely basis or at all. The Company also may be unable to forecast demand for its products during the pendency of this pandemic and the Company may experience a substantial decrease in the demand for its products, most of which are considered not essential. In addition, the majority of the Company’s personnel are currently working remotely, which creates challenges in the way the Company operates its business, including, but not limited to, the manner in which the Company tests products and its ability to meet its reporting obligations. If any of the Company’s key personnel contracts COVID-19, the Company could experience impacts to its ability to execute its operations. Further, the Company is currently seeking to preserve its liquidity and capital resources through various actions, which include delaying and negotiating the delay of payments to certain vendors, the effect of which could have an adverse impact on the Company’s business, including its relationships with these vendors. The Company’s operations rely on third-parties to manufacture its products, to provide logistics and warehousing services and to facilitate sales of its products, and accordingly the Company relies on the business continuity plans of these third parties to operate during the pandemic and have limited ability to influence their plans. In light of the uncertainty as to the severity and duration of the pandemic, the Company may be unable to remain in compliance with the terms of its existing loan agreements and may be unable to secure a waiver, which could have an adverse impact on the Company’s business, prospects and financial condition and the Company intends to seek additional financing options. The Company expects that any financing, if successful, will be expensive and/or dilutive. Furthermore, the spread of COVID-19, which has caused a broad impact globally, may materially affect the Company economically. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s ability to access capital, which could in the future negatively affect its liquidity. Due to the uncertainty as to the severity and duration of the pandemic, the impact on the Company’s future revenues, profitability, financial position and business is uncertain at this time. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of March 31, 2020, the results of operations for the three months ended March 31, 2020 and 2019, the statements of stockholder’s equity for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the Company’s audited consolidated financial statements as of that date, but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 30, 2020, (the “Annual Report”). Use of Estimates —Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Principles of Consolidation —The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2019 (in thousands) Direct Wholesale Managed SaaS Total North America $ 17,029 $ 250 $ 533 $ 17,812 Other 34 — — 34 Total net revenue $ 17,063 $ 250 $ 533 $ 17,846 Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed SaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2019 2020 (in thousands) Environmental appliances (i.e., dehumidifiers and air conditioners) $ 6,563 $ 13,270 Small home appliances 4,230 5,635 Cosmetics, skincare, and heath supplements 3,167 3,368 Cookware, kitchen tools and gadgets 2,039 989 Hair appliances and accessories 1,074 1,041 All others 240 964 Total net product revenue 17,313 25,267 Managed SaaS 533 361 Total net revenue $ 17,846 $ 25,628 Fair Value of Financial Instruments —The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At March 31, 2020, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The credit facility is carried at amortized cost and at December 31, 2019 and March 31, 2020 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The Company’s financial instruments of cash and restricted cash consist of Level 1 assets at December 31, 2019 and March 31, 2020. The Company’s cash and restricted cash was approximately $30.8 million and $14.5 million, respectively, and included savings deposits and overnight investments at December 31, 2019 and March 31, 2020. Assets and liabilities recorded at fair value on a recurring basis in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability 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. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Adopted Accounting Standards In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) On August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Recently Issued Accounting Pronouncements The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the JOBS Act, and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Inventory on-hand $ 29,370 $ 35,831 Inventory in-transit 6,842 8,425 Inventory $ 36,212 $ 44,256 All of the Company’s inventory on-hand is held either with Amazon or the Company’s other third-party warehouses. The Company does not have any contractual right of returns with its contract manufacturers. The Company’s inventory on-hand held by Amazon was approximately $4.7 million and $7.0 million as of December 31, 2019 and March 31, 2020, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. Prepaids and other current assets consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Prepaid inventory $ 2,195 $ 2,456 Restricted cash 307 307 Prepaid insurance 1,967 964 Other 926 1,130 Prepaid and other current assets $ 5,395 $ 4,857 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Accrued and Other Current Liabilities | 5. Accrued expenses and other current liabilities consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Accrued compensation costs $ 300 $ 388 Accrual for insurance financing 1,031 66 Accrued professional fees and consultants 400 520 Accrued logistics costs 2,326 2,067 Product related accruals 1,518 1,681 Sales tax payable 507 257 Sales return reserve 456 540 Seller note from acquisition 195 195 All other accruals 772 856 Accrued and other current liabilities $ 7,505 $ 6,570 The Company sponsors, through its professional employer organization provider, a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. Currently, the Company does not match or make any contributions to the 401(k) plan. |
