Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-39486 | ||
Entity Registrant Name | QUANTUM-SI INCORPORATED | ||
Entity Central Index Key | 0001816431 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-1388175 | ||
Entity Address, Address Line One | 530 Old Whitfield Street | ||
Entity Address, City or Town | Guilford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06437 | ||
City Area Code | 203 | ||
Local Phone Number | 458-7100 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.1 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 34 | ||
Class A Common Stock [Member] | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Class A common stock, $0.0001 per share | ||
Trading Symbol | QSI | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 118,728,140 | ||
Class B Common Stock [Member] | |||
Entity Listings [Line Items] | |||
Entity Common Stock, Shares Outstanding | 19,937,500 | ||
Redeemable Warrants [Member] | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | ||
Trading Symbol | QSIAW | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 35,785 | $ 36,910 |
Marketable securities | 435,519 | 0 |
Prepaid expenses and other current assets | 5,868 | 948 |
Total current assets | 477,172 | 37,858 |
Property and equipment, net | 8,908 | 1,996 |
Goodwill | 9,483 | 0 |
Other assets | 690 | 0 |
Other assets - related party | 0 | 738 |
Operating lease right-of-use assets | 6,973 | 0 |
Total assets | 503,226 | 40,592 |
Current Liabilities: | ||
Accounts payable | 3,393 | 1,329 |
Accrued expenses and other current liabilities | 7,276 | 1,425 |
Short-term operating lease liabilities | 859 | 0 |
Total current liabilities | 11,528 | 2,754 |
Long-term liabilities: | ||
Warrant liabilities | 7,239 | 0 |
Notes payable | 0 | 1,749 |
Other long-term liabilities | 206 | 0 |
Operating lease liabilities | 7,219 | 0 |
Total liabilities | 26,192 | 4,503 |
Commitments and contingencies (Note 17) | ||
Convertible preferred stock | ||
Convertible preferred stock (Series A, B, C, D, and E) $0.0001 par value with an aggregate liquidation preference of $0 and $216 as of December 31, 2021 and December 31, 2020, respectively; 0 and 92,078,549 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 0 and 90,789,268 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 0 | 195,814 |
Stockholders' equity (deficit) | ||
Additional paid-in capital | 744,252 | 12,517 |
Accumulated deficit | (267,232) | (172,243) |
Total stockholders' equity (deficit) | 477,034 | (159,725) |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) | 503,226 | 40,592 |
Class A Common Stock [Member] | ||
Stockholders' equity (deficit) | ||
Common Stock | 12 | 1 |
Class B Common Stock [Member] | ||
Stockholders' equity (deficit) | ||
Common Stock | $ 2 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Convertible preferred stock | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, aggregate liquidation preference | $ 0 | $ 216 |
Convertible preferred stock, shares authorized (in shares) | 0 | 92,078,549 |
Convertible preferred stock, shares issued (in shares) | 0 | 90,789,268 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 90,789,268 |
Class A Common Stock [Member] | ||
Stockholders' equity (deficit) | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 118,025,410 | 5,378,287 |
Common stock, shares outstanding (in shares) | 118,025,410 | 5,378,287 |
Class B Common Stock [Member] | ||
Stockholders' equity (deficit) | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 27,000,000 | 0 |
Common stock, shares issued (in shares) | 19,937,500 | 0 |
Common stock, shares outstanding (in shares) | 19,937,500 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses: | |||
Research and development | $ 46,575 | $ 27,555 | $ 28,102 |
General and administrative | 46,377 | 7,984 | 7,884 |
Sales and marketing | 3,956 | 1,152 | 634 |
Total operating expenses | 96,908 | 36,691 | 36,620 |
Loss from operations | (96,908) | (36,691) | (36,620) |
Interest expense | (5) | (9) | 0 |
Dividend income | 2,549 | 97 | 823 |
Change in fair value of warrant liabilities | 4,379 | 0 | 0 |
Other (expense) income, net | (5,004) | (10) | 5 |
Loss before provision for income taxes | (94,989) | (36,613) | (35,792) |
Provision for income taxes | 0 | 0 | 0 |
Net loss | (94,989) | (36,613) | (35,792) |
Comprehensive loss | $ (94,989) | $ (36,613) | $ (35,792) |
Net loss per common share attributable to common stockholders, basic (in dollars per share) | $ (1.19) | $ (6.84) | $ (6.95) |
Net loss per common share attributable to common stockholders, diluted (in dollars per share) | $ (1.19) | $ (6.84) | $ (6.95) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 79,578,540 | 5,355,463 | 5,146,977 |
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares) | 79,578,540 | 5,355,463 | 5,146,977 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 142,429 | ||||
Balance (in shares) at Dec. 31, 2018 | 80,810,340 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of Series E convertible preferred stock, net of issuance costs | $ 18,126 | ||||
Issuance of Series E convertible preferred stock, net of issuance costs (in shares) | 3,391,230 | ||||
Balance at Dec. 31, 2019 | $ 160,555 | ||||
Balance (in shares) at Dec. 31, 2019 | 84,201,570 | ||||
Balance at Dec. 31, 2018 | $ 1 | $ 0 | $ 7,699 | $ (99,838) | $ (92,138) |
Balance (in shares) at Dec. 31, 2018 | 5,047,283 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ 0 | $ 0 | 0 | (35,792) | (35,792) |
Issuance of series E convertible preferred stock, net of issuance costs | $ 0 | $ 0 | 0 | 0 | 0 |
Issuance of series E convertible preferred stock, net of issuance costs (in shares) | 0 | 0 | |||
Common stock issued upon exercise of stock options | $ 0 | $ 0 | 116 | 0 | 116 |
Common stock issued upon exercise of stock options (in shares) | 216,120 | 0 | |||
Stock-based compensation expense | $ 0 | $ 0 | 2,715 | 0 | 2,715 |
Balance at Dec. 31, 2019 | $ 1 | $ 0 | 10,530 | (135,630) | (125,099) |
Balance (in shares) at Dec. 31, 2019 | 5,263,403 | 0 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of Series E convertible preferred stock, net of issuance costs | $ 35,259 | ||||
Issuance of Series E convertible preferred stock, net of issuance costs (in shares) | 6,587,698 | ||||
Balance at Dec. 31, 2020 | $ 195,814 | ||||
Balance (in shares) at Dec. 31, 2020 | 90,789,268 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ 0 | 0 | (36,613) | $ (36,613) | |
Issuance of series E convertible preferred stock, net of issuance costs | $ 0 | $ 0 | 0 | 0 | 0 |
Issuance of series E convertible preferred stock, net of issuance costs (in shares) | 0 | 0 | |||
Common stock issued upon exercise of stock options | $ 0 | $ 0 | 63 | 0 | 63 |
Common stock issued upon exercise of stock options (in shares) | 114,884 | 0 | |||
Stock-based compensation expense | $ 0 | $ 0 | 1,924 | 0 | 1,924 |
Balance at Dec. 31, 2020 | $ 1 | $ 0 | 12,517 | (172,243) | (159,725) |
Balance (in shares) at Dec. 31, 2020 | 5,378,287 | 0 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of Series E convertible preferred stock, net of issuance costs | $ (4) | ||||
Issuance of Series E convertible preferred stock, net of issuance costs (in shares) | 0 | ||||
Conversion of the convertible preferred stock into Class A and B common stock | $ (195,810) | ||||
Conversion of the convertible preferred stock into Class A and B common stock (in shares) | (90,789,268) | ||||
Balance at Dec. 31, 2021 | $ 0 | ||||
Balance (in shares) at Dec. 31, 2021 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ 0 | $ 0 | 0 | (94,989) | $ (94,989) |
Issuance of series E convertible preferred stock, net of issuance costs | $ 0 | $ 0 | 0 | 0 | 0 |
Issuance of series E convertible preferred stock, net of issuance costs (in shares) | 0 | 0 | |||
Common stock issued upon exercise of stock options and vesting of restricted stock units | $ 0 | $ 0 | 5,618 | 0 | 5,618 |
Common stock issued upon exercise of stock options and vesting of restricted stock units (in shares) | 2,935,595 | 0 | |||
Conversion of the convertible preferred stock into common stock | $ 5 | $ 2 | 195,803 | 0 | 195,810 |
Conversion of the convertible preferred stock into common stock (in shares) | 52,466,941 | 19,937,500 | |||
Net equity infusion from the Business Combination | $ 6 | $ 0 | 501,164 | 0 | 501,170 |
Net equity infusion from the Business Combination (in shares) | 56,708,872 | 0 | |||
Majelac Technologies LLC Acquisition | $ 0 | $ 0 | 4,232 | 0 | 4,232 |
Majelac Technologies LLC Acquisition (in shares) | 535,715 | 0 | |||
Stock-based compensation expense | $ 0 | $ 0 | 24,918 | 0 | 24,918 |
Balance at Dec. 31, 2021 | $ 12 | $ 2 | $ 744,252 | $ (267,232) | $ 477,034 |
Balance (in shares) at Dec. 31, 2021 | 118,025,410 | 19,937,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (94,989) | $ (36,613) | $ (35,792) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,041 | 894 | 780 |
Unrealized losses of marketable securities | 5,023 | 0 | 0 |
Loss on disposal of fixed assets | 70 | 2 | 1 |
Change in fair value of warrant liabilities | (4,379) | 0 | 0 |
Change in fair value of contingent consideration | 36 | 0 | 0 |
Stock-based compensation expense | 24,918 | 1,924 | 2,715 |
Write-off of intellectual property | 0 | 0 | 500 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (4,893) | (12) | 825 |
Other assets | (690) | 0 | 0 |
Other assets - related party | 738 | 256 | (41) |
Operating lease right-of-use assets | (6,973) | 0 | 0 |
Accounts payable | 709 | 536 | (270) |
Accrued expenses and other current liabilities | 4,498 | 440 | 574 |
Short-term operating lease liabilities | 859 | 0 | 0 |
Operating lease liabilities | 7,219 | 0 | 0 |
Net cash used in operating activities | (66,813) | (32,573) | (30,708) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,763) | (461) | (1,241) |
Purchases of marketable securities | (440,542) | 0 | 0 |
Business acquisition | (4,632) | 0 | 0 |
Net cash used in investing activities | (450,937) | (461) | (1,241) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 5,618 | 63 | 116 |
Proceeds from issuance of Series E convertible preferred stock | 0 | 35,311 | 18,177 |
Net proceeds from equity infusion from the Business Combination | 512,788 | 0 | 0 |
Proceeds from issuance of notes payable | 0 | 1,749 | 0 |
Payment of notes payable | (1,749) | 0 | 0 |
Stock issuance costs for Series E convertible preferred stock | (4) | (52) | (51) |
Principal payments under finance lease obligations | (28) | (57) | (25) |
Net cash provided by financing activities | 516,625 | 37,014 | 18,217 |
Net (decrease) increase in cash and cash equivalents | (1,125) | 3,980 | (13,732) |
Cash and cash equivalents at beginning of period | 36,910 | 32,930 | 46,662 |
Cash and cash equivalents at end of period | 35,785 | 36,910 | 32,930 |
Supplemental disclosure of cash flow information: | |||
Cash received from exchange of research and development tax credits | 173 | 0 | 352 |
Supplemental disclosure of noncash information: | |||
Noncash acquisition of property and equipment | 1,385 | 30 | 260 |
Forgiveness of related party promissory notes | 150 | 20 | 50 |
Noncash equity issuance - business acquisition | 4,232 | 0 | 0 |
Noncash equity related warrants from the Business Combination | 11,618 | 0 | 0 |
Conversion of the convertible preferred stock into Class A and Class B common stock | 195,810 | 0 | 0 |
Noncash contingent consideration and holdbacks - business acquisition | $ 1,552 | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Quantum-Si Incorporated (“we”, “us”, “our”, the “Company” and “Quantum-Si”), formerly known as HighCape Capital Acquisition Corp. (“HighCape”), was incorporated as a Delaware corporation on June 10, 2020. The Company’s legal name became Quantum-Si Incorporated in connection with the closing of the Business Combination on June 10, 2021 (the “Closing”), as defined and described in Note 3 “Business Combination”. In connection with the Closing, Quantum-Si Incorporated, a Delaware corporation (“Legacy Quantum-Si”), merged with and into a wholly-owned subsidiary of HighCape, became a wholly-owned subsidiary of the Company, and changed its name to Q-SI Operations Inc. The prior period financial information represents the financial results and condition of Legacy Quantum-Si. The Company is an innovative life sciences company with the mission of transforming single molecule analysis and democratizing its use by providing researchers and clinicians access to the proteome, the set of proteins expressed within a cell. The Company has developed a proprietary universal single molecule detection platform that the Company is first applying to proteomics to enable Next Generation Protein Sequencing (“NGPS”), the ability to sequence proteins in a massively parallel fashion (rather than sequentially, one at a time), and can be used for the study of nucleic acids. The Company’s platform is comprised of the Carbon™ automated sample preparation instrument, the Platinum™ NGPS instrument, the Quantum-Si Cloud™ software service, and reagent kits and chips for use with its instruments. Although the Company has incurred recurring losses in each year since inception, the Company expects its cash and cash equivalents, and marketable securities will be able to fund its operations for at least the next twelve months. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions are eliminated. COVID-19 Outbreak The outbreak of the novel coronavirus (“COVID-19”), which was declared a pandemic by the World Health Organization on March 11, 2020 and declared a National Emergency by the President of the United States on March 13, 2020, has led to adverse impacts on the U.S. and global economies and created uncertainty regarding potential impacts on the Company’s operating results, financial condition and cash flows. The COVID-19 pandemic had, and is expected to continue to have, an adverse impact on the Company’s operations, particularly as a result of preventive and precautionary measures that the Company, other businesses, and governments are taking. Governmental mandates related to COVID-19 or other infectious diseases, or public health crises, have impacted, and the Company expects them to continue to impact, its personnel and personnel at third-party manufacturing facilities in the United States and other countries, and the availability or cost of materials, which would disrupt or delay the Company’s receipt of instruments, components and supplies from the third parties the Company relies on to, among other things, produce its products currently under development. The COVID-19 pandemic has also had an adverse effect on the Company’s ability to attract, recruit, interview and hire at the pace the Company would typically expect to support its rapidly expanding operations. To the extent that any governmental authority imposes additional regulatory requirements or changes existing laws, regulations, and policies that apply to the Company’s business and operations, such as additional workplace safety measures, the Company’s product development plans may be delayed, and the Company may incur further costs in bringing its business and operations into compliance with changing or new laws, regulations, and policies. 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 expenses and research and development costs, 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 impacts. The estimates of the impact on the Company’s business may change based on new information that may emerge concerning COVID-19 and the actions to contain it or address its impact and the economic impact on local, regional, national and international markets. While the Company is unable to predict the full impact that the COVID-19 pandemic will have on the Company’s future results of operations, liquidity and financial condition due to numerous uncertainties, including the duration of the pandemic, and the actions that may be taken by government authorities across the United States, it is not expected to result in any significant changes in costs going forward. The Company has not incurred any significant impairment losses in the carrying values of the Company’s assets as a result of the COVID-19 pandemic and is not aware of any specific related event or circumstance that would require the Company to revise its estimates reflected in its consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and marketable securities. At December 31, 2021 and 2020, substantially all of the Company’s cash and cash equivalents and marketable securities were invested in mutual funds at one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced any losses on such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents and marketable securities. Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions about future events that affect the amounts reported in its consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates and assumptions. Significant estimates and assumptions included: • valuation allowances with respect to deferred tax assets; • valuation for acquisitions; • assumptions used for leases; • valuation of warrant liabilities; and • assumptions underlying the fair value used in the calculation of the stock-based compensation. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial statements. Cash and Cash Equivalents All highly liquid investments purchased with a maturity of three months or less are cash equivalents. At December 31, 2021 and 2020, cash and cash equivalents consist principally of cash and short-term money market accounts. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include amounts paid in advance for operating expenses as well as monies to be received from the State of Connecticut for research and development tax credits. These research and development tax credits are exchanged for a cash refund and are typically collected within one year from the date the tax return is filed with the state. The credits are recognized as an offset to research and development expenses in the consolidated statements of operations and comprehensive loss in the annual period the corresponding expenses were incurred. Investments in Marketable Securities The Company’s investments in marketable securities are ownership interests in fixed income mutual funds. The securities are stated at fair value, as determined by quoted market prices. As the securities have readily determinable fair value, unrealized gains and losses are reported as other (expense), net on the consolidated statements of operations and comprehensive loss. Subsequent gains or losses realized upon redemption or sale of these securities are also recorded as other (expense) income, net on the consolidated statements of operations and comprehensive loss. The Company considers all of its investments in marketable securities as available for use in current operations and therefore classifies these securities within current assets on the consolidated balance sheets. For the year ended December 31, 2021, the Company recorded $5,023 of unrealized losses that relate to securities still held as of December 31, 2021. Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the asset’s useful life or the life of the lease term. Useful lives of property and equipment are as follows: Property and equipment Estimated useful life Laboratory and production equipment 5 years Computer equipment 3-5 years Software 3 years Furniture and fixtures 7 years Expenditures for major renewals and improvements are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Costs for property and equipment not yet placed into service have been recorded as construction in process, and will be depreciated in accordance with the above guidelines once placed into service. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation is eliminated from the balance sheet, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive loss in the period of disposal. Leases As of January 1, 2021, the Company determines if an arrangement is a lease at inception and records right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets at lease commencement. Effective December 31, 2021, the Company lost its emerging growth company status which accelerated the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). On January 1, 2021, the Company adopted ASU 2016-02. The capital lease became a finance lease by establishing the ROU asset and liability which was not material to the consolidated balance sheets as of January 1, 2021. Prior periods presented in the Company’s consolidated financial statements continue to be presented in accordance with the former lease standard, Topic 840, Leases (“ASC 840”). The Company’s leases generally do not have a readily determinable implicit discount rate, as such the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company’s incremental borrowing rate is the estimated rate that would be required to pay for a collateralized borrowing equal to the total lease payment over the lease term. The Company measures ROU assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. Finance leases will result in a front-loaded expense pattern. With respect to finance leases, amortization of the ROU asset is presented separately from interest expense related to the finance lease liability. In addition, the Company does not have significant residual value guarantees or restrictive covenants in the lease portfolio. For the years ended December 31, 2020 and 2019, leases are evaluated and classified as operating leases or capital leases for financial reporting purposes. Leases that meet one or more of the capital lease criteria under this guidance are recorded as capital leases. All other leases are recorded as operating leases. The Company records each capital lease as an asset and an obligation at an amount that is equal to the present value of the minimum lease payments over the lease term. The Company’s operating leases are short term in nature as they have month to month rental terms. The Company expenses monthly rental payments as incurred in general and administrative and in research and development in the consolidated statements of operations and comprehensive loss. The Company’s lease agreements contain variable lease costs for common area maintenance, utilities, taxes and insurance, which are expensed as incurred. The Company had a capital lease which has been recorded on the consolidated balance sheets as of December 31, 2020 and became a finance lease as of the transition date of January 1, 2021. The capital lease became a finance lease by establishing the ROU asset and liability which was not material to the consolidated balance sheets. There were no finance leases as of December 31, 2021. As a result of our adoption of the new lease standard, the Company has implemented new accounting policies and processes which changed the Company’s internal controls over financial reporting for lease accounting. See the “Accounting Pronouncements Adopted” section in this Note for further detail. Goodwill Goodwill, which represents the excess of purchase price over the fair value of net assets acquired, is carried at cost. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment by applying a fair value-based test. Beginning in 2022, the Company will review goodwill for possible impairment annually during the fourth quarter as of October 1, or whenever events or circumstances indicate that the carrying amount may not be recoverable. In order to test goodwill for impairment, an entity is permitted to first assess qualitative factors to determine whether a quantitative assessment of goodwill is necessary. The qualitative factors considered by the Company may include, but are not limited to, general economic conditions, the Company’s outlook, market performance of the Company’s industry and recent and forecasted financial performance. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. If a quantitative assessment is required, the Company determines the fair value of its reporting unit using a combination of the income and market approaches. If the net book value of the reporting unit exceeds its fair value, the Company recognizes a goodwill impairment charge for the reporting unit equal to the lesser of (i) the total goodwill allocated to that reporting unit and (ii) the amount by which that reporting unit’s carrying amount exceeds its fair value. Assumptions and estimates used in the evaluation of impairment may affect the carrying value of long-lived assets, which could result in impairment charges in future periods. Such assumptions include projections of future cash flows and the current fair value of the asset. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment at least annually or when the Company determines a triggering event has occurred. When a triggering event has occurred, each impairment test is based on a comparison of the future expected undiscounted cash flow to the recorded value of the asset. If the recorded value of the asset is less than the undiscounted cash flow, the asset is written down to its estimated fair value. No impairments were recorded for the years ended December 31, 2021, 2020 and 2019. Capitalized Software Development Costs The Company has considered costs of software to be sold, leased, or marketed. For the years ended December 31, 2021, 2020 and 2019, the Company had not yet achieved technical feasibility and therefore, all costs were expensed in research and development. With respect to costs of software developed for internal use, the Company determined that all costs for the years ended December 31, 2021, 2020 and 2019 were in the preliminary project stage and not eligible for capitalization and therefore expensed as incurred in research and development. Research and Development Research and development expenses primarily consist of personnel costs and benefits, stock-based compensation, lab supplies, consulting and professional fees, fabrication services, rent expense, software and other outsourced expenses. All of our research and development expenses are related to developing new products and services. Consulting expenses are related to general development activities, while fabrication services include certain third-party engineering costs. Research and development expenses are expensed as incurred. General and Administrative General and administrative expenses primarily consist of personnel costs and benefits, stock-based compensation, patent and filing fees, facilities costs, depreciation expense, office expenses and outside services. Outside services consist of professional services, legal and other professional fees. Sales and Marketing Sales and marketing expenses primarily consist of personnel costs and benefits, stock-based compensation as well as consulting, product advertising and marketing. Advertising costs are expensed as incurred. For the years ended December 31, 2021, 2020 and 2019, advertising expenses were $0, $87 and $15, respectively. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock of the Company outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares plus the common equivalent shares of the period, including any dilutive effect from such shares. The Company’s diluted net loss per share is the same as basic net loss per share for all periods presented, since the effect of potentially dilutive securities is anti-dilutive. Refer to Note 13, “Net Loss Per Share” for further discussion. Convertible Preferred Stock The Company applied the guidance in ASC Topic 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities Stock-Based Compensation For 2021, the Company accounts for stock-based compensation to employees, non-employee directors and non-employees granted share-based payments for services in accordance with ASU 2018-07, Compensation — Stock Compensation Prior to adoption of ASU 2018-07 on January 1, 2020, stock options granted to nonemployees were accounted for based on their fair value on the measurement date. Stock options granted to nonemployees are subject to periodic revaluation over their vesting terms. As a result, the charge to statements of operations and comprehensive loss for nonemployee options with vesting requirements is affected in each reporting period by a change in the fair value of the option calculated under the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense for stock option grants with only service conditions on a straight-line basis over the requisite service period of the individual grants, which is generally the vesting period, based on the estimated grant date fair values. The Company recognizes stock-based compensation expense for stock option grants subject to non-financing event performance conditions on an accelerated basis as though each separately vesting portion of the award was, in substance, a separate award. On January 1, 2020, the Company adopted ASU 2018-07. ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees. Under this new guidance, the existing employee guidance will now apply to nonemployee share-based transactions. This guidance was applied to all new awards granted after the date of adoption, and adoption did not have a material impact on our consolidated financial statements or related disclosures. For nonemployee awards that had been issued prior to adoption of ASU 2018-07 and remained outstanding subsequent to adoption, the Company utilized the adoption date fair value of the nonemployee awards as a substitute for grant date fair value for future compensation expense recognition as permitted under the transition guidance. The Company recognizes the effect of forfeiture in compensation costs based on actual forfeitures when they occur. The fair value of the shares of common stock underlying stock options has historically been determined by the Board of Directors (the “Board”), with input from management and contemporaneous third-party valuations, as there was no public market for the common stock. Given the absence of a public trading market for the Company’s common stock, and in accordance with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately Held Company Equity Securities Issued as Compensation In valuing the Company’s common stock for 2020 and 2019, the Board determined the value using the market approach-subject company transaction method. Under this method, the Company “solved for” the total equity value which allocates a probability-weighted present value to the Series E convertible preferred stockholders consistent with the investment amount of the financing round that was known at the respective valuation date. Application of this approach involves the use of estimates, judgment and assumptions that are highly complex and subjective, such as market multiples, the selection of comparable companies and the probability of possible future events. Changes in any or all these estimates and assumptions or the relationships among those assumptions could have a material impact on the valuation of the Company’s common stock as of each valuation date. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes, as set forth in ASC Topic 740, Income Taxes The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. As of December 31, 2021 and 2020, the Company had no uncertain tax positions. Warrant Liabilities The Company’s outstanding warrants include publicly-traded warrants (the “Public Warrants”) which were issued as one-third Derivatives and Hedging-Contracts in Entity’s Own Equity Subsequent Events The Company has evaluated subsequent events through March 1, 2022. Recently Issued Accounting Pronouncements Accounting pronouncements adopted In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, Compensation — Stock Compensation (Topic 718) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, In June 2016 the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. These standards require that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, these standards now require allowances to be recorded instead of reducing the amortized cost of the investment. These standards limit the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. For the Company, this guidance is effective December 31, 2021. The Company adopted the guidance on January 1, 2021. The Company evaluated the impact of the pronouncement, and it did not have a material impact on its consolidated financial statements. The Company will review this pronouncement again in the future when they start to generate more significant receivables. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2021 | |
HighCape [Member] | |
BUSINESS COMBINATION [Abstract] | |
BUSINESS COMBINATION | 3. BUSINESS COMBINATION On June 10, 2021, Quantum-Si Incorporated, a Delaware corporation (“Legacy Quantum-Si”), consummated the previously announced business combination (the “Business Combination”) with HighCape in which Legacy Quantum-Si merged with a wholly-owned subsidiary of HighCape (the “Merger”) and survived the Business Combination as a wholly-owned subsidiary of the Company. In connection with the Business Combination, the Company changed its name to Quantum-Si Incorporated and Legacy Quantum-Si changed its name to Q-SI Operations Inc. The Business Combination is accounted for as a reverse recapitalization in accordance with U.S. GAAP primarily due to the fact that Legacy Quantum-Si stockholders continued to control the Company following the Closing of the Business Combination. Under this method of accounting, HighCape is treated as the “acquired” company for accounting purposes and the Business Combination is treated as the equivalent of Legacy Quantum-Si issuing stock for the net assets of HighCape, accompanied by a recapitalization. The net assets of HighCape are stated at historical cost, with no goodwill or other intangible assets recorded. Reported shares and earnings per share available to holders of the Company’s capital stock and equity awards prior to the Business Combination have been retroactively restated reflecting the exchange ratio of 0.7975 (the “Exchange Ratio”) established pursuant to the Business Combination Agreement dated as of February 18, 2021 (the “Business Combination Agreement”). Pursuant to the Business Combination Agreement, at the effective time of the Merger (the “Effective Time”): • each share of Legacy Quantum-Si capital stock (other than shares of Legacy Quantum-Si Series A preferred stock) that was issued and outstanding as of immediately prior to the Effective Time was automatically cancelled and extinguished and converted into the right to receive a number of shares of the Company’s Class A common stock equal to the Exchange Ratio, rounded down to the nearest whole number of shares; • each share of Legacy Quantum-Si Series A preferred stock that was issued and outstanding as of immediately prior to the Effective Time was automatically cancelled and extinguished and converted into the right to receive a number of shares of the Company’s Class B common stock equal to the Exchange Ratio, rounded down to the nearest whole number of shares; • each option to purchase shares of Legacy Quantum-Si common stock, whether vested or unvested, that was outstanding and unexercised as of immediately prior to the Effective Time was assumed by the Company and became an option (vested or unvested, as applicable) to purchase a number of shares of the Company’s Class A common stock equal to the number of shares of Legacy Quantum-Si common stock subject to such option immediately prior to the Effective Time multiplied by the Exchange Ratio, rounded down to the nearest whole number of shares, at an exercise price per share equal to the exercise price per share of such option immediately prior to the Effective Time divided by the Exchange Ratio, rounded up to the nearest whole cent; and • each Legacy Quantum-Si restricted stock unit outstanding immediately prior to the Effective Time was assumed by the Company and became a restricted stock unit with respect to a number of shares of the Company’s Class A common stock equal to the number of shares of Legacy Quantum-Si common stock subject to such Legacy Quantum-Si restricted stock unit immediately prior to the Effective Time multiplied by the Exchange Ratio, rounded down to the nearest whole share. The Exchange Ratio was calculated based on the quotient resulting by dividing (i) the quotient of (x) $810,000 plus the excess of Legacy Quantum-Si cash over Legacy Quantum-Si debt as of immediately prior to the Effective Time plus the excess of certain HighCape expenses in connection with the Business Combination over $8,025 divided by (y) the number of issued and outstanding shares of Legacy Quantum-Si as of immediately prior to the Effective Time plus the number of issued vested Legacy Quantum-Si options at such time (where such number of vested options is calculated on net basis), by (ii) $10.00. On June 10, 2021, HighCape filed the Second Amended and Restated Certificate of Incorporation (the “Restated Certificate”) with the Secretary of State of the State of Delaware, which became effective simultaneously with the Effective Time. As a consequence of filing the Restated Certificate, the Company adopted a dual class structure, comprised of the Company’s Class A common stock, which is entitled to one vote per share, and the Company’s Class B common stock, which is entitled to 20 votes per share. The Company’s Class B common stock has the same economic terms as the Company’s Class A common stock, but is subject to a “sunset” provision if Jonathan M. Rothberg, Ph.D., the founder of Legacy Quantum-Si, Interim Chief Executive Officer and Executive Chairman of the Company (“Dr. Rothberg”), and other permitted holders of the Company’s Class B common stock collectively cease to beneficially own at least twenty percent (20%) of the number of shares of the Company’s Class B common stock (as such number of shares is equitably adjusted in respect of any reclassification, stock dividend, subdivision, combination or recapitalization of the Company’s Class B common stock) collectively held by Dr. Rothberg and permitted transferees of the Company’s Class B common stock as of the Effective Time. Concurrently with the execution of the Business Combination Agreement, HighCape entered into subscription agreements (the “PIPE Investor Subscription Agreements”) with certain institutional investors and accredited investors (the “PIPE Investors”), pursuant to which the PIPE Investors purchased, immediately prior to the Closing, an aggregate of 42,500,000 shares of HighCape Class A common stock at a purchase price of $10.00 per share (the “PIPE Financing”). In addition, concurrently with the execution of the Business Combination