Credit Facility and Term Loans
Credit Facility and Term Loans | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility and Term Loans | 6. Credit facility and term loans consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) MidCap credit facility $ 22,953 $ 24,975 Less: deferred debt issuance costs (1,268 ) (1,095 ) Less discount associated with issuance of warrants (28 ) (25 ) Total MidCap credit facility $ 21,657 $ 23,855 Horizon term loan $ 15,000 $ 15,000 Less: deferred debt issuance costs (836 ) (767 ) Less discount associated with issuance of warrants (697 ) (639 ) Total Horizon term loan 13,467 13,594 Less-current portion (3,000 ) (4,500 ) Term loan-non current portion $ 10,467 $ 9,094 MidCap Credit Facility and Term Loan On November 23, 2018, the Company entered into a three-year $25.0 million revolving credit facility (the “Credit Facility”) with MidCap Financial Trust (“MidCap”). The Credit Facility can be increased, subject to certain conditions, to $50.0 million. Loans under the Credit Facility are determined based on percentages of the Company’s eligible accounts receivable and eligible inventory. The Credit Facility bears interest at the London Interbank Offered Rate (“LIBOR”) plus 5.75% for outstanding borrowings. The Company is required to pay a facility availability fee of 0.5% on the average unused portion of the facility. The Credit Facility contains a minimum liquidity financial covenant that requires the Company to maintain a minimum of $5.0 million in cash on hand or availability in the Credit Facility. In 2018, the Company incurred approximately $1.3 million in debt issuance costs which has been offset against the debt and will be expensed over the three years. Unamortized debt issuance costs of $0.7 million, relating to a prior three-year revolving credit facility with MidCap, will be amortized in accordance with the terms of the Credit Facility. As of December 31, 2019, there was The Company recorded interest expense from the Credit Facilities of approximately $0.7 million and $0.5 million for the three months ended March 31, 2019 and 2020 respectively, which included $0.1 million and $0.2 million, respectively, relating to debt issuance costs. Horizon Term Loan On December 31, 2018, the Company entered into a term loan agreement (the “Horizon Loan Agreement”) with Horizon Technology Finance Corporation (“Horizon”). As part of the agreement, the Company obtained a five-year $15.0 million term loan (the “Term Loan”). The Term Loan bears interest at 9.90% plus the amount by which one-month LIBOR (or, if LIBOR is no longer widely used or available, a successor benchmark rate, which successor rate shall be applied in a manner consistent with market practice, or if there is no consistent market practice, such successor rate shall be applied in a manner reasonably determined by Horizon) exceeds 2.50% for outstanding borrowings and payments on principal are made on a monthly basis. The maturity date of the Term Loan is January 2023. The Term Loan contains minimum required EBITDA financial covenants that require the Company to achieve EBITDA of certain amounts based on the amount that the Company is permitted to borrow above $25.0 million under the Credit Facility (the “Revolving Line Indebtedness Cap”). The Horizon Loan Agreement also contains a cash collateral covenant that requires the Company to maintain a cash collateral account with an amount based on the Revolving Line Indebtedness Cap. In connection with the Horizon Loan Agreement, the Company issued to Horizon warrants to purchase 76,923 shares of its common stock at an exercise price of $15.60 per share. The warrants are exercisable and expire ten years from the date of issuance. The Company utilized the Binomial option-pricing model to determine the fair value of the warrants. The fair value of the warrants on issuance was $0.9 million, which has been recorded as a debt discount against the Term Loan. The Company incurred approximately $1.0 million in debt issuance costs which has been offset against the debt and will be expensed over the term of the Term Loan, five years. The Credit Facility and the Term Loan contain a minimum liquidity covenant that requires the Company to maintain at minimum $5.0 million in unrestricted cash at all times, subject to increases based on amounts drawn. Further, there are additional covenants that, among other things, restrict the ability of the Company and certain of its subsidiaries to (i) incur, assume or guarantee additional indebtedness; (ii) pay dividends or redeem or repurchase capital stock; (iii) make other restricted payments; (iv) incur liens; (v) redeem debt that is junior in right of payment to the notes; (vi) sell or otherwise dispose of assets, including capital stock of subsidiaries; (vii) enter into mergers or consolidations; and (viii) enter into transactions with affiliates. These covenants are subject to a number of exceptions and qualifications. As of December 31, 2019, and March 31, 2020 there