Agreement, HighCape entered into subscription agreements (the “Subscription Agreements”), with certain affiliates of Foresite Capital Management, LLC (the “Foresite Funds”), pursuant to which the Foresite Funds purchased immediately prior to the Closing, an aggregate of 696,250 shares of HighCape Class A common stock at a purchase price of $0.001 per share for aggregate gross proceeds of $1 after a corresponding number of shares of HighCape Class B common stock was irrevocably forfeited by HighCape’s Sponsor to HighCape for no consideration and automatically cancelled. The total number of shares of the Company’s Class A common stock outstanding immediately following the Closing was 116,463,160, comprising: • 59,754,288 shares of the Company’s Class A common stock issued to Legacy Quantum-Si stockholders (other than holders of Legacy Quantum-Si Series A preferred stock) in the Business Combination; • 42,500,000 shares of the Company’s Class A common stock issued in connection with the Closing to the PIPE Investors pursuant to the PIPE Financing; • 696,250 shares of the Company’s Class A common stock issued in connection with the Closing to the Foresite Funds pursuant to the Subscription Agreements; • 2,178,750 shares of the Company’s Class A common stock issued to the initial stockholders holding the 2,178,750 shares of HighCape Class B common stock outstanding at the Effective Time, after reflecting the irrevocable forfeiture by the Sponsor to HighCape of 696,250 shares of HighCape Class B common stock for no consideration and automatic cancellation as of immediately prior to, and subject to the consummation of, the Closing; • 405,000 shares of the Company’s Class A common stock held by the Sponsor holding shares of HighCape Class A common stock outstanding at the Effective Time, and • 10,928,872 shares of the Company’s Class A common stock held by public stockholders holding shares of HighCape Class A common stock outstanding at the Effective Time, after reflecting redemptions of 571,128 shares of HighCape Class A common stock. The total number of shares of the Company’s Class B common stock outstanding immediately following the Closing was 19,937,500 shares. As of February 15, 2022, Dr. Rothberg held 80.1% of the combined voting power of the Company. Accordingly, Dr. Rothberg and his permitted transferees control the Company and the Company is a controlled company within the meaning of the Nasdaq Listing Rules. The most significant change in the post-combination Company’s reported financial position and results was an increase in cash of $540,276 consisting of $425,001 from the PIPE investors and $115,275 from HighCape. The increase in cash was offset by transaction costs of $17,824, payment of the Paycheck Protection Program (“PPP”) loan of $1,764 including interest, payments to redeeming Company shareholders of $5,712, and payment of $3,800 to a third-party service provider, resulting in proceeds of $511,176 on the date of the Closing of the Business Combination on June 10, 2021. In addition, the post-combination balance sheet increased by the warrant liabilities of $11,618 and other insignificant assets and liabilities. Additional transaction costs were incurred prior to the Business Combination not settled on the date of Closing. Transaction costs of $7,383 including $463 recorded in stock-based compensation expense, were expensed during year ended December 31, 2021 in the consolidated statements of operations and comprehensive loss. On the date of Closing, the proceeds of $540,276 were offset against the warrant liabilities of $11,618, payments to redeeming Company shareholders of $5,712, and other liabilities and related transaction costs of $21,776, which resulted in an equity infusion from the Business Combination of $501,170 in the consolidated statements of changes in convertible preferred stock and stockholders’ equity (deficit) for the year ended December 31, 2021. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Majelac Technologies LLC [Member] | |
ACQUISITION [Abstract] | |
ACQUISITION | 4. ACQUISITION Majelac Technologies LLC Pursuant to the terms and conditions of an Asset Purchase Agreement by and among the Company, Majelac Technologies LLC (“Majelac”), and certain other parties, on November 5, 2021 (the “Closing Date”), the Company acquired certain assets and assumed certain liabilities of Majelac, a privately-owned company providing capabilities located in Pennsylvania, for $4,632 in cash including $132 in reimbursement for certain recently purchased equipment, and 535,715 shares of Class A common stock, valued at $4,232, issued to Majelac subject to certain restrictions. An additional 59,523 shares of Class A common stock will be issued to Majelac 12 months after the Closing Date less the number of shares of Class A common stock that may be required by the buyer indemnitees to satisfy any unresolved claims for indemnification, if any. Additional purchase price consideration of $500 in cash will be paid 6 months after the Closing date less any amount that may be required by the buyer indemnitees to satisfy any unresolved claims for indemnification, if any. We may pay up to an additional $800 subject to certain future milestones being met. The acquisition brings semiconductor chip assembly and packaging capabilities in-house to secure our supply chain and support scaling commercialization efforts. Prior to the acquisition, Majelac was a vendor of the Company. The following table summarizes the preliminary purchase price allocation at the acquisition date as follows: Purchase Price Allocation Prepaid expenses and other current assets $ 27 Property and equipment, net 906 Goodwill 9,483 Total $ 10,416 The above estimated fair values of consideration transferred, assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date. The Company believes that information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. Thus, the preliminary measurements of fair value set forth above maybe subject to change. The Company is in the process of finalizing the fair value adjustments. The Company expects to finalize the valuation as soon as practicable but no later than one year from the acquisition date. Goodwill represents the excess of the consideration transferred over the aggregate fair values of assets acquired and liabilities assumed. The goodwill recorded in connection with this acquisition was based on operating synergies and other benefits expected to result from the combined operations. The goodwill acquired is amortizable for tax purposes over a period of 15 years. Acquisition-related costs recognized during the year ended December 31, 2021 including transaction costs such as legal, accounting, valuation and other professional services, were $106 and are included in General and administrative on the consolidated statements of operations and comprehensive loss. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 5. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. • Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. • Level 3 - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying value of cash and cash equivalents, notes receivable, accounts payable and accrued expenses and other current liabilities approximates their fair values due to the short-term or on demand nature of these instruments. There were no transfers between fair value measurement levels during the years ended December 31, 2021 and 2020. The Company accounted for the warrants as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the consolidated balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the consolidated statements of operations and comprehensive loss. Our Public Warrants and Private Warrants were carried at fair value as of December 31, 2021. The Public Warrants were valued using Level 1 inputs as they are traded in an active market. The Private Warrants were valued using a binomial lattice model, which results in a Level 3 fair value measurement. The primary unobservable input utilized in determining the fair value of the Private Warrants was the expected volatility of the Company’s Class A common stock. The expected volatility was based on consideration of the implied volatility from the Company’s own public warrant pricing and on the historical volatility observed at guideline public companies. As of December 31, 2021, the significant assumptions used in preparing the binomial lattice model for valuing the Private Warrants liability include (i) volatility of 51.4%, (ii) risk-free interest rate of 1.18%, (iii) strike price ($11.50), (iv) fair value of common stock ($7.87), and (v) expected life of 4.4 years. Mutual funds were valued using quoted market prices and accordingly were classified as Level 1. The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: Fair Value Measurement Level Total Level 1 Level 2 Level 3 December 31, 2021 Assets: Mutual funds - Cash and cash equivalents $ 33,965 $ 33,965 $ - $ - Mutual funds - Marketable securities 435,519 435,519 - - Total assets at fair value on a recurring basis $ 469,484 $ 469,484 $ - $ - Liabilities: Public Warrants $ 6,900 $ 6,900 $ - $ - Private Warrants 339 - - 339 Total liabilities at fair value on a recurring basis $ 7,239 $ 6,900 $ - $ 339 Fair Value Measurement Level Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Mutual funds - Cash and cash equivalents $ 36,040 $ 36,040 $ - $ - Total assets at fair value on a recurring basis $ 36,040 $ 36,040 $ - $ - Liabilities: Notes payable $ 1,749 $ - $ 1,749 $ - Total liabilities at fair value on a recurring basis $ 1,749 $ - $ 1,749 $ - |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net, are recorded at historical cost and consist of the following: December 31, 2021 December 31, 2020 Laboratory and production equipment $ 7,465 $ 4,245 Computer equipment 637 765 Software 156 136 Furniture and fixtures 125 47 Leasehold improvements 790 - Construction in process 3,610 35 12,783 5,228 Less: Accumulated depreciation (3,875 ) (3,232 ) Property and equipment, net $ 8,908 $ 1,996 Depreciation expense amounted to $1,041, $894 and $780 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company had disposals of $70 relating to property and equipment of $468 with accumulated depreciation of $398 for the year ended December 31, 2021. The disposals were not material |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 31, 2021 December 31, 2020 Employee compensation $ 2,680 $ 511 Contracted services 2,606 399 Business acquisition costs and contingencies 1,331 - Legal fees 636 447 Other 23 68 Total accrued expenses and other current liabilities $ 7,276 $ 1,425 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
NOTES PAYABLE [Abstract] | |
NOTES PAYABLE | 8. NOTES PAYABLE In August 2020, the Company received loan proceeds of $1,749 under the PPP. The Company used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The Company accounted for the loan as debt. In connection with the Closing of the Business Combination as discussed in Note 3 “Business Combination”, the Company repaid the loan in full in June 2021. The Company recognized an insignificant amount of interest expense in the consolidated statements of operations and comprehensive loss related to the loan. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES [Abstract] | |
LEASES | 9. LEASES We have commitments under lease arrangements for office and manufacturing space and office equipment. Our leases have initial lease terms ranging from 1 year to 10 years. These leases include options to extend or renew the leases for an additional period of 1 to 10 years. Operating leases are accounted for on the consolidated balance sheets with ROU assets being recognized in “Operating lease right-of-use assets” and lease liabilities recognized in “Short-term operating lease liabilities” and “Operating lease liabilities”. The capital lease became a finance lease by establishing the ROU asset and liability which was not material to the consolidated balance sheets as of January 1, 2021. There were no finance leases as of December 31, 2021. Lease-related costs are included in Research and development and General and administrative in the consolidated statement of operations and comprehensive loss. Lease-related costs for the year ended December 31, 2021 are as follows: Year Ended December 31, 2021 Operating lease cost $ 630 Short-term lease cost 524 Variable lease cost 63 Total lease cost $ 1,217 Other information related to leases as of December 31, 2021 is as follows: Operating Leases Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 7.0 % The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the year ended December 31, 2021: Operating Leases Operating cash paid to settle operating lease liabilities $ 293 Right-of-use assets obtained in exchange for lease liabilities $ 7,388 Future minimum lease payments under non-cancellable leases as of December 31, 2021 are as follows: Operating Leases 2022 $ 1,373 2023 1,650 2024 1,694 2025 1,739 2026 1,754 Thereafter 1,647 Total undiscounted lease payments $ 9,857 Less: Imputed interest 1,779 Total lease liabilities $ 8,078 As of December 31, 2021, the value of our obligations under leases was $35,545, which includes a lease we entered into in December 2021 for a facility in New Haven, Connecticut which commenced in January 2022. Future minimum lease payments under this non-cancellable lease as of December 31, 2021 is $25,688. Rent expense under ASC 840 was $483 and $560 for the years ended December 31, 2020 and 2019, respectively. Lease-related costs for the three months ended March 31, 2021, June 30, 2021 and September 30, 2021 are as follows: Three Months Ended March 31, 2021 Three Months Ended June 30, 2021 Three Months Ended September 30, 2021 Operating lease cost $ - $ - $ 240 Short-term lease cost 122 127 133 Variable lease cost - - 21 Total lease cost $ 122 $ 127 $ 394 Other information related to leases as of September 30, 2021 are as follows: September 30, 2021 Operating lease right-of-use assets $ 6,443 Short-term operating lease liabilities 609 Operating lease liabilities 6,842 Weighted-average remaining lease term (years) 6.2 Weighted-average discount rate 7.0 % As of March 31, 2021 and June 30, 2021, there was no activity and thus information is not reflected in the table above. |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE PREFERRED STOCK [Abstract] | |
CONVERTIBLE PREFERRED STOCK | 10. CONVERTIBLE PREFERRED STOCK The Company had issued five series of convertible preferred stock, Series A through Series E (the “Convertible Preferred Stock”). The following table summarizes the authorized, issued and outstanding Convertible Preferred Stock of the Company immediately prior to the Business Combination and as of December 31, 2020: Class Year of Class Issuance Issuance Price per Share Shares Authorized Shares Issued and Outstanding Total Proceeds or Exchange Value Issuance Costs Net Carrying Value Initial Liquidation Price per Share Series A 2013 $ 0.04 25,000,000 25,000,000 $ 1,000 $ - $ 1,000 $ 0.80 Series B 2015 0.80 31,250,000 31,250,000 25,000 - 25,000 0.80 Series C 2015-2016 4.61 8,164,323 8,164,323 37,638 328 37,310 4.61 Series D 2017 4.71 12,738,853 12,738,853 60,000 414 59,586 4.71 Series E 2018 - 2020 5.36 14,925,373 13,636,092 73,089 171 72,918 5.36 92,078,549 90,789,268 Prior to the Closing of the Business Combination, there were no significant changes to the terms of the Convertible Preferred Stock as compared to December 31, 2020. Upon the Closing of the Business Combination, the Convertible Preferred Stock converted into Class A and Class B common stock based on the Business Combination’s Exchange Ratio of 0.7975 of the Company’s shares for each Legacy Quantum-Si share. The Company recorded the conversion at the carrying value of the Convertible Preferred Stock at the time of the Closing. There are no shares of Convertible Preferred Stock authorized or outstanding as of December 31, 2021. The powers, preferences, rights, qualifications, limitations and restrictions of the shares of Convertible Preferred Stock were as follows: Dividends Dividends were to accrue to holders of the Convertible Preferred Stock at the rate of 8% of the original issue price for the applicable series of Convertible Preferred Stock, per annum subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization, reclassification and other similar events payable only when, and if, declared by the Board. The right to receive dividends on Convertible Preferred Stock was not cumulative, and therefore, if not declared in any year, the right to such dividends was to terminate and not carry forward into the next year. There were no dividends declared on the Convertible Preferred Stock. Liquidation Rights In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary or a deemed liquidation event (which includes a merger, the sale of all of the Company’s assets, or a change of control) (each a “Liquidation Event”), the holders of the Convertible Preferred Stock were entitled to be paid out of the assets of the Company available for distribution to stockholders, pari passu, at a liquidation price per share equal to the greater of: (1) the Initial Liquidation Price of such Convertible Preferred Stock, plus any declared and unpaid dividends or (2) an amount that would have been payable had all the shares of the Convertible Preferred Stock been converted into the Common Stock. These payments were to be made to or set aside prior to the holders of shares of any other class or series of capital stock that were not, by its terms, senior to the Convertible Preferred Stock. Voting Rights The holders of shares of the Convertible Preferred Stock were entitled to vote on all matters on which the holders of shares of the Common Stock were entitled to vote. Each holder of record of shares of Series A Convertible Preferred Stock were entitled to ten votes per share of Special-Voting Common Stock into which such Series A Convertible Preferred Stock were convertible, as discussed below under Conversion, on all matters to be voted on by the Company’s stockholders. Each holder of record of shares of Series B Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock and Series E Convertible Preferred Stock were entitled to one vote per share of Common Stock into which such Series B Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock, and Series E Convertible Preferred Stock are convertible, as discussed below under Conversion, on all matters that were to be voted on by the Company’s stockholders. The holders of Convertible Preferred Stock and the holders of Common Stock were to vote together and not as separate classes. There were no series voting. Conversion Each share of Series A Convertible Preferred Stock was convertible, at the option of the holder, at any time after the date of issuance of such share, into shares of Special-Voting Common Stock on a 1 to 1 conversion rate subject to customary anti-dilution adjustments and upon the issuance of additional common shares for no consideration or consideration less than the conversion price of the Series A Convertible Preferred Stock. Each share of Series B Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock and Series E Convertible Preferred Stock were convertible, at the option of the holder, at any time after the date of issuance into shares of Common Stock on a 1 to 1 conversion rate subject to customary anti-dilution adjustments and upon the issuance of additional common shares for no consideration or consideration less than the conversion price of the respective series of Convertible Preferred Stock, which was equal to the original issuance price for each series of Convertible Preferred Stock. Upon the earlier to occur of (i) election of the Convertible Preferred Stock by (A) the consent or vote of the majority holders of the Convertible Preferred Stock (voting together as a single class and not as separate series, and on an as-converted basis) and (B) the consent or vote of the majority holders of Series C Convertible Preferred Stock, Series D Convertible Preferred Stock and Series E Convertible Preferred Stock (voting together as a single class, and on an as-converted basis) or (ii) the closing of a firm commitment underwritten initial public offering pursuant to an effective registration statement filed under the Securities Act of 1933 covering the offer and sale of shares of Common Stock in which the aggregate gross proceeds to the Corporation are at least $80,000 at a public offering price per share equal to at least three times the Series D Convertible Preferred Stock Conversion Price of $4.71 (1) each share of Series A Convertible Preferred Stock were to be automatically be converted into shares of Special-Voting Common Stock on a 1 for 1 basis, (2) each share of Series B Convertible Preferred Stock were to automatically be converted into Common Stock on a 1 for 1 basis, (3) each share of Series C Convertible Preferred Stock were to automatically be converted into Common Stock on a 1 for 1 basis, (4) each share of Series D Convertible Preferred Stock were to automatically be converted into Common Stock on a 1 for 1 basis and (5) each share of Series E Convertible Preferred Stock were to automatically be converted into Common Stock on a 1 for 1 basis. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 12 Months Ended |
Dec. 31, 2021 | |
STOCKHOLDERS' EQUITY (DEFICIT) [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | 11. STOCKHOLDERS’ EQUITY (DEFICIT) Class A Common stock As of December 31, 2021 and 2020, the Company had authorized 600,000,000 and 90,000,000 shares of Class A common stock at $0.0001 par value per share, of which a total of 118,025,410 and 5,378,287 shares were outstanding, respectively. Voting Rights Holders of Class A common stock will be entitled to cast one vote per Class A share. Generally, holders of all classes of common stock vote together as a single class, and an action is approved by stockholders if a majority of votes cast affirmatively or negatively on the action are cast in favor of the action, while directors are elected by a plurality of the votes cast. Holders of Class A common stock will not be entitled to cumulate their votes in the election of directors. Dividend Rights With limited exceptions in the case of certain stock dividends or disparate dividends approved by the affirmative vote of the holders of a majority of the Class A common stock and Class B common stock, each voting separately as a class, holders of Class A common stock will share ratably (based on the number of shares of Class A common stock held), together with each holder of Class B common stock, if and when any dividend is declared by the Board out of funds legally available therefore, subject to restrictions, whether statutory or contractual (including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock or any class or series of stock having a preference over, or the right to participate with, the Class A common stock with respect to the payment of dividends. Class B Common stock As of December 31, 2021 and 2020, the Company had authorized 27,000,000 and 0 shares of Class B common stock at $0.0001 par value per share, of which a total of 19,937,500 and 0 shares were outstanding, respectively. Voting Rights Holders of Class B common stock will be entitled to cast 20 votes per share of Class B common stock. Generally, holders of all classes of common stock vote together as a single class, and an action is approved by stockholders if a majority of votes cast affirmatively or negatively on the action are cast in favor of the action, while directors are elected by a plurality of the votes cast. Holders of Class B common stock will not be entitled to cumulate their votes in the election of directors. Dividend Rights With limited exceptions in the case of certain stock dividends or disparate dividends approved by the affirmative vote of the holders of a majority of the Class A common stock and Class B common stock, each voting separately as a class, holders of Class B common stock will share ratably (based on the number of shares of Class B common stock held), together with each holder of Class A common stock, if and when any dividend is declared by the Board out of funds legally available therefor, subject to restrictions, whether statutory or contractual (including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock or any class or series of stock having a preference over, or the right to participate with, the Class B common stock with respect to the payment of dividends. Preferred Stock As of December 31, 2021 and 2020, the Company had authorized 1,000,000 and 0 shares of preferred stock at $0.0001 par value per share, respectively, of which a total of 0 shares were outstanding for both years. Preferred stock may be issued from time to time in one or more series. Any shares of preferred stock which may be redeemed, purchased or acquired by the Company may be reissued except as otherwise provided by law. |
EQUITY INCENTIVE PLAN
EQUITY INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY INCENTIVE PLAN [Abstract] | |
EQUITY INCENTIVE PLAN | 12. EQUITY INCENTIVE PLAN The Company’s 2013 Employee, Director and Consultant Equity Incentive Plan, as amended on March 12, 2021 (the “2013 Plan”), was originally adopted by its Board of Directors and stockholders in September 2013. In connection with the Closing of the Business Combination, the Company adjusted the equity awards as described in Note 3 “Business Combination”. The adjustments to the awards did not result in incremental expense as the equitable adjustments were made pursuant to a preexisting nondiscretionary antidilution provision in the 2013 Plan, and the fair-value, vesting conditions, and classification are the same immediately before and after the modification. In connection with the Business Combination, HighCape’s stockholders approved and adopted the Quantum-Si Incorporated 2021 Equity Incentive Plan (the “2021 Plan”) and the Company will no longer make issuances under the 2013 Plan. The 2021 Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock or cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, are eligible for grants under the 2021 Plan. As of December 31, 2021, there were 11,891,127 shares available for issuance until the 2021 Plan. Stock option activity During the year ended December 31, 2021, the Company granted 3,514,510 option awards subject to service and/or performance conditions. The service condition requires the participant’s continued employment with the Company through the applicable vesting date, and the performance condition requires the consummation of a contemplated business combination defined in the option award agreement. For options with performance conditions, stock-based compensation expense is only recognized if the performance conditions become probable to be satisfied. As the performance condition is a business combination, the performance condition would only become probable once a business combination was consummated. Accordingly, the Company recorded stock-based compensation expense of $3,080 for options awards for the year ended December 31, 2021 as the Business Combination was consummated during this time period. The stock-based compensation expense for stock options for the year ended December 31, 2021 was $6,059. A summary of the stock option activity under the 2013 Plan and the 2021 Plan is presented in the table below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 7,369,541 $ 2.37 6.77 $ 4,094 Granted 3,514,510 8.89 Exercised (2,661,252 ) 2.11 Forfeited (495,827 ) 6.84 Outstanding at December 31, 2021 7,726,972 $ 5.14 7.58 $ 24,511 Options exercisable at December 31, 2021 4,023,711 2.83 6.18 $ 20,499 Vested and expected to vest at December 31, 2021 7,410,522 $ 5.03 7.51 $ 24,169 The Company received cash proceeds from the exercise of stock options of $5,618, $63 and $116 during the years ended December 31, 2021, 2020 and 2019, respectively. The total intrinsic value (the amount by which the stock price exceeds the exercise price of the option on the date of exercise) of the stock options exercised during the years ended December 31, 2021, 2020 and 2019, was $17,206, $323 and $554, respectively. The weighted-average grant date fair value of options granted during the year ended December 31, 2021, 2020 and 2019, was $5.25, $1.43 and $1.57, respectively. During the years ended December 31, 2020 and 2019, the Company granted 59,811 and 478,498 option awards subject to certain performance conditions, respectively. The performance conditions required the Company to announce at the Advances in Genome Biology and Technology conference (“AGBT”) and commence commercial sales during the year ended December 31, 2020. For options with performance conditions, stock-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Upon becoming probable, the Company recognizes compensation expense equal to the grant date fair value of the option awards over the associated service period. If there are changes in the number of option awards that are expected to vest due to changes in the probability of certain performance conditions being satisfied, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The Company accrued $295 of stock compensation expense during the year ended December 31, 2019 as it believed it was probable the performance conditions would be met. This stock compensation expense was then subsequently reversed during the year ended December 31, 2020 as the performance conditions were determined to be improbable to be met. All of the performance-based awards granted during the years ended December 31, 2020 and 2019 were cancelled on December 31, 2020. In addition to the awards discussed in the aforementioned paragraph, during the year ended December 31, 2019 the Company granted approximately 205,000 option awards subject to a single performance-based condition, the completion of a financing event as defined in the option award agreement. The achievement of the performance condition was not deemed satisfied for the years ended December 31, 2020 and 2019, as the completion of a financing event was not deemed probable until consummated. Thus, the Company did not record stock-based compensation expense with regards to these option awards. For the year ended December 31, 2021, the Company recorded stock-based compensation expense of $463 for these option awards as the Business Combination was consummated during this time period and the performance-based condition was met. In accordance with ASC Topic 718, the Company estimates and records the compensation cost associated with the grants described above with an offsetting entry to paid-in capital. The Company utilized the Black-Scholes option pricing model for determining the estimated fair value for service or performance-based stock-based awards. The Black-Scholes option pricing model requires the use of subjective assumptions which determine the fair value of stock-based awards. The assumptions used to value option grants to employees and nonemployees for the years ended December 31, 2021 and 2020 and employees for the year ended December 31, 2019 were as follows: 2021 2020 2019 Risk-free interest rate 0.9% – 1.4% 0.3% – 0.6% 1.4% – 1.9% Expected dividend yield 0% 0% 0% Expected term 5.5 years – 6.3 years 5.0 years – 6.0 years 5.0 years – 6.2 years Expected volatility 54% - 70% 70% 70% The assumptions used to value option grants to nonemployees for the year ended December 31, 2019 were as follows: 2019 Risk-free interest rate 1.4% – 1.9% Expected dividend yield 0% Expected term 4.0 years – 10.0 years Expected volatility 70% Risk-free interest rate The risk-free interest rate for periods within the expected term of the awards is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected dividend yield We have never declared or paid any cash dividends and do not expect to pay any cash dividends in the foreseeable future. Expected term For awards, we calculate the expected term using the “simplified” method, which is the simple average of the vesting period and the contractual term. Expected volatility We determined expected annual equity volatility to be 70% based on the historical volatility of guideline public companies for the years ended December 31, 2019 and 2020 and from January to June 10, 2021. After June 10, 2021, the volatility is calculated by a third-party professional services firm and reviewed by the Company. Exercise price The exercise price is taken directly from the grant notice issued to employees and nonemployees. Restricted stock unit activity During the year ended December 31, 2021, the Company granted 4,861,315 restricted stock unit (“RSU”) awards subject to service, performance and/or market conditions. The RSU awards include 1,703,460 and 170,346 RSU awards to the Company’s former Chief Executive Officer and General Counsel, respectively, subject to service and performance conditions, 1,800,000 RSU awards to the Interim Chief Executive Officer and Executive Chairman of the Company and two members of the board of directors subject to service and/or performance conditions, and 453,777 RSU awards to the Company’s former Chief Executive Officer subject to service, market and performance conditions. The service condition requires the participant’s continued employment with the Company through the applicable vesting date, and the performance condition requires the consummation of a contemplated business combination or financing transaction defined in the award agreement. The market condition requires that the Company’s Class A common stock subsequent to a business combination trades above a specified level for a defined period of time, or that a subsequent financing transaction meets defined pricing thresholds and that the Company’s common stock subsequent to a business combination trades above a specified level for a defined period of time. For RSU awards with performance conditions, stock-based compensation expense is only recognized if the performance conditions become probable to be satisfied. As the performance condition is a business combination or financing transaction, the performance condition would only become probable once a business combination or financing transaction was consummated. Accordingly, the Company recorded stock-based compensation expense of $18,587 for the year ended December 31, 2021 related to these RSU awards as the Business Combination was consummated during this time period. The stock-based compensation expense for RSU awards for the year ended December 31, 2021 was $18,859. The Company did not issue RSU awards in 2020 or 2019. A summary of the RSU activity under the 2013 Plan and the 2021 Plan is presented in the table below: Number of Shares Underlying RSUs Weighted Average Grant-Date Fair Value Outstanding non-vested RSUs at December 31, 2020 - $ - Granted 4,861,315 8.03 Vested (274,343 ) 8.53 Forfeited - - Outstanding non-vested RSUs at December 31, 2021 4,586,972 $ 8.00 The Company’s stock-based compensation expense is allocated to the following operating expense categories as follows: Years ended December 31, 2021 2020 2019 Research and development $ 5,718 $ 1,290 $ 2,163 General and administrative 18,365 324 354 Sales and marketing 835 310 198 Total stock-based compensation expense $ 24,918 $ 1,924 $ 2,715 No related tax benefits of the stock-based compensation expense have been recognized and no related tax benefits have been realized from the exercise of stock options due to the Company’s net operating loss carryforwards. Total unrecognized stock-based compensation expense as of December 31, 2021 was $34,058, which will be recognized over the remaining weighted average vesting period of 2.1 years. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
NET LOSS PER SHARE [Abstract] | |
NET LOSS PER SHARE | 13. NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock of the Company outstanding during the period. Diluted net loss per share is computed by giving effect to all common share equivalents of the Company, including outstanding Convertible Preferred Stock and stock options, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all common share equivalents would have been anti-dilutive. The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock: Years ended December 31, 2021 2020 2019 Numerator Net loss $ (94,989 ) $ (36,613 ) $ (35,792 ) Numerator for basic and diluted EPS - loss attributable to common stockholders $ (94,989 ) $ (36,613 ) $ (35,792 ) Denominator Common stock 79,578,540 5,355,463 5,146,977 Denominator for basic and diluted EPS - weighted-average common stock 79,578,540 5,355,463 5,146,977 Basic and diluted net loss per share $ (1.19 ) $ (6.84 ) $ (6.95 ) Since the Company was in a net loss position for all periods presented, the basic net loss per shares calculation excludes preferred stock as it does not participate in net losses of the Company. Additionally, net loss per share attributable to Class A and Class B common stockholders was the same on a basic and diluted basis, as the inclusion of all potential common equivalent shares outstanding would have been anti-dilutive. Anti-dilutive common equivalent shares were as follows: Years ended December 31, 2021 2020 2019 Outstanding options to purchase common stock 7,726,972 7,369,541 7,890,184 Outstanding restricted stock units 4,586,972 - - Outstanding warrants 3,968,319 - - Outstanding convertible preferred stock (Series A through E) - 90,789,268 84,201,570 16,282,263 98,158,809 92,091,754 |
WARRANT LIABILITIES
WARRANT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
WARRANT LIABILITIES [Abstract] | |