was $15.0 million outstanding on the Term Loan and the Company was in compliance with the financial covenants. The Company recorded interest expense from the Term Loan of $0.5 million for the three months ended March 31, 2020 and 2019, which included less than $0.1 million, relating to debt issuance costs. Interest Expense, Net Interest expense, net consisted of the following for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2019 March 31, 2020 (in thousands) Interest expense $ 1,213 $ 1,133 Interest income $ (1 ) (24 ) Total Interest expense, net $ 1,212 $ 1,109 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. The Company has three equity plans: 2014 Amended and Restated Equity Incentive Plan The board of directors of 2018 Equity Incentive Plan The Company’s board of directors adopted the Mohawk Group Holdings, Inc. 2018 Equity Incentive Plan (the “Mohawk 2018 Plan”) on October 11, 2018. The Mohawk 2018 Plan was approved by its stockholders on May 24, 2019. As of March 31, 2020, 300,432 shares subject to restricted stock awards and options to purchase 1,478,307 shares of the Company’s common stock were outstanding and 901,057 shares were reserved for awards available for future issuance under the Mohawk 2018 Plan. Options granted to date under the Mohawk 2014 Plan and the Mohawk 2018 Plan generally vest either: (i) over a four-year period with 25% of the shares underlying the options vesting on the first anniversary of the vesting commencement date with the remaining 75% of the shares vesting on a pro-rata basis over the succeeding thirty-six months, subject to continued service with the Company through each vesting date, or (ii) over a three-year period with 33 1/3% of the shares underlying the options vesting on the first anniversary of the vesting commencement date with the remaining 66 2/3% of the shares vesting on a pro-rata basis over the succeeding twenty-four months, subject to continued service with the Company through each vesting date. Options granted are generally exercisable for up to 10 years subject to continued service with the Company. 2019 Equity Plan The Company’s board of directors adopted the Mohawk Group Holdings, Inc. 2019 Equity Plan (the “2019 Equity Plan”) on March 20, 2019. The 2019 Equity Plan was approved by its stockholders on May 24, 2019. As of March 31, 2020, an aggregate of 2,098,006 shares of restricted common stock were outstanding, with no shares reserved for future issuance. Shares of restricted common stock granted under the 2019 Equity Plan initially vested in substantially equal installments on the 6th, 12th, 18th and 24th monthly anniversary of the closing of the IPO. The Company and the 2019 Equity Plan participants subsequently agreed to extend the vesting date for the first installment of shares of restricted common stock under the 2019 Equity Plan to March 13, 2020. Awards granted under the 2019 Equity Plan and not previously forfeited upon termination of service carry dividend and voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Under ASC Topic 718, the Company treats each award in substance as multiple awards as a result of the graded vesting and that there is more than one requisite service period. Upon prerequisite service period becoming probable, the day of the IPO, the Company recorded a cumulative catch up expense and the remaining expense will be recorded under graded vesting. In the event the service of a participant in the 2019 Equity Plan (each, a “Participant”) is terminated due to an “involuntary termination”, then all of such Participant’s unvested shares of restricted common stock shall vest on the date of such involuntary termination unless, within three business days of such termination, (1) the Company’s board of directors unanimously determines that such vesting shall not occur and (2) the remaining Participants holding restricted share awards covering at least 70% of the shares of restricted common stock issued and outstanding under the 2019 Equity Plan determine that such vesting shall not occur. In the event of a forfeiture, voluntary or involuntary, of shares of restricted common stock granted under the 2019 Equity Plan, such shares are automatically reallocated to the remaining Participants in proportion to the number of shares of restricted common stock covered by outstanding awards that each such Participant holds. The following is a summary of stock options activity during the three months ended March 31, 2020: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2020 1,862,569 $ 9.09 8.64 $ 99,289 Options granted — $ — Options exercised — $ — $ — Options cancelled (28,430 ) $ 8.00 — Balance—March 31, 2020 1,834,139 $ 9.11 8.51 $ — Exercisable as of March 31, 2020 911,251 $ 8.85 8.32 $ — Vested and expected to vest as of March 31, 2020 1,834,139 $ 9.11 8.51 $ — As of March 31, 2020, the total unrecognized compensation expense related to unvested options was $10.3 million, which the Company expects to recognize over an estimated weighted average period of 1.76 years. There were no stock options granted during the three months ended March 31, 2019 or 2020. A summary of restricted stock award activity within the Company’s equity plans and changes for the three months ended March 31, 2020, is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2020 2,601,972 $ 18.21 Granted 439,145 $ 3.05 Vested (328,000 ) $ 14.58 Forfeited (371,320 ) $ 19.23 Nonvested at March 31, 2020 2,341,797 $ 16.23 On March 12, 2020 371,320 shares of restricted stock were forfeited and treated as a cancellation with remaining unrecognized expense for the unvested