WARRANT LIABILITIES | 14. WARRANT LIABILITIES Public Warrants As of December 31, 2021, there were an aggregate of 3,833,319 outstanding Public Warrants, which entitle the holder to acquire Class A common stock. Each whole warrant entitles the registered holder to purchase one share of Class A common stock at an exercise price of $11.50 per share, subject to adjustment as discussed below, beginning on September 9, 2021. The warrants will expire on June 10, 2026 or earlier upon redemption or liquidation. Redemptions At any time while the warrants are exercisable, the Company may redeem not less than all of the outstanding Public Warrants: • in whole and not in part; • at a price of $0.01 per warrant; • upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and • if, and only if, the closing price of the Company’s common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Public Warrants at $0.01 per warrant, each holder of Public Warrants will be entitled to exercise his, her or its Public Warrants prior to the scheduled redemption date. If the Company calls the Public Warrants for redemption for $0.01 as described above, the Company’s Board of Directors may elect to require any holder that wishes to exercise his, her or its Public Warrants to do so on a “cashless basis.” If the Company’s Board of Directors makes such election, all holders of Public Warrants would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the excess of the “fair market value” over the exercise price of the warrants by (y) the “fair market value”. For purposes of the redemption provisions of the warrants, the “fair market value” means the average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of The Company evaluated the Public Warrants under ASC 815-40, in conjunction with the SEC Division of Corporation Finance’s April 12, 2021 Public Statement, Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) Private Warrants As of December 31, 2021, there were 135,000 Private Warrants outstanding. The Private Warrants are identical to the Public Warrants, except that so long as they are held by the Sponsor or any of its permitted transferees, (i) the Private Warrants and the shares of Class A common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or saleable until 30 days after the completion of the Business Combination, (ii) the Private Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and (iii) the Private Warrants are not subject to the Company’s redemption option at the price of $0.01 per warrant. The Private Warrants are subject to the Company’s redemption option at the price of $0.01 per warrant, provided that the other conditions of such redemption are met, as described above. If the Private Warrants are held by a holder other than the Sponsor or any of its permitted transferees, the Private Warrants will be redeemable by the Company in all redemption scenarios applicable to the Public Warrants and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Private Warrants under ASC 815-40, in conjunction with the SEC Statement , The fair value of warrant liabilities was $11,618 and $7,239 as of the Closing of the Business Combination and as of December 31, 2021, respectively. The Company recognized a gain of $4,379 as a change in fair value of warrant liabilities in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2021. There were no exercises or redemptions of the Public Warrants or Private Warrants during the year ended December 31, 2021. See Note 5 “Fair Value of Financial Instruments” for further detail. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The Company had no income tax expense due to federal and state net operating losses incurred for the years ended December 31, 2021, 2020, and 2019. The Company has also not recorded any income tax benefits for its federal and state net operating losses incurred in each period due to uncertainty of realizing the benefit from those items. All of the Company’s losses before income taxes were generated in the United States. The effective tax rate for the Company for the years ended December 31, 2021, 2020 and 2019 was zero percent. A reconciliation of the income tax expense at the federal statutory tax rate to the Company’s effective income tax rate follows: Years Ended December 31, 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 7.0 6.7 6.5 Federal research and development credit 2.8 3.0 2.0 Stock-based compensation expense 1.6 (0.7 ) (0.9 ) Other 0.6 (0.1 ) 0.4 Valuation allowance (33.0 ) (29.9 ) (29.0 ) Effective tax rate 0.0 % 0.0 % 0.0 % The Company’s effective tax rate for December 31, 2021, 2020 and 2019 differs from the federal statutory tax rate of 21% mainly due to the effect of deferred state income tax benefits resulting from state net operating loss carryforwards and the tax benefits related to research and development tax credits. These benefits to the effective tax rate are fully offset by the increase in the Company’s valuation allowance from the prior year. Significant components of the Company’s deferred tax assets (liabilities) are as follows: As of December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 63,819 $ 42,589 Tax credit carryforwards 10,203 7,178 Stock-based compensation expense 6,673 1,586 Operating lease liabilities 2,184 - Other 2,218 182 Total deferred tax assets $ 85,097 $ 51,535 Deferred tax liabilities Operating lease right-of-use assets $ (2,093 ) $ - Property and equipment (245 ) (161 ) Other (15 ) - Total deferred tax liabilities $ (2,353 ) $ (161 ) Net deferred tax assets $ 82,744 $ 51,374 Valuation allowance (82,744 ) (51,374 ) Net deferred tax assets (liabilities) $ - $ - The Company has established a full valuation allowance against its net deferred tax assets due to the uncertainty of the Company’s ability to generate sufficient taxable income to realize the deferred tax asset, and therefore has not recognized any benefits from the net operating losses, tax credits and other deferred tax assets. The Company’s valuation allowance was $82,744, $51,374 and $40,441 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company’s valuation allowance increased $31,370, $10,933 and $10,352 for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, the Company had the following tax net operating loss carryforwards available to reduce future federal and Connecticut taxable income, and tax credit carryforwards available to offset future federal and Connecticut income taxes: Amount Begin to Expire In Tax net operating loss carryforwards: Federal (pre-2018 NOLs) $ 65,494 2033 Federal (post-2017 NOLs) 171,615 No Expiration State 239,013 2033 Tax credit carryforwards: Federal research and development 8,211 2033 Connecticut research and development 2,477 N/A Connecticut other credits 53 2022 Under Internal Revenue Code Section 382, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change net operating loss and tax credit carryforwards to offset its post-change income and tax liabilities may be limited. Generally, an ownership change occurs when certain shareholders increase their aggregated ownership by more than 50 percentage points over their lowest ownership percentage in a testing period (typically three years). As a result of the Business Combination, as well as any other equity issuances during the year, the Company is currently performing a Section 382 analysis to determine whether an ownership change has occurred and is expected to be completed in 2022. Any limitation may result in the expiration of a portion of the federal net operating loss or research and development credit carryforwards before utilization, which would reduce the Company’s gross deferred tax assets and corresponding valuation allowance. The Company has adopted the accounting guidance within ASC Topic 740 on uncertainties in income taxes. ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2021 and 2020, the Company did not have any unrecognized tax benefits. To the extent penalties and interest would be assessed on any underpayment of income tax, the Company’s policy is that such amounts would be accrued and classified as a component of income tax expense in the consolidated financial statements. To date, the Company has not recorded any such interest or penalties. The Company files income tax returns in the U.S. Federal and various state jurisdictions. As a result of the Company’s net operating loss carryforwards, the Company’s federal and state statutes of limitations generally remain open for all tax years until its net operating loss and tax credit carryforwards are utilized or expire prior to utilization. The Company does not currently have any federal or state income tax examinations in progress. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted which included provisions related to net operating loss carryovers and carrybacks, refundable payroll tax credits, deferral of payroll taxes, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Company has evaluated the relevant provisions of the CARES Act and has not recognized any benefit related to these provisions. Therefore, no related income tax effects have been recognized in the financial statements for the years ended December 31, 2021 and 2020. Additionally, as a result of legislation in the state of Connecticut, companies have the opportunity to exchange certain research and development tax credit carryforwards for a cash payment of 65% of the research and development tax credit. The research and development expenses that qualify for Connecticut credits are limited to those costs incurred within Connecticut. The Company has elected to participate in the exchange program and, as a result, has recognized net benefits of $872, $182 and $368 for the years ended December 31, 2021, 2020 and 2019, respectively, which is included in research and development expenses in the accompanying statements of operations and comprehensive loss. As of December 31, 2021 and 2020, the Company has recorded $872 and $550 of the research and development tax credit receivables in Prepaid expenses and other current assets on the Company’s consolidated balance sheets, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS The Company utilizes and subleases office and laboratory space in a building owned by a related party. The Company paid $322, $322 and $322 under month-to-month lease arrangements for this space for the years ended December 31, 2021, 2020 and 2019, respectively. The Company utilizes and subleases other office and laboratory spaces from 4Catalyzer Corporation (“4C”), a company under common ownership under month-to-month lease arrangements. The Company paid $148, $155 and $224 for these spaces for the years ended December 31, 2021, 2020 and 2019, respectively. The Company also made payments to 4C to prefund the acquisition of certain shared capital assets, reflected in Other assets - related party on the consolidated balance sheets of $0 and $738 at December 31, 2021 and 2020, respectively. The Company was a party to an Amended and Restated Technology Services Agreement (the “ARTSA”), most recently amended on November 11, 2020, by and among 4C, the Company and other participant companies controlled by the Rothberg family. The Company entered into a First Addendum to the ARTSA on February 17, 2021 pursuant to which the Company agreed to terminate its participation under the ARTSA no later than immediately prior to the Effective Time of the Business Combination, resulting in the termination of the Company’s participation under the ARTSA on June 10, 2021. In connection with the termination of the Company’s participation under the ARTSA, the Company terminated its lease agreement with 4C and negotiated an arm’s length lease agreement. As a result, the Company wrote off Other assets – related party of $700 which was recorded in General and administrative in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2021. Under the ARTSA, the Company and the other participant companies had agreed to share certain non-core technologies, which means any technologies, information or equipment owned or otherwise controlled by the participant company that are not specifically related to the core business area of the participant and subject to certain restrictions on use. The ARTSA also provided for 4C to perform certain services for the Company and each other participant company such as monthly administrative, management and technical consulting services to the Company which were pre-funded approximately once per quarter. The Company incurred expenses of $2,009, $1,516 and $2,214 during the years ended December 31, 2021, 2020 and 2019, respectively. The amounts advanced and due from 4C at December 31, 2021 and 2020, related to operating expenses was $0 and $13, respectively, and are included in Prepaid expenses and other current assets on the consolidated balance sheets. The amounts advanced and due to 4C at December 31, 2021 and 2020, related to operating expenses was $128 and $0, respectively, and are included in Accounts payable on the consolidated balance sheets. The ARTSA also provided for the participant companies to provide other services to each other. The Company also had transactions with other entities under common ownership, which included payments made to third parties on behalf of the Company. The amounts remaining payable at December 31, 2021 and 2020 were $17 and $28, respectively, and are included in the Accounts payable on the consolidated balance sheets. In addition, the Company had transactions with these other entities under common ownership which included payments made by the Company to third parties on behalf of the other entities. The amounts remaining payable to the Company at December 31, 2021 and 2020 are in the aggregate $15 and $69, respectively, and are reflected in the Prepaid expenses and other current assets on the consolidated balance sheets. All amounts were paid or received throughout the year within 30 days after the end of each month. On September 20, 2021, the Company entered into a Binders Collaboration (the “Collaboration”) with Protein Evolution, Inc. (“PEI”) to develop technology and methods in the field of nanobodies and potentially other binders to produce novel biological reagents and related data. The Collaboration is made pursuant to and governed by the Technology and Services Exchange Agreement, effective as of June 10, 2021, by and among the Company and the participants named therein, including PEI. Dr. Rothberg serves as Chairman of the Board of Directors of PEI and the Rothberg family are controlling stockholders of PEI. The Company has not made any payments under the Collaboration for the year ended December 31, 2021. The Company had promissory notes with the President and Chief Operating Officer and other Company employees in amounts totaling $0 and $150 as of December 31, 2021 and 2020, respectively. Dr. Rothberg and the Company entered into an Executive Chairman Agreement as of June 10, 2021 (the “Executive Chairman Agreement”) in which Dr. Rothberg provides consulting services to the Company for $400 annually. In addition to the Executive Chairman Agreement, Dr. Rothberg also receives fees as the Company’s Chairman of the Board of Directors and a member of the Nominating and Corporate Governance Committee. Quantum-Si paid $139 to Dr. Rothberg for the year ended December 31, 2021 for the services that were provided to the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Commitments Licenses related to certain intellectual property: The Company licenses certain intellectual property, some of which may be utilized in its future product offering. To preserve the right to use such intellectual property, the Company is required to make annual minimum fixed payments totaling $220. Once the Company commercializes its product and begins to generate revenues, there will be royalties payable by the Company based on the current anticipated utilization. Other commitments: The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the years ended December 31, 2021, 2020 and 2019. Contingencies The Company is subject to claims in the ordinary course of business; however, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. The Company accrues for contingent liabilities to the extent that the liability is probable and estimable. The Company enters into agreements that contain indemnification provisions with other parties in the ordinary course of business, including business partners, investors, contractors, and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in any particular case. To date, losses recorded in the Company’s consolidated statements of operations and comprehensive loss in connection with the indemnification provisions have not been material. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions are eliminated. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and marketable securities. At December 31, 2021 and 2020, substantially all of the Company’s cash and cash equivalents and marketable securities were invested in mutual funds at one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced any losses on such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents and marketable securities. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions about future events that affect the amounts reported in its consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates and assumptions. Significant estimates and assumptions included: • valuation allowances with respect to deferred tax assets; • valuation for acquisitions; • assumptions used for leases; • valuation of warrant liabilities; and • assumptions underlying the fair value used in the calculation of the stock-based compensation. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments purchased with a maturity of three months or less are cash equivalents. At December 31, 2021 and 2020, cash and cash equivalents consist principally of cash and short-term money market accounts. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include amounts paid in advance for operating expenses as well as monies to be received from the State of Connecticut for research and development tax credits. These research and development tax credits are exchanged for a cash refund and are typically collected within one year from the date the tax return is filed with the state. The credits are recognized as an offset to research and development expenses in the consolidated statements of operations and comprehensive loss in the annual period the corresponding expenses were incurred. |
Investments in Marketable Securities | Investments in Marketable Securities The Company’s investments in marketable securities are ownership interests in fixed income mutual funds. The securities are stated at fair value, as determined by quoted market prices. As the securities have readily determinable fair value, unrealized gains and losses are reported as other (expense), net on the consolidated statements of operations and comprehensive loss. Subsequent gains or losses realized upon redemption or sale of these securities are also recorded as other (expense) income, net on the consolidated statements of operations and comprehensive loss. The Company considers all of its investments in marketable securities as available for use in current operations and therefore classifies these securities within current assets on the consolidated balance sheets. For the year ended December 31, 2021, the Company recorded $5,023 of unrealized losses that relate to securities still held as of December 31, 2021. |
Property and Equipment, Net | Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the asset’s useful life or the life of the lease term. Useful lives of property and equipment are as follows: Property and equipment Estimated useful life Laboratory and production equipment 5 years Computer equipment 3-5 years Software 3 years Furniture and fixtures 7 years Expenditures for major renewals and improvements are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Costs for property and equipment not yet placed into service have been recorded as construction in process, and will be depreciated in accordance with the above guidelines once placed into service. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation is eliminated from the balance sheet, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive loss in the period of disposal. |
Leases | Leases As of January 1, 2021, the Company determines if an arrangement is a lease at inception and records right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets at lease commencement. Effective December 31, 2021, the Company lost its emerging growth company status which accelerated the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). On January 1, 2021, the Company adopted ASU 2016-02. The capital lease became a finance lease by establishing the ROU asset and liability which was not material to the consolidated balance sheets as of January 1, 2021. Prior periods presented in the Company’s consolidated financial statements continue to be presented in accordance with the former lease standard, Topic 840, Leases (“ASC 840”). The Company’s leases generally do not have a readily determinable implicit discount rate, as such the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company’s incremental borrowing rate is the estimated rate that would be required to pay for a collateralized borrowing equal to the total lease payment over the lease term. The Company measures ROU assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. Finance leases will result in a front-loaded expense pattern. With respect to finance leases, amortization of the ROU asset is presented separately from interest expense related to the finance lease liability. In addition, the Company does not have significant residual value guarantees or restrictive covenants in the lease portfolio. For the years ended December 31, 2020 and 2019, leases are evaluated and classified as operating leases or capital leases for financial reporting purposes. Leases that meet one or more of the capital lease criteria under this guidance are recorded as capital leases. All other leases are recorded as operating leases. The Company records each capital lease as an asset and an obligation at an amount that is equal to the present value of the minimum lease payments over the lease term. The Company’s operating leases are short term in nature as they have month to month rental terms. The Company expenses monthly rental payments as incurred in general and administrative and in research and development in the consolidated statements of operations and comprehensive loss. The Company’s lease agreements contain variable lease costs for common area maintenance, utilities, taxes and insurance, which are expensed as incurred. The Company had a capital lease which has been recorded on the consolidated balance sheets as of December 31, 2020 and became a finance lease as of the transition date of January 1, 2021. The capital lease became a finance lease by establishing the ROU asset and liability which was not material to the consolidated balance sheets. There were no finance leases as of December 31, 2021. As a result of our adoption of the new lease standard, the Company has implemented new accounting policies and processes which changed the Company’s internal controls over financial reporting for lease accounting. See the “Accounting Pronouncements Adopted” section in this Note for further detail. |
Goodwill | Goodwill Goodwill, which represents the excess of purchase price over the fair value of net assets acquired, is carried at cost. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment by applying a fair value-based test. Beginning in 2022, the Company will review goodwill for possible impairment annually during the fourth quarter as of October 1, or whenever events or circumstances indicate that the carrying amount may not be recoverable. In order to test goodwill for impairment, an entity is permitted to first assess qualitative factors to determine whether a quantitative assessment of goodwill is necessary. The qualitative factors considered by the Company may include, but are not limited to, general economic conditions, the Company’s outlook, market performance of the Company’s industry and recent and forecasted financial performance. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. If a quantitative assessment is required, the Company determines the fair value of its reporting unit using a combination of the income and market approaches. If the net book value of the reporting unit exceeds its fair value, the Company recognizes a goodwill impairment charge for the reporting unit equal to the lesser of (i) the total goodwill allocated to that reporting unit and (ii) the amount by which that reporting unit’s carrying amount exceeds its fair value. Assumptions and estimates used in the evaluation of impairment may affect the carrying value of long-lived assets, which could result in impairment charges in future periods. Such assumptions include projections of future cash flows and the current fair value of the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment at least annually or when the Company determines a triggering event has occurred. When a triggering event has occurred, each impairment test is based on a comparison of the future expected undiscounted cash flow to the recorded value of the asset. If the recorded value of the asset is less than the undiscounted cash flow, the asset is written down to its estimated fair value. No impairments were recorded for the years ended December 31, 2021, 2020 and 2019. |
Capitalized Software Development Costs | Capitalized Software Development Costs The Company has considered costs of software to be sold, leased, or marketed. For the years ended December 31, 2021, 2020 and 2019, the Company had not yet achieved technical feasibility and therefore, all costs were expensed in research and development. With respect to costs of software developed for internal use, the Company determined that all costs for the years ended December 31, 2021, 2020 and 2019 were in the preliminary project stage and not eligible for capitalization and therefore expensed as incurred in research and development. |
Research and Development | Research and Development Research and development expenses primarily consist of personnel costs and benefits, stock-based compensation, lab supplies, consulting and professional fees, fabrication services, rent expense, software and other outsourced expenses. All of our research and development expenses are related to developing new products and services. Consulting expenses are related to general development activities, while fabrication services include certain third-party engineering costs. Research and development expenses are expensed as incurred. |
General, Administrative, Sales and Marketing | General and Administrative General and administrative expenses primarily consist of personnel costs and benefits, stock-based compensation, patent and filing fees, facilities costs, depreciation expense, office expenses and outside services. Outside services consist of professional services, legal and other professional fees. Sales and Marketing Sales and marketing expenses primarily consist of personnel costs and benefits, stock-based compensation as well as consulting, product advertising and marketing. Advertising costs are expensed as incurred. For the years ended December 31, 2021, 2020 and 2019, advertising expenses were $0, $87 and $15, respectively. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock of the Company outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares plus the common equivalent shares of the period, including any dilutive effect from such shares. The Company’s diluted net loss per share is the same as basic net loss per share for all periods presented, since the effect of potentially dilutive securities is anti-dilutive. Refer to Note 13, “Net Loss Per Share” for further discussion. |
Convertible Preferred Stock | Convertible Preferred Stock The Company applied the guidance in ASC Topic 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities |
Stock-Based Compensation | Stock-Based Compensation For 2021, the Company accounts for stock-based compensation to employees, non-employee directors and non-employees granted share-based payments for services in accordance with ASU 2018-07, Compensation — Stock Compensation Prior to adoption of ASU 2018-07 on January 1, 2020, stock options granted to nonemployees were accounted for based on their fair value on the measurement date. Stock options granted to nonemployees are subject to periodic revaluation over their vesting terms. As a result, the charge to statements of operations and comprehensive loss for nonemployee options with vesting requirements is affected in each reporting period by a change in the fair value of the option calculated under the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense for stock option grants with only service conditions on a straight-line basis over the requisite service period of the individual grants, which is generally the vesting period, based on the estimated grant date fair values. The Company recognizes stock-based compensation expense for stock option grants subject to non-financing event performance conditions on an accelerated basis as though each separately vesting portion of the award was, in substance, a separate award. On January 1, 2020, the Company adopted ASU 2018-07. ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees. Under this new guidance, the existing employee guidance will now apply to nonemployee share-based transactions. This guidance was applied to all new awards granted after the date of adoption, and adoption did not have a material impact on our consolidated financial statements or related disclosures. For nonemployee awards that had been issued prior to adoption of ASU 2018-07 and remained outstanding subsequent to adoption, the Company utilized the adoption date fair value of the nonemployee awards as a substitute for grant date fair value for future compensation expense recognition as permitted under the transition guidance. The Company recognizes the effect of forfeiture in compensation costs based on actual forfeitures when they occur. The fair value of the shares of common stock underlying stock options has historically been determined by the Board of Directors (the “Board”), with input from management and contemporaneous third-party valuations, as there was no public market for the common stock. Given the absence of a public trading market for the Company’s common stock, and in accordance with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately Held Company Equity Securities Issued as Compensation In valuing the Company’s common stock for 2020 and 2019, the Board determined the value using the market approach-subject company transaction method. Under this method, the Company “solved for” the total equity value which allocates a probability-weighted present value to the Series E convertible preferred stockholders consistent with the investment amount of the financing round that was known at the respective valuation date. Application of this approach involves the use of estimates, judgment and assumptions that are highly complex and subjective, such as market multiples, the selection of comparable companies and the probability of possible future events. Changes in any or all these estimates and assumptions or the relationships among those assumptions could have a material impact on the valuation of the Company’s common stock as of each valuation date. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes, as set forth in ASC Topic 740, Income Taxes The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. As of December 31, 2021 and 2020, the Company had no uncertain tax positions. |
Warrant Liabilities | Warrant Liabilities The Company’s outstanding warrants include publicly-traded warrants (the “Public Warrants”) which were issued as one-third Derivatives and Hedging-Contracts in Entity’s Own Equity |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through March 1, 2022. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting pronouncements adopted In June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-07, Compensation — Stock Compensation (Topic 718) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, In June 2016 the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. These standards require that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, these standards now require allowances to be recorded instead of reducing the amortized cost of the investment. These standards limit the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. For the Company, this guidance is effective December 31, 2021. The Company adopted the guidance on January 1, 2021. The Company evaluated the impact of the pronouncement, and it did not have a material impact on its consolidated financial statements. The Company will review this pronouncement again in the future when they start to generate more significant receivables. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Useful Lives of Property and Equipment | Useful lives of property and equipment are as follows: Property and equipment Estimated useful life Laboratory and production equipment 5 years Computer equipment 3-5 years Software 3 years Furniture and fixtures 7 years |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATION/ACQUISITION [Abstract] | |
Purchase Price Allocation for Majelac Technologies LLC | The following table summarizes the preliminary purchase price allocation at the acquisition date as follows: Purchase Price Allocation Prepaid expenses and other current assets $ 27 Property and equipment, net 906 Goodwill 9,483 Total $ 10,416 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: Fair Value Measurement Level Total Level 1 Level 2 Level 3 December 31, 2021 Assets: Mutual funds - Cash and cash equivalents $ 33,965 $ 33,965 $ - $ - Mutual funds - Marketable securities 435,519 435,519 - - Total assets at fair value on a recurring basis $ 469,484 $ 469,484 $ - $ - Liabilities: Public Warrants $ 6,900 $ 6,900 $ - $ - Private Warrants 339 - - 339 Total liabilities at fair value on a recurring basis $ 7,239 $ 6,900 $ - $ 339 Fair Value Measurement Level Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Mutual funds - Cash and cash equivalents $ 36,040 $ 36,040 $ - $ - Total assets at fair value on a recurring basis $ 36,040 $ 36,040 $ - $ - Liabilities: Notes payable $ 1,749 $ - $ 1,749 $ - Total liabilities at fair value on a recurring basis $ 1,749 $ - $ 1,749 $ - |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Property and Equipment, Net | Property and equipment, net, are recorded at historical cost and consist of the following: December 31, 2021 December 31, 2020 Laboratory and production equipment $ 7,465 $ 4,245 Computer equipment 637 765 Software 156 136 Furniture and fixtures 125 47 Leasehold improvements 790 - Construction in process 3,610 35 12,783 5,228 Less: Accumulated depreciation (3,875 ) (3,232 ) Property and equipment, net $ 8,908 $ 1,996 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: December 31, 2021 December 31, 2020 Employee compensation $ 2,680 $ 511 Contracted services 2,606 399 Business acquisition costs and contingencies 1,331 - Legal fees 636 447 Other 23 68 Total accrued expenses and other current liabilities $ 7,276 $ 1,425 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES [Abstract] | |
Lease-Related Costs | Lease-related costs for the year ended December 31, 2021 are as follows: Year Ended December 31, 2021 Operating lease cost $ 630 Short-term lease cost 524 Variable lease cost 63 Total lease cost $ 1,217 Lease-related costs for the three months ended March 31, 2021, June 30, 2021 and September 30, 2021 are as follows: Three Months Ended March 31, 2021 Three Months Ended June 30, 2021 Three Months Ended September 30, 2021 Operating lease cost $ - $ - $ 240 Short-term lease cost 122 127 133 Variable lease cost - - 21 Total lease cost $ 122 $ 127 $ 394 |
Other Information Related to Leases | Other information related to leases as of December 31, 2021 is as follows: Operating Leases Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 7.0 % The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the year ended December 31, 2021: Operating Leases Operating cash paid to settle operating lease liabilities $ 293 Right-of-use assets obtained in exchange for lease liabilities $ 7,388 Other information related to leases as of September 30, 2021 are as follows: September 30, 2021 Operating lease right-of-use assets $ 6,443 Short-term operating lease liabilities 609 Operating lease liabilities 6,842 Weighted-average remaining lease term (years) 6.2 Weighted-average discount rate 7.0 % |
Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2021 are as follows: Operating Leases 2022 $ 1,373 2023 1,650 2024 1,694 2025 1,739 2026 1,754 Thereafter 1,647 Total undiscounted lease payments $ 9,857 Less: Imputed interest 1,779 Total lease liabilities $ 8,078 |
CONVERTIBLE PREFERRED STOCK (Ta
CONVERTIBLE PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE PREFERRED STOCK [Abstract] | |
Convertible Preferred Stock | The following table summarizes the authorized, issued and outstanding Convertible Preferred Stock of the Company immediately prior to the Business Combination and as of December 31, 2020: Class Year of Class Issuance Issuance Price per Share Shares Authorized Shares Issued and Outstanding Total Proceeds or Exchange Value Issuance Costs Net Carrying Value Initial Liquidation Price per Share Series A 2013 $ 0.04 25,000,000 25,000,000 $ 1,000 $ - $ 1,000 $ 0.80 Series B 2015 0.80 31,250,000 31,250,000 25,000 - 25,000 0.80 Series C 2015-2016 4.61 8,164,323 8,164,323 37,638 328 37,310 4.61 Series D 2017 4.71 12,738,853 12,738,853 60,000 414 59,586 4.71 Series E 2018 - 2020 5.36 14,925,373 13,636,092 73,089 171 72,918 5.36 92,078,549 90,789,268 |
EQUITY INCENTIVE PLAN (Tables)
EQUITY INCENTIVE PLAN (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY INCENTIVE PLAN [Abstract] | |
Stock Option Activity | A summary of the stock option activity under the 2013 Plan and the 2021 Plan is presented in the table below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 7,369,541 $ 2.37 6.77 $ 4,094 Granted 3,514,510 8.89 Exercised (2,661,252 ) 2.11 Forfeited (495,827 ) 6.84 Outstanding at December 31, 2021 7,726,972 $ 5.14 7.58 $ 24,511 Options exercisable at December 31, 2021 4,023,711 2.83 6.18 $ 20,499 Vested and expected to vest at December 31, 2021 7,410,522 $ 5.03 7.51 $ 24,169 |
Assumptions Used to Value Option Grants | The assumptions used to value option grants to employees and nonemployees for the years ended December 31, 2021 and 2020 and employees for the year ended December 31, 2019 were as follows: 2021 2020 2019 Risk-free interest rate 0.9% – 1.4% 0.3% – 0.6% 1.4% – 1.9% Expected dividend yield 0% 0% 0% Expected term 5.5 years – 6.3 years 5.0 years – 6.0 years 5.0 years – 6.2 years Expected volatility 54% - 70% 70% 70% The assumptions used to value option grants to nonemployees for the year ended December 31, 2019 were as follows: 2019 Risk-free interest rate 1.4% – 1.9% Expected dividend yield 0% Expected term 4.0 years – 10.0 years Expected volatility 70% |
Restricted Stock Activity | A summary of the RSU activity under the 2013 Plan and the 2021 Plan is presented in the table below: Number of Shares Underlying RSUs Weighted Average Grant-Date Fair Value Outstanding non-vested RSUs at December 31, 2020 - $ - Granted 4,861,315 8.03 Vested (274,343 ) 8.53 Forfeited - - Outstanding non-vested RSUs at December 31, 2021 4,586,972 $ 8.00 |