awards recognized on the date of cancellation. The Company did not reverse previously recognized compensation expense as a result of these forfeitures. Stock-based compensation expense for restricted shares granted was $5.9 million for the three months ended March 31, 2020. For the three months ended March 31, 2020, $1.1 million shares of restricted common stock vested. The weighted-average grant date fair value of shares of restricted common stock granted during the three months ended March 31, 2020 was $3.05 As of March 31, 2020, the total unrecognized compensation expense related to unvested shares of restricted common stock was $14.7 million , which the Company expects to recognize over an estimated weighted-average period of 1. The table above includes 300,432 shares of restricted common stock carry dividend or voting rights applicable to the Company’s common stock. Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes the total stock-based compensation expense by function for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2019 2020 (in thousands) Sales and distribution expenses $ 388 $ 1,592 Research and development expenses 161 1,273 General and administrative expenses 951 4,574 Total stock-based compensation expense $ 1,500 $ 7,439 |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 8 . Basic net loss per share is determined by dividing net loss by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is determined by dividing net loss by diluted weighted-average shares outstanding. Diluted weighted-average shares reflects the dilutive effect, if any, of potentially dilutive shares of common stock, such as options to purchase common stock calculated using the treasury stock method and convertible notes using the “if-converted” method. In periods with reported net operating losses, all options to purchase common stock are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. The Company’s shares of restricted common stock are entitled to receive dividends and hold voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Accordingly, although the vesting commences upon the elimination of the contingency, the shares of restricted common stock are considered a participating security and the Company is required to apply the two-class method to consider the impact of the shares of restricted common stock on the calculation of basic and diluted earnings per share. The Company is currently in a net loss position and is therefore not required to present the two-class method; however, in the event the Company is in a net income position, the two-class method must be applied by allocating all earnings during the period to shares of common stock and shares of restricted common stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2019 2020 (in thousands) Net loss $ (8,389 ) $ (15,030 ) Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted 11,534,190 15,193,647 Net loss per share, basic and diluted $ (0.73 ) $ (0.99 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9 . Legal Proceedings —The Company is party to various actions and claims arising in the normal course of business. The Company does not believe that the final outcome of these matters will have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. In addition, the Company maintains what it believes is adequate insurance coverage to further mitigate risk. However, no assurance can be given that the final outcome of such proceedings will not materially impact the Company’s condensed consolidated financial condition or results of operations. Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. Sales or Other Similar Taxes — Based on the location of the Company’s current operations, the majority of sales tax is collected and remitted either by the Company or on its behalf by e-commerce market places in most states within the United States. To date, the Company has had no actual or threatened sales and use tax claims from any state where it does not already claim nexus or any state where it sold products prior to claiming nexus. However, the Company believes that the likelihood of incurring a liability as a result of sales tax nexus being asserted by certain states where it sold products prior to claiming nexus is probable. As of December 31, 2019 and March 31, 2020, the Company estimates that the potential liability, including current sales tax payable is approximately $0.5 and $0.3 million, respectively, which has been recorded as an accrued liability. The Company believes this is the best estimate of an amount due to taxing agencies, given that such a potential loss is an unasserted liability that would be contested and subject to negotiation between the Company and the state, or decided by a court. U.S. Department of Energy — In September 2019, the Company received a Test Notice from the U.S. Department of Energy (“DOE”) indicating that a certain dehumidifier model may not comply with applicable energy-conservation standards. The DOE requested that the Company provide it with several model units for DOE testing. If the Company is determined to have violated certain energy-conservation standard, it could be fined pursuant to DOE guidelines, and this civil penalty may be material to the Company’s consolidated financial statements. The Company intends to vigorously defend itself. The Company has submitted to the DOE testing process, made a good-faith effort to provide necessary notice as practicable, and included in a formal response to the DOE copies of the energy-efficiency report and certification that were issued for the dehumidifier model at the time of production. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the Test Notice received from the DOE. As of the date of the issuance of these financial statements, the Company cannot reasonably estimate what, if any, penalties may be levied. U.S. Environmental Protection Agency In September 2019, the Company received notice from the U.S. Environmental Protection Agency (“EPA”) that certain of its dehumidifier products were identified by the Association of Home Appliance Manufacturers (“AHAM”) as failing to comply with EPA ENERGY STAR requirements. For an appliance to be ENERGY STAR certified, it must meet standards promulgated by the EPA and enforced through EPA-accredited certification bodies and laboratories. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the AHAM testing determination pursuant to EPA guidelines. While a resolution remains pending, the Company is not selling or marketing the products identified by the EPA. The Company cannot be certain that these products will eventually be certified by the EPA, and the Company may incur costs that cannot presently be calculated in the event that the Company needs to make changes to the manner in which these products are manufactured and sold. In April 2020, the Company received notice from the EPA with respect to regulatory compliance and the advertising associated with certain of its dehumidifier products. The Company believes that its products are compliant, and the Company is currently in discussions with the EPA to resolve the matter. The EPA has placed a hold on the importation of certain of the Company's dehumidifiers while it reviews the matter with the Company. The Company cannot be certain of the outcome with the EPA, and the Company may incur costs and penalties that cannot presently be calculated in the event that the Company is unable to resolve this matter with the EPA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of March 31, 2020, the results of operations for the three months ended March 31, 2020 and 2019, the statements of stockholder’s equity for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the Company’s audited consolidated financial statements as of that date, but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 30, 2020, (the “Annual Report”). |
Use of Estimates | Use of Estimates —Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation —The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2019 (in thousands) Direct Wholesale Managed SaaS Total North America $ 17,029 $ 250 $ 533 $ 17,812 Other 34 — — 34 Total net revenue $ 17,063 $ 250 $ 533 $ 17,846 Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed SaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2019 2020 (in thousands) Environmental appliances (i.e., dehumidifiers and air conditioners) $ 6,563 $ 13,270 Small home appliances 4,230 5,635 Cosmetics, skincare, and heath supplements 3,167 3,368 Cookware, kitchen tools and gadgets 2,039 989 Hair appliances and accessories 1,074 1,041 All others 240 964 Total net product revenue 17,313 25,267 Managed SaaS 533 361 Total net revenue $ 17,846 $ 25,628 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments —The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At March 31, 2020, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The credit facility is carried at amortized cost and at December 31, 2019 and March 31, 2020 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The Company’s financial instruments of cash and restricted cash consist of Level 1 assets at December 31, 2019 and March 31, 2020. The Company’s cash and restricted cash was approximately $30.8 million and $14.5 million, respectively, and included savings deposits and overnight investments at December 31, 2019 and March 31, 2020. Assets and liabilities recorded at fair value on a recurring basis in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability 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. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Adopted Accounting Standards In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) On August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Recently Issued Accounting Pronouncements The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the JOBS Act, and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Net Revenue Disaggregated by Sales Channel and Geographic Region | Net Revenue by Category . The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Three Months Ended March 31, 2019 (in thousands) Direct Wholesale Managed SaaS Total North America $ 17,029 $ 250 $ 533 $ 17,812 Other 34 — — 34 Total net revenue $ 17,063 $ 250 $ 533 $ 17,846 Three Months Ended March 31, 2020 (in thousands) Direct Wholesale Managed SaaS Total North America $ 25,173 $ 59 $ 361 $ 25,593 Other 35 — — 35 Total net revenue $ 25,208 $ 59 $ 361 $ 25,628 |