Stock-Based Compensation Expense | The Company’s stock-based compensation expense is allocated to the following operating expense categories as follows: Years ended December 31, 2021 2020 2019 Research and development $ 5,718 $ 1,290 $ 2,163 General and administrative 18,365 324 354 Sales and marketing 835 310 198 Total stock-based compensation expense $ 24,918 $ 1,924 $ 2,715 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NET LOSS PER SHARE [Abstract] | |
Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share for the Company’s common stock: Years ended December 31, 2021 2020 2019 Numerator Net loss $ (94,989 ) $ (36,613 ) $ (35,792 ) Numerator for basic and diluted EPS - loss attributable to common stockholders $ (94,989 ) $ (36,613 ) $ (35,792 ) Denominator Common stock 79,578,540 5,355,463 5,146,977 Denominator for basic and diluted EPS - weighted-average common stock 79,578,540 5,355,463 5,146,977 Basic and diluted net loss per share $ (1.19 ) $ (6.84 ) $ (6.95 ) |
Anti-Dilutive Common Equivalent Shares | Anti-dilutive common equivalent shares were as follows: Years ended December 31, 2021 2020 2019 Outstanding options to purchase common stock 7,726,972 7,369,541 7,890,184 Outstanding restricted stock units 4,586,972 - - Outstanding warrants 3,968,319 - - Outstanding convertible preferred stock (Series A through E) - 90,789,268 84,201,570 16,282,263 98,158,809 92,091,754 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [Abstract] | |
Statutory to Effective Income Tax Rate Reconciliation | A reconciliation of the income tax expense at the federal statutory tax rate to the Company’s effective income tax rate follows: Years Ended December 31, 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 7.0 6.7 6.5 Federal research and development credit 2.8 3.0 2.0 Stock-based compensation expense 1.6 (0.7 ) (0.9 ) Other 0.6 (0.1 ) 0.4 Valuation allowance (33.0 ) (29.9 ) (29.0 ) Effective tax rate 0.0 % 0.0 % 0.0 % |
Deferred Tax Assets (Liabilities) | Significant components of the Company’s deferred tax assets (liabilities) are as follows: As of December 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 63,819 $ 42,589 Tax credit carryforwards 10,203 7,178 Stock-based compensation expense 6,673 1,586 Operating lease liabilities 2,184 - Other 2,218 182 Total deferred tax assets $ 85,097 $ 51,535 Deferred tax liabilities Operating lease right-of-use assets $ (2,093 ) $ - Property and equipment (245 ) (161 ) Other (15 ) - Total deferred tax liabilities $ (2,353 ) $ (161 ) Net deferred tax assets $ 82,744 $ 51,374 Valuation allowance (82,744 ) (51,374 ) Net deferred tax assets (liabilities) $ - $ - |
Tax Net Operating Loss Carryforwards | As of December 31, 2021, the Company had the following tax net operating loss carryforwards available to reduce future federal and Connecticut taxable income, and tax credit carryforwards available to offset future federal and Connecticut income taxes: Amount Begin to Expire In Tax net operating loss carryforwards: Federal (pre-2018 NOLs) $ 65,494 2033 Federal (post-2017 NOLs) 171,615 No Expiration State 239,013 2033 |
Tax Credit Carryforwards | Tax credit carryforwards: Federal research and development 8,211 2033 Connecticut research and development 2,477 N/A Connecticut other credits 53 2022 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Investments in Marketable Securities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investments in Marketable Securities [Abstract] | |
Unrealized losses on marketable securities | $ (5,023) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Laboratory and Production Equipment [Member] | |
Property and Equipment, Net [Abstract] | |
Estimated useful life | 5 years |
Computer Equipment [Member] | Minimum [Member] | |
Property and Equipment, Net [Abstract] | |
Estimated useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property and Equipment, Net [Abstract] | |
Estimated useful life | 5 years |
Software [Member] | |
Property and Equipment, Net [Abstract] | |
Estimated useful life | 3 years |
Furniture and Fixtures [Member] | |
Property and Equipment, Net [Abstract] | |
Estimated useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Finance leases | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment of Long-Lived Assets [Abstract] | |||
Impairments | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Sales and Marketing (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales and Marketing [Abstract] | |||
Advertising expense | $ 0 | $ 87 | $ 15 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Stock-Based Compensation (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Vesting period | 4 years |
Term | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes [Abstract] | ||
Uncertain tax positions | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Warrant Liabilities (Details) | Sep. 09, 2020shares |
Warrant Liabilities [Abstract] | |
Number of warrants issued per unit issued during IPO (in shares) | 0.33 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) | Jun. 10, 2021USD ($)$ / sharesshares | Jun. 09, 2021shares | Dec. 31, 2021USD ($)Vote | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 15, 2022 | Feb. 18, 2021USD ($) |
Business Combination [Abstract] | |||||||
Increase in cash | $ 540,276,000 | ||||||
Warrant liabilities | 11,618,000 | $ 7,239,000 | $ 0 | ||||
Stock-based compensation expense | 24,918,000 | $ 1,924,000 | $ 2,715,000 | ||||
Net equity infusion from the Business Combination | $ 501,170,000 | ||||||
PIPE Investors [Member] | |||||||
Business Combination [Abstract] | |||||||
Increase in cash | 425,001,000 | ||||||
Sponsor [Member] | Subsequent Event [Member] | |||||||
Business Combination [Abstract] | |||||||
Percentage of combined voting power held by Sponsor | 80.10% | ||||||
Class A Common Stock [Member] | |||||||
Business Combination [Abstract] | |||||||
Exchange Ratio | 0.7975 | ||||||
Class B Common Stock [Member] | |||||||
Business Combination [Abstract] | |||||||
Exchange Ratio | 0.7975 | ||||||
HighCape [Member] | |||||||
Business Combination [Abstract] | |||||||
Exchange Ratio | 0.7975 | ||||||
Base amount included in numerator of Exchange Ratio calculation | $ 810,000,000 | ||||||
Expense threshold included in numerator of Exchange Ratio calculation | 8,025,000 | ||||||
Denominator included in Exchange Ratio calculation | $ 10 | ||||||
Increase in cash | 115,275,000 | ||||||
Transaction costs | 17,824,000 | ||||||
Payment of PPP loan, including interest | 1,764,000 | ||||||
Payments to redeeming shareholders | 5,712,000 | ||||||
Payment to third party service provider | 3,800,000 | ||||||
Proceeds on date of Business Combination, excluding warrant liabilities and other insignificant assets and liabilities | 511,176,000 | ||||||
Warrant liabilities | 11,618,000 | ||||||
Transaction costs expensed | $ 7,383,000 | ||||||
Stock-based compensation expense | 463,000 | ||||||
Other liabilities and related transaction costs | $ 21,776,000 | ||||||
Net equity infusion from the Business Combination | $ 501,170,000 | ||||||
HighCape [Member] | Foresite Funds [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 696,250 | ||||||
HighCape [Member] | Initial Stockholders [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 2,178,750 | ||||||
HighCape [Member] | Class A Common Stock [Member] | |||||||
Business Combination [Abstract] | |||||||
Votes per share | Vote | 1 | ||||||
Shares outstanding (in shares) | shares | 116,463,160 | ||||||
HighCape [Member] | Class A Common Stock [Member] | Legacy Quantum-Si Stockholders [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 59,754,288 | ||||||
HighCape [Member] | Class A Common Stock [Member] | PIPE Investors [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares issued (in shares) | shares | 42,500,000 | ||||||
Share price (in dollars per share) | $ / shares | $ 10 | ||||||
Shares outstanding (in shares) | shares | 42,500,000 | ||||||
HighCape [Member] | Class A Common Stock [Member] | Foresite Funds [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares issued (in shares) | shares | 696,250 | ||||||
Share price (in dollars per share) | $ / shares | $ 0.001 | ||||||
Aggregate gross proceeds | $ 1,000 | ||||||
Shares outstanding (in shares) | shares | 696,250 | ||||||
HighCape [Member] | Class A Common Stock [Member] | Initial Stockholders [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 2,178,750 | ||||||
HighCape [Member] | Class A Common Stock [Member] | Sponsor [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 405,000 | ||||||
HighCape [Member] | Class A Common Stock [Member] | Public Stockholders [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares outstanding (in shares) | shares | 10,928,872 | ||||||
Shares redeemed (in shares) | shares | 571,128 | ||||||
HighCape [Member] | Class B Common Stock [Member] | |||||||
Business Combination [Abstract] | |||||||
Votes per share | Vote | 20 | ||||||
Shares outstanding (in shares) | shares | 19,937,500 | ||||||
HighCape [Member] | Class B Common Stock [Member] | Minimum [Member] | |||||||
Business Combination [Abstract] | |||||||
Percentage of total shares that must be beneficially owned included in sunset provision | 20.00% | ||||||
HighCape [Member] | Class B Common Stock [Member] | Sponsor [Member] | |||||||
Business Combination [Abstract] | |||||||
Shares forfeited (in shares) | shares | 696,250 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | Nov. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 09, 2021 |
Acquisitions [Abstract] | |||||
Cash paid for acquisition | $ 4,632 | $ 0 | $ 0 | ||
Purchase Price Allocation [Abstract] | |||||
Goodwill | $ 9,483 | $ 0 | |||
Majelac [Member] | |||||
Acquisitions [Abstract] | |||||
Cash paid for acquisition | $ 4,632 | ||||
Reimbursement for certain recently purchased equipment | $ 132 | ||||
Shares issued (in shares) | 535,715 | ||||
Shares issued | $ 4,232 | ||||
Additional shares to be issued to satisfy unresolved claims for indemnification (in shares) | 59,523 | ||||
Additional shares to be issued to satisfy unresolved claims for indemnification | $ 471 | ||||
Period to issue additional shares after Closing Date | 12 months | ||||
Legal fees assumed | $ 50 | ||||
Cash held back | 500 | ||||
Period to hold cash back | 6 months | ||||
Additional payment subject to certain future milestones being met | 800 | ||||
Fair value of additional payment subject to certain future milestones being met | 531 | ||||
Purchase Price Allocation [Abstract] | |||||
Prepaid expenses and other current assets | 27 | ||||
Property and equipment, net | 906 | ||||
Goodwill | 9,483 | ||||
Total | $ 10,416 | ||||
Amortization period for goodwill for tax purposes | 15 years | ||||
Acquisition-related costs | $ 106 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | |
Fair Value Asset Transfers [Abstract] | ||
Transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value Liability Transfers [Abstract] | ||
Transfers from Level 1 to Level 2 | 0 | 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Recurring [Member] | ||
Assets [Abstract] | ||
Mutual funds - Cash and cash equivalents | 33,965 | 36,040 |
Mutual funds - Marketable securities | 435,519 | |
Total assets | 469,484 | 36,040 |
Liabilities [Abstract] | ||
Notes payable | 1,749 | |
Total liabilities | 7,239 | 1,749 |
Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Mutual funds - Cash and cash equivalents | 33,965 | 36,040 |
Mutual funds - Marketable securities | 435,519 | |
Total assets | 469,484 | 36,040 |
Liabilities [Abstract] | ||
Notes payable | 0 | |
Total liabilities | 6,900 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Mutual funds - Cash and cash equivalents | 0 | 0 |
Mutual funds - Marketable securities | 0 | |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Notes payable | 1,749 | |
Total liabilities | 0 | 1,749 |
Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Mutual funds - Cash and cash equivalents | 0 | 0 |
Mutual funds - Marketable securities | 0 | |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Notes payable | 0 | |
Total liabilities | 339 | $ 0 |
Recurring [Member] | Private Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants | 339 | |
Recurring [Member] | Private Warrants [Member] | Level 1 [Member] | ||
Liabilities [Abstract] | ||
Warrants | 0 | |
Recurring [Member] | Private Warrants [Member] | Level 2 [Member] | ||
Liabilities [Abstract] | ||
Warrants | 0 | |
Recurring [Member] | Private Warrants [Member] | Level 3 [Member] | ||
Liabilities [Abstract] | ||
Warrants | 339 | |
Recurring [Member] | Public Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants | 6,900 | |
Recurring [Member] | Public Warrants [Member] | Level 1 [Member] | ||
Liabilities [Abstract] | ||
Warrants | 6,900 | |
Recurring [Member] | Public Warrants [Member] | Level 2 [Member] | ||
Liabilities [Abstract] | ||
Warrants | 0 | |
Recurring [Member] | Public Warrants [Member] | Level 3 [Member] | ||
Liabilities [Abstract] | ||
Warrants | $ 0 | |
Warrants [Member] | Private Warrants [Member] | Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.514 | |
Warrants [Member] | Private Warrants [Member] | Risk-Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.0118 | |
Warrants [Member] | Private Warrants [Member] | Strike Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | $ / shares | 11.50 | |
Warrants [Member] | Private Warrants [Member] | Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | $ / shares | 7.87 | |
Warrants [Member] | Private Warrants [Member] | Expected Life [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants term | 4 years 4 months 24 days |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and Equipment, Net [Abstract] | |||
Property and equipment | $ 12,783 | $ 5,228 | |
Less: Accumulated depreciation | (3,875) | (3,232) | |
Property and equipment, net | 8,908 | 1,996 | |
Depreciation and amortization expense | 1,041 | 894 | $ 780 |
Disposals of Property and Equipment [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 468 | ||
Less: Accumulated depreciation | (398) | ||
Disposals | 70 | ||
Laboratory and Production Equipment [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 7,465 | 4,245 | |
Computer Equipment [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 637 | 765 | |
Software [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 156 | 136 | |
Furniture and Fixtures [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 125 | 47 | |
Leasehold Improvements [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | 790 | 0 | |
Construction in Process [Member] | |||
Property and Equipment, Net [Abstract] | |||
Property and equipment | $ 3,610 | $ 35 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Expenses and Other Current Liabilities [Abstract] | ||
Employee compensation | $ 2,680 | $ 511 |
Contracted services | 2,606 | 399 |
Business acquisition costs and contingencies | 1,331 | 0 |
Legal fees | 636 | 447 |
Other | 23 | 68 |
Total accrued expenses and other current liabilities | $ 7,276 | $ 1,425 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
NOTES PAYABLE [Abstract] | ||||
Loan proceeds received | $ 1,749 | $ 0 | $ 1,749 | $ 0 |
LEASES, Lease Terms (Details)
LEASES, Lease Terms (Details) | Dec. 31, 2021 |
Minimum [Member] | |
Operating Lease, Description [Abstract] | |
Lease term | 1 year |
Renewal term | 1 year |
Maximum [Member] | |
Operating Lease, Description [Abstract] | |
Lease term | 10 years |
Renewal term | 10 years |
LEASES, Lease-Related Costs (De
LEASES, Lease-Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | |
LEASES [Abstract] | ||||
Finance lease | $ 0 | |||
Lease-Related Costs [Abstract] | ||||
Operating lease cost | $ 240 | $ 0 | $ 0 | 630 |
Short-term lease cost | 133 | 127 | 122 | 524 |
Variable lease cost | 21 | 0 | 0 | 63 |
Total lease cost | $ 394 | $ 127 | $ 122 | $ 1,217 |
LEASES, Other Information Relat
LEASES, Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Assets and Liabilities [Abstract] | |||
Operating lease right-of-use assets | $ 6,973 | $ 6,443 | $ 0 |
Short-term operating lease liabilities | 859 | 609 | 0 |
Operating lease liabilities | $ 7,219 | $ 6,842 | $ 0 |
Weighted Average Remaining Term and Discount Rate [Abstract] | |||
Weighted-average remaining lease term | 5 years 10 months 24 days | 6 years 2 months 12 days | |
Weighted-average discount rate | 7.00% | 7.00% | |
Cash Flow and Supplemental Noncash Information [Abstract] | |||
Operating cash paid to settle operating lease liabilities | $ 293 | ||
Right-of-use assets obtained in exchange for lease liabilities | $ 7,388 |
LEASES, Future Minimum Lease Pa
LEASES, Future Minimum Lease Payments Under Non-Cancellable Leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Future Minimum Lease Payments [Abstract] | |
2022 | $ 1,373 |
2023 | 1,650 |
2024 | 1,694 |
2025 | 1,739 |
2026 | 1,754 |
Thereafter | 1,647 |
Total undiscounted lease payments | 9,857 |
Less: Imputed interest | 1,779 |
Lease liabilities | 8,078 |
New Haven, Connecticut [Member] | |
Future Minimum Lease Payments [Abstract] | |
Total undiscounted lease payments | 25,688 |
Lease liabilities | $ 35,545 |
LEASES, Rent Expense Prior to A
LEASES, Rent Expense Prior to Adoption of Topic 842 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES [Abstract] | ||
Rent expense | $ 483 | $ 560 |
CONVERTIBLE PREFERRED STOCK (De
CONVERTIBLE PREFERRED STOCK (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)VoteSeries$ / sharesshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
CONVERTIBLE PREFERRED STOCK [Abstract] | ||||
Number of issued series of convertible preferred stock | Series | 5 | |||
Convertible Preferred Stock [Abstract] | ||||
Shares authorized (in shares) | 92,078,549 | 0 | ||
Shares issued (in shares) | 90,789,268 | 0 | ||
Shares outstanding (in shares) | 90,789,268 | 0 | 84,201,570 | 80,810,340 |
Net carrying value | $ | $ 195,814 | $ 0 | $ 160,555 | $ 142,429 |
Dividends [Abstract] | ||||
Dividend rate, percentage | 8.00% | |||
Conversion [Abstract] | ||||
Aggregate gross proceeds from initial public offering of common stock | $ | $ 80,000 | |||
Minimum [Member] | ||||
Conversion [Abstract] | ||||
Conversion price multiplier | 3 | |||
Series A [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2013 | |||
Issuance price per share (in dollars per share) | $ / shares | $ 0.04 | |||
Shares authorized (in shares) | 25,000,000 | |||
Shares issued (in shares) | 25,000,000 | |||
Shares outstanding (in shares) | 25,000,000 | |||
Total proceeds or exchange value | $ | $ 1,000 | |||
Issuance costs | $ | 0 | |||
Net carrying value | $ | $ 1,000 | |||
Initial liquidation price per share (in dollars per share) | $ / shares | $ 0.80 | |||
Voting Rights [Abstract] | ||||
Number of votes per share | Vote | 10 | |||
Conversion [Abstract] | ||||
Conversion ratio | 1 | |||
Series B [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2015 | |||
Issuance price per share (in dollars per share) | $ / shares | $ 0.80 | |||
Shares authorized (in shares) | 31,250,000 | |||
Shares issued (in shares) | 31,250,000 | |||
Shares outstanding (in shares) | 31,250,000 | |||
Total proceeds or exchange value | $ | $ 25,000 | |||
Issuance costs | $ | 0 | |||