Net Revenue Disaggregated by Product Categories | Net Revenue by Product Categories . The following table sets forth the Company’s net revenue disaggregated by product categories: Three Months Ended March 31, 2019 2020 (in thousands) Environmental appliances (i.e., dehumidifiers and air conditioners) $ 6,563 $ 13,270 Small home appliances 4,230 5,635 Cosmetics, skincare, and heath supplements 3,167 3,368 Cookware, kitchen tools and gadgets 2,039 989 Hair appliances and accessories 1,074 1,041 All others 240 964 Total net product revenue 17,313 25,267 Managed SaaS 533 361 Total net revenue $ 17,846 $ 25,628 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Inventory on-hand $ 29,370 $ 35,831 Inventory in-transit 6,842 8,425 Inventory $ 36,212 $ 44,256 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Summary of Prepaids and Other Current Assets | Prepaids and other current assets consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Prepaid inventory $ 2,195 $ 2,456 Restricted cash 307 307 Prepaid insurance 1,967 964 Other 926 1,130 Prepaid and other current assets $ 5,395 $ 4,857 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) Accrued compensation costs $ 300 $ 388 Accrual for insurance financing 1,031 66 Accrued professional fees and consultants 400 520 Accrued logistics costs 2,326 2,067 Product related accruals 1,518 1,681 Sales tax payable 507 257 Sales return reserve 456 540 Seller note from acquisition 195 195 All other accruals 772 856 Accrued and other current liabilities $ 7,505 $ 6,570 |
Credit Facility and Term Loans
Credit Facility and Term Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facility and Term Loans | Credit facility and term loans consisted of the following as of December 31, 2019 and March 31, 2020: December 31, 2019 March 31, 2020 (in thousands) MidCap credit facility $ 22,953 $ 24,975 Less: deferred debt issuance costs (1,268 ) (1,095 ) Less discount associated with issuance of warrants (28 ) (25 ) Total MidCap credit facility $ 21,657 $ 23,855 Horizon term loan $ 15,000 $ 15,000 Less: deferred debt issuance costs (836 ) (767 ) Less discount associated with issuance of warrants (697 ) (639 ) Total Horizon term loan 13,467 13,594 Less-current portion (3,000 ) (4,500 ) Term loan-non current portion $ 10,467 $ 9,094 |
Schedule of Interest Expense, Net | Interest expense, net consisted of the following for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2019 March 31, 2020 (in thousands) Interest expense $ 1,213 $ 1,133 Interest income $ (1 ) (24 ) Total Interest expense, net $ 1,212 $ 1,109 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | The following is a summary of stock options activity during the three months ended March 31, 2020: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2020 1,862,569 $ 9.09 8.64 $ 99,289 Options granted — $ — Options exercised — $ — $ — Options cancelled (28,430 ) $ 8.00 — Balance—March 31, 2020 1,834,139 $ 9.11 8.51 $ — Exercisable as of March 31, 2020 911,251 $ 8.85 8.32 $ — Vested and expected to vest as of March 31, 2020 1,834,139 $ 9.11 8.51 $ — |
Summary of Restricted Stock Award Activity | A summary of restricted stock award activity within the Company’s equity plans and changes for the three months ended March 31, 2020, is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2020 2,601,972 $ 18.21 Granted 439,145 $ 3.05 Vested (328,000 ) $ 14.58 Forfeited (371,320 ) $ 19.23 Nonvested at March 31, 2020 2,341,797 $ 16.23 |
Summary of Total Stock-based Compensation Expense by Function | The following table summarizes the total stock-based compensation expense by function for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2019 2020 (in thousands) Sales and distribution expenses $ 388 $ 1,592 Research and development expenses 161 1,273 General and administrative expenses 951 4,574 Total stock-based compensation expense $ 1,500 $ 7,439 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 2019 2020 (in thousands) Net loss $ (8,389 ) $ (15,030 ) Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted 11,534,190 15,193,647 Net loss per share, basic and diluted $ (0.73 ) $ (0.99 ) |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Organization And Description Of Business [Line Items] | ||||
Operating losses | $ (13,896) | $ (7,132) | $ (54,300) | |
Accumulated deficit | $ (144,839) | (144,839) | (129,809) | |
Cash on hand | 14,050 | 14,050 | 30,353 | |
Outstanding borrowings from lenders | $ 37,400 | 37,400 | 35,100 | |
Available capacity on borrowings | $ 0 | |||
Equity financing | $ 102,000 | |||
Key Manufacturing Partner | China | ||||
Organization And Description Of Business [Line Items] | ||||
Percentage of manufacturing capacity reached | 90.00% | |||
Expected percentage of manufacturing over company's inventory | 30.00% | |||
Maximum | ||||
Organization And Description Of Business [Line Items] | ||||
Available capacity on borrowings | $ 100 | $ 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Net Revenue Disaggregated by Sales Channel and Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | $ 25,628 | $ 17,846 |
Direct | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 25,208 | 17,063 |
Wholesale | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 59 | 250 |
Managed SaaS | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 361 | 533 |
North America | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 25,593 | 17,812 |
North America | Direct | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 25,173 | 17,029 |
North America | Wholesale | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 59 | 250 |
North America | Managed SaaS | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 361 | 533 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 35 | 34 |
Other | Direct | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | $ 35 | $ 34 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Net Revenue Disaggregated by Product Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | $ 25,628 | $ 17,846 |
Product Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 25,267 | 17,313 |
Product Revenue | Environmental Appliances (i.e., Dehumidifiers and Air Conditioners) | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 13,270 | 6,563 |
Product Revenue | Small Home Appliances | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 5,635 | 4,230 |