Net carrying value | $ | $ 25,000 | |||
Initial liquidation price per share (in dollars per share) | $ / shares | $ 0.80 | |||
Voting Rights [Abstract] | ||||
Number of votes per share | Vote | 1 | |||
Conversion [Abstract] | ||||
Conversion ratio | 1 | |||
Series C [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Issuance price per share (in dollars per share) | $ / shares | $ 4.61 | |||
Shares authorized (in shares) | 8,164,323 | |||
Shares issued (in shares) | 8,164,323 | |||
Shares outstanding (in shares) | 8,164,323 | |||
Total proceeds or exchange value | $ | $ 37,638 | |||
Issuance costs | $ | 328 | |||
Net carrying value | $ | $ 37,310 | |||
Initial liquidation price per share (in dollars per share) | $ / shares | $ 4.61 | |||
Voting Rights [Abstract] | ||||
Number of votes per share | Vote | 1 | |||
Conversion [Abstract] | ||||
Conversion ratio | 1 | |||
Series C [Member] | Minimum [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2015 | |||
Series C [Member] | Maximum [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2016 | |||
Series D [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2017 | |||
Issuance price per share (in dollars per share) | $ / shares | $ 4.71 | |||
Shares authorized (in shares) | 12,738,853 | |||
Shares issued (in shares) | 12,738,853 | |||
Shares outstanding (in shares) | 12,738,853 | |||
Total proceeds or exchange value | $ | $ 60,000 | |||
Issuance costs | $ | 414 | |||
Net carrying value | $ | $ 59,586 | |||
Initial liquidation price per share (in dollars per share) | $ / shares | $ 4.71 | |||
Voting Rights [Abstract] | ||||
Number of votes per share | Vote | 1 | |||
Conversion [Abstract] | ||||
Conversion ratio | 1 | |||
Conversion price per share (in dollars per share) | $ / shares | $ 4.71 | |||
Series E [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Issuance price per share (in dollars per share) | $ / shares | $ 5.36 | |||
Shares authorized (in shares) | 14,925,373 | |||
Shares issued (in shares) | 13,636,092 | |||
Shares outstanding (in shares) | 13,636,092 | |||
Total proceeds or exchange value | $ | $ 73,089 | |||
Issuance costs | $ | 171 | |||
Net carrying value | $ | $ 72,918 | |||
Initial liquidation price per share (in dollars per share) | $ / shares | $ 5.36 | |||
Voting Rights [Abstract] | ||||
Number of votes per share | Vote | 1 | |||
Conversion [Abstract] | ||||
Conversion ratio | 1 | |||
Series E [Member] | Minimum [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2018 | |||
Series E [Member] | Maximum [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Year of class issuance | 2020 | |||
Class A Common Stock [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Exchange Ratio | 0.7975 | |||
Class B Common Stock [Member] | ||||
Convertible Preferred Stock [Abstract] | ||||
Exchange Ratio | 0.7975 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) (Details) | Dec. 31, 2021Vote$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 0 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common Stock [Abstract] | ||
Common stock, shares authorized (in shares) | 600,000,000 | 90,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock, shares outstanding (in shares) | 118,025,410 | 5,378,287 |
Number of votes per share | Vote | 1 | |
Common Class B [Member] | ||
Common Stock [Abstract] | ||
Common stock, shares authorized (in shares) | 27,000,000 | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock, shares outstanding (in shares) | 19,937,500 | 0 |
Number of votes per share | Vote | 20 |
EQUITY INCENTIVE PLAN, Stock Op
EQUITY INCENTIVE PLAN, Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value [Abstract] | |||
Proceeds from exercise of stock options | $ 5,618 | $ 63 | $ 116 |
2021 Plan [Member] | |||
Stock Option Activity [Abstract] | |||
Shares available for issuance (in shares) | 11,891,127 | ||
2013 and 2021 Plans [Member] | |||
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value [Abstract] | |||
Proceeds from exercise of stock options | $ 5,618 | 63 | 116 |
Intrinsic value of stock options exercised | $ 17,206 | $ 323 | $ 554 |
Weighted-average grant date fair value of options granted (in dollars per share) | $ 5.25 | $ 1.43 | $ 1.57 |
Stock Options [Member] | |||
Stock Option Activity [Abstract] | |||
Stock-based compensation expense | $ 6,059 | ||
Stock Options [Member] | 2013 and 2021 Plans [Member] | |||
Number of Options [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 7,369,541 | ||
Granted (in shares) | 3,514,510 | ||
Exercised (in shares) | (2,661,252) | ||
Forfeited (in shares) | (495,827) | ||
Outstanding, ending balance (in shares) | 7,726,972 | 7,369,541 | |
Options exercisable (in shares) | 4,023,711 | ||
Vested and expected to vest (in shares) | 7,410,522 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ 2.37 | ||
Granted (in dollars per share) | 8.89 | ||
Exercised (in dollars per share) | 2.11 | ||
Forfeited (in dollars per share) | 6.84 | ||
Outstanding, ending balance (in dollars per share) | 5.14 | $ 2.37 | |
Options exercisable (in dollars per share) | 2.83 | ||
Vested and expected to vest (in dollars per share) | $ 5.03 | ||
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value [Abstract] | |||
Weighted average remaining contractual term, outstanding | 7 years 6 months 29 days | 6 years 9 months 7 days | |
Weighted average remaining contractual term, options exercisable | 6 years 2 months 4 days | ||
Weighted average remaining contractual term, vested and expected to vest | 7 years 6 months 3 days | ||
Aggregate intrinsic value, outstanding, beginning balance | $ 4,094 | ||
Aggregate intrinsic value, outstanding, ending balance | 24,511 | $ 4,094 | |
Aggregate intrinsic value, options exercisable | 20,499 | ||
Aggregate intrinsic value, vested and expected to vest | 24,169 | ||
Stock Options Subject to Performance Condition Related to Business Combination [Member] | |||
Stock Option Activity [Abstract] | |||
Stock-based compensation expense | 3,080 | ||
Stock Options Subject to Performance Condition Related to AGBT Conference [Member] | |||
Stock Option Activity [Abstract] | |||
Stock-based compensation expense | $ 295 | ||
Number of Options [Roll Forward] | |||
Granted (in shares) | 59,811 | 478,498 | |
Stock Options Subject to Performance Condition Related to Completion of Financing Event [Member] | |||
Stock Option Activity [Abstract] | |||
Stock-based compensation expense | $ 463 | ||
Number of Options [Roll Forward] | |||
Granted (in shares) | 205,000 |
EQUITY INCENTIVE PLAN, Assumpti
EQUITY INCENTIVE PLAN, Assumptions Used to Value Option Grants (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employees [Member] | |||
Employees and Nonemployees [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility | 70.00% | ||
Employees [Member] | Minimum [Member] | |||
Employees and Nonemployees [Abstract] | |||
Risk-free interest rate | 0.90% | 1.40% | |
Expected term | 5 years 6 months | 5 years | |
Expected volatility | 54.00% | ||
Employees [Member] | Maximum [Member] | |||
Employees and Nonemployees [Abstract] | |||
Risk-free interest rate | 1.40% | 1.90% | |
Expected term | 6 years 3 months 18 days | 6 years 2 months 12 days | |
Expected volatility | 70.00% | ||
Nonemployees [Member] | |||
Employees and Nonemployees [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility | 70.00% | 70.00% | |
Nonemployees [Member] | Minimum [Member] | |||
Employees and Nonemployees [Abstract] | |||
Risk-free interest rate | 0.30% | 1.40% | |
Expected term | 5 years | 4 years | |
Nonemployees [Member] | Maximum [Member] | |||
Employees and Nonemployees [Abstract] | |||
Risk-free interest rate | 0.60% | 1.90% | |
Expected term | 6 years | 10 years |
EQUITY INCENTIVE PLAN, Restrict
EQUITY INCENTIVE PLAN, Restricted Stock Unit Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Director$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019shares | |
RSU Awards [Member] | 2013 and 2021 Plans [Member] | |||
Restricted Stock Unit Activity [Abstract] | |||
Number of members of board of directors receiving grant of RSU award | Director | 2 | ||
Stock-based compensation expense | $ | $ 18,859 | ||
Number of Shares Underlying RSUs [Roll Forward] | |||
Outstanding non-vested RSUs, beginning balance (in shares) | 0 | ||
Granted (in shares) | 4,861,315 | 0 | 0 |
Vested (in shares) | (274,343) | ||
Forfeited (in shares) | 0 | ||
Outstanding non-vested RSUs, ending balance (in shares) | 4,586,972 | 0 | |
Weighted Average Grant-Date Fair Value [Abstract] | |||
Outstanding non-vested RSUs, beginning balance (in dollars per share) | $ / shares | $ 0 | ||
Granted (in dollars per share) | $ / shares | 8.03 | ||
Vested (in dollars per share) | $ / shares | 8.53 | ||
Forfeited (in dollars per share) | $ / shares | 0 | ||
Outstanding non-vested RSUs, ending balance (in dollars per share) | $ / shares | $ 8 | $ 0 | |
RSU Awards Subject to Service and Performance Conditions [Member] | Former Chief Executive Officer [Member] | |||
Number of Shares Underlying RSUs [Roll Forward] | |||
Granted (in shares) | 1,703,460 | ||
RSU Awards Subject to Service and Performance Conditions [Member] | General Counsel [Member] | |||
Number of Shares Underlying RSUs [Roll Forward] | |||
Granted (in shares) | 170,346 | ||
RSU Awards Subject to Service and/or Performance Condition [Member] | Interim Executive Chairman and Two Members of Board of Directors [Member] | |||
Number of Shares Underlying RSUs [Roll Forward] | |||
Granted (in shares) | 1,800,000 | ||
RSU Awards Subject to Service, Market and Performance Conditions [Member] | Former Chief Executive Officer [Member] | |||
Number of Shares Underlying RSUs [Roll Forward] | |||
Granted (in shares) | 453,777 | ||
RSU Awards Subject to Service, Market and Performance Conditions [Member] | 2013 and 2021 Plans [Member] | |||
Restricted Stock Unit Activity [Abstract] | |||
Stock-based compensation expense | $ | $ 18,587 |
EQUITY INCENTIVE PLAN, Stock-Ba
EQUITY INCENTIVE PLAN, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 24,918 | $ 1,924 | $ 2,715 |
Total unrecognized stock-based compensation expense | $ 34,058 | ||
Remaining weighted average vesting period | 2 years 1 month 6 days | ||
Research and Development [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 5,718 | 1,290 | 2,163 |
General and Administrative [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 18,365 | 324 | 354 |
Sales and Marketing [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 835 | $ 310 | $ 198 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator [Abstract] | |||
Net loss | $ (94,989) | $ (36,613) | $ (35,792) |
Numerator for basic EPS - loss attributable to common stockholders | (94,989) | (36,613) | (35,792) |
Numerator for diluted EPS - loss attributable to common stockholders | $ (94,989) | $ (36,613) | $ (35,792) |
Denominator [Abstract] | |||
Common stock (in shares) | 79,578,540 | 5,355,463 | 5,146,977 |
Denominator for basic EPS - weighted-average common stock (in shares) | 79,578,540 | 5,355,463 | 5,146,977 |
Denominator for diluted EPS - weighted-average common stock (in shares) | 79,578,540 | 5,355,463 | 5,146,977 |
Basic net loss per share (in dollars per share) | $ (1.19) | $ (6.84) | $ (6.95) |
Diluted net loss per share (in dollars per share) | $ (1.19) | $ (6.84) | $ (6.95) |
Net Loss per Share [Abstract] | |||
Anti-dilutive common equivalent shares (in shares) | 16,282,263 | 98,158,809 | 92,091,754 |
Outstanding Convertible Preferred Stock (Series A through E) [Member] | |||
Net Loss per Share [Abstract] | |||
Anti-dilutive common equivalent shares (in shares) | 0 | 90,789,268 | 84,201,570 |
Outstanding Options to Purchase Common Stock [Member] | |||
Net Loss per Share [Abstract] | |||
Anti-dilutive common equivalent shares (in shares) | 7,726,972 | 7,369,541 | 7,890,184 |
Outstanding Restricted Stock Units [Member] | |||
Net Loss per Share [Abstract] | |||
Anti-dilutive common equivalent shares (in shares) | 4,586,972 | 0 | 0 |
Outstanding Warrants [Member] | |||
Net Loss per Share [Abstract] | |||
Anti-dilutive common equivalent shares (in shares) | 3,968,319 | 0 | 0 |
WARRANT LIABILITIES (Details)
WARRANT LIABILITIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 10, 2021 | |
Warrants [Abstract] | ||||
Fair value of warrant liabilities | $ 7,239 | $ 0 | $ 11,618 | |
Change in fair value of warrant liabilities | $ 4,379 | $ 0 | $ 0 | |
Public Warrants [Member] | ||||
Warrants [Abstract] | ||||
Warrants outstanding (in shares) | 3,833,319 | |||
Number of shares to be issued upon exercise of warrant (in shares) | 1 | |||
Exercise price of warrant (in dollars per share) | $ 11.50 | |||
Warrant redemption price (in dollars per share) | $ 0.01 | |||
Notice period to redeem warrants | 30 days | |||
Share price (in dollars per share) | $ 18 | |||
Threshold trading days | 20 days | |||
Threshold consecutive trading days | 30 days | |||
Period prior to notice of redemption | 3 days | |||
Trading day period to calculate fair market value over exercise price of warrants | 10 days | |||
Beneficial ownership percentage | 50.00% | |||
Warrants exercised (in shares) | 0 | |||
Warrants redeemed (in shares) | 0 | |||
Private Warrants [Member] | ||||
Warrants [Abstract] | ||||
Warrants outstanding (in shares) | 135,000 | |||
Warrant redemption price (in dollars per share) | $ 0.01 | |||
Limitation period to transfer, assign or sell warrants | 30 days | |||
Warrants exercised (in shares) | 0 | |||
Warrants redeemed (in shares) | 0 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit | 7.00% | 6.70% | 6.50% |
Federal research and development credit | 2.80% | 3.00% | 2.00% |
Stock-based compensation expense | 1.60% | (0.70%) | (0.90%) |
Other | 0.60% | (0.10%) | 0.40% |
Valuation allowance | (33.00%) | (29.90%) | (29.00%) |
Effective tax rate | 0.00% | 0.00% | 0.00% |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Tax Assets [Abstract] | |||
Net operating loss carryforwards | $ 63,819 | $ 42,589 | |
Tax credit carryforwards | 10,203 | 7,178 | |
Stock-based compensation expense | 6,673 | 1,586 | |
Operating lease liabilities | 2,184 | 0 | |
Other | 2,218 | 182 | |
Total deferred tax assets | 85,097 | 51,535 | |
Deferred Tax Liabilities [Abstract] | |||
Operating lease right-of-use assets | (2,093) | 0 | |
Fixed assets | (245) | (161) | |
Other | (15) | 0 | |
Total deferred tax liabilities | (2,353) | (161) | |
Net deferred tax assets | 82,744 | 51,374 | |
Valuation allowance | (82,744) | (51,374) | $ (40,441) |
Net deferred tax assets (liabilities) | 0 | 0 | |
Increase in valuation allowance | $ 31,370 | $ 10,933 | $ 10,352 |
INCOME TAXES, Tax Net Operating
INCOME TAXES, Tax Net Operating Loss Carryforwards and Tax Credit Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Prepaid Expenses and Other Current Assets [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Research and development tax credit receivables | 872 | 550 | |
Research and Development Expenses [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Net benefit from exchange of research and development tax credit carryforwards | $ 872 | $ 182 | $ 368 |
Connecticut [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Percentage of research and development tax credit carryforwards exchanged for cash | 65.00% | ||
Research and Development [Member] | Federal [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Tax credit carryforward | $ 8,211 | ||
Research and Development [Member] | Federal [Member] | Minimum [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Expiration date | Dec. 31, 2033 | ||
Research and Development [Member] | Connecticut [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Tax credit carryforward | $ 2,477 | ||
Other Credits [Member] | Connecticut [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Tax credit carryforward | $ 53 | ||
Other Credits [Member] | Connecticut [Member] | Minimum [Member] | |||
Tax Credit Carryforward [Abstract] | |||
Expiration date | Dec. 31, 2022 | ||
Federal [Member] | Pre-2018 [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Tax net operating loss carryforward | $ 65,494 | ||
Federal [Member] | Pre-2018 [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Expiration date | Dec. 31, 2033 | ||
Federal [Member] | Post -2017 [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Tax net operating loss carryforward | $ 171,615 | ||
State [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Tax net operating loss carryforward | $ 239,013 | ||
State [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Expiration date | Dec. 31, 2033 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Period after end of month when related party balances are paid or received | 30 days | ||
Related Party [Member] | Leasing of Office and Laboratory Space [Member] | |||
Related Party Transactions [Abstract] | |||
Payments to related party | $ 322 | $ 322 | $ 322 |
4C [Member] | Leasing of Office and Laboratory Space [Member] | |||
Related Party Transactions [Abstract] | |||
Payments to related party | 148 | 155 | 224 |
4C [Member] | Prefunding of Acquisition of Certain Shared Capital Assets [Member] | Other Assets [Member] | |||
Related Party Transactions [Abstract] | |||
Payments to related party | 0 | 738 | |
4C [Member] | Monthly Services Under Amended and Restated Technology Services Agreement [Member] | |||
Related Party Transactions [Abstract] | |||
Related party expenses | 2,009 | 1,516 | $ 2,214 |
4C [Member] | Monthly Services Under Amended and Restated Technology Services Agreement [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Related Party Transactions [Abstract] | |||
Due from related parties | 0 | 13 | |
4C [Member] | Monthly Services Under Amended and Restated Technology Services Agreement [Member] | Accounts Payable [Member] | |||
Related Party Transactions [Abstract] | |||
Due from related parties | 128 | 0 | |
4C and Other Companies Controlled by Rothberg Family [Member] | Termination of ARTSA [Member] | |||
Related Party Transactions [Abstract] | |||
Related party expenses | 700 | ||
Other Companies Controlled by Rothberg Family [Member] | Payments Made to Third Parties on Behalf of the Company Under ARTSA [Member] | Accounts Payable [Member] | |||
Related Party Transactions [Abstract] | |||
Due to related parties | 17 | 28 | |
Other Companies Controlled by Rothberg Family [Member] | Payments Made to Third Parties on Behalf of Other Entities Under ARTSA [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Related Party Transactions [Abstract] | |||
Due from related parties | 15 | 69 | |
PEI [Member] | Binders Collaboration [Member] | |||
Related Party Transactions [Abstract] | |||
Payments to related party | 0 | ||
President and Chief Operating Officer and Other Company Employees [Member] | Promissory Notes [Member] | |||
Related Party Transactions [Abstract] | |||
Due from related parties | 0 | $ 150 | |
Dr. Rothberg [Member] | Executive Chairman Agreement [Member] | |||
Related Party Transactions [Abstract] | |||
Payments to related party | 139 | ||
Annual amount of transaction with related party | $ 400 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Licenses Related to Certain Intellectual Property [Abstract] | |||
Annual minimum fixed payments | $ 220 | ||
Other Commitments [Abstract] | |||
Employer matching contributions to 401(k) plan | $ 0 | $ 0 | $ 0 |