Product Revenue | Cosmetics, Skincare, and Health Supplements | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 3,368 | 3,167 |
Product Revenue | Cookware, Kitchen Tools and Gadgets | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 989 | 2,039 |
Product Revenue | Hair Appliances and Accessories | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 1,041 | 1,074 |
Product Revenue | All Others | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | 964 | 240 |
Managed SaaS | ||
Disaggregation Of Revenue [Line Items] | ||
Total net revenue | $ 361 | $ 533 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Level 1 | ||
Significant Accounting Policies [Line Items] | ||
Cash and restricted cash | $ 14.5 | $ 30.8 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory on-hand | $ 35,831 | $ 29,370 |
Inventory in-transit | 8,425 | 6,842 |
Inventory | $ 44,256 | $ 36,212 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory on-hand held by Amazon | $ 7 | $ 4.7 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid inventory | $ 2,456 | $ 2,195 |
Restricted cash | 307 | 307 |
Prepaid insurance | 964 | 1,967 |
Other | 1,130 | 926 |
Prepaid and other current assets | $ 4,857 | $ 5,395 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued compensation costs | $ 388 | $ 300 |
Accrual for insurance financing | 66 | 1,031 |
Accrued professional fees and consultants | 520 | 400 |
Accrued logistics costs | 2,067 | 2,326 |
Product related accruals | 1,681 | 1,518 |
Sales tax payable | 257 | 507 |
Sales return reserve | 540 | 456 |
Seller note from acquisition | 195 | 195 |
All other accruals | 856 | 772 |
Accrued and other current liabilities | $ 6,570 | $ 7,505 |
Credit Facility and Term Loan_2
Credit Facility and Term Loans - Schedule of Credit Facility and Term Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Total MidCap credit facility | $ 23,855 | $ 21,657 | ||
Less: deferred debt issuance costs | (200) | $ (100) | ||
Less-current portion | (4,500) | (3,000) | ||
Term loan-non current portion | 9,094 | 10,467 | ||
Horizon Term Loan | ||||
Debt Instrument [Line Items] | ||||
Horizon term loan | 15,000 | 15,000 | ||
Less: deferred debt issuance costs | (767) | (836) | $ (1,000) | |
Less discount associated with issuance of warrants | (639) | (697) | ||
Total Horizon term loan | 13,594 | 13,467 | ||
Less-current portion | (4,500) | (3,000) | ||
Term loan-non current portion | 9,094 | 10,467 | ||
Mid Cap Credit Facility | ||||
Debt Instrument [Line Items] | ||||
MidCap credit facility | 24,975 | 22,953 | ||
Less: deferred debt issuance costs | (1,095) | (1,268) | ||
Less discount associated with issuance of warrants | (25) | (28) | ||
Total MidCap credit facility | $ 23,855 | $ 21,657 |
Credit Facility and Term Loan_3
Credit Facility and Term Loans - Additional Information (Details) - USD ($) | Nov. 23, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Available balance of credit facility | $ 0 | ||||
Interest expense of credit facilities | $ 500,000 | $ 700,000 | |||
Deferred debt issuance costs | 200,000 | 100,000 | |||
Borrowings, outstanding | 37,400,000 | 35,100,000 | |||
Interest expense | 1,133,000 | 1,213,000 | |||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing amount | $ 15,000,000 | ||||
Debt instrument maturity month and year | 2023-01 | ||||
Borrowings, outstanding | 15,000,000 | 15,000,000 | |||
Interest expense | 500,000 | 500,000 | |||
Horizon Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt offset against and expense over the term | 5 years | ||||
Deferred debt issuance costs | 767,000 | $ 1,000,000 | 836,000 | ||
Warrants term | 10 years | ||||
Fair value on issuance | $ 900,000 | ||||
Debt discount | $ 900,000 | ||||
Horizon Term Loan | Common Stock | |||||
Debt Instrument [Line Items] | |||||
Warrants to purchase shares | 76,923 | ||||
Warrants to purchase shares, exercise price | $ 15.60 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Available balance of credit facility | 100,000 | ||||
Maximum | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 100,000 | $ 100,000 | |||
London Interbank Offered Rate ("LIBOR") | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 9.90% | ||||
Description of variable rate basis | one-month LIBOR | ||||
London Interbank Offered Rate ("LIBOR") | Minimum | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Potential additional interest | 2.50% | ||||
Mid Cap Prior Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 700,000 | ||||
Mid Cap Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing amount | $ 25,000,000 | ||||
Additional increase in borrowing amount | $ 50,000,000 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||
Line of credit facility, minimum liquidity financial covenant requirement in cash on hand | $ 5,000,000 | ||||
Debt issuance costs | $ 1,300,000 | ||||
Debt offset against and expense over the term | 3 years | ||||
Line of credit, outstanding | $ 25,000,000 | 23,000,000 | |||
Available balance of credit facility | $ 0 | ||||
Current borrowing capacity | $ 25,000,000 | ||||
Mid Cap Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Available balance of credit facility | $ 100,000 | ||||
Mid Cap Credit Facility | London Interbank Offered Rate ("LIBOR") | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 5.75% | ||||
Credit Facility and Term Loan | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility covenant minimum liquidity requirement in unrestricted cash | $ 5,000,000 |
Credit Facility and Term Loan_4
Credit Facility and Term Loans - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 1,133 | $ 1,213 |
Interest income | (24) | (1) |
Total Interest expense, net | $ 1,109 | $ 1,212 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding to purchase common stock | 1,834,139 | 1,862,569 | ||
Options exercisable period | 10 years | |||
Options granted | 0 | |||
Total unrecognized compensation expense related to unvested options | $ 10,300 | |||
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period | 1 year 9 months 3 days | |||
Share based compensation expense | $ 7,439 | $ 1,500 | ||
Share-based Compensation Award, Tranche One | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 4 years | |||
Share-based Compensation Award, Tranche One | Vesting on First Anniversary | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting percentage | 25.00% | |||
Share-based Compensation Award, Tranche One | Vesting Over Succeeding 36 Months | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 36 months | |||
Options vesting percentage | 75.00% | |||
Share-based Compensation Award, Tranche Two | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 3 years | |||
Share-based Compensation Award, Tranche Two | Vesting on First Anniversary | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting percentage | 33.33% | |||
Share-based Compensation Award, Tranche Two | Vesting Over Succeeding 24 Months | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 24 months | |||
Options vesting percentage | 66.66% | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock awards outstanding to purchase common stock | 2,341,797 | 2,601,972 | ||
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period | 1 year | |||
Shares forfeited | 371,320 | 371,320 | ||
Share based compensation expense | $ 5,900 | |||
Total fair value of shares vested | $ 1,100 | |||
Weighted Average Grant-Date Fair Value, Granted | $ 3.05 | |||
Total unrecognized compensation expense related to unvested restricted shares | $ 14,700 | |||
Shares, Granted | 439,145 | |||
Mohawk 2014 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding to purchase common stock | 369,867 | |||
Shares reserved for future issuance | 2,608 | |||
Mohawk 2018 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 901,057 | |||
Mohawk 2018 Plan | Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding to purchase common stock | 1,478,307 | |||
Mohawk 2018 Plan | Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock awards outstanding to purchase common stock | 300,432 | |||
Shares, Granted | 300,432 | |||
2019 Equity Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 0 | |||
2019 Equity Plan | Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate shares of restricted stock outstanding | 2,098,006 | |||
Percentage of restricted shares issued and outstanding | 70.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Outstanding, Number of Options, Shares, Beginning Balance | 1,862,569 | |
Options Outstanding, Number of Options, Granted, Shares | 0 | |
Options Outstanding, Number of Options, Cancelled, Shares | (28,430) | |
Options Outstanding, Number of Options, Shares, Ending Balance | 1,834,139 | 1,862,569 |
Options Outstanding, Number of Options Exercisable, Shares, as of March 31, 2020 | 911,251 | |
Options Outstanding, Number of Options, Vested and expected to vest, Shares as of March 31, 2020 | 1,834,139 | |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 9.09 | |
Options Outstanding, Weighted Average Exercise Price, Cancelled | 8 | |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | 9.11 | $ 9.09 |
Options Outstanding, Weighted Average Exercise Price, Exercisable as of March 31, 2020 | 8.85 | |
Options Outstanding, Weighted Average Exercise Price, Vested and expected to vest as of March 31, 2020 | $ 9.11 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years 6 months 3 days | 8 years 7 months 20 days |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Options Cancelled | 9 years 8 months 26 days | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Exercisable as of March 31, 2020 | 8 years 3 months 25 days | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of March 31, 2020 | 8 years 6 months 3 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 99,289 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock - $ / shares | Mar. 12, 2020 | Mar. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares, Nonvested at January 1, 2020 | 2,601,972 | |
Shares, Granted | 439,145 | |
Shares, Vested | (328,000) | |
Shares, Forfeited | (371,320) | (371,320) |
Shares, Nonvested at March 31, 2020 | 2,341,797 | |
Weighted Average Grant-Date Fair Value, Nonvested at January 1, 2020 | $ 18.21 | |
Weighted Average Grant-Date Fair Value, Granted | 3.05 | |
Weighted Average Grant-Date Fair Value, Vested | 14.58 | |
Weighted Average Grant-Date Fair Value, Forfeited | 19.23 | |
Weighted Average Grant-Date Fair Value, Nonvested at March 31, 2020 | $ 16.23 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Total Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | $ 7,439 | $ 1,500 |
Sales and Distribution Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | 1,592 | 388 |
Research and Development Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | 1,273 | 161 |
General and Administrative Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | $ 4,574 | $ 951 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (15,030) | $ (8,389) |
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted | 15,193,647 | 11,534,190 |
Net loss per share, basic and diluted | $ (0.99) | $ (0.73) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Sales tax payable current | $ 257 | $ 507 |